Weldon Published by WtP

Curt Weldon
Member of Congress 1987 – 2007
P.O. Box 300 Glen Mills, PA 19342

March 8, 2010
To: Dennis Beal
From: Curt Weldon
Subject: Response to your memo of February 4

To read the whole story click on the title

Note the Beal and Kem Bennett Letters are under galleries - port on the top menu bar

I am writing this memo to you as the retired Vice Chairman of both the House Armed Services
Committee and the Homeland Security Committee, and as someone who has demonstrated strong support
for Texas A&M University. During my 20 years as a Member of Congress and Chairman of the National
Fire & Disaster Caucus, I wrote the legislation in 1998 that designated Texas A&M as the Nation’s
Emergency Response and Training Center. Throughout my public career I have championed Texas A&M
as the premier center for preparing and training America’s first responders (see attached letter).
As Vice Chairman of the Armed Services Committee I authorized and oversaw hundreds of billions of
dollars worth of contracts for the Department of Defense. So let me be very clear – your memo to Tom
Moore and John LaRue dated February 4, 2010, was and is, an embarrassment to Texas A&M, nothing
shy of malpractice, and possibly libelous. I am not an attorney, but in my opinion your actions border on
“tortious interference”.

In that memo you demonstrated a clear lack of understanding of the defense appropriations process. The
Navy contract that Swiftships has been awarded was initially funded by the US Defense Department
AND the Government of Iraq. This contract is a critical component of our nation’s efforts to have the
Iraqis stand up their Armed Forces as we draw down our own. The Foreign Military Sales (FMS) Process
is well known and used by our government on a continual basis. The $230 million initial contract for
ships and training is fully funded – and will be followed by an additional $140 million in direct contracts
from the Iraqi government. And this is just the beginning of the ‘stand-up’ of the Iraq Navy. Either you do
not understand the FMS process or, more troubling, you deliberately chose to mis-state facts for some
other undisclosed purpose.

In addition to the Iraq Navy Program, Apex/Swiftships is currently building ships for the Kuwait and
Egyptian Navies while also negotiating with each country (through the FMS Process) for contracts
totaling over $70 million with hundreds of millions of dollars of additional ship construction (again
through FMS) planned for the next 10 years. None of this shipbuilding funding is dependent on US DOD
dollars.

Apex/Swiftships understands the procurement process extremely well. In fact, their Director of Military
programs is Jeffrey Perin. If you had taken time to talk to Jeff you would have understood that he served
in the US Navy for 30 years where was he involved in managing US Navy Shipbuilding for most of his
career. You also would have discovered that he spent much of his career supporting the Ingleside Naval
Station, which he has visited numerous times. Jeff is an expert on DOD/Navy procurement and would
have been more than happy to explain Swiftships funding.

You have also demonstrated your total lack of understanding of the ship building industry worldwide. As
recent industry studies have documented, the construction of mid-size ships (225’ or less) is the one
sector that will see substantial growth over the next 30 years. As the role of maritime security changes
and port facilities are upgraded worldwide, this class of vessel is becoming vital to international trade and
security. Swiftships is ideally suited to be the international leader in this class of Riverine vessel.

Swiftships has been building Riverine vessels for the US and over 40 other nations around the world for
over 40 years. Today Swiftships is in discussions with over 10 nations to build their Riverine vessels over
the next several decades. In addition Swiftships is aggressively pursuing sales of Fire Boats and Coastal
Patrol Boats that will be funded with local and state monies. Again, none of these contracts are dependent
upon DOD funding as you stated in your memo.

Your memo claims that Swiftships would, “compete with Gulf Marine and others” for workers. Either
you have not visited Corpus Christi recently or you again deliberately ignored the facts. 7,015 local jobs
were lost when Ingleside closed, and Gulf Marine which I visited in December, has recently laid-off the
last of over 2,000 workers. In fact, Gulf Marine shut down in January just weeks before your February
memo. I am sure those families would be very excited to have Swiftships in their community.

Your cavalier misrepresentations and half-truths have caused Apex/Swiftships to look away from
Ingleside and Corpus Christi, and that is an absolute tragedy. They have already aggressively arranged
site visits with other locations where their presence would be welcomed with open arms.

I have been personally supportive of this community of hard-working Texans for the last 25 years. I have
worked with Congressman Solomon Ortiz and Senator Kay Bailey Hutchinson to preserve jobs in this
community. On March 23, 2001, I brought the Armed Services Readiness Committee to Corpus Christi
for a formal Public Hearing at the Corpus Christi Army Depot – at the time DOD was threatening to close
the facility. I Chaired the hearing that listened to witness after witness testify, with great emotion and
pride, about the capabilities of the outstanding workforce in Corpus Christi. We took that message back to
DC and we prevented the Depot from being closed – and saved 3,000 local jobs. Time and again I worked
with Congressman Ortiz to bring added federal dollars to Corpus Christi and Ingleside. I also authorized
the dollars to fund numerous development activities at NSI.

This past week I returned for my 6th visit to Corpus Christi and spent two days meeting as many of the
local leaders as possible regarding Ingleside. The past and present Port Commission Members, Judges,
Mayors, State Representatives, and civic leaders (of both political parties) that I met absolutely impressed
me and were united in their desire to consider all options for Ingleside. But I could not believe the level of
dis-information that had been given to these outstanding public servants, much of it identical to what I
read in your memo to Port Staff.

I explained to each of these leaders that I had been retained by Houston based Apex last year to identify
potential sites nationwide for the expansion of Swiftships. I immediately identified four sites (Puerto
Rico, Virginia, Florida, and Corpus Christi) for Apex/Swiftships’ consideration. I contacted Congressman
Ortiz and visited NSI late last year and then followed up with a telephone call to John LaRue. I also
immediately called my long time friend Dr. Kem Bennett, now Vice Chancellor of Texas A&M, and
briefed him on the plan to establish the International Riverine Maritime Center at Ingleside. The
International Center would have brought to the Ingleside site Swiftships, Apex and all of their partners,
including companies that would create immediate jobs for the local folks with the ongoing full
involvement of the local elected and appointed officials.

You were in the room early this year when I traveled to College Station with Apex CEO and John LaRue
to brief the Chancellor. Yet since that meeting you made no effort to reach out to Apex, Swiftships or me.
You wrote the attached unprofessional and non-factual memo to Port staff. Apparently your intention was
to deliberately distort factual information that would allow the people of Corpus Christi and Ingleside to
make their own decision about the best use of NSI. How much time did you spend in trying to understand
the Apex/Swiftships Plan, which has had significant additions made since the original presentation, and
what kind of due diligence did you conduct other than your cell phone call to a former, unnamed
acquaintance at the Pentagon?

My understanding is that you have been paid by the people of Corpus Christi to attract investment and
develop the Ingleside site. Apex/Swiftships have stated to Port staff that they were willing to guarantee all
upkeep and maintenance of the Ingleside complex immediately, to have begun May 1, thereby relieving
the Port of Corpus Christi and the local tax-payers of that burden, while also bringing in immediate jobs.
My understanding is that the Port estimates the cost of that maintenance at $500,000. per month
beginning May 1, 2010, separate from any other costs associated with efforts to bring in jobs.
So the question is quite simple when you get beyond the Vu-Graphs, Power Points, and promises – are
you prepared to pay $500,000.00 every month beginning on May 1 for the maintenance of Ingleside and
the cost to develop new business interests?

I would remind you that Ingleside is not yours to gamble with. It belongs to the people of America and
the hard-working people of Nueces and San Patricio Counties. In fact, I was happy to support the efforts
of Congressman Ortiz and Senator Hutchinson in 2005 to turn NSI over to the Port of Corpus Christi for
$1 – DOD had wanted the Port to pay over $200 million for the complex. I have absolute confidence in
the staff of the Port of Corpus Christi – they did not need to receive a memo from you that completely
distorted an honest effort by a major company to bring jobs and investments to Ingleside.
Your actions to date would suggest that upon receipt of this letter you will no doubt attempt to disparage
my own good name as you have this legitimate and worthy proposal. But I trust that the citizens of the
Texas coast will see through your efforts to generate politically motivated attacks like those I endured
during the 2006 campaign.

The fact that your memo was made public and that you have selectively shared it with so many people
outraged me to issue this response. May the people of Ingleside, Corpus Christi, Nueces and San Patricio
Counties, in the end take control of their own economic destiny and fully understand what opportunities
are available to them at the Ingleside Complex.

signed Curt Weldon