For Immediate Release
Office of the Press Secretary
April 28, 2006
Statement by the Press Secretary
President Bush today accepted the recommendation of the Committee on
Foreign Investment in the United States (the Committee) that he not take
action to suspend or prohibit the proposed acquisition of Ross Catherall US
Holdings Inc. (Ross Catherall) by a subsidiary of Dubai Holding LLC (Dubai
Holding). The President's decision was made under section 721 of the
Defense Production Act of 1950 (the Exon-Florio amendment), which
authorizes the President to suspend or prohibit the acquisition of a U.S.
company by a foreign company where there is credible evidence to believe
that the foreign interest exercising control might take action that
threatens to impair the national security. Consistent with the
legislation, the President will report to the Congress on his decision.
The President's decision is based upon the results of the comprehensive
proceedings on this transaction undertaken by the Committee, a 12-member
interagency group chaired by the Department of the Treasury. In assessing
the proposed acquisition's impact on national security, the Committee
conducted both a 30-day review and a 45-day investigation. To support the
work of the Committee, the intelligence community, as coordinated by the
Director of National Intelligence and the National Intelligence Council,
completed an assessment in conjunction with experts from Committee member
agencies. That assessment examined national security issues ranging from
counterterrorism to counterproliferation to counterintelligence, among
others.
The Committee, with support from the intelligence community, reviewed
information concerning the acquiring company, that company's ultimate
owners, and potential vulnerabilities that might result in threats to
national security. The Committee specifically considered the fact that a
U.S. subsidiary of Ross Catherall is a single source supplier of turbine
engine blades for the Department of Defense (DOD). While the Committee did
not find credible evidence to suggest that either Dubai Holding or its
ultimate owners might take action to threaten national security, Dubai
Holding's subsidiary made contractual commitments to DOD to assure
reliability of supply. Finally, the Committee took into account DOD
authority under U.S. law to compel any manufacturer located within the
United States to meet critical supply requirements.
In addition to the Department of the Treasury, the Committee's member
agencies include: the Departments of State, Defense, Justice, Commerce,
Homeland Security, and the Office of Management and Budget, the Office of
the United States Trade Representative, the National Security Council, the
National Economic Council, the Council of Economic Advisers, and the Office
of Science and Technology Policy.
# # #
|