White House Stands by Veto Threat

White House Stands by Veto Threat

Published: 3/9/06, 12:04 PM EDT
WASHINGTON (AP) - Facing a Republican mutiny in Congress, the White House said Thursday that President Bush is open to compromise but would not retreat from a threatened veto of legislation that would block a Dubai-owned company from taking control of some U.S. port operations.

By a 62-2 margin, the GOP-dominated House Appropriations Committee voted to bar DP World, which is run by the government of Dubai in the United Arab Emirates, from holding leases or contracts at U.S. ports. In the Senate, Democrats demanded a vote to stop the transaction.

The ports provision was added to a must-pass measure funding the war in Iraq and providing new hurricane relief. The White House expessed concern that the tactic could "slow down passage of vital funds and resources" but said Bush's veto threat still stood.

"Our focus is on continuing to work with Congress to move forward on this issue," White House press secretary Scott McClellan told reporters. "The lines of communication are open. There are members who have concerns. We believe it's important to work with Congress to address those concerns, and find a way forward."

The House panel's vote spurred calls by Democrats in the Senate.

"I admire what the House did," Senate Democratic Leader Harry Reid, D-Nev., said on the Senate floor. "They said we know the president feels strongly about this. We know he said he's going to veto this. But we're going to do it because we think we have an obligation to our constituents."

Senate Democrats were trying to attach a measure blocking DP World's entry into the U.S. maritime industry to legislation designed to overhaul lobbying rules.

Deep public opposition to the ports deal has made the issue a dangerous one for congressional Republicans. Despite their own concerns, Senate GOP leaders have been trying to help the administration ease congressional worries about the proposal and are hoping to avoid an early showdown vote on the issue in their chamber.

"This issue should not be tangled up on the debate over whether or not to strengthen our lobbying disclosure laws," said Sen. Susan Collins, R-Maine, who has been a leader on both issues.

Sen. Charles Schumer, D-N.Y., offered the ports amendment on Wednesday, saying the Senate must act because of public opposition to the ports deal.

"We believe an overwhelming majority will vote to end the deal," he said.

Senate Republican leaders were trying to block a vote on the ports deal through a procedural vote that could occur as early as Thursday. That tactic was likely to fail, which could prompt Republicans to temporarily pull the lobbying reform bill from the floor to avoid an immediate defeat on the ports measure.

Bush has promised to veto any legislation blocking or delaying DP World from being able to operate U.S. port terminals as part of its takeover of Peninsular & Oriental Steam Navigation Co., a British company that holds contracts at several U.S. ports.

By a 62-2 margin, the House Appropriations Committee on Wednesday ignored that threat and voted to bar DP World, which is run by the government of Dubai in the United Arab Emirates, from holding leases or contracts at U.S. ports. The provision was added to a must-pass measure funding the war in Iraq and providing new hurricane relief.

Since House lawmakers attached the ports language to a must-pass $91 billion measure financing hurricane recovery and wars in Iraq and Afghanistan, Bush's veto threats may carry less weight with lawmakers.

The imbroglio over the port operations deal overshadowed the substance of the funding measure for Iraq operations and rebuilding projects on the Gulf Coast.

The underlying $91.1 billion spending bill provides $67.6 billion to fund the wars in Iraq and Afghanistan and $19.1 billion in new money for hurricane relief and rebuilding along the Gulf Coast.

The bill would bring total funding for the wars in Iraq and Afghanistan to $117.6 billion for the budget year ending Sept. 30. Total spending on Iraq and Afghanistan since the terrorist attacks of Sept. 11, 2001 would reach almost $400 billion.

The Appropriations Committee plan largely adopts Bush's requests for the war, the bulk of which would fund operations and maintenance costs, replacement of equipment, and personnel costs.

For hurricane relief, the House measure adopts Bush's $4.2 billion request but does not dedicate the money exclusively for Louisiana as he requested. The $19.1 billion for hurricane relief would bring total hurricane-related spending to more than $100 billion.

The panel approved the underlying measure on a voice vote late Wednesday, and the full House could consider the measure as early as next week.
credit BellSouth