[Congressional Record (Bound Edition), Volume 152 (2006), Part 3]
[Senate]
[Pages 3420-3421]
[From the U.S. Government Publishing Office, www.gpo.gov]




                             PORT SECURITY

  Mr. SANTORUM. Mr. President, I rise today to address the Dubai Ports 
World acquisition and the subsequent announcement to transfer operation 
of U.S. port terminals to a U.S. entity. Last week, my colleague from 
New York offered an amendment to S. 2349, the Legislative Transparency 
and Accountability Act of 2006. While the security of our ports is my 
foremost concern, especially as a Senator representing a State where 
one of the ports in question is located, I do not believe the time or 
the vehicle was appropriate for a vote on Senator Schumer's amendment. 
I have been a vocal critic of this transaction for weeks, but when my 
colleague's amendment was offered, Dubai Ports World had already 
resubmitted its application to the Committee on Foreign Investment, 
CFIUS. A second review of the transaction was pending. Furthermore, I 
had signed onto a bipartisan letter with Senator Schumer and eight 
other Members just the week before to the majority and minority 
leaders. In that letter, we expressed our desire to closely examine the 
facts that would be presented, and we retained our right to pursue 
legislative action after the review was completed should the outcome 
prove unsatisfactory.
  Then, just last Friday, DP World announced their decision to transfer 
the U.S. port terminals acquired from Peninsular and Oriental Steam 
Navigation Company to a U.S. entity. While we are still seeking 
clarification of exactly what that means, my hope is that this decision 
will allay our concerns about this particular transaction. I expect a 
thorough review of this proposal by the appropriate agencies, and 
Congress assuredly has the will to act if concerns remain.
  Should the immediate need for action disappear, Congress cannot 
ignore the underlying problems this acquisition has brought to light. 
First, we need to remain diligent in securing ports both domestically 
and abroad. Significant investments at foreign ports are critical. We 
cannot allow hazardous materials or weapons of mass destruction to 
enter our ports in the first place. By then, it could be too late. 
Second, Congress must undertake a comprehensive review of the CFIUS 
process. Chairman Shelby has already begun that process in the Banking 
Committee. I look forward to working with him and my colleagues to 
aggressively execute our oversight authority and expeditiously enact 
any reforms that may be necessary to ensure the safety and economic 
vitality of my State and this great Nation.
  I ask unanimous consent that a copy of the above mentioned letter be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                         United States Senate,

                                    Washington, DC, March 3, 2006.
     Senator William H. Frist,
     U.S. Capitol,
     Washington, DC.
     Senator Harry Reid
     U.S. Capitol,
     Washington, DC.
       Dear Leaders Frist and Reid: As you know, we recently 
     joined together to introduce S. 2333, The Foreign Investment 
     Security Act of 2006, a bill to require a 45-day CFIUS 
     investigation and a Presidential determination regarding the 
     national security implications of Dubai Port World's takeover 
     of Peninsular and Oriental Steamship Navigation Company. This 
     bill stemmed from our joint concern that allowing the 
     takeover of U.S. terminal operations after only a cursory 
     review raised serious national security concerns.
       The President and the companies have now moved voluntarily 
     to provide for such a 45-day investigation, and we are 
     encouraged by that decision. Though some of us remain 
     troubled about how this new review will proceed given the 
     Administration's continued support of the deal, we have 
     decided not to press for a vote on our bill at this time in 
     the hope that this new investigation will be thorough, fair, 
     and independent.

[[Page 3421]]

       Nevertheless, several key components of our legislation 
     have yet to be addressed namely, the notification to Congress 
     and the ability of Congress to disapprove the deal within 
     thirty days if security concerns are not met.
       As a result, we write to ask for your assistance in 
     guaranteeing that:
       (a) the Congress is kept fully informed as the 45-day 
     review progresses, and notified how security concerns are 
     being investigated and addressed;
       (b) the Congress is provided 30 days to review the results 
     of the report including reasoning for the decision to either 
     approve or disapprove of the deal; and
       (c) once this 45-day review period is over, Congress 
     reserves the ability to vote to disapprove the deal if the 
     security concerns have not been adequately addressed.
       We hope you will work with us and with the Administration 
     to ensure that this review is a thorough, effective look at 
     whether this deal truly poses a threat to our national 
     security. If we need to press for a vote on our legislation 
     or to introduce further legislation to achieve the goals 
     outlined above, we hope you will work with us in the coming 
     weeks. The Administration must know that we stand united to 
     examine and review this deal independently, and that Congress 
     must have a role in determining whether it should go forward 
     or be stopped as a result of national security concerns.
           Sincerely,
         Charles E. Schumer, Robert Menendez, Hillary Rodham 
           Clinton, Jack Reed, Frank Lautenberg, Norm Coleman, 
           Olympia Snowe, Susan Collins, Dr. Tom Coburn, M.D., 
           Rick Santorum, Members of Congress.

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