US eyes sale of NY's Waldorf hotel to Chinese firm
By MATTHEW LEE, AP Diplomatic Writer
Updated 10:43 am, Monday, October 13, 2014
WASHINGTON
(AP) — Concerned about potential security risks, the U.S. government is
taking a close look at last week's sale of New York's iconic Waldorf Astoria hotel to a Chinese insurance company.
U.S. officials said Monday they are reviewing the Oct. 6 purchase of the Waldorf by the Beijing-based Anbang Insurance Group, which bought the hotel from Hilton Worldwide for
$1.95 billion. Terms of the sale allow Hilton to run the hotel for the
next 100 years and call for "a
major renovation" that officials say has raised eyebrows in Washington,
where fears of Chinese eavesdropping and cyber espionage run high.
The
officials also said the sale could have implications for the
government's longstanding relationship with the hotel, which serves as
home to the American ambassador to the United Nations and hosts the
president and hundreds of U.S. diplomats during the annual U.N. General
Assembly.
"We are currently in the process of reviewing the details of the sale and the company's long-term plans for the facility," said Kurtis Cooper, a spokesman for the U.S. Mission to the United Nations.
He and other officials said decisions about the future of the U.S.
relationship with the Waldorf would be made based on cost, Anbang's
long-term plans for the hotel, and the government's needs and security
concerns.
The officials said specifics of the renovation plan would be a key issue of the review.
"The
State Department takes seriously the security of its personnel, their
work spaces and official residences," Cooper said. "We are constantly
evaluating our security protocols and standard operating procedures to
ensure the safety and security of our information and personnel."
The
department routinely warns U.S. diplomats in China about physical and
electronic surveillance and tells American citizens in the country to be
aware of similar risks, notably in hotels.
"Hotel
rooms (including meeting rooms), offices, cars, taxis, telephones,
Internet usage and fax machines may be monitored onsite or remotely, and
personal possessions in hotel rooms, including computers, may be
searched without your consent or knowledge," according to the
department's latest travel advice for China. "Business
travelers should be particularly mindful that trade secrets,
negotiating positions and other business-sensitive information may be
taken and shared with local interests."
For
more than 50 years, the State Department has leased a residence for the
U.S. ambassador to the U.N. on the 42nd floor of the hotel's Waldorf
Towers. And, every September, the department takes over two floors of
the Waldorf to serve as headquarters for the horde of U.S. diplomats
that decamp from Washington for the U.N. General Assembly. During the
session, the president spends several nights at the
Waldorf.
U.S.
law allows the department to rent the ambassador's residence for a term
of 10 years or less. The current lease expires next year with an option
to renew it for one or two years.
It was not
immediately clear if the review would affect decisions about the possible renewal of the existing lease.
Ending
the government's relationship with the Waldorf could be problematic and
expensive, according to officials who note that numerous studies
conducted during both Republican and Democratic administrations have
concluded that it is cost effective and convenient.
Cooper
noted that the U.N. ambassador's residence must meet a long list of
requirements, including appropriate housing, reception space, security,
proximity to the U.S. Mission to the United Nations and the U.N.
headquarters.
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