A Dubai-owned company abruptly abandoned its plans for managing U.S. ports on Thursday, defusing an election-year showdown between President Bush and the Republican-controlled Congress over an issue that had become a political land mine for the GOP.
"DP World will transfer fully the U.S. operations ... to a United States entity," H. Edward Bilkey, the company's top executive, said in the surprise announcement that seemed to spread relief throughout the Capitol and the White House. It was unclear which American business might get the port operations.
Just hours earlier, Republican House and Senate leaders privately told the president that Congress was all but certain to block DP World's plans. Under pressure from a disapproving public, a House committee overwhelmingly voted against it Wednesday. The leaders told Bush the Senate would inevitably do the same, despite his threats to veto any legislation killing the deal.
This is pretty much done for the same reason Harriet Miers pulled her nomination for the Supreme Court. It was proving highly embarrassing for the President, and since he can't possibly admit to having made a mistake, someone else has to take the fall for it (not that this is in any way unique to this president, but it's still the truth).
While I think the result is telling -- it won't end any friends amongst the internet Democrats.
For better or worse, their are two (that I know of) US based companies that can handle these contracts -- one of which is Haliburton, and the other had significant defense ties.
My first thought was also the Harriet Meirs fiasco and the unwillingness to take ownership over policy decisions, for better or worse. . .
It's a shame it had to end this way in my opinion. This deal wouldn't have been any more dangerous than a deal given to South Korea. And it would have been a major step towards development in the middle east and the moderation that follows it.
Is this really "pulling out of the deal," or are they just creating a new U.S. subsidiary to hold the companies that manage U.S. ports?
Call me a dirty cynic, but it wouldn't surprise me if it turned out that the whole circus had been inspired by the company which eventuall would have won the deal.
Or Mr Lippard is right and it's just a smoke screen by the Dubai company.