Federal Judge in New Jersey Refuses To Order Investigation Into Port Deal

This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

The New York Sun

NEWARK, N.J. – A federal judge yesterday ruled against a request by New Jersey to order an investigation into a United Arab Emirates company’s takeover of some American port operations.


U.S. District Judge Jose Linares also said the state will not be privy to documents the company gave to a federal committee reviewing the deal. Judge Linares said the state “needs to show an immediate need for those documents.”


The $6.8 billion acquisition would allow Dubai-based DP World to buy major commercial operations at ports in New York, New Jersey, Baltimore, Miami, New Orleans, and Philadelphia. Critics of the deal say it could compromise national security.


[A three-day poll of 1,200 likely New Yorkvoters conducted by Strategic Vision on February 24-26 found 78% oppose port takeover. The same poll estimated that Senator Clinton would receive 42% of the Democratic vote for president in 2008. However, 57% of the state’s voters do not want her to run for president – by contrast, 64% want a Rudy bid.


While Mrs. Clinton was preparing to draft legislation to halt the ports deal, President Clinton was two weeks ago advising top officials from Dubai on how to best address growing American concerns over the sale of P&O to DP World, according to a report in today’s Financial Times. He suggested that Dubai propose a 45-day delay, a compromise that was eagerly grasped by the White House.]


The Bush administration agreed Sunday to the state-owned company’s request for a 45-day investigation of the deal’s potential security risks, and Judge Linares said that review should be sufficient.


“The very action now is taking place,” said Judge Linares, who added that if the review does not take place, the state could reargue its case.


New Jersey Attorney General Zulima Farber said despite the judge’s decision, she was satisfied because she believes the state’s lawsuit prompted the company to agree to the 45-day review.


“I expect the investigation to be above board and real,” Ms. Farber said after the ruling.


In court, a lawyer for the Justice Department said the administration had not received a letter from the company formalizing the 45-day review.


Ms. Farber said if the letter doesn’t come, the state will go back to court.


The state had argued that the company’s promises of a 45-day review was not enough of an assurance it would occur.


Ori Lev, a Justice Department attorney, had argued the company already has committed publicly to the review and the court action is not needed.


“It simply ignores reality to claim that is not likely to happen,” he said.


Mr. Lev said the request for the documents was a “frivolous claim” and said New Jersey has not identified any legal basis for its contention that Governor Corzine is entitled to the documents.


Judge Linares said there is no reason for the state to review the documents until a deal is approved. If that happens, the court could appoint a person with appropriate security clearance to review the material and then decide whether to release it to New Jersey officials, the judge said.


The New York Sun

© 2024 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

The New York Sun

Sign in or  create a free account

By continuing you agree to our Privacy Policy and Terms of Use