Date:11/03/2006 URL: http://www.thehindu.com/2006/03/11/stories/2006031103711400.htm

International

Dubai firm drops U.S. ports deal

Washington: A Dubai-owned company abruptly abandoned its plan for managing operations at six U.S. ports, defusing an election-year showdown between President George W Bush and the Republican-controlled Congress over an issue that had become a political land mine for Republicans.

``DP World will transfer fully the U.S. operations ... to a United States entity,'' said company executive, in the surprise announcement on Thursday that seemed to spread relief throughout the Capitol and the White House. It was unclear which American business might get the port operations.

Just hours earlier, Republican House and Senate leaders privately told the President that Congress was all but certain to block DP World's plan. Under pressure from a disapproving public, a House committee overwhelmingly voted against it Wednesday. The leaders told Mr. Bush the Senate would inevitably do the same, despite his threats to veto any legislation killing the deal. — AP