SPECIAL MEDIA REACTION: FTA; P&O DUBAI PORTS

UNCLAS ABU DHABI 000783

SIPDIS

STATE FOR NEA/ARP; NEA/PPD; NEA/RA; INR/R/MR; PA;
INR/NESA; INR/B; IIP/G/NEA-SA
WHITE HOUSE FOR PRESS OFFICE; NSC
SECDEF FOR OASD/PA
USCINCCENT FOR POLAD
LONDON FOR MCKUNE

E.O. 12958: N/A
TAGS: OIIP KMDR AE KPAO TC
SUBJECT: SPECIAL MEDIA REACTION: FTA; P&O DUBAI PORTS



1. Summary:
A UAE columnist in "Al-Khaleej" expresses that the UAE people
never expected the P&O business deal to create a political storm,
and examines some lessons to learn about this. He urged the UAE
authorities to slow down in their efforts to reach an FTA
agreement with the U.S. Another columnist in "Al-Ittihad"
expresses his regret that a storm was caused in the United States
due to Dubai Ports owning P&O. End Summary.


2. Under the headline "What did not cross the minds of the
Emiratis?", Dr. Abdul Khaleq Abdulla, a UAE columnist, Sharjah-
based Pan-Arab daily "Al Khaleej," (circulation 85,000) 2/28
wrote:

"... The Emiratis never expected that an Emirati company would
manage six ports in the only superpower as part of their
successful management of about 50 ports in 15 countries. The
Emiratis never expected that such a business deal would create
such a political storm which has generated 3200 articles, all of
which talk about the threat of this business deal to U.S.
security... The Emiratis also never expected that the busy
President Bush himself would personally defend this deal and
speak highly about the UAE, describing it as friendly ally...
They also did not expect Bush go further and threatens to veto
any attempts to block the deal... The Emiratis, whose country
lives in peace and security and hosts people representing 150
nationalities living together, including 30,000 U.S. citizens who
live and work in the UAE also did not expect this problems.

There are several lessons to learn from this issue: 1. The U.S.
is not necessarily an attractive and ideal environment for
investment, as many of America's friends believe. 2. The U.S.
has not, and will not soon, overcome the consequences of 9/11.

3. It is important for the UAE to take its time during the
discussions of the fifth round of the FTA negotiations. The
agreement, just as the P & O deal would be subject to
Congressional approval. This would help the UAE avoid a session
of insults by the leaders of both Republican and Democratic
parties. 4. The six ports are the least important business deal
so it is better that Dubai Ports Authoreity get rid of this
business deal, even if this means a small loss. 5. If the UAE
wants to be a global player, it should be ready for international
consequences of such a status. 6. The U.S. is the biggest
loser, morally as well financially. U.S. credibility, when it
comes to free trade and globalization is baseless. As for the
UAE citizens who live a normal life, the big noise over the ports
is no more than a sarcastic political play that reflects the
ignorance and triviality of political leaders in Washington and
all it generates is laughter and pity."



3. Under the headline "FLAGS OF FTA", Shihab Gargash, wrote in
his daily column in Abu Dhabi-based Arabic Daily "Al Ittihad,"
(circulation 65,000) 2/28:

"The windwhirl caused by the internal political conflicts in the
United States regarding the Dubai Ports Authority's ownership of
the international company P&O, is indeed a regrettable matter.
Especially from such a powerful force that claims to carry the
slogan of free trade and lectures to all nations of the world...
We all know that such an issue can be attributed to internal
political challenges, and when issues are being politicized, it
becomes impossible to predict consequences. The deal could get
through as planned and may fail due to baseless claims. If this
happens, it would be a setback to the banner that the U.S. has
held before the world nations for a long time. It also seems
that this flag of freedom is less free than we assumed."


SISON