NPEC Executive Director Comments on US-UAE Nuclear Deal On CNN's Lou Dobbs Tonight (January 23, 2009)

FROM LOU DOBBS TONIGHT (loudobbs.tv.cnn.com)

President Obama's Stimulus; Kirsten Gillibrand Replaces Hillary Clinton; America First: [Controversy Over Nuclear Tech Sales to Gulf State]; Bailout Boondoggle; Arming the Enemy

Aired January 23, 2009 - 19:00 ET

THIS IS A RUSH TRANSCRIPT [EXCERPT]. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

LOU DOBBS: ...Up next, we'll be telling you why property taxes are on the rise, even as home values are plummeting and why a deal with a U.S. ally could help Iran build nuclear weapons. We'll have that special report, a great deal more straight ahead. We'll be right back.

(COMMERCIAL BREAK)

DOBBS: President Bush signed a nuclear deal with the United Arab Emirates in the final days of his administration. That agreement was made without congressional approval, nor that certainly of the American people. There is new concern that the deal would actually help Iran pursue its nuclear ambitions. Kitty Pilgrim has our report.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): President Bush has left a nuclear sized problem on the desk of Barack Obama. A nuclear cooperation agreement with the United Arab Emirates. Other countries in the region are watching the deal closely as a model for their nuclear ambition.

UNIDENTIFIED MALE: It is a case where countries feel it's a status symbol to have a nuclear program.

PILGRIM: Congressman Ed Markey (D-MASSACHUSSETTS) has written to President Obama saying let's not put nuclear commerce above nuclear common sense. With an indisputable record as a country whose weak export controls have enabled the proliferation of the world's most dangerous weapons, the United Arab Emirates has failed a crucial test of responsible nuclear stewardship.

Iran is a key trading partner with the UAE. Congressman Brad Sherman objects to the deal saying Iranian front companies, agents and firms complicit with the Iranian regime have set up operations in the UAE. By locating in the UAE, these companies and individuals are able to hide the fact that they are part of Iran's procurement network.

REP. BRAD SHERMAN (D), CALIFORNIA: They are a trans shipment hub for Iran. Iran finds it very easy to set up front companies in the United Arab Emirates.

PILGRIM: The Bush administration signed the pact on its last days in office saying it promotes peaceful nuclear energy in the region.

HENRY SOKOLSKI, NONPROLIFERATION POLICY ED. CTR.: This idea of promoting nuclear power in the Middle East is not well thought out. One thing that everyone needs to understand, every nation that has ever acquired a nuclear weapon first acquired a large reactor.

(END VIDEOTAPE)

PILGRIM: Now this is not a done deal yet. Although it was signed by the Bush administration, he did not submit it to Congress, and it's now up to the Obama administration to decide whether to go through with the agreement or not by submitting it to Congress -- Lou.

DOBBS: We can only hope. All right, Kitty, thank you very much. An amazing legacy is all I will say. Thank you.