New Jersey sues Bush administration for data on Port Newark deal

THE ASSOCIATED PRESS | February 23, 2006

TRENTON, N.J. -- New Jersey on Thursday sued the Bush administration in an effort to block a company based in the United Arab Emirates from taking over operations at the Port Newark container terminal until the federal government investigates possible security risks.

Meanwhile, the owner of the busy shipping center, the Port Authority of New York and New Jersey, said it also has security concerns about the takeover and plans to file a lawsuit Friday to terminate the firm's lease at the port.

Port Newark is among several U.S. ports whose pending takeover by Dubai Ports World, a UAE-run firm, has provoked outrage from Republicans and Democrats.

President Bush on Thursday again defended the deal.

"The more people learn about the transaction that has been scrutinized and approved by my government," Bush said, "the more they'll be comforted that our ports will be secure."

However, Gov. Jon S. Corzine, said, "Turning port operations over to a company owned by a country that recognized the Taliban as a legitimate government goes beyond the realm of common sense."

Corzine, speaking to reporters in Trenton, said Dubai Ports World was a "transfer point for nuclear materials to rogue nations" and "is not demonstrating the skill of protecting the national security interests of the United States."

The state's lawsuit names several Bush Cabinet members, including Treasury Secretary John Snow, Secretary of State Condoleezza Rice, Defense Secretary Donald Rumsfeld, Attorney General Alberto Gonzales and Homeland Security Secretary Michael Chertoff, in connection to their membership on the Committee on Foreign Investments in the United States.

The lawsuit charges that the committee told Dubai Ports World that no investigation of the transaction was required, in violation of a statute mandating such a probe when an acquisition by an entity controlled by a foreign government could affect national security.

The New Jersey Office of Counter-Terrorism requested documents submitted to the committee by Dubai Ports World, but has not been given all the information sought, the lawsuit said.

As a result, New Jersey is asking a judge to order the committee to investigate the deal and provide state officials with documents the company gave to the committee, as well as other information relating to the transaction.

New Jersey's action was filed in U.S. District Court in Trenton, but was expected to be transferred to the federal court in Newark, said Roger Shatzkin, a spokesman for the state attorney general's office.

Port Authority Chairman Anthony Coscia said his agency would file a lawsuit Friday in New Jersey state Superior Court in Essex County.

"We as owners of that facility should be made comfortable that whoever operates that facility is capable of it," Coscia said.

Coscia said he wrote to Treasury Secretary John Snow asking for details about how the federal government determined it was safe to allow Dubai Ports World to buy a British company now doing business at the terminal.

"Unfortunately we have not received an answer to our inquiries," he said.

The Port Authority said it is not filing suit because of specific concerns about the Dubai company but based on concerns that the government's secret vetting process was not thorough enough.

Many in Congress, including New York and New Jersey lawmakers, have complained the government did not do a comprehensive security review of the port operations purchase.

"Our issue here is one of lack of information," said Coscia, speaking to reporters after the Port Authority's board meeting in New York. "We have an absolute responsibility to feel comfortable that security is at the very highest level."

He said the agency "would like to have a better understanding as to who exactly would be in charge of operating the ports, what personnel would be involved, what kind of screening would be put in place to insure that individuals would have control or access to information ... are properly screened, et cetera."

The British firm signed a 30-year lease with the Port Authority, and that lease would be assumed by DP World on March 2 unless Congress intervenes. Bush has promised to veto any legislation blocking the sale.

Last modified February 24, 2006