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Administration Failed To Conduct Legally Required Investigation Before Approving UAE Port Deal

In ordinary cases of foreign direct investment the Committee on Foreign Investment in the United States (CFIUS) first conducts a 30-day “review” of the transaction. After the review, the committee makes a judgment as to whether a 45-day “investigation” is necessary to address national security concerns.

The law, however, was amended in 1993. That amendment makes the 45-day investigation mandatory in cases like the Dubai World Ports transfer. From the CFIUS website:

The Dubai World Ports purchase triggers the automatic investigation. First, the company is “controlled” by a foreign government. Second, it’s undeniable that port operations “could affect the national security of the United States.”

Yet, the investigation never happened. Bush administration officials “could not say why a 45-day investigation did not occur.”

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