Washington Post: David Ignatius
It was Karl Rove who conveyed the bad news. President Bush's political adviser called a top manager of Dubai Ports World on Thursday and said the White House couldn't hold out any longer against congressional pressure to kill the Arab company's plan to acquire freight terminals at six U.S. ports. The initial response of one Dubai executive was: "Who's Karl Rove?" But in the end, political leaders here recognized that it was time to fold a losing hand.
Until Rove's call, Dubai's business leaders had insisted they would fight on. The chairman of Dubai Ports World, Sultan Ahmed bin Sulayem, told me emphatically on Wednesday that his company would do whatever was necessary to convince Congress that the deal posed no security risk -- new investment, additional equipment, more scanning of cargo, special checks of UAE personnel, including himself. But that was before the House Appropriations Committee voted 62 to 2 to kill the deal.
I suspect America will pay a steep price for Congress's rejection of this deal. It sent a message that for all the U.S. rhetoric about free trade and partnerships with allies, America is basically hostile to Arab investment. And it shouldn't be surprising if Arab investors respond in kind. One could blame it all on craven members of Congress, if the opinion polls didn't show that Americans are overwhelmingly against the deal -- and suspicious of Muslims in general. Those poll numbers tell us that America hasn't gotten over Sept. 11, 2001. If anything, Iraq has deepened the country's anxiety, introspection and foreboding.
To appreciate how cockeyed America's Dubai-phobia is, you have to spend a little time here, as I did this week. The truth is, this is one of the few places in the Arab world where things have been going in the right direction -- away from terrorism and Islamic fundamentalism and toward an open, modern economy. That's why congressional opposition came as such a surprise here. People in the UAE think they're America's friends.
http://www.washingtonpost.com/wp-dyn/content/article/20...