no-bid contract with Hutchison Whampoa Ltd Friday March 24, 11:51 am ET
By Ted Bridis and John Solomon, Associated Press Writers
U.S. to Contract Hong Kong Firm to Help Scan for Nuclear Materials Passing From Bahamas to U.S.
WASHINGTON (AP) -- One of Americans' favorite beach destinations, the Bahamas, is getting a new U.S. arrival -- sophisticated equipment to detect radioactive materials in shipping cargo.
But U.S. customs agents won't be on site to supervise the machine's use as a nuclear safeguard for the American shoreline that is just 65 miles away from Freeport. Under an unusual arrangement, a Hong Kong company will help operate the detector.
The Bush administration says it is finalizing a no-bid contract with Hutchison Whampoa Ltd. It acknowledged the deal is the first time a foreign company will be involved in running a radiation detector at an overseas port without American customs agents present.
This is incredibly scary! The story continues:
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."
"One can conceive legitimate security concerns and would hope either the Homeland Security Department or the intelligence services of the United States work very hard to satisfy those concerns," Wortzel said.
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.
And Schumer's comments:
"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.
After the UAE Ports debacle, you'ld think this no-bid contract would be a non-starter!