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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2341 Introduced in Senate (IS)]

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.

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

SECTION 1. FINDINGS.

    Congress makes the following findings:
            (1) It is essential for the security of the United States 
        that United States maritime ports be protected against 
        terrorist attacks.
            (2) Most stevedoring operations at the ports in New York, 
        New Jersey, Philadelphia, Miami, Baltimore, and New Orleans are 
        controlled by a company named P&O Ports, North America 
        (hereafter in this Act referred to as ``P&O Ports'').
            (3) P&O Ports is the United States subsidiary of a British 
        company named Peninsular and Oriental Steam Navigation Company 
        (hereafter in this Act referred to as ``P&O Company'').
            (4) A company named Dubai Ports World is seeking to acquire 
        P&O Company.
            (5) Dubai Ports World is partly owned and controlled by the 
        Government of the United Arab Emirates.
            (6) While the United Arab Emirates is in some respects an 
        ally of the United States, it has also had recent ties to 
        terrorist activities.
            (7) Two of the hijackers involved in the events of 
        September 11, 2001, were from the United Arab Emirates.
            (8) According to the National Commission on Terrorist 
        Attacks Upon the United States (the 9-11 Commission), the 
        banking system of the United Arab Emirates was used to help 
        finance the attacks of September 11, 2001.
            (9) The United Arab Emirates has also been a way station 
        for the trafficking of nuclear components to state sponsors of 
        terrorism, including Iran and North Korea.
            (10) In 1988, legislation was enacted adding section 721 to 
        the Defense Production Act of 1950 (50 U.S.C. 2170) (commonly 
        known as the ``Exon-Florio provision''), which authorized the 
        President to investigate the impact of foreign acquisitions of 
        United States companies on national security and to suspend or 
        prohibit acquisitions that might threaten national security.
            (11) The President has delegated his investigative 
        authority under the Exon-Florio provision to the Committee on 
        Foreign Investment in the United States (CFIUS), which is 
        chaired by the Secretary of the Treasury.
            (12) CFIUS approved the acquisition of P&O Ports by Dubai 
        Ports World without undertaking the 45-day investigation of 
        proposed transactions that might affect the national security 
        of the United States that is required under the Exon-Florio 
        provision (50 U.S.C. 2071(b)).
            (13) In response to strong public and congressional 
        opposition to the impending acquisition, Dubai Ports World has 
        requested that CFIUS conduct a 45-day review of the national 
        security implications of the transaction.
            (14) In view of evidence already on record, it is clear 
        that the proposed acquisition of P&O Ports by Dubai Ports World 
        poses a serious threat to the national security of the United 
        States.

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

    Notwithstanding any other provision of law and any prior action or 
decision by or on behalf of the President, the President shall exercise 
the authority under section 721 of the Defense Production Act of 1950 
(50 U.S.C. App. 2170) to prohibit the merger, acquisition, or takeover 
of P&O Ports by Dubai Ports World.
                                 <all>
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