Port Deal Pits Bush Against Party, Puts Two Key Goals at OddsFebruary 22, 2006
Feb. 22 (Bloomberg) -- The sale of six major U.S. ports to a Dubai company pits President George W. Bush against his Republican Party's leadership in Congress and puts in conflict two of his signature issues: national security and open markets.
Senate Majority Leader Bill Frist and House Speaker Dennis Hastert announced opposition yesterday to the $6.8 billion sale of London-based Peninsular & Oriental Steam Navigation Co. to DP World, Dubai's port company. Frist vowed to push through legislation blocking it unless the administration reconsiders. Bush said he'll veto any such measure; it would be the first of his presidency.
Frist and Hastert have been key allies throughout Bush's presidency, helping pass tax cuts, a Medicare prescription drug plan and authorization to invade Iraq. This rare intra-party battle creates a political opportunity for Democrats that was ``entirely preventable,'' Republican political consultant Rich Galen said.
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DP World plans to close the purchase by March 2, which would give lawmakers little time after they come back from a recess next week to block the deal.
Lawmakers said they'll prevail. ``If the president wants to veto this, go ahead -- we'll override the veto,'' Pennsylvania Republican Curt Weldon, a member of the House Homeland Security Committee, said in an interview yesterday.
The controversy is ``another example of the White House not having the capacity to see over the horizon when it comes to the public-affairs piece of what they are doing,'' Galen said. ``Too few senators and congressmen knew anything about this program, and so they are upset about not being informed.''
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