[Dobbs:] Key leaders in the House and the Senate, at least initially, stood up to the White House and his the president's threat of the veto. One of those leaders is Congressman Duncan Hunter, the chairman of the House Armed Services Committee, joining us tonight from Capitol Hill. This is, Congressman, would you say the beginning or the end?
[Rep. Duncan Hunter , California:] Well, I think that the right message has been sent, but these papers haven't been signed yet, and the transfer from Dubai Ports World to this American company has not been completed. So when it's completed, then I think then it's over. But it ain't over till it's over, and right now we have a statement from Dubai Ports World and little else. So before we spike the ball in the end zone, Lou, let's watch this thing come through to completion. But beyond that, we've got lots of critical infrastructure in this country. And I've got a bill that requires the secretary of defense to identify critical infrastructure in America, whether it's ports or power plants or other pieces of infrastructure. And once that's identified by the secretary of defense, in concert with the secretary of homeland security, that has to be American-owned, managed and operated.
[Dobbs:] What kind of support do you have for that legislation?
[Hunter:] Well, we've just introduced it. I think at this point, we've got 25 co-sponsors. We get more on every couple of hours, and I think that we're going to be able to get that or something similar through the House of Representatives, and I think through the Senate, because I believe there's some momentum now for really securing this infrastructure. And that includes that includes making sure that we inspect 100 percent of the cargo containers coming through these ports. We've got the we're the masters of surveillance, and we ought to be able to inspect these doggone cargo containers. And I look forward to having a good old colonel out of the 101st Airborne coming back from Iraq and being a port director who gets that kind of stuff done.
[Dobbs:] That's a terrific idea, and I hope your colleagues are listening to you. I'd like you to, however, listen to something that General John Abizaid, the head of the U.S. Central Command, said just a few hours ago. If we could roll that sound bite.
[Gen. John Abizaid, U.s. Central Command:] The United Arab Emirates is absolutely vital to our stake in the Arabian Gulf area, that they have been good partners, good allies. I'm very dismayed by the emotional responses that some people have put on the table here in the United States, that really comes down to Arab and Muslim bashing. That was totally unnecessary.
[Dobbs:] What is your reaction to a member of the general staff getting involved in what is, first of all, by the White House's assertion, a commercial transaction, one that would work tirelessly for but to hear the head of the Central Command accuse the opponents of this deal of being anti-Arab, anti-Muslim and inject himself into a domestic political discussion?
[Hunter:] Well, first, General Abizaid and other generals have said that this that the UAE and Dubai have been very cooperative. What they've seen, Lou, is a cooperative side when we're making military operations...
[Dobbs:] But, Mr. Chairman, if I may interrupt you...
[Hunter:] But they don't...
[Dobbs:] I'm talking about what he said about the critics of this deal. And he injected himself specifically into it. That's got to concern you.
[Hunter:] Yes, I can just speak for myself, and that is, I don't know if he's referring to my criticism, but my criticism is based on 66 nuclear triggers being shipped through Dubai while American agents are sitting there asking the Dubai government not to let them go, and they say we don't care what America's position is; they're going. Now, that's not anti-anything expect pro-American security.
[Dobbs:] Exactly.
[Hunter:] I don't think the general knows about those things. I think he sees he sees the smiling face of Dubai when we're making military operations.
[Dobbs:] It is in my judgment, and I will say it this way, and in my judgment it is unseemly to see this administration and this Department of Defense literally and I hate to use this, in all respect for the uniform and the men, these men who serve the country so well to be trotted out to support a deal that is a commercial transaction and a domestic political issue like this. Does that offend you?
[Hunter:] Well, actually, Abizaid, General Abizaid was over here to give his regular briefings to...
[Dobbs:] No, I understand.
[Hunter:] Which he did in private session, and he was asked that question. So to his credit and to Tommy Franks' credit, Lou, those guys have seen when we have been moving men and material into war, they have seen the Dubai government and a UAE that has accommodated us. The problem is they accommodate the bad guys when that's in their interest.
[Dobbs:] Congressman Duncan Hunter, we thank you for being with us.
[Hunter:] Let's stick with this issue, Lou. We've got a lot of work to do.
[Dobbs:] Thank you, sir. Appreciate you being here. Congress today finally acted on the will of the people and killed the Dubai Ports World deal. As Congress sides with the public, the Bush administration has consistently put commerce over foreign policy interests, trade interests over domestic security. The administration is so committed to its big business friends, apparently, that in many cases it's lost sight of what is best for America and Americans. Christine Romans has the report.
[Christine Romans, Cnn Correspondent:] Call it White House, Inc. This administration, single-minded in its defense of free capital flows.
[George W. Bush, President Of The United States:] It would send a terrible signal to friends and allies not to let this transaction go through.
[Romans:] Even though in this transaction, it's private capital from an un-democratic regime. But the White House and its business allies brand criticism of the ports deal "protectionist," and "harmful to foreign investments."
[Rep. Frank Lobiondo , New Jersey:] The administration and the Treasury Department will have to start to differentiate between critical infrastructure and just ordinary foreign investment.
[Romans:] Business groups unflinching in their support of the president. And the Business Roundtable vowing to, quote, "speak up more on this." Make no mistake, in Washington, the voice of business is heard loud and clear. The Medicare prescription drug plan was a boon for drug companies, just as the energy bill gave billions in subsidies to enormously profitable oil companies. And president's American Jobs Creation Act, a rewriting of the corporate tax code, which likely created more jobs overseas. And the corporate tax rate is near the lowest level in history.
[Peter Morici, University Of Maryland:] It seems as though George Bush's behaving like a president of a multinational corporation and not like the president of the United States. He seems to be more concerned about the vitality of larger American multinationals with significant positions in places like China and Europe, and not at all concerned about the security of the United States, American workers or so forth.
[Romans:] That's where the outrage over the trade deficit and this ports deal merge. Because of our trade policies, the trade deficit with China, for example, last month alone was almost $18 billion. And the fact is, increased budget deficits mean the U.S. is in desperate need of foreign capital to keep the nation running Lou.
[Dobbs:] And as a footnote, an important one, the trade deficit last month was $68.5 billion. And if you're keeping track, that is a record monthly trade deficit. Thank you very much, Christine Romans. Congressman Barney Frank is a strong opponent of the Dubai Ports deal. He said he has said repeatedly big business interests in this country are hijacking the national agenda and putting all Americans at risk. He joins us tonight from Washington, D.C. It's good to have you with us, Congressman.
[Rep. Barney Frank , Massachusetts:] Thank you, Lou.
[Dobbs:] What is your reaction to the collapse of the deal today?
[Frank:] Cautious optimism. I believe that this means that we've gotten past this one problem. And I am hopeful that they have learned from their political mistakes and I mean by this the Bush administration not to get cute on this one, but to have a genuinely independent private company running this. I also, though, think it reinforces the view that we should proceed with legislation I co-sponsored today with Congresswoman Mahoney, a bill to change this whole process. It shouldn't take this kind of extraordinary degree of exertion on the part of a whole lot of people, yourself and a lot of others, to get this deal undone. We should have a process that would have nipped something like this in the bud. I mean, I agree with the president that it's probably done some damage to relations with some of the Arabs, but that's entirely his fault. If they had any sensitivity, they would have told Dubai last October, you know what, why don't you go out and buy a chain of movie theaters, why don't you go out and buy some commercial real estate, why don't you go out and buy a factory making DVDs. This is not the right time for you to run this.
[Dobbs:] It is the discussion of the political tone-deafness on the part of the administration is one issue. The other issue is, as we have been reporting here for some time, is the dominance of business interest over the political system in this country. Do you have any sense that that is going to change, at least in this election year?
[Frank:] No.
[Dobbs:] And that we'll see some balance and proportionality for the national interest?
[Frank:] Well, that's up to my Republican colleagues. To be honest, they have been pretty supine up until now. You know, I'm afraid they have previously allowed ideology and partisanship to trump the constitutionality the constitutional separation of powers. The problem now for them, Republicans, is George Bush is never going to run for anything again; my Republican colleagues are. That may be why you're beginning to see a separation for the first time, because you are absolutely right, the policy of this administration has been that the way for the rest of us to prosper is for the owners of capital basically to get a totally free hand. And, obviously, we all want the owners of capital to be sufficiently rewarded so that our economic system functions, but giving them literally a totally free hand is a problem, and I think that's what happened here. The president didn't focus on the fact that this was owned by a government. This is one private company buying another and in this administration, that's OK.
[Dobbs:] However, on the other hand, if the owners of capital in this country had received the same return and appreciation on that capital as working men and women have seen in their average wages over the course the last 30 years, we would have a severe reaction I'm sure within this economic system. Congressman Barney Frank, we thank you for being here.
[Frank:] Thank you, Lou.
[Dobbs:] Still, ahead, Senator Robert Menendez, one of the first to oppose the Dubai Ports World deal. He's our guest here next. Please stay with us.