Senators Have New Ports Deal Objection

Senate Democrats opened a new line of attack Tuesday against the controversial Dubai ports deal, challenging the head of the United Arab Emirates company to explain the nation’s support of a boycott against Israel.

But President Bush showed no signs of backing down, voicing renewed support for the deal even as a new poll showed 7 in 10 Americans opposed it. Bush also hit an all-time low approval rating, with 1 in 3 Americans saying he’s doing a good job.

Dubai Ports World is seeking to take over terminal operations at several U.S. ports. The company has agreed to a 45-day security review, but that has done little to quell the controversy.

At a Senate Commerce Committee hearing, the company’s chief operating officer, Edward Bilkey, confirmed that the same UAE-owned holding company that owns Dubai Ports World also owns a Dubai customs office that enforces the nation’s participation in an Arab League boycott of products made in Israel.

Bilkey insisted that would have nothing to do with Dubai Ports World operations in the United States or elsewhere.

“We serve everyone,” Bilkey said. “The largest shipping company in Israel is one of our clients.”

But Democratic senators Bill Nelson of Florida and Barbara Boxer of California questioned whether the shared parent company would influence Dubai Ports World policies.

“You can’t just sit here and divorce yourself from the fact that they set up a holding company.... That does nothing but move forward a boycott of Israel,” Boxer said.

The committee’s chairman, Sen. Ted Stevens (R-Alaska), who spoke favorably of the deal, asked Bilkey at the hearing’s close, “Any Jewish members of your board?”

When Bilkey said no, Stevens said, “I wouldn’t expect so.”

Dubai Ports World issued a formal response Tuesday night from Senior Vice President Michael Moore about the company’s relations with Israel.

“DP World does not discriminate and has not been charged with violating any anti-boycott statutes,” Moore said in a statement. “DP World, as a global port management company, facilitates trade with many nations. Our company has long-standing business relationships with Israeli companies among our diverse international clients.”

The United States has criticized the boycott against Israel as an impediment to free trade.

Earlier Tuesday, Bush spoke in favor of the deal. But a new CBS News poll suggests he is paying a political price, with his approval rating now at 34%. That’s down from 42% last month.

At the hearing, senators questioned U.S. officials on why they didn’t know that the Coast Guard had warned about “major intelligence gaps” in the ports deal.

The Coast Guard acknowledged Tuesday that even after signing off on the deal in December, it continued investigating Dubai Ports World operations because of ongoing concerns about the transaction.