II 109th CONGRESS 2d Session S. 2341 IN THE SENATE OF THE UNITED STATES February 28, 2006 Mr. Dorgan introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To prohibit the merger, acquisition, or takeover of Peninsular and Oriental Steam Navigation Company by Dubai Ports World.

1.

Findings

Congress makes the following findings: (1)It is essential for the security of the United States that United States maritime ports be protected against terrorist attacks. (2)Most stevedoring operations at the ports in New York, New Jersey, Philadelphia, Miami, Baltimore, and New Orleans are controlled by a company named P&O Ports, North America (hereafter in this Act referred to as P&O Ports). (3)P&O Ports is the United States subsidiary of a British company named Peninsular and Oriental Steam Navigation Company (hereafter in this Act referred to as P&O Company). (4)A company named Dubai Ports World is seeking to acquire P&O Company. (5)Dubai Ports World is partly owned and controlled by the Government of the United Arab Emirates. (6)While the United Arab Emirates is in some respects an ally of the United States, it has also had recent ties to terrorist activities. (7)Two of the hijackers involved in the events of September 11, 2001, were from the United Arab Emirates. (8)According to the National Commission on Terrorist Attacks Upon the United States (the 9-11 Commission), the banking system of the United Arab Emirates was used to help finance the attacks of September 11, 2001. (9)The United Arab Emirates has also been a way station for the trafficking of nuclear components to state sponsors of terrorism, including Iran and North Korea. (10)In 1988, legislation was enacted adding section 721 to the Defense Production Act of 1950 (50 U.S.C. 2170) (commonly known as the Exon-Florio provision), which authorized the President to investigate the impact of foreign acquisitions of United States companies on national security and to suspend or prohibit acquisitions that might threaten national security. (11)The President has delegated his investigative authority under the Exon-Florio provision to the Committee on Foreign Investment in the United States (CFIUS), which is chaired by the Secretary of the Treasury. (12)CFIUS approved the acquisition of P&O Ports by Dubai Ports World without undertaking the 45-day investigation of proposed transactions that might affect the national security of the United States that is required under the Exon-Florio provision (50 U.S.C. 2071(b)). (13)In response to strong public and congressional opposition to the impending acquisition, Dubai Ports World has requested that CFIUS conduct a 45-day review of the national security implications of the transaction. (14)In view of evidence already on record, it is clear that the proposed acquisition of P&O Ports by Dubai Ports World poses a serious threat to the national security of the United States.

2.

Prohibition on sale of P&O Ports to Dubai Ports World

Notwithstanding any other provision of law and any prior action or decision by or on behalf of the President, the President shall exercise the authority under section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170) to prohibit the merger, acquisition, or takeover of P&O Ports by Dubai Ports World.