A potential showdown between the US President and Congress over the takeover of American ports by a state-owned Dubai company appears to have been resolved. Dubai World Ports has said it will transfer the operation of the six terminals to what it called ‘a US entity’. Many Congress members had demanded the company be stopped from running the ports over security concerns.
The Bush administration, which approved the deal in January, had sought to alleviate of politicians from both sides by ordering a review of the takeover. But the protests continued and on Thursday Republican leaders in the Senate moved to avert a debate and possible amendment vote on the issue. The dispute arose seven months before elections in which democrats hope to regain control of Congress. Sources close to Dubai World Ports were quoted as saying the government of the United Arab Emirates, which is a Washington ally, intervened to resolve the situation.