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The U.S. Treasury’s Committee on Foreign Investments in the United States, or CFIUS, has submitted its reported to President Bush regarding the purchase by Dubai International Capital of the Doncasters Group Limited – a move that would put a U.S. defense contractor in the hands of the United Arab Emirates government.
According to Brookly McLaughlin, a Treasury Department spokeswoman, “The president is expected to report to Congress yet this week on the transaction.” McLaughlin says CFIUS sent the report to Bush “the week before,” and the president is required to report to Congress within 15 days.
Mohammed Al Gergawi, executive chairman of Dubai Holding
The spokeswoman also told WND that the report was “secret” and Treasury could make no comment about what it said. She stressed that Treasury had no comment on whether or not the CFIUS recommendation was positive, or whether the White House would ask Congress to approve the Dubai deal.
The Dubai acquisition impacts U.S. national security issues because two U.S. factories owned by Doncasters produce precision parts for the U.S. military’s new generation F-35 fighter jet and for the M1 Abrams tank, which is currently the U.S. military’s mainstay tank. Doncasters also has close corporate relations with Boeing, GE, Rolls-Royce, Honeywell and Seimens.
Dubai International Capital has made a strategic decision to take major positions in companies with technological and manufacturing expertise in the airline, automotive and aerospace industries, with particular interest in companies that are involved in military applications. Dubai International Capital recently invested $1 billion in DaimlerChrysler, another company with ties to GE.
Dubai International Capital is 100 percent owned by Dubai Holdings, which is in turn 100 percent owned by the Dubai government, and in particular by the ruling al-Marktoum family. In February this year, Dubai Ports World made an agreement to acquire P&O, a British company that manages container and stevedore operations in 22 U.S. ports, creating a storm of controversy for weeks. While DP World has agreed to divest itself of the U.S. operations owned by P&O, the divesture has yet to be accomplished.
The controversy over Dubai arose when Dubai’s connections with terrorism were learned. Prior to 9-11, the government of Dubai officially recognized the Taliban as the legitimate government of Afghanistan. The 9-11 commission report documented how al-Qaida and the 9-11 terrorists who flew the airplanes into the World Trade Center and the Pentagon used Dubai as a banking facility and a country of transit. Dubai continues to work actively with the radical religious clerics ruling Iran. By the end of 2006, Dubai has estimated that some $300 billion will have been moved from Iran to Dubai by over 400,000 Iranians.
On Feb. 25, 2006, Niles Lathem reported in the New York Post a June 2002 message from al-Qaida warning the government of the United Arab Emirates the terror network had “infiltrated” key government agencies.
So far, the Dubai acquisition of Doncasters has largely stayed below the radar in the U.S. media. Yet, the transaction clearly means the Dubai government would control two U.S. corporations that produce precision components for advanced weapons systems upon which the U.S. military depends.
Following the controversy over Dubai Ports World, the government of the UAE took reprisals. The UAE’s central bank pulled 10 percent of its foreign currency holdings out of the dollar and threatened to cancel a $9.7 billion contract to buy airplanes from U.S. airplane manufacturer Boeing.
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Jerome R. Corsi received a Ph.D. from Harvard University in political science in 1972 and has written many books and articles, including co-authoring with John O’Neill the No. 1 New York Times best-seller, “Unfit for Command: Swift Boat Veterans Speak Out Against John Kerry.” Dr. Corsi’s most recent books include “Black Gold Stranglehold: The Myth of Scarcity and the Politics of Oil,” which he co-authored with WND columnist Craig. R. Smith, and “Atomic Iran: How the Terrorist Regime Bought the Bomb and American Politicians.”