49–006 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 109–414 

REQUESTING THE PRESIDENT AND DIRECTING THE SECRETARY OF 

HOMELAND SECURITY TO PROVIDE TO THE HOUSE OF REPRESENTATIVES CERTAIN DOCUMENTS IN THEIR POSSESSION RELATING TO THE 

DUBAI PORTS WORLD ACQUISITION OF 6 UNITED STATES COMMERCIAL 

PORTS LEASES 

APRIL 7, 2006.—Referred to the House Calendar and ordered to be printed 

Mr. OXLEY, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

together with 

DISSENTING VIEWS 

[To accompany H. Res. 718] 

The Committee on Financial Services, to whom was referred the 

resolution (H. Res. 718) requesting the President and directing the 

Secretary of Homeland Security to provide to the House of Representatives certain documents in their possession relating to the 

Dubai Ports World acquisition of 6 United States commercial ports 

leases, having considered the same, report thereon with amendments and without recommendation. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 2 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 3 

Committee Consideration ........................................................................................ 3 

Committee Votes ...................................................................................................... 3 

Committee Oversight Findings ............................................................................... 4 

Performance Goals and Objectives ......................................................................... 5 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 5 

Federal Mandates Statement ................................................................................. 5 

Advisory Committee Statement .............................................................................. 5 

Applicability to Legislative Branch ........................................................................ 5 

Section-by-Section Analysis of the Legislation ...................................................... 5 

Dissenting Views ..................................................................................................... 7 

The amendments (stated in terms of the page and line numbers 

of the introduced bill) are as follows: 


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Page 1, line 2, strike ‘‘is directed’’ and insert ‘‘and the Secretary 

of the Treasury are directed’’. 

Page 2, line 4, strike ‘‘6’’. 

Page 2, line 9, after ‘‘discussions’’ insert ‘‘, including discussions’’. 

Page 2, line 10, after ‘‘World’’ insert a comma. 

Page 2, line 12, strike ‘‘and’’. 

Page 2, line 20, strike the period and insert ‘‘; and’’. 

Page 2, after line 20, insert the following: 

(4) all documents in their possession, including 

notes from meetings, memos, telephone and electronic 

mail records, logs and calendars, and records of internal discussions, relating to the Committee on Foreign 

Investments in the United States review process for 

such acquisition. 

Amend the title so as to read: 

Resolution requesting the President and directing the Secretary of Homeland 

Security and the Secretary of the Treasury to provide to the House of Representatives certain documents in their possession relating to the Dubai Ports World acquisition of United States commercial ports leases. 

PURPOSE AND SUMMARY

House Resolution 718, ‘‘requesting the President and directing 

the Secretary of Homeland Security to provide to the House of Representatives certain documents in their possession relating to the 

Dubai Ports World acquisition of 6 United States commercial ports 

leases,’’ was introduced March 9, 2006, by Mr. Kucinich for himself 

and Reps. Larson and Brady of Pennsylvania. It seeks to have the 

President and the Secretary of Homeland Security provide, within 

14 days of adoption, a variety of documents relating to aspects of 

the proposed purchase by Dubai Ports World (DP World) of the 

U.S. ports operations of the Peninsular & Oriental Steam Navigation Co. (P&O). Additionally, it seeks information related to a December 16, 2005, memo from the Coast Guard outlining concerns 

it thought should be addressed as a review of the deal by the Committee on Foreign Investment in the United States (CFIUS) got underway. A portion of that memo has been made public. Finally, the 

legislation seeks a similar variety of documents from the President 

and Secretary covering ‘‘internal discussions’’ from October 1, 2005, 

to March 2, 2006, between the White House and the Carlyle Group 

related to the review of the proposed Dubai-P&O deal. 

While the transaction in question now is complete, DP World has 

made an arrangement to leave the U.S. operations in the control 

of P&O until they are sold off. Even so, scrutiny of the CFIUS, both 

as related to this deal and to the underlying process in general, 

was intense. This legislation was introduced at the peak of the intensity of public interest in the transaction. However, although the 

deal itself is moot and thus the document request moot, the parliamentary nature of the legislation impelled consideration. 

BACKGROUND AND NEED FOR LEGISLATION

H. Res. 718 is a resolution of inquiry, which pursuant to clause 

7 of rule XIII of the Rules of the House of Representatives, directs 

the Committee to act on the resolution within 14 legislative days 

or a privileged motion to discharge the Committee is in order. 


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Under the Rules and precedents of the House, a resolution of inquiry is one of the methods used by the House to obtain information from the executive branch. According to volume 7, chapter 24, 

section 8 of Deschler’s Procedure, it is a ‘‘simple resolution making 

a direct request or demand of the President or the head of an executive department to furnish the House of Representatives with specific factual information in the possession of the executive branch.’’

On February 13, 2006, shareholders from P&O approved a $6.85 

billion acquisition proposal from DP World, a port terminal operations company owned by the government of the United Arab 

Emirates (UAE). The acquisition, for which negotiations began in 

October and on which a deal was struck and reported in the financial press in November, was completed in March, but not before a 

public outcry in the United States caused close scrutiny of the deal, 

a vote in Congress to repudiate it, and an agreement from DP 

World to sell off the U.S. operations as soon as practical. 

A 30-day review by the inter-agency CFIUS—charged with determining if any such acquisition might cause a threat to national security—began in mid-December. CFIUS is said to have reached a 

multi-point agreement to mitigate certain security concerns that 

appear to have been raised about the proposed deal by CFIUS components. A 45-day investigation period that is indicated in CFIUS 

authorizing legislation for any acquisition by a state-owned company that triggers security concerns was not conducted, because, 

the administration has said, the security issues raised were successfully addressed. 

While the transaction is complex, covering port operations 

around the world, it is pertinent that P&O operates at some 20 

U.S. ports in the Gulf of Mexico and East Coast, including the 

major ports of New York, Baltimore, Miami and New Orleans. 

While critics of DP World have called for a closer examination of 

the implications of this transaction, it should be noted that the majority of large U.S. ports are operated by foreign-owned companies. 

Foreign-owned companies represent the four largest operators of 

ports in the world; Hong Kong’s Hutchinson Ports is the market 

leader, followed by Denmark’s APM Terminals. 

Given all of the facts of this situation, the Committee is forwarding this report to the House without recommendation. 

HEARINGS

The Committee held no hearings on H. Res. 718. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

April 5, 2006, and ordered H. Res 718, as amended, reported to the 

House without recommendation. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. A motion by Mrs. 

Biggert to report the resolution, as amended, to the House without 

recommendation was agreed to a record vote of 35 yeas and 32 


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nays (Record vote no. FC–18). The names of Members voting for 

and against follow: 

RECORD VOTE NO. FC–18 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Oxley ............................... X ........... ............. Mr. Frank (MA) ..................... ........... X .............

Mr. Leach .............................. ........... ........... ............. Mr. Kanjorski ........................ ........... X .............

Mr. Baker .............................. X ........... ............. Ms. Waters ........................... ........... X .............

Ms. Pryce (OH) ...................... X ........... ............. Mr. Sanders .......................... ........... X .............

Mr. Bachus ........................... X ........... ............. Mrs. Maloney ........................ ........... X .............

Mr. Castle ............................. X ........... ............. Mr. Gutierrez ........................ ........... X .............

Mr. Royce .............................. X ........... ............. Ms. Vela ́zquez ...................... ........... X .............

Mr. Lucas .............................. X ........... ............. Mr. Watt ............................... ........... X .............

Mr. Ney .................................. X ........... ............. Mr. Ackerman ....................... ........... X .............

Mrs. Kelly .............................. X ........... ............. Ms. Hooley ............................ ........... X .............

Mr. Paul ................................ X ........... ............. Ms. Carson ........................... ........... X .............

Mr. Gillmor ............................ X ........... ............. Mr. Sherman ........................ ........... X .............

Mr. Ryun (KS) ....................... X ........... ............. Mr. Meeks (NY) .................... ........... X .............

Mr. LaTourette ....................... X ........... ............. Ms. Lee ................................. ........... X .............

Mr. Manzullo ......................... X ........... ............. Mr. Moore (KS) ..................... ........... X .............

Mr. Jones (NC) ...................... X ........... ............. Mr. Capuano ........................ ........... X .............

Mrs. Biggert .......................... X ........... ............. Mr. Ford ................................ ........... X .............

Mr. Shays .............................. X ........... ............. Mr. Hinojosa ......................... ........... X .............

Mr. Fossella .......................... X ........... ............. Mr. Crowley .......................... ........... X .............

Mr. Gary G. Miller (CA) ......... X ........... ............. Mr. Clay ................................ ........... X .............

Mr. Tiberi .............................. X ........... ............. Mr. Israel .............................. ........... X .............

Mr. Kennedy (MN) ................. X ........... ............. Mrs. McCarthy ...................... ........... X .............

Mr. Feeney ............................. X ........... ............. Mr. Baca .............................. ........... ........... .............

Mr. Hensarling ...................... X ........... ............. Mr. Matheson ....................... ........... X .............

Mr. Garrett (NJ) ..................... X ........... ............. Mr. Lynch ............................. ........... X .............

Ms. Brown-Waite (FL) ........... X ........... ............. Mr. Miller (NC) ..................... ........... X .............

Mr. Barrett (SC) .................... X ........... ............. Mr. Scott (GA) ...................... ........... X .............

Ms. Harris ............................. X ........... ............. Mr. Davis (AL) ...................... ........... X .............

Mr. Renzi ............................... X ........... ............. Mr. Al Green (TX) ................. X ...........

Mr. Gerlach ........................... X ........... ............. Mr. Cleaver ........................... X ...........

Mr. Pearce ............................. X ........... ............. Ms. Bean .............................. ........... X .............

Mr. Neugebauer .................... X ........... ............. Ms. Wasserman Schultz ....... X ...........

Mr. Price (GA) ....................... ........... ........... ............. Ms. Moore (WI) ..................... ........... X .............

Mr. Fitzpatrick (PA) ............... X ........... .............

Mr. Davis (KY) ...................... X ........... .............

Mr. McHenry .......................... X ........... .............

Mr. Campbell ........................ X ........... .............

*Mr. Sanders is an independent, but caucuses with the Democratic Caucus. 

The following other amendments were also considered by the 

Committee: 

Amendments offered by Mrs. Maloney, No. 1, adding the Secretary of the Treasury, were AGREED TO by a voice vote. 

An amendment offered by Mr. Price (GA), No. 2, adding the 

Secretary of the Treasury, was OFFERED AND A POINT OF 

ORDER WAS SUSTAINED against its consideration. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee made findings and recommendations of the Committee, based on oversight activities under clause 

2(b)(1) of rule X of the Rules of the House of Representatives, are 

incorporated into the descriptive portions of this report. 


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PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee’s performance related goals and 

objectives are reflected in the descriptive portions of this report. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee finds that this legislation 

would result in no new budget authority, entitlement authority, or 

tax expenditures or revenues. 

FEDERAL MANDATES STATEMENT

H. Res. 718 contains no unfunded mandates. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

As amended by the Committee, the resolution requests the President and directs the Secretary of Homeland Security and the Secretary of Treasury to provide to the House of Representatives, not 

later than 14 days after adoption of the resolution—

(1) all documents in their possession, including notes from 

meetings, memos, telephone and electronic mail records, logs 

and calendars, and records of internal discussions relating to 

the December 13, 2005, document by the Coast Guard Intelligence Coordination Center relating to the Dubai Ports World 

acquisition of United States commercial ports leases; 

(2) all documents in their possession, including notes from 

meetings, memos, telephone and electronic mail records, logs 

and calendars, and records of internal discussions, including 

discussions between the White House and Dubai Ports World 

relating to the Committee on Foreign Investment in the United 

States review process for such acquisition; 

(3) all documents in their possession, including notes from 

meetings, memos, telephone and electronic mail records, logs 

and calendars, and records of internal discussions between the 

White House and the Carlyle Group during the period beginning October 1, 2005, and ending March 2, 2006, relating to 

the Committee on Foreign Investment in the United States review process for such acquisition; and 

(4) all documents in their possession, including notes from 

meetings, memos, telephones and electronic mail records, logs 

and calendars, records of internal discussions, relating to the 


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Committee on Foreign Investment in the United States review 

process for such acquisition. 


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DISSENTING VIEWS 

H. Res. 718, sponsored by Mr. Kucinich (OH) and amended by 

Mrs. Maloney (NY), is an important effort to obtain information 

about what went wrong with the Bush Administration’s handling 

of the Dubai Ports World transaction, which was reviewed by the 

interagency Committee on Foreign Investment in the United States 

(CFIUS). The resolution directs the Secretaries of Homeland Security and Treasury to provide to the House critical information and 

records on the Dubai Ports World transaction. Because foreign investment plays such a constructive role in our economy, it is important for us to look at the facts surrounding this transaction, so that 

we can take whatever steps are necessary to reduce the likelihood 

of a repetition. This request for information regarding the Dubai 

issue is important because we need to separate out the mishandling of this transaction from any problems surrounding the 

basic structure of the CFIUS process. To the extent that there is 

a flawed structure for dealing with these sorts of transactions, we 

may need to legislate. But to the extent that the structure was not 

deeply flawed, but the execution of the transaction was, then major 

changes may be unwarranted. 

Although the Dubai Ports World case has been resolved with the 

company’s agreement to divest its U.S. port assets, the case continues to play a central role in various CFIUS legislative reform 

initiatives currently underway in the House and Senate. There is 

some legitimate concern in the financial community that the reaction to the Bush Administration’s mistakes in its handling of this 

transaction might lead to excessive restrictions in the area of foreign investment—which is why those who support a continued role 

for an open and constructive foreign investment policy should also 

support this resolution. The Democrats on the Financial Services 

Committee who unanimously voted to send the Kucinich resolution 

to the floor for action are sensitive to the need to preserve elements 

of the CFIUS process that adequately address national security 

concerns without restricting legitimate foreign investment. We believe that receiving the information requested by this resolution 

would help us in achieving that balance and we regret the partisan 

response of our Republican colleagues, which is keeping from us information which would help us legislate. 

BARNEY FRANK. 

Æ 


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