Coast Guard Warned Of Ports Deal Gaps

Document Raised Questions About Security Of Companies' Operations

(CBS/AP) 
Mr. Bush has pledged to veto any measure blocking the deal. "The president's position remains the same," McClellan said. After the review, it will be up to the president to decide whether the deal takes effect.

The administration's announcement means the White House likely won't face a broader revolt this week by fellow Republicans. A united GOP can assert that its leaders — in Congress and at the White House — have taken additional steps to protect national security.

DP World's offer was highly unusual. The secretive U.S. committee that considers security risks of foreign companies buying or investing in American industry has conducted such full-blown investigations only about two dozen times among the more than 1,500 international deals it has reviewed.

The company said that during the renewed scrutiny, or until May 1, a London-based executive who is a British citizen would have authority over DP World's U.S. operations. It pledged that Dubai executives would not control or influence company business in the U.S., but said it was entitled to all profits during the period. It also said it will appoint an American to be its chief security officer in the United States.

"We hope that voluntarily agreeing to further scrutiny demonstrates our commitment to our long-standing relationship with the United States," said Edward H. Bilkey, the company's chief operating officer.

President Bush has personally defended his administration's earlier approval of DP World's proposal to buy London-based Peninsular & Oriental Steam Navigation Co. It was not immediately clear whether the re-examination by the same U.S. officials would produce a different outcome.

White House national security adviser Steven Hadley told CBS News' Face The Nation that "the security considerations here have been well-addressed; there isn't a security risk. This needs to be made clear to the Congress and to the American people. We need a little time to do that."

In the administration's earlier review, completed Jan. 17, DP World agreed to cooperate with law enforcement investigations and disclose many private business records on demand by U.S. agents. The government panel unanimously approved the deal after an ordinary 30-day review, during which U.S. intelligence agencies reported they found no derogatory information about DP World in their files.

In its legal papers, DP World said it would abide by the outcome of the pending review but indicated it could sue if the results were any different.

A chief critic of the ports deal, Rep. Peter King, chairman of the House Homeland Security Committee, said the company appeared to invite the more thorough investigation sought by many lawmakers. King, R-N.Y., said the proposal should be enough to delay immediate efforts in Congress to block the deal.