II 

109TH CONGRESS 

2D SESSION S. 2333 

To require an investigation under the Defense Production Act of 1950 of 

the acquisition by Dubai Ports World of the Peninsular and Oriental 

Steam Navigation Company, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 27, 2006 

Mr. SCHUMER (for himself, Mr. COLEMAN, Mr. MENENDEZ, Ms. SNOWE, Mrs. 

CLINTON, Mr. COBURN, Mr. REED, Ms. COLLINS, Mr. LAUTENBERG, Mr. 

DURBIN, Mrs. BOXER, Mr. SANTORUM, and Ms. MIKULSKI) introduced 

the following bill; which was read twice and referred to the Committee 

on Banking, Housing, and Urban Affairs 

A BILL 

To require an investigation under the Defense Production 

Act of 1950 of the acquisition by Dubai Ports World 

of the Peninsular and Oriental Steam Navigation Company, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Foreign Investment 

5 Security Improvement Act of 2006’’. 


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1 SEC. 2. INVESTIGATION UNDER DEFENSE PRODUCTION 

2 ACT OF 1950. 

3 (a) INVESTIGATION.— 

4 (1) IN GENERAL.—Notwithstanding any other 

5 provision of law, the President or the President’s 

6 designee shall conduct an investigation, under sec7 tion 721(b) of the Defense Production Act of 1950 

8 (50 U.S.C. App. 2170(b)), of the acquisition by 

9 Dubai Ports World, an entity owned or controlled by 

10 the Emirate of Dubai, of the Peninsular and Ori11 ental Steam Navigation Company, a company that is 

12 a national of the United Kingdom, with respect to 

13 which written notification was submitted to the 

14 Committee on Foreign Investment in the United 

15 States on December 15, 2005. Such investigation 

16 shall be completed not later than 45 days after the 

17 date of the enactment of this Act. 

18 (2) SUSPENSION OF EXISTING DECISION.—The 

19 President shall suspend any decision by the Presi20 dent or the President’s designee pursuant to section 

21 721 of the Defense Production Act of 1950 (50 

22 U.S.C. App. 2170) with respect to the acquisition 

23 described in paragraph (1) that was made before the 

24 completion of the investigation described in para25 graph (1), including any such decision made before 

26 the date of the enactment of this Act. 


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1 (b) REQUIREMENTS FOR INVESTIGATION.—The in2 vestigation under subsection (a) shall include— 

3 (1) a review of foreign port assessments con4 ducted under section 70108 of title 46, United 

5 States Code, of ports at which Dubai Ports World 

6 carries out operations; 

7 (2) background checks of appropriate officers 

8 and security personnel of Dubai Ports World; 

9 (3) an evaluation of the impact on port security 

10 in the United States by reason of control by Dubai 

11 Ports World of operations at the United States ports 

12 affected by the acquisition described in subsection 

13 (a); and 

14 (4) an evaluation of the impact on the national 

15 security of the United States by reason of control by 

16 Dubai Ports World of operations at the United 

17 States ports affected by the acquisition described in 

18 subsection (a), to be carried out in consultation with 

19 the Commandant of the Coast Guard, the Commis20 sioner of the Bureau of Customs and Border Protec21 tion, the heads of other relevant Federal agencies, 

22 and relevant State and local officials responsible for 

23 port security at such United States ports. 

24 (c) REPORT.—Not later than 15 days after the date 

25 on which the investigation conducted pursuant to this secVerDate Aug 31 2005 01:59 Feb 28, 2006 Jkt 049196 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2333.IS S2333

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1 tion is completed, the President shall submit to Congress 

2 a report that— 

3 (1) contains the findings of the investigation, 

4 including— 

5 (A) an analysis of the national security 

6 concerns reviewed under the investigation; and 

7 (B) a description of any assurances pro8 vided to the Federal Government by the appli9 cant and the effect of such assurances on the 

10 national security of the United States; and 

11 (2) contains the determination of the President 

12 of whether or not the President will take action 

13 under section 721(d) of the Defense Production Act 

14 of 1950 (50 U.S.C. App. 2170(d)) pursuant to the 

15 investigation. 

16 (d) CONGRESSIONAL BRIEFING.— 

17 (1) IN GENERAL.—Not later than the date on 

18 which the report described in subsection (c) is sub19 mitted to Congress pursuant to such subsection, the 

20 President or the President’s designee shall provide 

21 to the Members of Congress specified in paragraph 

22 (2) a detailed briefing on the contents of the report. 

23 (2) MEMBERS OF CONGRESS.—The Members of 

24 Congress specified in this paragraph are the fol25 lowing: 


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1 (A) The majority leader and minority lead2 er of the Senate. 

3 (B) The Speaker and minority leader of 

4 the House of Representatives. 

5 (C) The Chairman and Ranking Member 

6 of the Committee on Banking, Housing, and 

7 Urban Affairs, the Committee on Finance, and 

8 the Committee on Homeland Security and Gov9 ernmental Affairs of the Senate. 

10 (D) The Chairman and Ranking Member 

11 of the Committee on Financial Services, the 

12 Committee on Homeland Security, and the 

13 Committee on Ways and Means of the House of 

14 Representatives. 

15 (E) Each Member of Congress who rep16 resents a State or district in which a United 

17 States port affected by the acquisition described 

18 in subsection (a) is located. 

19 SEC. 3. CONGRESSIONAL ACTION. 

20 (a) IN GENERAL.—If the determination of the Presi21 dent contained in the report submitted to Congress pursu22 ant to section 2(c) of this Act is that the President will 

23 not take action under section 721(d) of the Defense Pro24 duction Act of 1950 (50 U.S.C. App. 2170(d)) and not 

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1 ceives the report, a joint resolution described in subsection 

2 (b) is enacted into law, then the President shall take such 

3 action under section 721(d) of the Defense Production Act 

4 of 1950 as is necessary to prohibit the acquisition de5 scribed in section 2(a), including, if such acquisition has 

6 been completed, directing the Attorney General to seek di7 vestment or other appropriate relief in the district courts 

8 of the United States. 

9 (b) JOINT RESOLUTION DESCRIBED.—For purposes 

10 of subsection (a), the term ‘‘joint resolution’’ means a 

11 joint resolution of the Congress, the sole matter after the 

12 resolving clause of which is as follows: ‘‘That the Congress 

13 disapproves the determination of the President contained 

14 in the report submitted to Congress pursuant to section 

15 2(c) of the Foreign Investment Security Improvement Act 

16 of 2006 on llllll.’’, with the blank space being 

17 filled with the appropriate date. 

18 (c) COMPUTATION OF REVIEW PERIOD.—In com19 puting the 30-day period referred to in subsection (a), 

20 there shall be excluded any day described in section 154(b) 

21 of the Trade Act of 1974 (19 U.S.C. 2194(b)). 

Æ 


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