WASHINGTON - President Bush had no clue his administration was signing off on a deal to grant control of six American ports to Dubai, the White House said yesterday.
"He learned about it in the last few days," said spokesman Scott McClellan, adding that none of the 12 federal agencies that reviewed the deal balked.
"There was no objection raised by any of the departments during the review process, or any concerns expressed about potential national security threats. And that's why it didn't rise to the presidential level," McClellan said.
Dubai Ports World got cleared to buy the British firm P&O this month after a 23-day review by the Committee on Foreign Investment. Among the ports are Manhattan's cruise ship terminal and Newark's giant containerport.
Before approving the sale, the administration insisted that DP World agree to cooperate with any future U.S. investigations, The Associated Press reported last night. But The AP said documents it obtained showed the administration chose not to impose other, routine restrictions on the deal.
For instance, it said, the administration did not require DP World to keep copies of business records on U.S. soil, where they would be subject to court orders, and did not ask the company to designate an American citizen to accommodate U.S. government requests.
Aides said Bush didn't hear his agencies were okaying the sale until news reports that Sen. Chuck Schumer (D-N.Y.) thought the transfer could be an open door to terrorists.
Aides admitted they should have tried to head off a potential firestorm by briefing key members of Congress to explain that intelligence and counterterrorism officials screened the company and that the United Arab Emirates now plays a role in anti-terror efforts.
McClellan said Dubai lets the U.S. military use its harbors and air space, shares intelligence and has helped fight the finance systems that funded the Sept. 11, 2001, attackers.
"The President's most solemn obligation is the safety and security of the American people," the spokesman insisted.
With the Senate holding a hearing on the deal today, the White House and the company were mounting a full-Congress press to save it.
The White House was reaching out to lawmakers, and sources told The News DP World was hiring high-powered lobbying help, including former Sen. Bob Dole, former Secretary of State Madeleine Albright and former New York Rep. Tom Downey.
But despite all that, the offices of House Speaker Dennis Hastert and Senate Majority Leader Bill Frist still said they will block, or at least slow, the deal.
While admitting they blew it, White House aides also barely contained their fury at Frist for leading the GOP uprising.
But some House Republicans readily returned the rage.
"In regards to selling American ports to the Arab Emirates, not just 'No' but 'Hell no!' " Rep. Sue Myrick (R-N.C.) wrote the White House.
Republicans concerned with winning reelection in November said the White House is politically out of touch.
"They're off their rocker," said one, adding that the GOP rank and file were seizing the opening to separate themselves from the President.
The Bushies are also worried how the pitched port battle is playing with the Arabs. Secretary of State Rice is to visit the United Arab Emirates today.
In Saudi Arabia last night, she said the Dubai deal "serves our security interests and serves the commercial interest as well."
