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Good: Two GOP governors join rising bipartisan opposition to the White House’s secretive port sellout deal with the United Arab Emirates…

Two Republican governors on Monday questioned a Bush administration decision allowing an Arab-owned company to operate six major U. S. ports, saying they may try to cancel lease arrangements at ports in their states.

New York Gov. George Pataki and Maryland Gov. Robert Ehrlich voiced doubts about the acquisition of a British company that has been running the U.S. ports by Dubai Ports World, a state-owned business in the United Arab Emirates.

The British company, Peninsular and Oriental, runs major commercial operations at ports in Baltimore, Miami, New Jersey, New Orleans, New York and Philadelphia.

“Ensuring the security of New York’s port operations is paramount and I am very concerned with the purchase of Peninsular & Oriental Steam by Dubai Ports World,” Pataki said in a news release.

“I have directed the Port Authority of New York and New Jersey to explore all legal options that may be available to them in regards to this transaction,” said the New York governor, who is still in the hospital recovering from an appendectomy.

Ehrlich, concerned about security at the Port of Baltimore, said Monday he is “very troubled” that Maryland officials got no advance notice before the Bush administration approved an Arab company’s takeover of the operations at the six ports. “We needed to know before this was a done deal, given the state of where we are concerning security,” Ehrlich told reporters in the State House rotunda in Annapolis.

Ehrlich says Maryland has the discretion to voice the contract. Pataki is asking the federal government to “share all critical relevant information made available to the Council on Foreign Investment during the course of the review of the purchase.” New York could cancel the lease for operation.

A company at the Port of Miami is suing to block the transaction.

Cal Thomas: “There have been some dumb decisions since the United States was attacked on Sept. 11, 2001, including the “welcoming” of radical Muslim groups, mosques and schools that seek by their preaching and teaching to influence U.S. foreign policy and undermine the nation. But the decision to sell port operations in New York, Newark-Port Elizabeth, Baltimore, Miami, Philadelphia and New Orleans to a company owned by the UAE may be the dumbest of all.”

Rep. Peter King: “By having a company right out of the heartland of al-Qaida managing those ports without being properly cleared or investigated, to me is madness.” More:

King also responded to Homeland Security Secretary Michael Chertoff’s defense that the government typically builds in “certain conditions or requirements that the company has to agree to make sure we address the national security concerns.” The House Homeland Security Committee chairman said that, despite Chertoff’s explanation on ABC’s “This Week,” he still has strong concerns about the inquiry. “When I talk to the people actually involved in the process, it was very cursory, it was very superficial,” King said.

He said he found out about the purchase, which transfers operations at ports in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia to the Persian Gulf company, last Tuesday in meetings with senior Bush administration officials. “As I understand it, the whole process took only 20 to 25 days,” he said of the transaction. “There’s no way you can do a complete analysis in 20 to 25 days and that includes financial analysis.”

The Port Security, Maritime Security, and Homeland Security Blog is a good resource for news developments.

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Frank Gaffney, who has led the whistle-blowing on the UAE deals, calls attention to more worrisome details:

Since a column raising an alarm about CFIUS’ decision appeared in this space last week, three new factors have come to light that compound the strategic folly of the UAE deal:

# First, in addition to the six affected ports mentioned above, two others would also have part of their operations managed by DP World — on behalf of none other than the U.S. Army. Under a newly extended contract, the owner of P and O will manage the movement of heavy armor, helicopters and other military materiel through the Texas seaports of Beaumont and Corpus Christie. How much would our enemies like to be able to sabotage such shipments?

# Second, while advocates of the stealthy CFIUS decision-making process point to the involvement of the Defense Department in its DP World decision, it is unclear at what level this bizarre proposition was reviewed in the Pentagon. Many top jobs remain unfilled by presidential appointees. Past experience suggests the job may have fallen to lower-level career bureaucrats who give priority to maintaining good relations with their foreign “clients,” like the UAE.

# Then, there is the matter of financing the DP World takeover of Peninsula and Oriental. The UAE evidently intends to raise nearly all of the $6.8 billion price for P and O on international capital markets. It must be asked: Who will the foreign investors be, and might they have malign intentions towards the U.S.? If American sources of capital are being sought, will the possible danger this transaction may create for this country be properly disclosed? For that matter, will the underwriters, Barclays and Deutchebank, reveal to prospective funders the real risk that the deal will ultimately fall through?

Frank concludes:

Call it a Harriet Meirs moment. Politics being the art of the possible, it is time to recognize that the Dubai Ports World deal is neither strategically sensible nor politically doable. It is time to pull the plug, and to reform the secretive interagency CFIUS process that allowed this fiasco in the first place.

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