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Arab Takeover of Defense Contractors Approved

As security fears continue to rise in the United States, President George W. Bush approved a $1.24 billion takeover deal that gives Dubai control of Doncasters, a British engineering company with U.S. plants. Doncasters is a supplier of the Pentagon. The Pentagon was consulted on the deal, which involves countries similar to the recent failed bid by Dubai Ports World to purchase a British company with operations in U.S. ports.

Apparently, President Bush made his decision based on a report from the Committee on Foreign Investments in the United States. According to White House spokesman Scott McClellan, "The president this morning accepted the committee`s recommendation. The committee recommended approval of the transaction after closely scrutinizing it and concluding that it would not compromise our national security."

President Bush concluded that the deal "has been looked at very carefully, has been analyzed by a CFIUS committee. I signed off on it this morning because I`m convinced at the recommendation of the CFIUS committee as well as our military that it`s a sale that should go through."