CNN The Situation Room - Transcript

Date: March 2, 2006


CNN The Situation Room - Transcript

BREAK IN TRANSCRIPT

BLITZER: And joining us now is the senior senator from New York, Chuck Schumer, Democrat. Senator, thanks very much for joining us. There had been a lot of opposition expressed by some really strong supporters of Israel and you're one of the strongest supporters of Israel, because United Arab Emirates participates in this economic boycott of Israel. Dubai Ports World is owned by the United Arab Emirates.

Yet today, we learned that the chairman of the board of Zim, the largest shipping company in Israel says they've had an outstanding relationship with D.P. World and he gives them a glowing vote of confidence. What do you make of this latest twist in the story?

SEN. CHARLES SCHUMER (D), NEW YORK: Well the chairman of the board of Zim has to represent his shareholders. We have to represent security in America. And so it really doesn't matter to me what Zim says. And frankly, the fact that this company has taken part in the Israeli boycott, I don't like it. But that's hardly a paramount concern. The No. 1 issue here is the security of our homeland, the security of our ports. And unless they can meet that standard, no matter what their position is on a whole range of other issues, they shouldn't be allowed here.

BLITZER: Idan Ofer, who is the chairman of Zim says nobody is more concerned about security than Israel and that the Israeli shipping industry is clearly very, very vulnerable.

Here is what he writes in his letter to Senator Clinton. He told me he's also writing a similar letter to you. He writes, "For the past many years, we have been pleased to have D.P. World as our business partner, supporting our operations by providing services at key marine terminals around the world, including in the UAE. D.P. World has been an industry leader with regard to security and works closely with us on an on-going basis to maintain the highest security standards in all its terminals around the world." He says Zim has never had a problem directly or through its subsidiaries with security as far as D.P. World is concerned.

SCHUMER: Well again, the bottom line is that we, in America, have to make our own, independent assessment of security. They may have a good relationship with D.P. World, but there are too many unanswered questions to let this deal go forward.

And we need a thorough investigation. I'm sure that the head of Zim can write the CFIUS Committee and give them input. I put more faith in the port authority of New York, which handles containers and ships and companies of all different stripes and they have real concerns here.

BLITZER: The Coast Guard admiral in charge of port security was in THE SITUATION ROOM with me this week and I had this exchange with him on the purchase of this British firm by this Dubai-based firm. Listen to this.

(BEGIN VIDEO CLIP)

BLITZER: Can you assure the American public that the threat level will not increase as a result of this Dubai firm taking over the British firm's operations?

CRAIG BONE, COAST GUARD ADMIRAL: Yes. I can tell you that the measures that we put into place will assure that.

(END VIDEO CLIP)

BLITZER: That's rear admiral Craig Bone of the U.S. Coast Guard in charge of Coast Guard security. He's not a political guy, he's a professional.

SCHUMER: Well the bottom line is that, again, we want a full 45- day and thorough investigation done independently. The Coast Guard initially said they couldn't determine whether D.P. World was secure or not.

Then, in ways that I'm not aware of, they change their mind. This should all go before this investigation. This investigation should be made fully available to Congress, all the non-classified parts of the public and then there should be a vote.

And we'll determine one way or another. No one has said or -- I certainly haven't said how I'm going to vote. I'm dubious of the deal, that's for sure. But we all want to get an investigation that is impartial and thorough, unlike the first one.

We want to get the results of it and then have Congress have a right to vote up or down because after all, the president's already said he's for it. It's sort of like saying -- putting the verdict before the trial.

Security has to come first. The CFIUS Committee, which does these investigations, has all too often let economic considerations, diplomatic considerations, trump security. And we are going, Democrats and Republicans, are going to remain adamant that security must remain No. 1. And we're going to watch this investigation like a hawk.

BLITZER: One final question, Senator.

SCHUMER: You know, Wolf, everyone can swirl around with their own little interests here. Again, the Coast Guard first said it wasn't adequate in terms of their knowledge. Now they say it is. Did they get the command -- did the chain of command tell them to change their mind? Who knows? We need all of this to come out.

BLITZER: One final question, we're almost out of time. The other day you suggested you had some information that customs also expressed alarm bells about this deal. What can you tell us about that?

SCHUMER: Well we heard from a variety of sources that that was the case. Have not yet been able to confirm it so we're still looking into it.

BLITZER: Senator Schumer, thanks very much for joining us.

SCHUMER: Thank you, Wolf.

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