[Congressional Record (Bound Edition), Volume 152 (2006), Part 2]
[Senate]
[Pages 2127-2128]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            PORT SALE REVIEW

  Mr. WARNER. Mr. President, we awakened this morning with the news, 
confirmed, that major steps are going forward in connection with this 
very important issue of the ports. I use that generic term, ``the 
ports,'' because it relates to a transaction that has been thus far 
approved by the administration whereby a company, owned by the United 
Arab Emirates, will be engaging in terminal operations in a half dozen 
or so of our terminals here in the U.S., having acquired those assets 
from a British firm which has been conducting those operations for some 
time.
  I am very pleased that the leadership of the Senate--notably my 
distinguished majority leader, with whom I have been in conversation in 
the past 72 hours--is taking a leadership role. I hope the other side 
shortly will speak to their role in bringing into focus the importance 
of this issue and facilitating the several committees of the Senate to 
have hearings, briefings, or otherwise acquire the facts.
  Last week, I believed it was imperative that a certain amount of 
facts get into the public domain as quickly as possible. On short 
notice, I held a briefing--in contrast to a full hearing--a briefing by 
the Senate Armed Services Committee and the principals, basically the 
Deputy Secretaries of the various departments and agencies which have 
the primary responsibility within the group of 12 of the organization 
known as CFIUS, or the Committee for Foreign Investment in the United 
States.
  The manner in which the President, acting upon the recommendation of 
the CFIUS group, indicated that he and the administration approved of 
this transaction will be examined in the context of these committee 
hearings and also the intelligence that was a key factor because 
everyone is constantly concerned about the security of this Nation as 
it relates to the war on terrorism and most specifically the port 
security situation. Very legitimate concerns, very legitimate 
arguments, very legitimate positions, in some ways, have been stated at 
all levels of our society. I believe it is important, before people 
become rigid in their thinking, that they at least possess all of the 
basic facts.
  My remarks today will not address the past. I am concentrating on 
looking forward, as I have spent a great deal of time in the past week 
on this situation. This particular contract, this one commercial 
situation, is of importance to many parties and of importance to this 
country, but it has ramifications across our global economy. Our Nation 
is daily dealing in a one-market economic market. Really it is a one-
world market of diplomacy among the free nations as well. Indeed, it is 
a one-world market in terms of our individual and collective 
securities, particularly in the war on terrorism.
  It has been fascinating to me, although I have visited the UAE in 
times past, to focus once again on this pivotal and rapidly growing 
nation, a nation of several emirates which have

[[Page 2128]]

drawn together, a nation which is becoming one of the major financial 
markets in the world and major investors in the world.
  According to the United States Trade Representative, the United 
States and UAE engaged in $4.6 billion worth of trade in 2003--and that 
figure has doubled since then according to the Financial Times. More 
than 500 U.S. companies have regional headquarters in the Emirates. Oil 
and Gas are leading industries in the UAE, as the country holds 
approximately 8 percent of the world's crude oil reserves and has the 
5th largest natural gas reserves. In addition, at the end of 2005 
Emirates purchased 42 Boeing 777 aircraft for approximately $9.7 
billion. This represents some of the vast investments by UAE in America 
and American investment in the UAE.
  On Saturday afternoon I went to the Department of Defense. I went 
down to the Joint Staff, where I met with the key officers who are 
dealing with a variety of issues relating to this and other matters to 
verify that over 500 U.S. warships docked--and I use the word 
``docked'' because they went right to the piers. Our sailors went off; 
others came on to work with the ships. They didn't anchor out in the 
harbor and send in the lighters and the other transportation. It is the 
only port in that region in which we can dock our major supercarriers.
  In addition, there are airfields that are supporting the ongoing 
operations we have in Afghanistan and Iraq.
  It is important to look at security concerns. I personally went down 
and received the briefings--I hope others do--on the intelligence 
assessment that went into the first review of CFIUS negotiations. The 
facts speak for themselves. Ambassador Negroponte will be before the 
Armed Services Committee, and I will propound questions on the 
procedures and his own assessment. Hopefully that can be put into the 
public domain.
  As we embark on this new voluntary 45-day investigative period--and I 
have some association with the company in this. They asked to come to 
see me, having followed with great interest the hearings at my 
committee, over which I presided, in which I, in a very evenhanded way, 
I believe, we began to address these issues. I spent several hours with 
them. They were going to file here, within the next few days, the key 
documents with the Treasury Department which will trigger the 45-day 
time investigation.
  I believe our leadership should focus on that time period. It ends up 
on, basically, April 15, at the very time we proceed on another recess. 
They, the company, hope to conclude by May 1. I am sure the leadership 
of both sides, working with the administration, will try to find some 
way so Congress can stay abreast of the proceedings, rather than 
receive the entire record and decision making of CFIUS on the eve of 
going on another recess period.
  Also, we have to be extremely careful in this 45-day process because 
we will be setting precedents as to how our Nation proceeds under the 
CFIUS process. We have to proceed with a certain amount of 
confidentiality because when other free enterprises come to invest in 
the U.S., they will go before CFIUS for review. Thousands of these 
cases have been handled. We have been doing it since, roughly, 1988, 
and even going back before that under the Defense Production Act to the 
1950s. While it is important that we know more of the facts; we have to 
do it in a way to preserve a certain degree of confidentiality in the 
business world. Otherwise, there could very well be a chilling effect 
on foreign investment in the U.S. We don't want companies to say we 
can't come to the United States because in the course of trying to do 
our business--which is a private transaction so often between two 
companies--our proprietary information could be compromised.
  This is going to pose a challenge.
  My last point--I am gravely concerned about the image of America. I 
have checked into the press coverage of this in the Arab world, and I 
regret to say that it is extremely disturbing. We cannot, in the course 
of our responsible work in the Congress and the continuing responsible 
work of the administration, allow our actions to be viewed by others as 
being biased. Congress must look at this not only as a business deal 
between two companies but also consider the global diplomatic, 
economic, and military security issues associated with this 
acquisition.
  It is imperative we not send a mixed message to--or impose a double 
standard on--our allies by expecting assistance in the global war on 
terror and an open door policy toward investing in their country while 
sending a message that they are not welcome to invest in ours. We have 
to show that, yes, we are concerned about security, but in doing so and 
working through this process, we should not be perceived as treating 
elements of the Arab world and governments of the Arab world as second-
class citizens. It is imperative that at the conclusion of this--
however it comes out, and I am hopeful it will come out positively--the 
U.S. is viewed by the Arab world as a reliable working partner and that 
recognizes the importance, particularly in the war on terrorism, of 
having the support of a number of Arab nations to protect our interests 
and those of other nations in the free world.
  I yield the floor.
  The PRESIDENT pro tempore. The Senator from Tennessee is recognized.

                          ____________________