Dubai deal had Coast Guard at sea - pol
BY KENNETH R. BAZINET and MICHAEL McAULIFF
DAILY NEWS WASHINGTON BUREAU
WASHINGTON - The Coast Guard feared it didn't have enough intel to decide whether Dubai's purchase of U.S. port operations posed a terrorist threat to the nation, a Republican senator revealed yesterday.
"There are many intelligence gaps, concerning the potential for DPW [Dubai Ports World] or P&O [Peninsular and Oriental] assets to support terrorist operations, that precludes an overall threat assessment," says a Coast Guard memo released by Sen. Susan Collins (R-Maine).
Collins revealed the contents of the declassified memo at a Senate homeland security hearing as the White House hinted it could kill any legislation aimed at stopping Dubai Ports World from buying facilities now run by England's P&O ports.
The Coast Guard last night said the document Collins cited was written early in its initial review and does not reflect the final, classified analysis.
"This transaction, when taking into account strong security assurances by DP World, does not compromise U.S. security," a Coast Guard spokesman, Commander Jeff Carter, said in a statement.
After Collins made her disclosure yesterday, the Coast Guard gave her and other senators a briefing behind closed doors on its classified report. But when Collins emerged, she wasn't satisfied by what she heard.
"I am more convinced than ever that the process was truly flawed," said Collins.
Rep. Pete King (R-L.I.), her counterpart on the House Homeland Security Committee, scoffed at the White House's new probe of the port deal. "They seem to be interpreting 'investigation' as an opportunity to educate us," he said. "It's a very condescending position."
The latest developments came as the White House showed signs of getting on top of the furor over the deal, with DP World's agreement over the weekend to a retroactive 45-day investigation of its purchase.
That news prompted Senate Majority Leader Bill Frist (R-Tenn.) to soften his stance on the deal after first threatening to deep-six it with legislation. The White House believes that threat is all but dead.
"Sen. Frist has said that he will ask the Senate to hold off on legislation," said White House spokesman Scott McClellan.
A source confirmed the administration believes Frist will stop any bills from coming to a vote, such as a bipartisan measure introduced yesterday by Sen. Chuck Schumer (D-N.Y.).