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I Write Regarding the Westin Long Beach Hotel, Which Is Located in My District, the California 47Th

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I Write Regarding the Westin Long Beach Hotel, Which Is Located in My District, the California 47Th The Honorable Jacob Lew Secretary of the Treasury 1500 Pennsylvania Avenue, NW Washington, DC 20220 Dear Mr. Secretary: I write regarding the Westin Long Beach hotel, which is located in my district, the California 47th. I understand that the hotel is for sale, and request that the Committee on Foreign Investment in the United States (“CFIUS”) review the hotel’s potential sale to companies tied to China or other foreign states. This matter is time sensitive. CFIUS should take the opportunity to ensure national security questions are answered before the transaction has been finalized. The sale of the Westin Long Beach raises national security questions because the hotel is next door to the U.S. Customs and Border Protection – Los Angeles/Long Beach Sea Port office, which handles sensitive information related to interstate commerce, and because the hotel’s clients have included the Department of Defense, Department of Justice, Department of Homeland Security and the Federal Energy Regulatory Commission, some of which hosted foreign diplomats. I urge CFIUS to review this transaction and any other real estate or corporate transaction in my district that poses a national security risk, whether due to proximity to the Port of Long Beach, military bases or other federal infrastructure, harboring sensitive customer information, or hosting meetings with representatives of foreign governments. The following is a brief overview of national security questions raised by the potential acquisition of the Westin Long Beach hotel by an entity with ties to China or another foreign state actor. The Westin Long Beach’s Proximity to the U.S. Customs and Border Protection – Los Angeles/Long Beach Sea Port office The Westin Long Beach is located at 333 East Ocean Boulevard in Long Beach, directly next door to the U.S. Customs and Border Protection – Los Angeles/Long Beach Sea Port office at 301 East Ocean Boulevard, Suite 1400. In October 2016, the sale of the Hotel del Coronado near San Diego to Chinese insurance giant Anbang Insurance Group was called off following concerns raised by CFIUS. Observers have speculated that the hotel’s proximity to the U.S. Naval Base factored prominently in CFIUS’ decision. The Port of Long Beach handles trade valued annually at more than $180 billion and is the second-busiest seaport in the United States. East Asian trade accounts for more than 90 percent of the shipments through the Port, and China is its top trading partner. The Anti-Terrorism Contraband Enforcement Team at the U.S. Customs and Border Protection – Los Angeles/Long Beach Sea Port office is tasked with inspecting the cargo that enters and exits the Port of Long Beach. According to Randy Parsons, director of security for the Port, “They’re critical for the entire supply chain. Of all the agencies involved in protecting the port, the CBP has their fingers in the biggest share of the pie, from start to finish. They’re absolutely integral to this layered security system that starts overseas and ends when the goods move away from the port.” The Westin Long Beach has been frequented by the Federal Energy Regulatory Commission and other federal agencies including the Department of Defense, Department of Justice and Department of Homeland Security United States government clients with sensitive national security information have used the Westin Long Beach hotel. Since 2008, federal government agencies have entered into 52 contracts with the hotel. See Appendix A for a list of these contracts. Frequent customers included the National Institutes of Health and Centers for Disease Control and Prevention within the Department of Health and Human Services (23 contracts), the U.S. Coast Guard and U.S. Customs and Border Protection within the Department of Homeland Security (12 contracts), the Department of the Army within the Department of Defense (three contracts) and the Drug Enforcement Administration within the Department of Justice (three contracts). The Westin Long Beach was also frequented by the Federal Aviation Administration August 2-3, 2016, the Federal Energy Regulatory Commission on December 8, 2014, and the National Aeronautics and Space Administration February 9-10, 2011. The U.S. government has hosted representatives of foreign governments at the Westin Long Beach. On July 27, 2014, the Westin Long Beach hosted a “high level international delegation” during an event sponsored by U.S. Customs and Border Protection within the Department of Homeland Security. From June 13-16, 2010, the Westin Long Beach provided hotel rooms to 20 invitation attendees and staff of the U.S. Patent and Trademark Office participating in a U.S. study tour for Indian customs sponsored by the USPTO, an agency of the Department of Commerce Even when hotel purchases are approved, the U.S. government has continued to have security concerns. President Obama stopped patronizing the Waldorf Astoria New York after Anbang bought it in 2014 – a move that the Associated Press attributed to “fears of espionage.” In its coverage of the President’s decision to abandon the Waldorf, the New York Times noted Anbang’s “deep ties to Beijing’s ruling elite.” The U.S. State Department cautions Americans visiting China that “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.” I urge CFIUS to investigate the following issues before granting approval to any sale of the Westin Long Beach: Do any potential buyers of the Westin Long Beach have ties to the Chinese government or other foreign state actors? What safeguards are or will be put in place to protect the exposure of sensitive national security and commercial data processed by the U.S. Customs and Border Protection – Los Angeles/Long Beach Sea Port office from foreign surveillance? Will United States federal agencies be advised or required to avoid patronizing and hosting foreign diplomats at the Westin Long Beach? What assurances will security-conscious Westin Long Beach customers have that sensitive information will be protected from unwanted surveillance in the hotel under new ownership? Sincerely, M Alan Lowenthal Member of Congress CC AEW The Utah Retirement Systems The Port of Long Beach .
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