Bush Boosts Efforts to Quell Port Outcry

Just hours after a state-owned Arab company announced a delay in its takeover of operations at port terminals in six U.S. cities, the Bush administration on Friday intensified its efforts to calm congressional jitters over the business deal.

Members of Congress welcomed the transaction’s delay, announced late Thursday by the Dubai firm. But the lawmakers remained skeptical of White House statements that the takeover would pose no risk to national security, and they vowed to press for a more thorough review.

“The idea that we’re just going to hold off until we all quiet down is not satisfactory,” Rep. Mark Foley (R-Fla.) said, adding that he wanted administration officials to more fully explain the level of scrutiny they gave to the deal.

“I won’t be OK until I find out what they actually did investigate,” Foley said.

Rep. Peter T. King (R-N.Y.), chairman of the House Homeland Security Committee, said that additional briefings by White House officials on the transaction and the administration’s approval of it were unlikely to subdue congressional criticism.

In an interview on CNN, King said, “The more I learned about the deal and the more I learned about the process [for its approval], the more concerned I became, because there’s been no full investigation yet.”

The remarks by Foley and King demonstrated that the White House faced a daunting task in allaying concerns about the deal among Bush’s usual Republican allies and that the prospect still loomed for a showdown with Congress over the dispute.

A bipartisan group of lawmakers have threatened to introduce legislation to block the deal involving the company in Dubai -- a member of the United Arab Emirates -- unless they are convinced it would not jeopardize U.S. security interests.

Some lawmakers have expressed concerns about the Middle Eastern country’s record on fighting terrorism.

Bush has threatened to veto any legislation that would scuttle the deal. The administration worries that if Congress kills it, it could damage U.S. relations with a country that it says has become a valuable ally in the war on terrorism.

Under the deal, Dubai Ports World is acquiring a British firm that has managed port terminals in New York; Newark, N.J.; Philadelphia; Baltimore; Miami; and New Orleans. In its Thursday announcement, the Dubai company said it would hold off taking control of the U.S. port operations even if its acquisition of the London-based Peninsular & Oriental Steam Navigation Co. is finalized next week.

On Friday, the administration dispatched a team of high-ranking officials from the Homeland Security Department, the Coast Guard and other agencies to try to reassure lawmakers’ staffs that they had thoroughly vetted the deal.

National security advisor Stephen Hadley said Bush believed that as Congress and the public learned more about the issue, they would “come to the same conclusion he has: that this is something that can go forward and not jeopardize the national security of the United States.”

Several lawmakers said they saw no signs of a change in the tide of public opinion.

“Hundreds of ... constituents have called to voice their opposition,” said Preston Hartman, an aide to Sen. Olympia J. Snowe (R-Maine).

King, in comments to The Times, said: “You should walk down the street in New York. I’ve never seen an issue where people are so angry.... The most angry response of all I’m getting is from Republicans.”

Many lawmakers are angry at the administration’s failure to consult them before the deal was approved.

“The way this has all been handled has really shaken my confidence” in the way the deal was vetted, Rep. Frank A. LoBiondo (R-N.J.) said.

A bipartisan group of senators plans to introduce legislation Monday that would require an extended review of the transaction and give Congress the authority to kill it.

King is sponsoring a similar bill in the House.

Despite these proposals, Sen. John W. Warner (R-Va.), chairman of the Senate Armed Services Committee, said Friday that he believed Congress and the White House could avoid a confrontation over the deal.

The Dubai firm’s decision to delay a takeover of the U.S. port operations was “an important step” in achieving that, he said in a statement.

The administration’s approval of the deal is expected to be attacked today in the weekly Democratic radio address, delivered by New Jersey Gov. Jon Corzine.

New Jersey officials filed a lawsuit this week to block Dubai Ports World from taking over the Newark port terminal as part of the deal.

On Friday, the Port Authority of New York and New Jersey filed a suit seeking to terminate its lease with the British company that the Dubai firm is acquiring. The authority supervises operations at the two facilities.

Also, Eller & Company Inc. -- a business partner of Peninsular & Oriental -- expanded its legal assault on the deal, filing a petition to block the sale with the High Court in London.

Eller filed a similar lawsuit last week in a Florida court.

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Times staff writer Ronald D. White in Los Angeles contributed to this report.