Friday, March 10, 2006

Dubai Port Deal
The Hand Reaches Up
From The Grave

Someguy, at Infidel Bloggers Alliance, smells something fishy in the Dubai pullout from the port deal:

While I slept, some apparently good news came out about the proposed Dubai Ports World takeover deal:

WASHINGTON - Bowing to ferocious opposition in Congress, a Dubai-owned company signaled surrender Thursday in its quest to take over operations at U.S. ports.“DP World will transfer fully the U.S. operations ... to a United States entity,” the firm’s top executive, H. Edward Bilkey, said in an announcement that capped weeks of controversy.But Barak of IRIS Blog thinks there's less to this than meets the eye. (Hat tip: Little Green Footballs.)

One article, however, quotes a statement that "we will continue to hold our U.S. operations separate while this process continues." In other words, the Dubai corporation will maintain a separate incorporation status for the American subsidiary. A few comments:-This is a standard legal fiction for corporations who maintain complete operational control over their foreign subsidiaries. As an Information Technology consultant to many multi-national corporations, I can say with certainty that corporate management has access to the information systems of local subsidiaries.-Note the key word "continue."

This strongly implies that there is no change. In other words, there is no news here.-While it is possible that the government-owned firm will indeed be forced to sell, it should be noted that all Arab governments routinely lie. Here is this week's biggest example.

David Thompson at YARGB has this to say:

I am going to make a bold prediction. The Dubai World Ports agreement will ultimately be approved. What, am I some sort of crazy person? Didn’t the company officially pull out? I suspect the devil is in the details. It only said that it would turn over the managerial functions over to an American firm.

There is a major problem with this option: there are no companies in the United States ready to handle these responsibilities! And especially to do so profitably.

We are going to see all hell break out in the next few days. The majority of the American public can be persuaded that this deal is not a security threat. Much of its fear and outrage was based on bigotry and misinformation. These decent Americans will soon start to feel ashamed of themselves.