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AP Enterprise: U.S. to pay foreign firm to help run nuclear detectors at Bahamas port

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Date: Sat Feb 11 09:27:18 2006

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UAE company poised to oversee six U.S. ports; administration not blocking deal

Eds: Moving on general news and financial services.

By TED BRIDIS

Associated Press Writer

WASHINGTON (AP) – A company in the United Arab Emirates is poised to take over significant operations at six American ports as part of a corporate sale, leaving a country with ties to the Sept. 11 hijackers with influence over a maritime industry considered vulnerable to terrorism.

The Bush administration considers the UAE an important ally in the fight against terrorism since the suicide hijackings and is not objecting to Dubai Ports World's purchase of London-based Peninsular and Oriental Steam Navigation Co.

The $6.8 billion sale is expected to be approved Monday. The British company is the fourth largest ports company in the world and its sale would affect commercial U.S. port operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

DP World said it won approval from a secretive U.S. government panel that considers security risks of foreign companies buying or investing in American industry.

The U.S. Committee on Foreign Investment in the United States "thoroughly reviewed the potential transaction and concluded they had no objection," the company said in a statement to The Associated Press.

The committee earlier agreed to consider concerns about the deal as expressed by a Miami-based company, Eller & Co., according to Eller's lawyer, Michael Kreitzer. Eller is a business partner with the British shipping giant but was not in the running to buy the ports company.

The committee, which could have recommended that President Bush block the purchase, includes representatives from the departments of Treasury, Defense, Justice, Commerce, State and Homeland Security.

The State Department describes the UAE as a vital partner in the fight against terrorism. But the UAE, a loose federation of seven emirates on the Saudi peninsula, was an important operational and financial base for the hijackers who carried out the attacks against New York and Washington, the FBI concluded.

Sen. Charles Schumer, a Democrat whose district includes the New York port, urged the administration to consider the sale carefully.

"America's busiest ports are vital to our economy and to the international economy, and that is why they remain top terrorist targets," Schumer said. "Just as we would not outsource military operations or law enforcement duties, we should be very careful before we outsource such sensitive homeland security duties."

Last month, the White House appointed a senior DP World executive, David C. Sanborn of Virginia, to be the new administrator of the Maritime Administration of the Transportation Department. Sanborn worked as DP World's director of operations for Europe and Latin America.

Critics of the proposed purchase said a port operator complicit in smuggling or terrorism could manipulate manifests and other records to frustrate Homeland Security's already limited scrutiny of shipping containers and slip contraband past U.S. Customs inspectors.

"When you have a foreign government involved, you are injecting foreign national interests," Kreitzer said. "A country that may be a friend of ours today may not be on the same side tomorrow. You don't know in advance what the politics of that country will be in the future."

Shipping experts noted that many of the world's largest port companies are not based in the U.S., and they pointed to DP World's strong economic interest in operating ports securely and efficiently.

"Does this pose a national security risk? I think that's pushing the envelope," said Stephen E. Flynn, who studies maritime security at the New York-based Council on Foreign Relations. "It's not impossible to imagine one could develop an internal conspiracy, but I'd have to assign it a very low probability."

Changing management over the U.S. ports "doesn't offer al-Qaida any opportunities it doesn't have now," said James Lewis, who worked with the U.S. committee at the State and Commerce departments. "It's in Dubai's interest to make sure this runs well. There is strong economic incentive to be sure these worries never materialize."

Flynn and others said even under foreign control, U.S. ports will continue to be run by unionized American employees. "You're not going have a bunch of UAE citizens working the docks," Flynn said. "They're longshoremen, vested in high-paying jobs. Most of them are Archie Bunker-kind of Americans."

Peninsular and Oriental and DP World set approval by the U.S. security committee as a condition for the sale. In regulatory papers, the companies said either the committee must agree not to formally investigate the purchase or Bush must not move to block the sale for national security purposes.

Since the Sept. 11 attacks, the FBI has said the money for the strikes was transferred to the hijackers primarily through the UAE's banking system, and much of the operational planning for the attacks took place inside the UAE.

Many of the hijackers traveled to the U.S. through the UAE. Also, the hijacker who steered United Airlines flight into the World Trade Center's south tower, Marwan al-Shehhi, was born in the UAE.

After the attacks, U.S. Treasury Department officials complained about a lack of cooperation by the UAE and other Arab countries trying to track Osama bin Laden's bank accounts.

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Date: Sat Feb 25 23:26:04 2006

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Homeland Security objected at first to ports deal, then went along with others

By TED BRIDIS

Associated Press Writer

WASHINGTON (AP) – The Homeland Security Department objected at first to a United Arab Emirates company's taking over significant operations at six U.S. ports. It was the lone protest among members of the government committee that eventually approved the deal without dissent.

The department's early objections were settled later in the government's review of the $6.8 billion deal after Dubai-owned DP World agreed to a series of security restrictions.

Senate Majority Leader Bill Frist and other congressional leaders, the company and Bush administration officials were working on a compromise intended to derail plans by Republicans and Democrats for legislation next week that would force a new investigation of security issues relating to the deal. Talks were to continue through the weekend.

"My comfort level is good, but I have 99 other United States senators who need the opportunity to ask their questions," Frist told the Lexington Herald-Leader before speaking at a Republican dinner Saturday evening in Lexington, Ky.

"We're behind the president 100 percent," he added. "We believe the decision in all likelihood is absolutely the right one."

Under one proposal being discussed, DP World would seek new approval of the deal from the Committee on Foreign Investment in the United States, given the company's surprise decision Thursday to indefinitely postpone its takeover of U.S. port operations. Other proposals included a new, intensive 45-day review of the deal by the government – something the White House had refused to consider as recently as Friday.

Rep. Peter King, chairman of the House Homeland Security Committee, said discussions among congressional leaders centered on that issue. "It's my understanding that they are trying to build support for a deal involving a new 45-day investigation," he said.

Frist, R-Tenn., said that while legislation may not be necessary now, having "30 to 45 days" to step back and evaluate the deal still could be necessary.

"If there's some question about the diagnosis, then maybe we need to get a second opinion," said Frist, a former heart surgeon.

King, R-N.Y., said he would need to see all the details of a compromise before deciding if it met all of his concerns, or met the demands of the legislation he planned to offer.

Despite persistent criticism from Republicans and Democrats, the president has defended his administration's approval of the ports deal and threatened to veto any measures in Congress that would block it. The company's voluntary delay in taking over most operations at the six U.S. ports did little to quell a political furor or appease skeptical members of Congress that the deal does not pose any increased risks to the U.S. from terrorism. Republican House and Senate leaders are to meet Tuesday to discuss how to proceed.

The company declined Saturday to discuss any potential compromise that may be in the works.

A DP World executive said the company would agree to tougher security restrictions to win congressional support only if the same restrictions applied to all U.S. port operators. The company earlier had struck a more conciliatory stance, saying it would do whatever Bush asked to salvage the agreement.

"Security is everybody's business," senior vice president Michael Moore told The Associated Press. "We're going to have a very open mind to legitimate concerns. But anything we can do, any way to improve security, should apply to everybody equally."

The administration approved the ports deal on Jan. 17 after DP World agreed during secret negotiations to cooperate with law enforcement investigations in the future and make other concessions.

Some lawmakers have challenged the adequacy of a classified intelligence assessment crucial to assuring the administration that the deal was proper. The report was assembled during four weeks in November by analysts working for the director of national intelligence.

The report concluded that U.S. spy agencies were "unable to locate any derogatory information on the company," according to a person familiar with the document. This person spoke only on condition of anonymity because the report was classified.

Sen. Carl Levin, D-Mich., and others have complained that the intelligence report focused only on information the agencies collected about DP World and did not examine reported links between UAE government officials and al-Qaida leader Osama bin Laden before the Sept. 11 attacks.

The uproar over DP World has exposed how the government routinely approves deals involving national security without the input of senior administration officials or Congress.

President Bush, Homeland Security Secretary Michael Chertoff, Defense Secretary Donald H. Rumsfeld and even Treasury Secretary John Snow, who oversees the government committee that approved the deal, all say they did not know about the purchase until after it was finalized. The work was done mostly by assistant secretaries.

Snow now says he may consider changes in the approval process so lawmakers are better alerted after such deals get the go-ahead.

Stewart Baker, a senior Homeland Security official, said he was the sole representative on the Committee on Foreign Investment in the United States who objected to the ports deal. Baker said he later changed his vote after DP World agreed to the security conditions. Other officials confirmed Baker's account.

"We were not prepared to sign off on the deal without the successful negotiation of the assurances," Baker told the AP.

Officials from the White House, CIA, departments of State, Treasury, Justices, and others looked for guidance from Homeland Security because it is responsible for seaports. "We had the most obvious stake in the process," Baker said.

Baker acknowledged that a government audit of security practices at the U.S. ports in the takeover has not been completed as part of the deal. "We had the authority to do an audit earlier," Baker said.

The audit will help evaluate DP World's security programs to stop smuggling and detect illegal shipments of nuclear materials at its seaport operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

The administration privately disclosed the status of the security audit to senators during meetings about improving reviews of future business deals involving foreign buyers. Officials did not suggest the audit's earlier completion would have affected the deal's approval.

New Jersey's Democratic governor, who is suing to block the deal, said in his party's weekly radio address on Saturday that the administration failed to properly investigate the UAE's record on terrorism.

"We were told that the president didn't know about the sale until after it was approved. For many Americans, regardless of party, this lack of disciplined review is unacceptable," Jon Corzine said.

A federal judge in New Jersey has ordered the government to file a written response to Corzine's suit by Monday and scheduled a hearing for Wednesday.

Bush's national security adviser, Stephen Hadley, said there was no going back on the deal.

_____

Associated Press Writers Devlin Barrett and Liz Sidoti in Washington contributed to this report.

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Date: Wed Feb 22 22:07:34 2006

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Arab company agreed to disclose internal records to U.S. to win sale

By TED BRIDIS

Associated Press Writer

WASHINGTON (AP) – The Bush administration secretly required a company in the United Arab Emirates to cooperate with future U.S. investigations before approving its takeover of operations at six American ports, according to documents obtained by The Associated Press. It chose not to impose other, routine restrictions.

As part of the $6.8 billion purchase, state-owned Dubai Ports World agreed to reveal records on demand about "foreign operational direction" of its business at U.S. ports, according to the documents. Those records broadly include details about the design, maintenance or operation of ports and equipment.

The administration did not require Dubai Ports to keep copies of business records on U.S. soil, where they would be subject to orders by American courts. It also did not require the company to designate an American citizen to accommodate U.S. government requests. Outside legal experts said such obligations are routinely attached to U.S. approvals of foreign sales in other industries.

"They're not lax but they're not draconian," said James Lewis, a former U.S. official who worked on such agreements. If officials had predicted the firestorm of criticism over the deal, Lewis said, "they might have made them sound harder."

The conditions involving the sale of London-based Peninsular and Oriental Steam Navigation Co. were detailed in U.S. documents marked "confidential." Such records are regularly guarded as trade secrets, and it is highly unusual for them to be made public.

The concessions were described previously by the Homeland Security Department as unprecedented among maritime companies. Still, they reflect a close relationship between the United States and the United Arab Emirates.

Rep. Peter King of New York, the Republican chairman of the House Homeland Security Committee and a leading critic of the sale, said the conditions are evidence the Bush administration was concerned about security.

"There is a very serious question as to why the records are not going to be maintained on American soil subject to American jurisdiction," King said.

The revelations about the negotiated conditions came as the White House acknowledged President Bush was unaware of the pending sale until the deal had been already approved by his administration.

The Republican head of the Senate Armed Services Committee, John Warner of Virginia, announced plans for a hearing in Washington on Thursday. Warner has expressed support for the agreement, describing the UAE as an important ally against terrorism.

Bush on Tuesday brushed aside objections by leaders in the Senate and House. He pledged to veto any bill Congress might approve to block the agreement, but some lawmakers said they still were determined to capsize it.

Dubai Port's top American executive, chief operating officer Edward H. Bilkey, said the company will do whatever the Bush administration asks to enhance shipping security and ensure the sale goes through. Bilkey said Wednesday he will work in Washington to persuade skeptical lawmakers they should endorse the deal; Senate oversight hearings already are scheduled.

"We're disappointed," Bilkey told the AP in an interview. "We're going to do our best to persuade them that they jumped the gun. The UAE is a very solid friend, as President Bush has said."

Under the deal, the government asked Dubai Ports to operate American seaports with existing U.S. managers "to the extent possible." It promised to take "all reasonable steps" to assist the Homeland Security Department, and it pledged to continue participating in security programs to stop smuggling and detect illegal shipments of nuclear materials.

The administration required Dubai Ports to designate an executive to handle requests from the U.S. government, but it did not specify this person's citizenship.

It said Dubai Ports must retain paperwork "in the normal course of business" but did not specify a time period or require corporate records to be housed in the United States. Outside experts familiar with such agreements said such provisions are routine in other cases.

Foreign telecommunications companies are usually required to store their business records in the United States. But a senior U.S. official said the Bush administration considers shipping manifests less sensitive. The official spoke on condition of anonymity because of the confidential nature of the agreement.

Bush faces a potential rebellion from leaders of his own party, as well as a fight from Democrats, over the sale. It puts Dubai Ports in charge of major terminal operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

Senate and House leaders urged the president to delay the takeover, which is set to be finalized in early March. Senate Majority Leader Bill Frist of Tennessee said the deal raised "serious questions regarding the safety and security of our homeland." House Speaker Dennis Hastert, R-Ill., asked the president for a moratorium on the sale until it could be studied further.

In Saudi Arabia, Secretary of State Condoleezza Rice said the agreement was thoroughly vetted. "We have to maintain a principle that it doesn't matter where in the world one of these purchases is coming from," Rice said Wednesday. She described the United Arab Emirates as "a good partner in the war on terrorism."

Bush personally defended the agreement on Tuesday, but the White House said he did not know about it until recently. The AP first reported the U.S. approval of the sale to Dubai Ports on Feb. 11, and many members of Congress have said they learned about it from the AP.

"I think somebody dropped the ball," said Rep. Vito Fossella, R-N.Y. "Information should have flowed more freely and more quickly up into the White House. I think it has been mishandled in terms of coming forward with adequate information."

At the White House, spokesman Scott McClellan said Bush learned about the deal "over the last several days," as congressional criticism escalated. McClellan said it did not rise to the presidential level, but went through a government review and was determined not to pose a threat.

McClellan said Bush afterward asked the head of every U.S. department involved in approving the sale whether there were security concerns. "Each and every one expressed that they were comfortable with this transaction going forward," he said.

Commerce Secretary Carlos Guiterrez told the AP the administration was being thoughtful and deliberate approving the sale.

"We are not reacting emotionally," Guiterrez said in an interview Wednesday. "That's what I believe our partners from around the world would like to see from us is that we be thoughtful. That we be deliberate. That we understand issues before we make a decision."

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Associated Press writers Jeanine Aversa in Washington, Anne Gearan in Riyadh, Saudi Arabia, and John Christoffersen in Danbury, Conn., contributed to this report.

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Date: Sat Mar 11 11:48:34 2006

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AP Exclusive: Study says lapses by port companies could allow terrorist attack

AP Graphic PORT SECURITY

By TED BRIDIS

Associated Press Writer

WASHINGTON (AP) – Lapses by private port operators, shipping lines or truck drivers could allow terrorists to smuggle weapons of mass destruction into the United States, according to a government review of security at American seaports.

The $75 million, three-year study by the Homeland Security Department included inspections at a New Jersey cargo terminal involved in the dispute over a Dubai company's now-abandoned bid to take over significant operations at six major U.S. ports.

The previously undisclosed results from the study found that cargo containers can be opened secretly during shipment to add or remove items without alerting U.S. authorities, according to government documents marked "sensitive security information" and obtained by The Associated Press.

The study found serious lapses by private companies at foreign and American ports, aboard ships, and on trucks and trains "that would enable unmanifested materials or weapons of mass destruction to be introduced into the supply chain."

The study, expected to be completed this fall, used satellites and experimental monitors to trace roughly 20,000 cargo containers out of the millions arriving each year from Europe, Asia and the Middle East. Most containers are sealed with mechanical bolts that can be cut and replaced or have doors that can be removed by dismantling hinges.

The risks from smuggled weapons are especially worrisome because U.S. authorities largely decide which cargo containers to inspect based on shipping records of what is thought to be inside.

Among the study's findings:

_Safety problems were not limited to overseas ports. A warehouse in Maine was graded less secure than any in Pakistan, Turkey or Brazil. "There is a perception that U.S. facilities benefit from superior security protection measures," the study said. "This mind set may contribute to a misplaced sense of confidence in American business practices."

_No records were kept of "cursory" inspections in Guatemala for containers filled with Starbucks Corp. coffee beans shipped to the West Coast. "Coffee beans were accessible to anyone entering the facility," the study said. It found significant mistakes on manifests and other paperwork. In a statement to the AP, Starbucks said it was reviewing its security procedures.

_Truck drivers in Brazil were permitted to take cargo containers home overnight and park along public streets. Trains in the U.S. stopped in rail yards that did not have fences and were in high-crime areas. A shipping industry adage reflects unease over such practices: "A container at rest is a container at risk."

_Practices at Turkey's Port of Izmir were "totally inadequate by U.S. standards." But, the study noted, "It has been done that way for decades in Turkey."

_Containers could be opened aboard some ships during weekslong voyages to America. "Due to the time involved in transit (and) the fact that most vessel crew members are foreigners with limited credentialing and vetting, the containers are vulnerable to intrusion during the ocean voyage," the study said.

_Some governments will not help tighten security because they view terrorism as an American problem. The U.S. said "certain countries," which were not identified, would not cooperate in its security study – "a tangible example of the lack of urgency with which these issues are regarded."

_Security was good at two terminals in Seattle and nearby Tacoma, Wash. The operator in Seattle, SSA Marine, uses cameras and software to track visitors and workers. "We consider ourselves playing an important role in security," said the company's vice president, Bob Waters.

In theory, some nuclear materials inside cargo containers can be detected with special monitors. But such devices have frustrated port officials in New Jersey because bananas, kitty litter and fire detectors – which all emit natural radiation – set off the same alarms more than 100 times every day.

The study applauded efforts to install radiation monitors overseas. "While there is clearly value in nuclear detection at a U.S. port, that is precisely the concern – it is already on U.S. soil," it said.

Finding biological and chemical weapons inside cargo containers is less likely. The study said tests were "labor intensive, time-consuming and costly to use" and produced too many false alarms. "No silver bullet has emerged to render terrorists incapable of introducing WMD into containers," it said.

Sen. Patty Murray, who advocated the study, said: "There are huge holes in our security system that need to be filled." The Washington Democrat said the study "shows us there are major vulnerabilities over who handles cargo, where it's been and whether cargo is on a manifest."

Part of the study tested new tamper-evident locks on containers and tracking devices.

"It's important to figure out what works and what doesn't," said Elaine Dezenski, Homeland Security's acting assistant secretary for policy development. She said the study "gave us a much better view of vulnerabilities." The U.S. is looking for weaknesses across the shipping system to learn where terrorists might strike, she said.

The study, called "Operation Safe Commerce," undercuts arguments that port security in America is an exclusive province of the Coast Guard and U.S. Customs and Border Protection and is not managed by companies operating shipping terminals.

The theme was an important element in the Bush administration's forceful defense of the deal it originally approved to allow Dubai-owned DP World to handle significant operations at ports in New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

Bush and senior officials sought to assure lawmakers that safety at ports would not decline.

"I can understand people's consternation because the first thing they heard was that a foreign company would be in charge of our port security when in fact, the Coast Guard and Customs are in charge of our port security," Bush said Feb. 28. "Our duty is to protect America, and we will protect America."

DP World promised on Thursday to transfer fully to an American company its U.S. port operations it acquired when it bought London-based Peninsular & Oriental Steam Navigation Co.

It was unclear how such a sale might occur, but the divestiture was expected to involve major operations at the six U.S. ports and affect lesser dockside activities at 16 other ports in this country.

Sen. Robert Menendez, D-N.J., a leading critic of the Dubai deal, said anyone suggesting that port operators and shipping companies were not involved with security was "living in La-La land."

"You can obviously have stuff in containers that doesn't make it onto manifests, either by design or from the actions of bad actors," Menendez said in an AP interview Friday. "A terminal operator is so involved in the overall security equation of ports."

Parts of the U.S. study examined the safety of containers sent to the same cargo terminal in New Jersey that DP World would have managed jointly and operated with its Denmark-based rival, Maersk Sealand.

Hundreds of pages of study documents obtained by the AP do not list specific security lapses at the New Jersey terminal. The final two cargo containers being tracked under the study were expected to arrive there this week from the Middle East.

But the study broadly described problems in warehouses and other storage areas that raised doubts about the safety of containers brought to New Jersey's port. It cited problems with protective fences and gates, surveillance cameras and emergency plans.

The lengthy study has been beset by problems. Japan refused to allow officials to attach tracking devices to containers destined for the United States. Other tracking devices sometimes failed. Many shipping companies refused to disclose information for competitive reasons.

Some containers in the study were aboard a ship the Coast Guard held 11 miles off New Jersey's coast for security reasons in August 2004. An anonymous e-mail had claimed a container filled with tons of lemons was deliberately contaminated with a biological agent. The lemons were fumigated and burned, but no trace of poison was ever found; the containers also were destroyed.

Parts of the study could not be finished at all. U.S. officials went to Pakistan to inspect how workers in Karachi handle cargo containers. But they canceled plans for a return inspection because of an outbreak of terrorist attacks there.

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AP Enterprise: U.S. to pay foreign firm to help run nuclear detectors at Bahamas port

Eds: A Web interactive showing the locations of U.S. radiation detectors overseas is available to Hosted Custom News and AP Online members. A video package is available via AP's Online Video Network.

%photo(AP Photos WX105-106%)

AP Graphic SECURITY BAHAMAS

By TED BRIDIS

and

JOHN SOLOMON

Associated Press Writers

WASHINGTON (AP) – In the aftermath of the Dubai ports dispute, the Bush administration is hiring a Hong Kong conglomerate to help detect nuclear materials inside cargo passing through the Bahamas to the United States and elsewhere.

The administration acknowledges the no-bid contract with Hutchison Whampoa Ltd. represents the first time a foreign company will be involved in running a sophisticated U.S. radiation detector at an overseas port without American customs agents present.

Freeport in the Bahamas is 65 miles from the U.S. coast, where cargo would be likely to be inspected again. The contract is currently being finalized.

The administration is negotiating a second no-bid contract for a Philippine company to install radiation detectors in its home country, according to documents obtained by The Associated Press. At dozens of other overseas ports, foreign governments are primarily responsible for scanning cargo.

While President Bush recently reassured Congress that foreigners would not manage security at U.S. ports, the Hutchison deal in the Bahamas illustrates how the administration is relying on foreign companies at overseas ports to safeguard cargo headed to the United States.

Hutchison Whampoa is the world's largest ports operator and among the industry's most-respected companies. It was an early adopter of U.S. anti-terror measures. But its billionaire chairman, Li Ka-Shing, also has substantial business ties to China's government that have raised U.S. concerns over the years.

"Li Ka-Shing is pretty close to a lot of senior leaders of the Chinese government and the Chinese Communist Party," said Larry M. Wortzel, head of a U.S. government commission that studies China security and economic issues. But Wortzel said Hutchison operates independently from Beijing, and he described Li as "a very legitimate international businessman."

Three years ago, the Bush administration effectively blocked a Hutchison subsidiary from buying part of a bankrupt U.S. telecommunications company, Global Crossing Ltd., on national security grounds.

And a U.S. military intelligence report, once marked "secret," cited Hutchison in 1999 as a potential risk for smuggling arms and other prohibited materials into the United States from the Bahamas.

Hutchison's port operations in the Bahamas and Panama "could provide a conduit for illegal shipments of technology or prohibited items from the West to the PRC (People's Republic of China), or facilitate the movement of arms and other prohibited items into the Americas," the now-declassified assessment said.

The CIA currently has no security concerns about Hutchison's port operations, and the administration believes the pending deal with the foreign company would be safe, officials said.

Supervised by Bahamian customs officials, Hutchison employees will drive the towering, truck-like radiation scanner that moves slowly over large cargo containers and scans them for radiation that might be emitted by plutonium or a radiological weapon.

Any positive reading would set off alarms monitored simultaneously by Bahamian customs inspectors at Freeport and by U.S. Customs and Border Protection officials working at an anti-terrorism center 800 miles away in northern Virginia. Any alarm would prompt a closer inspection of the cargo, and there are multiple layers of security to prevent tampering, officials said.

"The equipment operates itself," said Bryan Wilkes, a spokesman for the U.S. National Nuclear Security Administration, the agency negotiating the contract. "It's not going to be someone standing at the controls pressing buttons and flipping switches."

A lawmaker who helped lead the opposition to the Dubai ports deal isn't so confident. Neither are some security experts. They question whether the U.S. should pay a foreign company with ties to China to keep radioactive material out of the United States.

"Giving a no-bid contract to a foreign company to carry out the most sensitive security screening for radioactive materials at ports abroad raises many questions," said Sen. Charles Schumer, D-N.Y.

Rep. Bennie Thompson, the senior Democrat on the House Homeland Security Committee, said President Bush "needs to explain what safeguards are in place at foreign ports to assure that operators are not jeopardizing our security."

"If a port operator has been identified as posing a potential threat to national security, it is only common sense that Americans should be working on site to assure U.S. security is taken seriously," Thompson said late Thursday. "If the President needs more U.S. Customs inspectors to get the job done, I'd be happy to lead the charge to get however many is needed to keep America safe."

A low-paid employee with access to the screening equipment could frustrate international security by studying how the equipment works and which materials set off its alarms, warned a retired U.S. Customs investigator who specialized in smuggling cases.

"Money buys a lot of things," Robert Sheridan said. "The fact that foreign workers would have access to how the United States screens various containers for nuclear material and how this technology scrutinizes the containers – all those things allow someone with a nefarious intention to thwart the screening."

The Hutchison deal in the Bahamas was flagged in a report in October by ATS Worldwide Services, a Florida firm that identifies potential risks for private-sector and government clients. Company officials said they shared the report with some officials in Congress, the military and law enforcement.

Other experts discounted concerns. They cited Hutchison's reputation as a leading ports company and said the United States inevitably must rely for some security on large commercial operators in the global maritime industry.

"We must not allow an unwarranted fear of foreign ownership or involvement in offshore operations to impair our ability to protect against nuclear weapons being smuggled into this country," said Sen. Norm Coleman, R-Minn., a member of the Senate Committee on Homeland Security and Governmental Affairs. "We must work with these foreign companies."

A former Coast Guard commander, Stephen Flynn, said foreign companies sometimes prove more trustworthy – and susceptible to U.S. influence – than governments.

"It's a very fragile system," Flynn said. Foreign companies "recognize the U.S. has the capacity and willingness to exercise a kill switch if something goes wrong."

Hutchison's ports subsidiary said in a statement Friday from its headquarters in Hong Kong it was confident that Bahamian customs inspectors will notify U.S. authorities whenever it is appropriate.

There are no U.S. customs agents checking any cargo containers at the Hutchison port in Freeport. Under the contract, no U.S. officials would be stationed permanently in the Bahamas with the radiation scanner.

The administration is finalizing the contract amid a national debate over maritime security sparked by the furor over now-abandoned plans by Dubai-owned DP World to take over significant operations at major U.S. ports.

Hutchison operates the sprawling Freeport Container Port on Grand Bahama Island. Its subsidiary, Hutchison Port Holdings, has operations in more than 20 countries but none in the United States.

Contract documents, obtained by The Associated Press, indicate Hutchison will be paid roughly $6 million. The contract is for one year with options for three years.

The Energy Department's National Nuclear Security Administration is negotiating the Bahamas contract under a $121 million security program it calls the "second line of defense." Wilkes, the NNSA spokesman, said the Bahamian government dictated that the U.S. give the contract to Hutchison.

"It's their country, their port. The driver of the mobile carrier is the contractor selected by their government. We had no say or no choice," he said. "We are fortunate to have allies who are signing these agreements with us."

Some security experts said that is a weak explanation in the Bahamas, with its close reliance on the United States. The administration could insist that the Bahamas permit U.S. Customs agents to operate at the port, said Albert Santoli, an expert on national security issues in Asia and the Pacific.

"Why would they not accept that?" said Santoli, a former national security aide to Rep. Dana Rohrabacher, R-Calif. "There is an interest in the Bahamas and every other country in the region to make sure the U.S. stays safe and strong. That's how this should be negotiated."

Flynn, the former Coast Guard commander, agreed the Bahamas would readily accept such a proposal but said the U.S. is short of trained customs agents to send overseas.

Contract documents obtained by the AP show at least one other foreign company is involved in the U.S. radiation-detection program.

A separate, no-bid $4 million contract the Bush administration is negotiating would pay a Manila-based company, International Container Terminal Services Inc., to install radiation detectors at the Philippines' largest port.

The U.S. says the Manila company is not being paid to operate the radiation monitors once they are installed. But two International Container executives and a senior official at the government's Philippine Nuclear Research Institute said the company will run the detectors on behalf of the institute and the country's customs bureau. U.S. officials said they will investigate further how the Filipinos plan to use the equipment.

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Associated Press writers Bill Foreman in Hong Kong and Jim Gomez in Manila contributed to this story.