New rules to tighten security reviews of foreign investments

It gives legal status to the little-known Committee on Foreign Investment in the United States, or CFIUS, a multi-agency group formed in 1975 to monitor U.S. policy on foreign investment. A 1988 law gave the president the authority to stop foreign acquisitions that pose a security threat, and the president delegated to CFIUS the authority to investigate the deals.

The plans by the Dubai-owned company to buy and run operations at U.S. ports, and details of the CFIUS review, were first reported by The Associated Press. The controversy that erupted derailed the purchase.

(This version SUBS 9th graf pvs to CORRECT date of previous law to 1988, sted 1998; INSERTS new grafs 7-8, Business groups ..., to UPDATE with reaction.))