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The Situation Room
Interview With Dubai Ports World CEO; Sentencing Proceedings Begin for Zacarias Moussaoui
Aired March 06, 2006 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, HOST: To our viewers, I'm reporting tonight from the United Arab Emirates, and you're in THE SITUATION ROOM, where new pictures and information are arriving all the time.
Happening now, it's 4:00 a.m. here in Dubai. There is a late- breaking development involving the deal that would give an Arab firm control of six American port operations. I'll ask the CEO of Dubai Ports World if his company can keep Americans safe.
And I'll take you on an extraordinary ride over this futuristic metropolis of the Persian Gulf. It's something you'll see only here on CNN.
I'll also take you behind the scenes for an exclusive look at the high-tech security measures in Dubai's ports, where state-of-the-art scanners can sniff out chemical, biological and nuclear threats.
And it's 7:00 p.m. in Alexandria, Virginia, where the jury is seated and so is Zacarias Moussaoui, as sentencing proceedings begin for the only person charged in the U.S. with crimes related to the 9/11 attacks.
I'm Wolf Blitzer. You're in THE SITUATION ROOM.
Welcome to THE SITUATION ROOM. We're reporting tonight live from Dubai in the United Arab Emirates. We're tracking a developing story on that controversial deal that would put U.S. port operations in the hands of a company from this Arab nation. Right now, a key Republican congressman is floating a compromise proposal that may help the deal go through.
That deal means a lot to this city, which is a mix of Miami and Disneyworld, with towering skyscrapers.
I flew over the area earlier today. The view is simply extraordinary. Dubai, an oil-rich city state of more than a million people. Most are foreigners, laborers, living in desert camps or wealthy expatriates who enjoy a life as luxurious as anywhere in the world.
The UAE was a base for at least two of the hijackers who struck America on 9/11, but it has since become a U.S. ally on the war on terror.
Right now, Dubai's caught up in this controversy that's raging over who should run major ports operations in the United States. At the heart of the matter, the almost $7 billion deal which would let Dubai Ports World take over a British company which now handles operations at those six ports. That means a state-owned Arab company would be in charge of commercial shipping at terminals in New York, Newark, Philadelphia, Baltimore, Miami and New Orleans.
While Congress and the Bush administration are facing off, a British appeals court today declined to hear a Miami company's objection to the takeover by DP World, giving the judicial green light to the deal to go forward.
Yet, there is a new development to this growing ports storm. At this hour, the chairman of the House Homeland Security Committee is floating a compromise. But will the Bush administration buy it? Our congressional correspondent, Ed Henry, is keeping us up to minute on this story. He's joining us live -- Ed.
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Wolf, this plan is being championed by Republican Peter King, who says that Republican discontent over this port deal here on Capitol Hill is rising, so he's proposing that the American portion of this shipping contract be stripped out, so that DP World would not actually be in charge of the operations of those six U.S. ports. Instead, that job would be subcontracted out to U.S. companies.
(BEGIN VIDEOTAPE)
REP. PETER KING (R), NEW YORK: A separate American company could do it, so long as there was no access to the information or to the operations at all by Dubai Ports. Dubai Ports could still be the contractor, but the actual work and access to everything would be controlled by a totally separate American company.
HENRY (voice-over): Peter King presented the compromise to the White House with a warning: Sign on or the whole contract may be down, because of lingering concerns about the United Arab Emirates' past support for the Taliban.
KING: My concern is people out working within the company, people within the government, who just four and a half years ago were allied with our sworn enemy.
HENRY: A similar plan is being pushed by another top Republican, Senator Susan Collins. So far, the White House has been noncommittal.
But in this election year, Republicans find themselves under heavy pressure from Democrats, who are using the port flap to burnish their credentials on national security.
Democrat Harold Ford Jr., running for the Senate in Tennessee, taped this campaign ad at the port of Baltimore in Maryland.
REP. HAROLD FORD JR. (D), TENNESSEE: President Bush wants to sell this port and five others to the United Arab Emirates, a country that had diplomatic ties with the Taliban, the home of two 9/11 hijackers, whose banks wired money to the terrorists. HENRY: Senate Democratic leader Harry Reid vows other candidates will jump on the bandwagon.
SEN. HARRY REID (D-NV), MINORITY LEADER: It's resonating because people have come to the realization that the Bush administration is basically incompetent.
(END VIDEOTAPE)
HENRY: Now, this whole controversy has given Democrats another political opening to charge that the White House has short-changed port security here in United States. That's why Senator Reid today proposed an additional $1.7 billion in port security -- Wolf.
BLITZER: Ed Henry on Capitol Hill. Ed, thanks very much.
Dubai Ports World does not appear to be embracing the idea of bringing more Americans into its operation in hopes of easing the furor over the port deal. I asked the company's CEO about that in an exclusive interview.
(BEGIN VIDEO CLIP)
MOHAMMED SHARAF, CEO, DUBAI PORTS WORLD: We already have American partners there. It's part of the P&O acquisition. They already have U.S. partners. So the question of bringing U.S. partners does not arise.
BLITZER: You don't need any more American partners.
SHARAF: No, I mean, we do have. And again, as partners, we have them. We consider the Port Authority as our partner, because we need to work very closely with them, because their security is our security. Our security is theirs.
(END VIDEO CLIP)
BLITZER: Much more of the interview coming up. That's coming up this hour. Right now, though, let's bring in our White House correspondent, Dana Bash.
Dana, what are you hearing behind the scenes about this compromise proposal if it goes forward?
DANA BASH, CNN CORRESPONDENT: Well, Wolf, CNN first began learning over the weekend, essentially what's going on is behind the scenes, there is a flurry of activity to try to delicately convince the company, the CEO that you talked to, that perhaps the best way is to give in, if you will, is to give over some of its operations to an American subsidiary, or some other way to make very angry Republicans still to allay their concerns.
Now, a source involved in negotiations with the White House, with the company and with Capitol Hill have told CNN that that is exactly what they're doing, just delicately trying to test out the idea of changing the legal structure of this company. Whether it's perhaps a subsidiary, whether it's perhaps another American board of directors or an independent director, that is what they're quietly trying to do.
Now, Wolf, as far as the White House is concerned, the bottom line here is, they want this deal to go forward. And they are, a senior official tells CNN, in discussions with Congressman Peter King, with others, who are discussing this potential way out, if you will.
This is a pattern that we have seen over the past couple of weeks. Given the fact that there is intense opposition to this, and the fact that the political reality is that that there's intense opposition, the White House is quietly trying to figure out how to deal with this. But they are not directly, Wolf, talking to the company or the country. They, as they have over the past couple of weeks, using middlemen to do this -- Wolf.
BLITZER: Dana Bash reporting for us. Dana, thanks very much.
Port authorities here in Dubai say their high-tech measures make port security as tight as it can get, even as they confront possible threats. Earlier, I got an exclusive behind-the-scenes look.
(BEGIN VIDEOTAPE)
BLITZER (voice-over): It's state-of-the-art technology, designed to see through heavy metal containers. It can detect illegal drugs and contraband weapons and ammunition. It can also detect chemicals and biological agents. And perhaps most important, it can detect nuclear equipment as well.
(on camera): So if there were, God forbid, a radiological bomb inside a container, they would be able to...
AHMED BUTTI, DIRECTOR GENERAL, DUBAI CUSTOMS: Yes. Yes.
BLITZER: They would see that?
BUTTI: Yes.
BLITZER (voice-over): This handheld piece of equipment can detect radiation levels.
BUTTI: We have the also the machine that will tell you that.
BLITZER: Ahmed Butti is in charge of Dubai customs. During an exclusive behind-the-scenes tour, he proudly showed off the technology, the hardware and the software they already use in Dubai, and he spoke of even more sophisticated equipment now on the way that could detect a dirty bomb.
BUTTI: We are in the process right now in working together with the Department of Energy, of establishing at our gates, to put the radiation machine, to detect that. And we have a team from our inspectors, already they are on the search right now for -- to be trained how to operate these machines. BLITZER: This multi-million-dollar mobile scanner can literally see inside the containers. Highly-trained operators can focus in on even the smallest details.
The same can be done inside this structure. Here in Dubai, when it comes to security and checking what's inside containers, they say they're not worried about politically incorrect ethnic profiling.
(on camera): What percentage, would you say, are actually physically inspected?
BUTTI: Some, from certain countries, 100 percent sometimes. Some countries, no, 30. Some countries, 20. It depends where it's coming from. It depends on the companies.
BLITZER: How suspicious they are?
BUTTI: Absolutely.
BLITZER (voice over): He won't say which countries have everything inspected. Though presumably this Iranian ship loaded with Iranian cargo, which we drove by, would be a prime target for a thorough inspection.
SHARAF: Our company, is based on the commercial, based on the trades, based on the tourism, so we're a division to involve the commercial and the finance. It can't have these things if you don't have a proper security.
BLITZER: Some 1,600 people work for Dubai customs. Ahmed Butti says every one undergoes a thorough background check.
Mohammed Sharaf is the chief executive officer of Dubai Ports World, the firm seeking to take over operations at six U.S. ports.
(on-camera): How often do they find anything in a container that's dangerous?
SHARAF: Well, they don't tell us. They just tell us, OK, stop the box and send it to the facility. Once in there, they don't tell us. The just inspect it the way that they want to.
(END VIDEOTAPE)
BLITZER: And we're going to have much more on the ports controversy coming up this hour. Our special edition of THE SITUATION ROOM continuing from Dubai.
Let's get a quick check on some other news making headlines. CNN's John King joining us from Washington -- John.
JOHN KING, CNN CORRESPONDENT: Thanks, Wolf. Back to you in just a moment.
But as you noted some headlines here in U.S. right now. It was expected, but also it is quite controversial. South Dakota's governor has signed in a law -- a bill that outlaws all abortions except to save the life of the mother.
It is certain to be challenged, and proponents hope that when it reaches the U.S. Supreme Court, the justices will use that new South Dakota law to overturn Roe vs. Wade.
A series of car bombs rocked Baghdad and two other Iraqi cities. At least 10 people died and more than 50 were injured in the string of attacks. Three children are among the dead. Several of the bombings were aimed directly at Iraqi police. Six officers were wounded.
AT&T says its proposed $67 billion merger with Bell South could mean up to 10,000 people would lose their jobs. The company says the cuts would take place over three years and most would come through attrition. The deal still has to be approved though by shareholders and by the government. It would create, if it goes through, the company's largest phone company.
Those are the headlines here in states. Now back to Wolf in Dubai -- Wolf.
BLITZER: Thanks very much, John.
Let's go up to New York. Jack Cafferty is standing by with "The Cafferty File."
Hi Jack.
JACK CAFFERTY, CNN CORRESPONDENT: Calvin Coolidge declared the business of America is business. But since 9/11 and now more than ever the business of America is also security. And never has that become more clear than in the outrage over the sale of control of six of our ports to a company owned by a nation with ties to terrorism.
Even our senators and representatives who usually seem deaf to our concern, have heard the outcry.
Senator Susan Collins wants CFIUS' oversight of things like the ports deal moved out of the Treasury Department and into the Department of Homeland Security. Collins says she thinks the review process is deeply flawed, and that it is too weighted toward investment concerns.
Senator Chuck Schumer, Democrat from New York, says that in the past CFIUS has, quote, "let economic or diplomatic considerations trump security considerations. That's not good enough, post 9/11," unquote.
So here's the question, how do national security interests compare to economic interests when it comes to the ports deal?
E-mail us your thoughts at the caffertyfile@CNN.com or go to Cnn.com/caffertyfile -- Wolf.
BLITZER: Jack, thanks very much. Coming up the Dubai Port deal is a familiar stop -- the Dubai Ports is a familiar stop for U.S. warships in this part of the world. Are they safe? And what does that tell us about this entire Dubai Port controversy. My conversation with the U.S. Navy officer here in the Persian Gulf.
Plus, the chief executive of the Dubai company at the center of the port storm. Can he say anything to reassure Americans about the deal and about our security ? Find out, that's coming up. My exclusive interview from Dubai.
And join me as well on a special helicopter tour of the city. We'll get an unique perspective of one of a kind city and everything it has to offer. We're in Dubai, and you're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Welcome back to THE SITUATION ROOM. I'm Wolf Blitzer reporting tonight from Dubai.
Today the debate in Washington continued over the proposed takeover of six U.S. ports by Dubai Ports World. U.S. officials have said, all along, the United Arab Emirates is a strong ally on the war on terrorism. And in fact the U.S. Navy docks many of its warships right here in the port of Dubai.
Earlier today I went to the port and spoke with U.S. Navy Captain Thomas Goodwin. He's a Navy commander responsible for a group of U.S. ships in the Persian Gulf.
(BEGIN VIDEOTAPE)
BLITZER: This is quite a little operation you got over here. How secure do you feel as we get a sense of the U.S. Navy presence that occasionally comes in here?
CAPT. THOMAS GOODWIN, U.S. NAVY: Well, Wolf, as you know, security's kind of a -- and a feeling of safety is kind of a relative thing. If you look around here, pretty populated with U.S. Navy ships, military command ships.
I feel very safe here. I know the crews and the people who are stationed down here in the UAE feel very safe here as well.
BLITZER: How often do you U.S. Navy vessels come to Dubai?
GOODWIN: If you look at fiscal year 2005 and you start counting from one October of 2004 and you stop September 30, 2005, we have had -- the U.S. governments has had U.S. ships in port on 203 ship visits for a total of 502 port visit. So on a daily basis there is at least one U.S. ship in a port in the UAE. And often times more than that, as you can see, in the port here behind.
BLITZER: And they'll spend a day or two or three or whatever.
GOODWIN: Typically a warship will come in here for a fuel visit, re-provisioning of food and fuel, and then they'll get back under way. Here now in the United Arab Emirates and the Emirates of Dubai, it seems to be at the top of the port visit request list for warships.
BLITZER: Can they accommodate carriers too?
GOODWIN: They can accommodate a carrier here. And a matter of fact, it is probably the only other than -- it is the only port in the AOR that can accommodate a carrier.
BLITZER: That and Bahrain can obviously accommodate a carrier.
GOODWIN: A carrier in Bahrain anchors out. Pier side space is not available. The depth of the water is not sufficient to support that.
BLITZER: But it can handle it here.
GOODWIN: It can handle it here.
BLITZER: Now, who provides the services when a U.S. Navy vessel comes in here? Dubai Ports World, I take it, helps you guys as the port operator.
GOODWIN: In fact, it is. United Arab Emirates it is Dubai Ports World. They own the territory. This is their home territory. We work hand-in-glove with Dubai Ports World for services and to provide fuel, logistics and everything that a warship or another logistics ship would need here absolutely.
BLITZER: And how do they do? How is the receptivity? What do you -- what do you -- what -- what kind of grade would you give them when you come here to Dubai?
GOODWIN: If I put them on a grading scale, like you're back in college or something like that, I would have to give them at least an A-plus.
BLITZER: Really?
GOODWIN: Absolutely.
(END VIDEOTAPE)
BLITZER: Captain Goodwin speaking with me earlier today. Still to come here in THE SITUATION ROOM, can colleges and universities give the boot to military recruiters? The U.S. Supreme Court decides it's a case involving free speech, government money, and gay rights.
And a heated debate over port security. The House Homeland Security chairman, a vocal opponent of the Dubai deal, takes on one of its staunch supporters. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
KING: I'm John King in Washington. Back to Wolf Blitzer in Dubai in just a moment, but first, he's the only person charged in the United States in connection with the 9/11 terror attacks. And now a jury will decide whether confessed terror conspirator Zacarias Moussaoui should live or die. CNN Justice correspondent Kelli Arena is live for us in Alexandria, Virginia, with that story. Kelli?
KELLI ARENA, CNN JUSTICE CORRESPONDENT: John, this trial has been four and a half years in the making. And today we finally heard opening arguments.
(BEGIN VIDEOTAPE)
ARENA (voice-over): As Moussaoui sat defiantly looking at the jury, the government described him as a proud and unrepentant terrorist. Inside the courtroom surrounded by intense security, prosecutor Rob Spencer told jurors Moussaoui "lied so murderers could follow."
The government's main argument, if Moussaoui had told the truth about what his al Qaeda brothers were up to when he was arrested in August of 2001, the FBI and other agencies may have been able to stop the September 11th attacks. In his opening statements, Spencer told the jury that Moussaoui's lies killed the 9/11 victims as "surely as if Moussaoui had been at the controls of one of the four planes that day."
ANDY MCCARTHY, FORMER FEDERAL PROSECUTOR: If he had a role and carried it out, then he's as liable as Mohammed Atta is.
ARENA: But Ed MacMahon, one of Moussaoui's court-appointed defense attorneys told jurors, "the government's case is speculative at best," that Moussaoui did not know any specifics of the 9/11 plot and that in fact al Qaeda viewed him as a liability of sorts. In one operative's words, "cuckoo."
MacMahon said "No one should be executed on such flimsy evidence, even an admitted al Qaeda member." Moussaoui remained silent, refraining from his trademark outbursts. He never once looked at the spectators, some victim family members among them, including Hamilton Peterson, who lost his father and stepmother.
HAMILTON PETERSON, LOST FAMILY IN 9/11: It's a very proud moment in American history because we're showing a world that even when someone can wreak the types of havoc he did, that we are still a fair country.
(END VIDEOTAPE)
ARENA: John, don't forget, this isn't about guilt or innocent here. At one point, an al Qaeda training tape was being played in the courtroom and you could see Moussaoui literally smiling and chanting along with the al Qaeda operatives to some very violent lyrics.
KING: Kelli Arena for us outside the courthouse in Alexandria, Virginia. Kelli, thank you very much, a very difficult trial, life or death for Zacarias Moussaoui. We'll know from the jury soon, we think. Kelli Arena, thank you very much. Terrorism here in the United States, a terror trial. Terrorism and past ties perhaps to terrorists, one of the issues in the ports controversy. For more on his exclusive coverage, live in Dubai, back to Wolf Blitzer. Wolf?
BLITZER: Thanks very much, John. We'll have more on this controversy over the Dubai port deal. Just after the break, a robust debate between a deal detractor and a deal supporter. Republican Congressman Peter King of New York will take on Kevin Massengill, he's a retired lieutenant colonel with the U.S. army.
And you've heard much about Dubai. But we're going to show you Dubai from the sky. It's an amazing vantage point of an ever-growing city/state. We'll be right back.
(COMMERCIAL BREAK)
BLITZER: Does the Dubai ports deal place too much emphasis on business? Does it place enough emphasis on security? Key question in the debate. Joining us here in Dubai is Kevin Massengill, he's a retired U.S. army lieutenant colonel. He's with the Dubai American Business Group.
And joining us from New York is Congressman Peter King, he's the Republican chairman of the House Homeland Security Committee. He's been one of the leaders in the fight against this deal.
First of all, Congressman King, what about these suggestions that you might be open to some sort of compromise that would allow D.P. World to have ownership of these port operations, albeit with an American subsidiary or some American firm actually running the operations. What can you tell our viewers about that?
REP. PETER KING (R) NEW YORK: Well, I have had some preliminary discussions with the White House and with some other members of Congress. And what I had suggested is a possibility, and again, it is just a possibility that I was putting out there, that to satisfy the issue of security, that Dubai Ports would subcontract out the operation of the American ports to an American company.
I don't think a subsidiary will be satisfactory, but a separate American company could do it, so long as there was no access to the information or to the operations at all by Dubai Ports.
Dubai Ports can still be the contractor, but the actual work and access to everything would be controlled by a totally separate American company. And, again, I put that out there. I don't know exactly how far it's going go. And I certainly can't speak for any of the leadership in the House of Representatives.
BLITZER: Let me ask Colonel Massengill, how he thinks the Dubai Ports World might react to that kind of proposal? What do you think colonel?
LT. COL. KEVIN MASSENGILL, U.S. ARMY (RET.): Wolf, I am not qualified to speak for DPW, but what we don't want to do though is look like we can't tell the difference between our friends and our enemies. We don't want to look like we are slapping back at somebody who has been a good, trusted reliable ally in this war on terror.
BLITZER: What about that, Congressman King? This country, the United Arab Emirates, according to General Peter Pace, the chairman of the joints chiefs of staff and other top U.S. military commanders, they insist the UAE has been a strong ally in this war against terror. And the U.S. doesn't want to alienate a country as important as this one is.
KING: Well, there's no doubt that there has been a change since September 11 in the attitude and the policies of the UAE. And there's been quite a bit made public about the cooperation. There is also some information that is classified as to what they are doing.
So there is no doubt that, you know, the UAE has become a much better partner now than they were. But the fact is prior to September 11, they were one of only three governments to recognize the Taliban. Members of the royal family did have a close social relationship with Osama bin Laden and were supporters of al Qaeda.
And my concern today is since this a government-owned company, where are those people? Are the people who supported the Taliban and bin Laden are they still in the government?
How can we be sure that they would have no influence over the company or they don't have their people working in parts of the company, which would give them access to security and also give them access to internal port operations and also give them access to vulnerability assessments, which they couldn't get otherwise.
I'm not doubting, you know, the top leadership of the company. But my concern is people working within the company, people within the government who just four and a half years ago were allied with our sworn enemy.
BLITZER:: All right. What about that colonel? Those are reasonable questions.
MASSENGILL: Absolutely. They are very good questions. Wolf, the answer to that is none of us want to be judged by the way we acted prior to 9/11. That was the watershed event. And all of us recognize now in hindsight, that there was more we could have done, better ways we could have been prepared.
BLITZER: So what you're saying is that yes the UAE made plenty of mistakes before 9/11, but they have changed their ways. But there is legitimate concern that Congressman King and other critics are raising to make sure that's the case.
Because at least on the surface that appears to be the case. But behind the scenes are you 100 percent confident that there are no links to terror amongst senior officials here?
MASSENGILL: Absolutely. Correct. Twenty-five thousand of us live here, raise our kids here. I have worked with them for a long time, both in uniform and out of uniform, watched them put boots on the ground. They have got soldiers in the ground right now in Afghanistan. They put boots on the ground in Baghdad. And then they put in hospitals and clinics before we even cleared the city.
BLITZER: How do you accept the fact though that 66 percent of the American public, according to our most recent poll -- 66 percent oppose this deal, only 17 percent think it's good idea?
MASSENGILL: A professor of mine, Bernard Lewis (ph) once made a comment that he thought most of Americans weren't entirely convinced the rest of the world existed.
The best way I can say that is that for the average American all they hear is that Arab Muslim attacked us. Now, an Arab Muslim company is going to somehow have control of the port. You make that linkage in that fashion, it is unreasonable to say this seems reckless. This seems unreasonable.
The better analogy is to say, I'm an American. I am a veteran and a Christian, so was Tim McVeigh. We shouldn't all paint everybody because of the actions of a few.
BLITZER:: All right. Let me let Congressman King respond to those points. What do you think about them congressman?
KING: We're not talking about any Arab Muslim country. We're not talking about Jordan. We're not talking about Morocco. We are talking about a country, which was only three in the entire world which supported the Taliban.
And it is not just a question of making a mistake. I mean, the Taliban were among the most regressive totalitarian brutal governments in the world. And the UAE felt comfortable enough to support them. They were funneling money to them.
They were also closer to bin Laden. This was after bin Laden had declared war on the United States. So it is not like a question of picking the Mets of the Yankees or the Democrats over the Republicans. We're talking about they had allied themselves with brutal murders and so that is not just a mistake. That's really a mistake of morality, not of judgment. That is a terrible...
(CROSSTALK)
MASSENGILL: Congressman, with all due respect...
KING: Yes?
MASSENGILL: Congressman, with all due respect, that's an unfair characterization. When you say they, you're treating them as a unitary actor as though there is one actor. It is not a fair characterization. And the way we judge them now is by what they are doing now in this fight today.
First to put boots on the ground with us in the fight, with soldiers getting maimed in harm's way with us every day. It matters. It counts. it is important for us to be able to tell the difference between our friends and enemies, sir.
BLITZER: All right. Very quickly, congressman. I will give you the last word. Go ahead.
KING: You know, when I say they, I'm talking about the official government of United Arab Emirates support the Taliban and the royal family support al Qaeda. Many of those people are still there.
I agree that they made a strategic decision after September 11. But those were who were guilty or what I considered immoral action before September 11 are still there. What influence do they? That is the real concern that I have.
BLITZER: Congressman Peter King, we will continue this debate down the road. Thanks very much for joining us and retired U.S. Army Lieutenant Colonel Kevin Massengill thanks to you as well.
And up ahead, my exclusive interview with the CEO of Dubai Ports World.
And you will also learn what made me so awe struck when I flew over this city earlier today. Stay with us.
(COMMERCIAL BREAK)
BLITZER: More now on our top story we're covering from here in Dubai. Dubai Ports World is a company at the center of a world of controversy over its plan to take over management of six major American ports. In a CNN exclusive I visited the company's headquarters and spoke with its CEO. It's an interview you will see only here on CNN.
(BEGIN VIDEOTAPE)
BLITZER: Mohammed Sharaf, thanks very much for joining us. Good to be here in Dubai. You realize now you're in the middle of a firestorm back in the United States. Our most recent CNN/USA Today/Gallup poll asked the American public if they support this deal. Sixty-six percent said they oppose it. Only 17 percent thought it was a good idea. Do you understand why people in the U.S. don't like this deal?
SHARAF: Well, Wolf, thank you very much for having me on your show here. We are an international terminal operator. We operate in five continents of the world. We are recognized as the best in the industry.
Obviously, the American people have an issue. We would like to know that and rectify if there are any security measures that we need to take and we have not taken it yet. But we are very confident that we have met and will meet all the requirements.
BLITZER: Well, let's talk about some of the criticisms that have been leveled, and I'm anxious to get your explanation. One of the criticisms that has been leveled is that security is not good. Duncan Hunter, the chairman of the House Armed Services Committee, said, "Dubai can't be trusted. The people who will sell or allow a transshipment of anything to anyone, those people shouldn't be in charge of our ports."
SHARAF: Well, again, we are operating everywhere in the world, and transshipment is one of the core businesses that we handle, whether it is in Dubai or it's in Romania or it's in Caucedo, the Dominican Republic. And all the authorities are comfortable with the security measures that we take.
Plus, the security measures are not only the responsibility of the port operator. It is also the authorities, whether they are the custom authorities or the coast guard, whether it's in the U.S. or it's in the Middle East or it's in Africa or it's in Europe.
BLITZER: Now, how can you assure the American public that if this deal goes through the ports of Baltimore and Miami, New York, New Jersey, New Orleans -- these are some of the major ports in the United States -- that terrorists won't come in, infiltrate through you, DP World, and create havoc at these ports?
SHARAF: I would say number one, we are ISPS-approved terminal operator.
BLITZER: What does that mean?
SHARAF: That means International Standards for the Port Security. So we are approved by the international organization. We are approved by the U.S. authority to come into the U.S. I would say, look at our credentials in different ports around the world, whether it's in Korea, it's in China, it's in Europe.
We are dealing with each and every authority in each and every country. And we abide by countries' law and the international terminal operator security measures we take. What better way to have a terminal operator who export your goods from China to U.S.? We are in China. Goods are being exported from China to U.S.
Goods are being operated from Korea to U.S. And goods are being exported from Europe to U.S., and we are in all those facilities. So I would say that we meet all those requirements as far as the security is concerned.
BLITZER: What about this other issue that has come up, that the opposition is the result of anti-Arab discrimination? Do you feel that?
SHARAF: I would say that we need to clarify to the American people, I think, again, it's a misunderstanding or misconception of us as DP World, what sort of an operator we are. We need to clarify that.
We need to educate the people in America that we are truly a global company, and it is not in our best interest to get into those areas where we feel or our customer feels that security is an issue. We have customers whose vessels call at our terminals, which cost hundreds of millions. Not only the vessel, the goods on them cost hundreds of millions of dollars. If they don't have any confidence in our operation, they would not bring their ship to our terminals.
Each ship has up to 9,000, 10,000 containers on that. Can you imagine, each container costs -- the value of each container is around $100,000. What's the value of the total ship? Would they bring their ship to our terminals if they don't feel secured or safe? Never.
BLITZER: This is a really important deal for DP World, almost $7 billion. If it doesn't go through, what are the ramifications?
SHARAF: Well, as far as we are concerned, the deal is going to go through, and the British -- the government has approved it. We're just waiting for next week to conclude the deal.
There are big consequences for the British market if it doesn't go through because investors are waiting for the money. The deal has been made. The management, the board of the port, the company has approved the deal. The government has approved the deal. The matter is basically waiting for the money to be transferred to the investors. If they don't, big losses are going to be there for the investors.
BLITZER: We have to leave it there. Thanks very much for joining us.
SHARAF: Thank you very much. Thank you.
(END VIDEOTAPE)
BLITZER: And up ahead here in THE SITUATION ROOM, Dubai from the sky. We're going take you on a helicopter tour on this bustling and growing city/state. It's something you will see only here on CNN.
Plus, military recruiting on campus. The Supreme Court weighs in on a controversy over the Don't Ask, Don't Tell policy on gays in the military. Stay with us.
(COMMERCIAL BREAK)
BLITZER: You're back in THE SITUATION ROOM. And we're here live in Dubai, the city at the center of the controversy over ports in the United States. But Dubai is much more than a giant port city. It's a booming metropolis that's one of the world's most unique destinations. And this is especially evident from the sky. Here's the "Bottom Line."
(BEGIN VIDEOTAPE)
BLITZER (voice-over): Our helicopter tour of Dubai is with American pilot Joe Kiefer (ph). It began near Dubai's World Trade Center, but within moments, we were flying over truly amazing structures. The Burj Al Arab, dubbed the world's only seven-star hotel. It's located on a man-made island, only 180 feet shorter than the Empire State Building. It's a white sail shaped building and has become a major landmark. Check out the helipad at the top.
Then there are the malls and the entertainment centers, including this giant indoor ski slope. Think about it, manmade snow in the middle of the desert, enough snow for a 400 meter or about 1,300-foot run.
What's billed as the world's tallest building is now under construction. There are lush golf courses in Dubai. Tiger Woods was here recently for the Dubai Desert Classic.
But there are other more exotic and controversial sporting events, including camel racing, controversial because the jockeys are young children. Dubai is promising UNICEF it is banning underage jockeys. It is even exploring robot jockeys.
Our primary purpose on this visit was to explore Dubai's ports. The Rashad (ph) and the Jabulaly (ph). They are among the largest and busiest in the world, something that's very clear from either the ground or the air.
One can't help but gasp at the pace of construction on both real desert land and man made land. This is Palm Island, where multi- million dollar villas spread out across the Gulf. It is shaped like a palm tree. Some 12,000 palm trees have been grown in a local nursery to be planted here.
(END VIDEOTAPE)
BLITZER: In many respects, it reminds me a lot of Vegas. It reminds me a lot of Disney World, but with very significant touches of Riyadh as well.
In just the last five years alone Dubai, in addition, has been transferred into one of largest trade and commerce hubs in the entire world. It's an incredible, incredible place to visit.
Let's get some more now. Our Internet reporter Abbi Tatton is standing by -- Abbi.
ABBI TATTON, INTERNET REPORTER: Wolf, yes, this is an emirate web. Business is booming, an economy that has doubled in size in between 2000 and 2004 in just four years, and it continues to grow.
Unlike its neighbors, this wealth is not entirely from oil. It's just a small percentage from oil there. Dubai has been encouraging, aggressively encouraging, foreign investment, free trade zones, tax free zones where thousands of companies operate, international companies. Some of them very familiar to viewers.
Also, tourism has been aggressively pursued here. Five and a half million visitors to Dubai last year mean that construction and development in the city are the norm -- Wolf.
BLITZER: Abbi, thank you very much.
Let's find out what's coming up right at the top of the hour. Paula Zahn standing by in New York.
Hi Paula.
PAULA ZAHN, CNN ANCHOR: Hi Wolf. Thanks so much.
Just about eight minutes from now, we're going to take you right inside a controversy that is making a lot of people really, really upset. Why are protesters disrupting the funerals of U.S. troops killed in Iraq? Believe it or not these people say our soldiers are dying because the U.S. tolerates homosexuality. We'll have more on that.
Also, can a dog actually smell cancer early enough to save your life. A fascinating new study and a couple of interviews, Wolf, with patients themselves that believe if it had not been for their dogs detecting something in their bodies they wouldn't be alive today. So we'll look at all of that at the top of the hour.
BLITZER: Thanks Paula. We will be watching.
Let's get a quick check of some other stories making news. John King once again in Washington -- John.
KING: Thanks Wolf. Back to you in a moment.
But first, we want to tell you about a major court decision effecting the nation's college and universities. At the heart of the matter, federal funds, first amendment rights and the military's don't ask, don't tell policy on gays.
CNN's Mary Snow is in New York at New York University with the details -- Mary.
MARY SNOW, CNN CORRESPONDENT: Well, John, this legal battle was led by law schools, but if a law school banned military recruiters from its campus that means the entire campus would lose federal funds. And in the case of NYU that amounts to about $130 million a year.
(BEGIN VIDEOTAPE)
SNOW (voice over): The military said it was the target of discrimination, not treated like every other recruiter. And colleges were told they would pay a price, loss of federal funding if military recruiters weren't allowed on campus.
JAY SEKULOW, AMER. CENTER FOR LAW & JUSTICE: We think it is important for military recruiters to be able to attract the brightest and the best, and the only way to do that is to get on the campuses of these universities, which now they will be able to do.
SNOW: But some law schools argued it would be discriminatory to allow recruiters on campus because of a policy that bans openly gay members of the military.
CHAI FELDBLUM, GEORGETOWN UNIV. LAW SCHOOL: Law schools, which spend a lot of money helping their law students get legal jobs, have a policy of not actively assisting any employer that has a discriminatory employment policy.
SNOW: The high court was clear in its unanimous ruling that the Pentagon should be allowed on campus. In his first major opinion, Chief Justice John Roberts wrote, "Accommodating the military's message does not affect the law schools' speech, because the schools are not speaking when they host interviews and recruiting receptions."
The court ruled that universities can bar recruiters, but if they do, they could potentially be shut out of federal funds, funds totalling about $35 billion a year nationwide.
SEKULOW: If they're going to take the dollars from the federal government, then the federal government has the right to have its military recruiters on campus.
SNOW: Some law schools say they still have a right to speak out against the military's policy.
FELDBLUM: I take this Supreme Court's opinion as a call to arms to administrations and faculties across the country, to in fact convey a message of justice, that they don't agree of the policy of don't ask, don't tell.
(END VIDEOTAPE)
SNOW: And the Defense Department issued a statement today saying it is not asking for special treatment. It just wants to be on an even level playing field when it comes to recruiting -- John.
KING: Mary Snow for us in New York.
The latest in a string of very early cases for this new look Bush Supreme Court, causing, shall we say, interesting political debate. Mary Snow thank you very much.
And still ahead, how do national security interests compare to economic interests when it comes to the ports deal? It's our question of the hour. And Jack Cafferty is standing by with your email.
(COMMERCIAL BREAK)
BLITZER: Jack's in New York with "The Cafferty File" -- Jack.
CAFFERTY: Thank you Wolf.
The question this hour is how do national security interests square with economic interests when it comes to this Dubai ports deal?
Pauline writes from Oldsmar, Florida, "Security trumps economics. It's a cost of doing business."
Marilyn in Carlsbad, California, "Security is crucial but so is openness. Had there not been total secrecy involved before this deal was done, good thinking from lots of people, not just hacks, could have made sure before the fact. Having been lied to so many times, how can be believe this is above board and safe?" Steve in Roswell, Georgia, "If you have nothing of value, you need no security. If you have no security, you will soon have nothing of value. How can you separate the two?"
Carlos writes from Orlando, Florida, "Putting more concern on our economic interests instead of our port security is like putting Dick Cheney in charge of weapons training for our armed forces. Does the White House listen to us?"
Richard in Anderson, Indiana, "If there were no personal advantages to the principal operatives in the current administration, I am certain there would be no thrust to push this deal forward."
And finally Frank writes from Midwest City, Oklahoma, "So, we swapped "nuclear" technology to India for mangoes. What is Dubya getting from the Arabs, figs and dates?" -- Wolf.
BLITZER: Jack, I am going to be interviewing the chairman of the board of Dubai Ports World tomorrow. It will be another exclusive that we have while we are here. You asked me earlier to ask him about the nuclear transfers that were conducted before 9/11. Anything else you think we should be asking him?
CAFFERTY: Yes, why do they want to come here now? Nobody wants them here. The public is dead set against this thing. They don't want the company here. They don't want them running the ports. Why do they want to come over here? I mean, that's, you know -- ask them that.
BLITZER: Well, it is almost a $7 billion deal for this company, and presumably a nice piece of that comes from the deal in the United States. Jack, we will be talking to him tomorrow. Talk to you as well.
I am Wolf Blitzer in Dubai. Let's go to Paula in New York -- Paula.
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