ITWASSOOTED: U.S. District Court Judge Jose Linares signed an order demanding to know why the government did not carry out a full investigation...

Friday, February 24, 2006

U.S. District Court Judge Jose Linares signed an order demanding to know why the government did not carry out a full investigation...

PHILADELPHIA (Reuters) - The Bush administration was ordered by a U.S. federal judge on Friday to explain why it did not give New Jersey officials documents and information Washington had about a deal allowing an Arab company to take over management of a container terminal in Newark.

U.S. District Court Judge Jose Linares signed an order demanding to know why the government did not carry out a full investigation into the change of ownership of the container terminal at Port Newark.

The judge set a hearing for Wednesday and said in the order he would issue a preliminary injunction blocking the deal, pending a full investigation, unless he was satisfied with Washington's answers.

The judge asked in the order that federal officials explain why New Jersey officials were not given the same documents and information that Washington used to approve the deal, under which state-owned Dubai Ports World would take over management from the British company P&O.

On Thursday, the State of New Jersey sued the federal government to block the deal on the grounds it violated the 10th Amendment, which says states control anything not explicitly mentioned in the U.S. Constitution.

Earlier, New Jersey Gov. Jon Corzine urged the governors of states with ports affected by the deal -- Louisiana, New York, Florida, Connecticut, Maryland and Pennsylvania -- to join the lawsuit.

Democrat Corzine issued the invitation in letters to each governor, saying the lawsuit "will seek to enjoin this sale of vital assets to a foreign nation without our states having had the opportunity to determine the extent of the threat to the safety of our citizens."

The latest developments came as a second lawsuit was filed in New Jersey over the controversial deal.

The Port Authority of New York and New Jersey filed a lawsuit on Friday to stop the change of management of its container terminal at Port Newark in New Jersey.

The authority, jointly owned by the states of New York and New Jersey, said the deal violates the terms of P&O's lease.

The transaction is part of a $6.85 billion deal under which the United Arab Emirates company Dubai Ports World DPW would manage terminals at six major U.S. ports. Continued ...
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