‘Intelligence gaps’ in ports deal

U.S. Coast Guard officials warned that “many intelligence gaps” prevented them from providing the Bush administration with an accurate assessment of the threat posed by the sale of operation rights at key U.S. ports to a company owned by the United Arab Emirates.

“There were serious concerns raised by a credible source,” said Sen. Susan Collins, Maine Republican and head of the Committee on Homeland Security and Governmental Affairs.

The new information was disclosed at a Senate hearing yesterday with Coast Guard officials investigating the transfer of port operations from the Peninsular & Oriental Steam Navigation Co. (P&O;) to Dubai-based port operator DP World (DPW).

“There are many intelligence gaps, concerning the potential for DPW or P&O; assets to support terrorist operations, that precludes an overall threat assessment of the potential DPW and P&O; Ports merger,” says an internal Coast Guard analysis released by the committee yesterday. “The breadth of the intelligence gaps also infer potential unknown threats against a large number of potential vulnerabilities.”

Areas of concern for Coast Guard officials included operations, personnel and foreign influence, although the Coast Guard last night criticized the released excerpts as unrepresentative of the analysis.

“What are the backgrounds of all associated personnel working for or associated with DPW and P&O;?” the officials wrote in their initial analysis. “Is there foreign influence on DPW or P&O; operations that affect security and other major decisions?”

Coast Guard officials appearing before yesterday’s hearing declined to discuss much of the analysis because most of it remains classified. Committee members reconvened with the officials late yesterday for a classified briefing.

“I am more convinced than ever that the process was truly flawed,” Miss Collins said after nearly an hour and a half behind closed doors.

Sen. Joe Lieberman of Connecticut, the panel’s ranking Democrat, said he too is convinced that the vetting process was flawed.

The Committee on Foreign Investments in the United States (CFIUS) “should have conducted the 45-day investigation in the first place,” he said. “I think they were well-intentioned, but they didn’t finish their job.”

Mr. Lieberman also said Coast Guard officials downplayed their analysis, saying that it was their “early reaction” to the deal and that many of their questions were answered in the process.

Indeed, later in the evening the Coast Guard released a statement saying the excerpts were taken out of context and did not reflect the Guard’s overall view.

“The excerpts made public earlier today, when taken out of context, do not reflect the full, classified analysis performed by the Coast Guard. That analysis concludes ‘that DP World’s acquisition of P&O;, in and of itself, does not pose a significant threat to U.S. assets,’ ” said Cmdr. Jeff Carter, a Coast Guard spokesman.

“Upon subsequent and further review, the Coast Guard and the entire CFIUS panel believed that this transaction, when taking into account strong security assurances by DP World, does not compromise U.S. security,” he said.

Sen. Charles E. Schumer, the New York Democrat who introduced legislation yesterday to halt the deal, said the analysis might be “a smoking gun.”

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