In the UK it was briefly: ‘Ah well, there goes another one.’ All eyes then turned away from P&O toward the next blue chip British company to fall into foreign ownership . Last month Pilkington, bought by the Japanese. Today BOC is truffled up by Linde of Germany. Who’s next? Who cares…..

In the US such laissez-fairiness is unthinkable. It matters who owns their corporations. And if you’re Chinese or Arab it matters a lot. The billion dollar question must be: Is Britain largely right in having no corporate nationalism, or is much of the rest of the world largely wrong in erecting, and maintaining political defences for their business champions?

At the time of writing it remains to be seen whether George Bush can successfully head off opposition to the P&O deal. He’s not looking that strong politcially right now and 9/11 is making anyone who opposes him on this issue look like they’re on the side of the Angels. (That’s despite the deal being rubber stamped by the Committee on Foreign Investments). Even Hilary Clinton’s managing to somehow look radiant by calling for legislation banning the sale of US Ports to foreigners. I can’t think of a single British politician who’d try and get away with that one.

If the Americans do break this deal, if it does go belly- up, it will be ironic. America - home of capitalism - actually stops a deal on national security grounds which winds up helping a British company remain British.

There are some other interesting ironies here too. The wildly high recent oil price has helped give these Dubai Arabs the firepower to go for expensive blue-chips like P&O - and they were prepared to pay almost any price to get it. Why are they so rich? Partly because the US is such a wildly profligate user of oil resources. The oil price would fall if the US used the stuff more prudently.

Perhaps the bitterest irony of all is that all this is happening at a time in American history when it’s never been more important to appear to be a friend of the Arab world. However you dress it up this doesn’t look too friendly.

Labels: Let me drive....

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