II 

109TH CONGRESS 

2D SESSION S. 2341 

To prohibit the merger, acquisition, or takeover of Peninsular and Oriental 

Steam Navigation Company by Dubai Ports World. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 28, 2006 

Mr. DORGAN introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To prohibit the merger, acquisition, or takeover of Peninsular 

and Oriental Steam Navigation Company by Dubai Ports 

World. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. FINDINGS. 

4 Congress makes the following findings: 

5 (1) It is essential for the security of the United 

6 States that United States maritime ports be pro7 tected against terrorist attacks. 

8 (2) Most stevedoring operations at the ports in 

9 New York, New Jersey, Philadelphia, Miami, Balti10 more, and New Orleans are controlled by a company 
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1 named P&O Ports, North America (hereafter in this 

2 Act referred to as ‘‘P&O Ports’’). 

3 (3) P&O Ports is the United States subsidiary 

4 of a British company named Peninsular and Ori5 ental Steam Navigation Company (hereafter in this 

6 Act referred to as ‘‘P&O Company’’). 

7 (4) A company named Dubai Ports World is 

8 seeking to acquire P&O Company. 

9 (5) Dubai Ports World is partly owned and con10 trolled by the Government of the United Arab Emir11 ates. 

12 (6) While the United Arab Emirates is in some 

13 respects an ally of the United States, it has also had 

14 recent ties to terrorist activities. 

15 (7) Two of the hijackers involved in the events 

16 of September 11, 2001, were from the United Arab 

17 Emirates. 

18 (8) According to the National Commission on 

19 Terrorist Attacks Upon the United States (the 9-11 

20 Commission), the banking system of the United 

21 Arab Emirates was used to help finance the attacks 

22 of September 11, 2001. 

23 (9) The United Arab Emirates has also been a 

24 way station for the trafficking of nuclear compo-
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1 nents to state sponsors of terrorism, including Iran 

2 and North Korea. 

3 (10) In 1988, legislation was enacted adding 

4 section 721 to the Defense Production Act of 1950 

5 (50 U.S.C. 2170) (commonly known as the ‘‘Exon6 Florio provision’’), which authorized the President to 

7 investigate the impact of foreign acquisitions of 

8 United States companies on national security and to 

9 suspend or prohibit acquisitions that might threaten 

10 national security. 

11 (11) The President has delegated his investiga12 tive authority under the Exon-Florio provision to the 

13 Committee on Foreign Investment in the United 

14 States (CFIUS), which is chaired by the Secretary 

15 of the Treasury. 

16 (12) CFIUS approved the acquisition of P&O 

17 Ports by Dubai Ports World without undertaking 

18 the 45-day investigation of proposed transactions 

19 that might affect the national security of the United 

20 States that is required under the Exon-Florio provi21 sion (50 U.S.C. 2071(b)). 

22 (13) In response to strong public and congres23 sional opposition to the impending acquisition, 

24 Dubai Ports World has requested that CFIUS conVerDate Aug 31 2005 01:46 Mar 05, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2341.IS S2341
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1 duct a 45-day review of the national security impli2 cations of the transaction. 

3 (14) In view of evidence already on record, it is 

4 clear that the proposed acquisition of P&O Ports by 

5 Dubai Ports World poses a serious threat to the na6 tional security of the United States. 

7 SEC. 2. PROHIBITION ON SALE OF P&O PORTS TO DUBAI 

8 PORTS WORLD. 

9 Notwithstanding any other provision of law and any 

10 prior action or decision by or on behalf of the President, 

11 the President shall exercise the authority under section 

12 721 of the Defense Production Act of 1950 (50 U.S.C. 

13 App. 2170) to prohibit the merger, acquisition, or takeover 

14 of P&O Ports by Dubai Ports World. 

Æ