This Could Have Ramifications...

So the Port Deal is dead.

Yeah! Good for us! No Arabs running our ports!

That is sarcasm, by the way, I know sarcasm doesn't always translate well to the written word.

Are we better off though?

I mean, isn't this for the best?

Well, I have a few concerns about potential fallout from this.

First, if Dubai Ports would have taken over the ports, they would not have been in charge of security!

That point was not mentioned enough throughout this process. I asked people every day, next to nobody I talked to knew that...

Now, the other arguement was that they could have been instramental in helping terrorists.

Fine, maybe they could, but after all we have been through with the UAE, do you really think they would have done something like that?

The UAE provided $6.572 billion in assistance to the United States during the 1991 Gulf War, and permits that country to use its air bases and ports, which are the only harbors in the Persian Gulf deep enough to berth an aircraft carrier. In the long run, the stability of the UAE is critical to the free flow of shipping though the Strait of Hormuz and the defense of the GCC from Iran and Iraq.

It hasn't all been perfect with the UAE and Dubai Ports since then, see my recent post.

So anyway, bottom line is that the UAE would not be in charge of port security. And doesn't it make sense that the UAE would, bend over backwards, to quote Bill Clinton, to make sure this venture goes well?

They would be under a microscope, and they would not want to lose their investment.

Those concerns are small compared to my bigger concern.

What does this mean for The US economically?

Today, next week, next month, Nothing.

But what about long term?

Here is one glaring example.

What do you think Boeing employees though about the DP Ports Deal?

I would guess they were all for it!

Here's why...

Boeing wins a $10 billion Emirates order for 42 Boeing 777 airplanes
Sunday, 20 November 2005
The Boeing Company and Emirates have announced today they have concluded contract negotiations for a firm order for 42 Boeing 777 airplanes with purchase rights for 20 additional airplanes. The deal was announced by Emirates Chairman Shaikh Ahmed bin Saeed al-Maktoum at the Dubai Air Show and is valued at $9.7 billion at list prices.
Emirates' order is for 24 Boeing 777-300ERs, 10 777-200LR Worldliners and 8 777 Freighters.
When first current orders are delivered by late 2007, Emirates fleet will include 51 Boeing 777s. This new order for 42 Boeing 777s will see the airline becoming the largest Boeing 777 operator in the world.

We all know Boeing has some international competition, right?

I hate to say it, but if I were the UAE, I would say...

"OK, the US doesn't want us around, but they are happy to take our money?, SCREW THEM, I'll take our $10 billion to Airbus!"

I hope I'm wrong, I hope GW Bush did some diplomatic magic to smooth over the Ports Deal, and if this all goes bad, I hope our Congress and Media get their due blame for it.

I know that won't happen, it will be Bush's fault, just like everything else.