involved in the final assessment.

According to White House spokesman, Scott McClellan, “The intelligence community did assessments to make sure that there was no national security threat.” But intelligence officials now claim that the Community Acquisition Risk Centre known as CARC, overseen by the Office of Intelligence chief, John Negroponte, whose agency was just formed in October 2005, had been asked to begin work on the DPW acquisition as late as November 2005. But CARC’s first director, William Dawson, was only appointed in January 2006. CARC has little to do with counterterrorism activities but is mandated to assess security risks p

As the story unfolds, it is perhaps important to gain some perspective on the underlying facts and historical context of the United Arab Emirates based Dubai Ports World (DPW) since its takeover of London based Peninsular and Oriental Steam Navigation Co. (P&O), before political allegiances and commercial interests totally obscure the main issues at hand. In addition, the capacity of the United States Coast Guard to employ national security processes at U.S. ports of entry has come under much scrutiny, not only since said proposed deal was unveiled to the American people, but as far back as September 11, 2001.

The DPW Company was formed as recently as September 28, 2005. As the result of a merger between Dubai Ports Authority and Dubai Ports International (DPI), two Dubai state-owned facilities, it believed it had a legitimate shot at overtaking P&0. In January 2005, DPI acquired CSX World Terminals. Of note is that U.S. Secretary of Treasury, John Snow, was the CEO of CSX Terminals until January 31, 2003 and was sworn in on February 3, 2003. Secretary Snow has said he has since divested all interest in CSX worth some $72 million, although he continues to receive deferred compensation from CSX reportedly between $5 million to $25 million according to Senator Christopher Dodd (D-CT).

The Committee on Foreign Investments in the U.S. (CFIUS), headed by Secretary Snow, approved the United Arab Emirates taking over port operations of six major U.S. ports in addition to 29 terminal operations on January 16, 2006, having completed an assessment report on December 5, 2005. Among the ports to be included in the deal are Corpus Christi, TX and Beaumont, TX which receive heavy U.S. military equipment shipments including helicopters. U.S. troops also sail on U.S. ships from these two ports. The deal was finalized by DPW’s shareholders on February 13, 2006 after $6.5 billion of the $6.85 billion purchase price was successfully financed by Barclay’s Capital, the investment arm of Barclay’s Bank and Deutsche Bank AG.

CFIUS supposedly went through a 30-day investigatory process in approving the deal, and now acknowledged by Secretary Snow that actually underlings of twelve different U.S. agencies including the Department of Homeland Security and the Department of Defense were responsible for vetting the deal, thereby ruling out national security concerns. However, although we have been given assurances by Secretary of Homeland Security, Michael Chertoff, that the U.S. Coast Guard was involved in the vetting process it is now clearer that they were only peripherally involved in the final assessment.

According to White House spokesman, Scott McClellan, “The intelligence community did assessments to make sure that there was no national security threat.” But intelligence officials now claim that the Community Acquisition Risk Centre known as CARC, overseen by the Office of Intelligence chief, John Negroponte, whose agency was just formed in October 2005, had been asked to begin work on the DPW acquisition as late as November 2005. But CARC’s first director, William Dawson, was only appointed in January 2006. CARC has little to do with counterterrorism activities but is mandated to assess security risks po

recently as September 28, 2005. As the result of a merger between Dubai Ports Authority and Dubai Ports International (DPI), two Dubai state-owned facilities, it believed it had a legitimate shot at overtaking P&0. In January 2005, DPI acquired CSX World Terminals. Of note is that U.S. Secretary of Treasury, John Snow, was the CEO of CSX Terminals until January 31, 2003 and was sworn in on February 3, 2003. Secretary Snow has said he has since divested all interest in CSX worth some $72 million, although he continues to receive deferred compensation from CSX reportedly between $5 million to $25 million according to Senator Christopher Dodd (D-CT).

The Committee on Foreign Investments in the U.S. (CFIUS), headed by Secretary Snow, approved the United Arab Emirates taking over port operations of six major U.S. ports in addition to 29 terminal operations on January 16, 2006, having completed an assessment report on December 5, 2005. Among the ports to be included in the deal are Corpus Christi, TX and Beaumont, TX which receive heavy U.S. military equipment shipments including helicopters. U.S. troops also sail on U.S. ships from these two ports. The deal was finalized by DPW’s shareholders on February 13, 2006 after $6.5 billion of the $6.85 billion purchase price was successfully financed by Barclay’s Capital, the investment arm of Barclay’s Bank and Deutsche Bank AG.

CFIUS supposedly went through a 30-day investigatory process in approving the deal, and now acknowledged by Secretary Snow that actually underlings of twelve different U.S. agencies including the Department of Homeland Security and the Department of Defense were responsible for vetting the deal, thereby ruling out national security concerns. However, although we have been given assurances by Secretary of Homeland Security, Michael Chertoff, that the U.S. Coast Guard was involved in the vetting process it is now clearer that they were only peripherally involved in the final assessment.

According to White House spokesman, Scott McClellan, “The intelligence community did assessments to make sure that there was no national security threat.” But intelligence officials now claim that the Community Acquisition Risk Centre known as CARC, overseen by the Office of Intelligence chief, John Negroponte, whose agency was just formed in October 2005, had been asked to begin work on the DPW acquisition as late as November 2005. But CARC’s first director, William Dawson, was only appointed in January 2006. CARC has little to do with counterterrorism activities but is mandated to assess security risks p

).

The Committee on Foreign Investments in the U.S. (CFIUS), headed by Secretary Snow, approved the United Arab Emirates taking over port operations of six major U.S. ports in addition to 29 terminal operations on January 16, 2006, having completed an assessment report on December 5, 2005. Among the ports to be included in the deal are Corpus Christi, TX and Beaumont, TX which receive heavy U.S. military equipment shipments including helicopters. U.S. troops also sail on U.S. ships from these two ports. The deal was finalized by DPW’s shareholders on February 13, 2006 after $6.5 billion of the $6.85 billion purchase price was successfully financed by Barclay’s Capital, the investment arm of Barclay’s Bank and Deutsche Bank AG.

CFIUS supposedly went through a 30-day investigatory process in approving the deal, and now acknowledged by Secretary Snow that actually underlings of twelve different U.S. agencies including the Department of Homeland Security and the Department of Defense were responsible for vetting the deal, thereby ruling out national security concerns. However, although we have been given assurances by Secretary of Homeland Security, Michael Chertoff, that the U.S. Coast Guard was involved in the vetting process it is now clearer that they were only peripherally involved in the final assessment.

According to White House spokesman, Scott McClellan, “The intelligence community did assessments to make sure that there was no national security threat.” But intelligence officials now claim that the Community Acquisition Risk Centre known as CARC, overseen by the Office of Intelligence chief, John Negroponte, whose agency was just formed in October 2005, had been asked to begin work on the DPW acquisition as late as November 2005. But CARC’s first director, William Dawson, was only appointed in January 2006. CARC has little to do with counterterrorism activities but is mandated to assess security risks p

financed by Barclay’s Capital, the investment arm of Barclay’s Bank and Deutsche Bank AG.

CFIUS supposedly went through a 30-day investigatory process in approving the deal, and now acknowledged by Secretary Snow that actually underlings of twelve different U.S. agencies including the Department of Homeland Security and the Department of Defense were responsible for vetting the deal, thereby ruling out national security concerns. However, although we have been given assurances by Secretary of Homeland Security, Michael Chertoff, that the U.S. Coast Guard was involved in the vetting process it is now clearer that they were only peripherally involved in the final assessment.

According to White House spokesman, Scott McClellan, “The intelligence community did assessments to make sure that there was no national security threat.” But intelligence officials now claim that the Community Acquisition Risk Centre known as CARC, overseen by the Office of Intelligence chief, John Negroponte, whose agency was just formed in October 2005, had been asked to begin work on the DPW acquisition as late as November 2005. But CARC’s first director, William Dawson, was only appointed in January 2006. CARC has little to do with counterterrorism activities but is mandated to assess security risks p

involved in the final assessment.

According to White House spokesman, Scott McClellan, “The intelligence community did assessments to make sure that there was no national security threat.” But intelligence officials now claim that the Community Acquisition Risk Centre known as CARC, overseen by the Office of Intelligence chief, John Negroponte, whose agency was just formed in October 2005, had been asked to begin work on the DPW acquisition as late as November 2005. But CARC’s first director, William Dawson, was only appointed in January 2006. CARC has little to do with counterterrorism activities but is mandated to assess security risks posed by companies doing business with the intelligence community. Thus, all agencies apparently were told that the security issues were vetted and complete when it was CARC which made the security vulnerability assessment.

Prior to CARC’s investigation and vetting of the DPW deal, the U.S. Coast Guard filed an assessment report in December 2005 with CFIUS on port security concerning the DPW deal, which came to light on February 27, 2006 before the Senate Homeland Security and Governmental Affairs Committee, chaired by Senator Susan Collins (R-ME). Senator Collins remarked, “This report suggests there were significant and troubling intelligence gaps.” She was referring to the language included in the report that stated that questions were raised by the Coast Guard that foreign influence, employees and operations made it impossible to assess the threat level by a state-owned Dubai company’s purchase of a firm to manage terminal operations of six U.S. seaports. However, according to testimony by Treasury Secretary Snow in the same hearing, the U.S. Coast Guard report was given to CFIUS after December 5, 2005 when the CFIUS assessment process had already been completed. Therefore, the U.S. Coast Guard’s report was not part of CFIUS’ final determination.

The mixed messages continue and will become unwieldy as time passes, particularly as politics entwines itself into the process. And there is no shortage of discrepancies as concerns the operations of the U.S. Coast Guard with respect to security operations. And testimony of Admiral Thomas H. Gilmour, Assistant Coast Guard Commandant for Marine Safety, Security and Environmental Protection, tried to rebuff any of Senator Collins’ doubts, stating that she was taking that part of the report out of context and that the report, “concludes that DP World’s acquisition of P&O, in and of itself, does not pose a significant threat to U.S. assets in ports.”

The U.S. Coast Guard continues to struggle to ensure security of U.S. ports due to a lack of necessary funding and aged equipment, nonetheless. Although Homeland Security Secretary, Michael Chertoff, has tried to assure the American people that his agency would still see that the U.S. Coast Guard and U.S. Customs and Border Protection oversee port security, they have only been able to do a marginal job, in spite of mandates since September 11, 2001. The U.S. largely remains vulnerable from inadequate security at points of origin, where manifests are the sole system used for checks and balances of cargo containers.

And there has been disingenuousness concerni