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International relations and domestic structures: Foreign economic policies of advanced industrial states

  • Peter J. Katzenstein (a1)
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Recent writings on problems of the international economy have focused attention primarily on changes in the international system. This paper attempts to show that foreign economic policy can be understood only if domestic factors are systematically included in the analysis. The paper's first part groups the recent literature into three paradigms which distinguish between three international effects. The second part offers a comparison of the differences between a state-centered policy network in France and a society-centered network in the United States. The third part of the paper combines the arguments of the first two and analyzes French and American commercial, financial, and energy policies as the outcome of both international effects and domestic structures. These case studies show that domestic factors must be included in an analysis of foreign economic policies. The paper's main results are analyzed further in its fourth part.

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1 This analysis is intended to apply primarily to the OECD members. Although all of these states are capitalist, I have deliberately used the term ‘advanced industrial states.’ The owner-ship of the means of production, I concluded, was less important for explaining foreign economic policy than the nature of the policy networks linking the public with the private sector. A French quip sums this up well: “French business is divided into a private sector, rigidly controlled, and a public sector, completely free.” Quoted in Adelman, M. A., The World Petroleum Market (Baltimore: Johns Hopkins University Press, 1972), p. 236. See also Vernon, Raymond, The Economic and Political Consequences of Multinational Enterprise: An Anthology (Boston: Division of Research, Graduate School of Business Administration, Harvard University, 1972), p. 117. Bruce Andrews has recently offered a line of argument about the importance of domestic politics for foreign policy analysis which complements this paper. See his “Social Rules and the State as a Social Actor,” World Politics, 27, 4 (07 1975): 521–40.

2 Keohane, Robert O. and Nye, Joseph S., “International Interdependence and Integration,” unpublished paper, 1973, p. 77. A revised version of this paper appears in Greenstein, Fred I. and Polsby, Nelson W. (eds.), Handbook of Political Science (Reading, Mass., Addison-Wesley), volume 8, International Politics, ch. 5. Page references here are to the earlier manuscript version.

3 New York Times, 10 13, 1974, p. 34.

4 Morse, Edward L., “The Politics of Interdependence,” International Organization, 23, 2 (Spring 1969): 311–26. Morse, , “Crisis Diplomacy, Interdependence and the Politics of International Economic Relations,” in Raymond Tanter and Ullman, Richard H. (eds.), Theory and Policy in International Relations (Princeton, N.J.: Princeton University Press, 1972), pp. 123–50. Morse, , Foreign Policy and Interdependence in Gaullist France (Princeton, N.J.: Princeton University Press, 1973).

5 Keohane and Nye, “Interdependence and Integration.”

6 Cooper, Richard N., The Economics of Interdependence: Economic Policy in the American Community (New York: McGraw-Hill, 1968), pp. 78.

7 The realist and neo-liberal paradigms are also treated in Gilpin, Robert, “Three Models of the Future,” International Organization 29, 1 (Winter 1975): 3760; Gilpin, , American Hegemony and the Multinationals: The Political Economy of Foreign Investment (New York: Basic Books, 1975); see also Krasner, Stephen D., “State Power and International Economic Structure,” unpublished paper.

8 Deutsch, Karl W., “Communication Theory and Political Integration,” in Jacob, Philip E. and Toscano, James V. (eds), The Integration of Political Communities (Philadelphia: J.B. Lippincott, 1964), pp. 4674. Deutsch, Karl W., The Analysis of International Relations (Englewood Cliffs, New Jersey: Prentice-Hall, 1968). Deutsch, Karl W., Political Community at the Supranational Level: Problems of Definition and Measurement (Garden City: Doubleday, 1954). Deutsch, Karl W., Edinger, Lewis J., Macridis, Roy C., and Merritt, Richard L., France, Germany and the Western Alliance: A Study of Elite Attitudes on European Integration and World Politics (New York: Charles Scribner's, 1967), pp. 218–39. Chadwick, Richard W. and Deutsch, Karl W., “International Trade and Economic Integration: Further Developments in Trade Matrix Analysis,” Comparative Political Studies, 6, 1 (04 1973): 84109.

9 Deutsch, Karl W., Nationalism and Social Communication: An Inquiry into the Foundations of Nationality, 2nd ed., (Cambridge, Mass.: MIT Press, 1966). Deutsch, Karl W., Nationalism and its Alternatives (New York: Alfred A. Knopf, 1969). Deutsch, Karl W., “The Growth of Nations: Some Recurrent Patterns of Political and Social Integration,” World Politics, 5, 2 (01 1953): 168–95. Deutsch, Karl W., “Nation and World,” in de Sola Pool, Ithiel (ed.), Contemporary Political Science: Toward Empirical Theory (New York: McGraw-Hill, 1967), pp. 206–27. Deutsch, Karl W., “Social Mobilization and Political Development,” American Political Science Review 55, 3 (09 1961): 501.

10 Deutsch, Karl W. and Eckstein, Alexander, “National Industrialization and the Declining Share of the International Economic Sector, 1890–1959,” World Politics 13, 2 (01 1961): 267–99. Deutsch, Karl W., “International Communications: The Media and Flows,” Public Opinion Quarterly 20, 1 (Spring 1956), 143–60. The conclusions of these two studies reappear in different forms in many of Deutsch's subsequent writings on problems of international interdependence.

11 Deutsch, Karl W., The Nerves of Government: Models of Political Communication and Control (New York: The Free Press, 1966).

12 Deutsch, and Eckstein, , “National Industrialization,” p. 271.

13 Deutsch, Karl W. and Edinger, Lewis J., Germany Rejoins the Powers (Stanford: Stanford University Press, 1959).

14 Deutsch, Nerves of Government, Part III. Deutsch, Karl W. and Singer, J. David, “Multipolar Power Systems and International Stability,” World Politics, 16, 3 (04 1964): 390406. See also the growing literature on bureaucratic politics and foreign policy behavior first systematized by Allison, Graham T., Essence of Decision: Explaining the Cuban Missile Crisis (Boston: Little, Brown and Co., 1971).

15 See the references cited in footnote 7 above and Calleo, David P. and Rowland, Benjamin M., America and the World Political Economy: Atlantic Dreams and National Realities (Bloomington, Ind.: Indiana University Press, 1973). Waltz, Kenneth N., “The Myth of National Interdependence,” in Kindleberger, Charles P. (ed.), The International Corporation (Cambridge, Mass.: MIT Press, 1970), pp. 205–23. Rosecrance, Richard N. and Stein, Arthur, “Interdependence: Myth or Reality?World Politics 26, 1 (10 1973): 127.

16 Gilpin, Robert, “The Politics of Transnational Economic Relations”, in Keohane, Robert O. and Nye, Joseph S. Jr (eds.). Transnational Relations and World Politics (Cambridge, Mass.: Harvard University Press, 1972), pp. 4869.

17 But see Hirschman, Albert O., National Power and the Structure of Foreign Trade (Berkeley: University of California Press, 1945). Cohen, Stephen D., International Monetary Reform, 1964–1969: The Political Dimension (New York: Praeger Publishers, 1970). Gilpin, , American Hegemony and the Multinationals. Russell, Robert W., “Crisis Management in the International Monetary System, 1960–1973.Paper prepared for Delivery at the International Studies Association Convention, New York City, 03 16, 1973. Haskel, B., “Disparities, Strategies, and Opportunity Costs: The Example of Scandinavian Economic Market Negotiations,” International Studies Quarterly, 28, 1 (03 1974): 330.

18 For one such attempt applying event interaction analysis see Healey, Brian, “Economic Power Transition in the International System: The Translation of Economic Power into Political Leverage in the International Monetary System,” (Ph.D. Dissertation, Cornell University, 1973).

19 Calleo, and Rowland, , America and the World Political Economy.

20 A recent statement can be found in Cooper, , The Economics of Interdependence. This book has been central to the reformulation of international relations theory attempted by Keohane, and Nye, , in Transnational Relations and World Politics, pp. 371–98. In addition to Morse's articles quoted in footnote 4 above see also his paper, “Interdependence in World Affairs,” unpublished paper. Haas, Ernst B., “Is there a Hole in the Whole? Knowledge, Technology, Interdependence and the Construction of International Regimes,” International Organization 29, 3 (Summer 1975). Young, Oran R., “Interdependencies in World Politics,” International Journal 24, 1 (Winter 19681969): 726–50. Feld, Werner J., Nongovernmental Forces and World Politics: A Study of Business, Labor and Political Groups (New York: Praeger Publishers, 1972). Brown, Lester R., World Without Borders (New York: Random House, 1972).

21 Herz, John H., International Politics in the Atomic Age (New York: Columbia University Press, 1959). scott, Andrew M., The Revolution in Statecraft: Informal Penetration (New York: Random House, 1965).

22 Morse, Edward L., “Transnational Economic Processes,” in Keohane and Nye, Transnational Relations, p. 40.

23 Russell, , “Crisis Management,” pp. 3b, 35.

24 Morse, Edward L., “The Transformation of Foreign Policies: Modernization, Interdependence and Externalization,” World Politics, 22, 3 (04 1970), pp. 371–92. See also Keohane, and Nye, , “Interdependence and Integration,” pp. 1920. Rosecrance, Richard N., “Contemporary Interdependence: An Introduction,” in Rosecrance, Richard N. and Stein, Arthur (eds.), Interdependence in World Politics (forthcoming).

25 Cooper, , The Economics of Interdependence, p. 153. Morse, , Foreign Policy and Interdependence, pp. 40–1.

26 Keohane, and Nye, , Transnational Relations and World Politics, pp. ixxxix, 371–98. See also Keohane, Robert O. and Nye, Joseph S., “World Politics and the International Economic System,” in Bergsten, Fred C. (ed.), The Future of the International Economic Order: An Agenda for Research(Lexington, Mass., D.C. Heath: 1973), pp. 115–79. Nye, J.S., “Oceans Rule Making in a World Politics Perspective,” unpublished paper. Keohane, Robert O. and Nye, Joseph S., “Transgovernmental Relations and International Organization,” World Politics, 27, 1 (10 1974): 3962. Nye, Joseph S., “Transnational Relations and Interstate Conflicts: An Empirical Analysis,” International Organization, 28, 4 (Autumn 1974): 961–96.

27 Keohane, Robert O. and Nye, Joseph S. Jr, “Introduction: The Complex Politics of Canadian-American Interdependence,” International Organization, 28, 4 (Autumn 1974): 596. Nye, Joseph S. Jr, “Transnational Relations and Interstate Conflicts,” p. 962.

28 Morse, , Foreign Policy and Interdependence, pp. 4, 315–6. Although I have not yet read it, Zysman's, JohnFrench Industry Between the Market and the State (Berkeley, Calif.: University of California Press, forthcoming) challenges Morse's interpretation.

29 Huntington, Samuel P., “Transnational Organizations in World Politics,” World Politics, 25, 3 (04 1973): 343–5.

30 The same argument has been developed for the security issue in Hoffmann, Stanley, Gullive's Troubles: Or the Setting of American Foreign Policy (New York: McGraw-Hill, 1968).

31 Tocqueville, Alexis de, The Old Regime and the French Revolution (New York: Doubleday, Anchor Books edition, 1955). The Federalist (Cambridge, Mass.: Harvard University Press, 1961).

32 Huntington, Samuel P., Political Order in Changing Societies (New Haven: Yale University Press, 1968), p. 110. The second chapter of Huntington's book is brilliantly wrong in confusing the British and the Continental pattern of political development. Huntington's argument is correct, I would argue, for a comparison of France and the United States.

33 Neustadt, Richard E., Presidential Power: The Politics of Leadership (New York: John Wiley, 1964).

34 Kesselman, Mark, “Overinstitutionalization and Political Constraint: The Case of France,” Comparative Politics 3, 1 (10 1970): 2144. Huntington, Political Order, pp. 93–139. Lowi, Theodor J., The End of Liberalism: Ideology, Policy and the Crisis of Public Authority (New York: W.W. Norton, 1969).

35 Hoffmann, Stanley, et. al. In Search of France: The Economy, Society and Political System in the Twentieth Century (New York: Harper & Row, Harper Torchbooks, 1965), p. 3. Crozier, Michel, The Stalled Society (New York: Viking Press, 1973).

36 Suleiman, Ezra N., Politics, Power and Bureaucracy in France: The Administrative Elite (Princeton N.J.: Princeton University Press, 1973), pp. 137–80.

37 Suleiman, , Bureaucracy in France, pp. 20–1, 349–50. McConnell, Grant, Private Power and American Democracy, pp. 8990. (New York: Random House, Vintage Books, 1966).

38 Crozier, Michel, The Bureaucratic Phenomenon (Chicago: University of Chicago Press, Phoenix Book edition, 1967), pp. 213–27. McConnell, , Private Power, pp. 157368.

39 Rose, Arnold M., “Voluntary Associations in France,” in Rose, Arnold M., Theory and Methods in the Social Sciences (Minneapolis: The University of Minnesota Press, 1954), pp. 72115.

40 Schattschneider, E. E., The Semisovereign People: A Realist's View of Democracy in America (New York: Holt, Rinehart and Winston, 1960), p. 30.

41 Hartz, Louis, The Liberal Tradition in America (New York: Harcourt, Brace and World, 1955), pp. 332. Huntington, , Political Order, p. 135.

42 Crozier, , The Stalled Society; pp. 78–9. McConnell, , Private Power, p. 245.

43 Quoted in Suleiman, , Bureaucracy in France, p. 336.

44 Vernon, Raymond, Sovereignty at Bay: The Multinational Spread of U.S. Enterprises (New York: Basic Books, 1971), pp. 205–8, 219–23.

45 Selznick, Philip, TVA and the Grass Roots: A Study in the Sociology of Formal Organization (Berkeley: University of California Press, 1949).

46 Shonfield, Andrew, Modern Capitalist Planning: The Changing Balance of Public and Private Power (London: Oxford University Press, 1965), pp. 138, 322, 335.

47 Hoffmann, , In Search of France, pp. 70–1. Crozier, , Stalled Society, pp. 100–3.

48 Suleiman, , Bureaucracy in France, chapter 12. Michalet, “France,” pp. 106–7.

49 Ehrmann, Henry W., Organized Business in France, p. 480. Crozier, , Stalled Society, p. 86.

50 Hawley, Ellis W., “Techno-Corporatist Formulas in the Liberal State, 1920–1960: A Neglected Aspect of America's Search for a New Order,” unpublished paper, 1974, p. 31.

51 Lowi, , The End of Liberalism. McConnell, , Private Power.

52 These categories are adapted from Lowi, Theodore J., “American Business, Public Policy, Case-Studies and Political Theory,” World Politics, 16, 4 (07 1964): 677715. The argument has been updated, revised and extended in Lowi, , “Four Systems of Policy, Politics and Choice,” Public Administration Review 32 (07-08 1972): 298310.

53 Lindblom, Charles E., “The Science of Muddling Through,” Public Administration Review 19, 2 (Spring 1959): 7988.

54 Bachrach, Peter and Baratz, Morton S., “Two Faces of Power,” American Political Science Review, 66, 4 (12 1962): 947–52. Bachrach, and Baratz, , “Decisions and Nondecisions: An Analytical Framework,” American Political Science Review, 68, 3 (09 1963): 632–42.

55 Gilpin, , American Hegemony and the Multinationals. Kindleberger, Charles P., The World in Depression 19291939 (Berkeley: University of California Press, 1973).

56 Ehrmann, Henry W., Organized Business in France (Princeton N.J.: Princeton University Press, 1957), pp. 392401

57 McArthur, and Scott, , Industrial Planning in France, pp. 262–3. See also pp. 220, 305–6.

58 McArthur, and Scott, , Industrial Planning in France, pp. 262–3, p. 129. See also pp. 124–5, 273–6, 449, 462–5.

59 McArthur, and Scott, , Industrial Planning in France, pp. 262–3, pp. 378–82.

60 Cooper, , Economics of Interdependence, p. 237.

61 Sheahan, John, Promotion and Control of Industry in Postwar France (Cambridge, Mass.: Harvard University Press, 1963), p. 59.

62 Sheahan, John, Promotion and Control of Industry in Postwar France (Cambridge, Mass.: Harvard University Press, 1963), p. 59, p. 114.

63 Williams Commission Report, p. 104.

64 Arnaud-Ameller, Paul, La France a L'Épreuve de la Concurrence Internationale 1951–1966 (Paris: Armand-Collin, 1970), pp. 112–14. Ehrmann, , Organized Business, p. 398.

65 Quoted in New York Times, 12 27, 1974, p. 47. See also Pirages, Dennis C., “Strategic Implications of the Energy Crisis,” Paper Presented to the Annual Meeting of the International Studies Association, Washington, D.C., 02 1975, pp. 33–4.

66 McArthur, and Scott, , Industrial Planning in France, pp. 425–7. John, and Hackett, Anne-Marie, Economic Planning in France (London: George Allen, 1963), p. 30.

67 Morse, , Foreign Policy and Interdependence.

68 Williams Commission Report, pp. 82–3.

69 Department of Commerce, “Foreign Industrial Nontariff Barriers,” pp. 688, 698–9. Evans, John W., The Kennedy Round in American Trade Policy: The Twilight of the GATT? (Cambridge, Mass.: Harvard University Press, 1971), p. 259.

70 Renner, John C., “National Restrictions on International Trade,” in Williams Commission Report: Papers (Vol. 1), p. 667.

71 Balassa, Bela, Trade Liberalization among Industrial Countries: Objectives and Alternatives (New York: McGraw-Hill Company, 1967), p. 59.

72 Cooper, Richard N., “Trade Policy is Foreign Policy,” Foreign Policy 9 (Winter 19721973): 27.

73 Schattschneider, E. E., Politics, Pressures and the Tariff: A Study of Free Enterprise in Pressure Politics, as Shown in the 1929–1930 Revision of the Tariff (New York: Prentice-Hall, 1935). Bauer, Raymond A., Ithiel de Sola Pool and Lewis Anthony Dexter, American Business and Public Policy: The Politics of Foreign Trade (New York: Atherton Press, 1963).

74 Lowi, , “American Business,” pp. 692703.

75 Lowi, , “American Business,” pp. 692703, pp. 690–1, 692, 695.

76 Lowi, , “American Business,” pp. 692703, p. 697.

77 Vernon, , Sovereignty at Bay, p. 209. Behrman, Jack N., U.S. International Business and Governments (New York: McGraw-Hill, 1971), pp. 171–3. Behrman, Jack N., National Interests and the Multinational Enterprise: Tensions among the North Atlantic Countries (Englewood Cliffs, Prentice-Hall, 1970), pp. 38, 71–4, 159–60. Magdoff, Harry, The Age of Imperialism: The Economics of U.S. Foreign Policy (New York: Monthly Review Press, 1969). Baran, Paul A. and Sweezy, Paul M., Monopoly Capital: An Essay on the American Economic and Social Order (New York: Monthly Review Press, 1966).

78 Behrmann, , U.S. International Business, pp. 186–8.

79 Scott, Harald B., “Export Expansion for the Seventies … and Beyond,” William Commission Report: Papers (Vol. 1), p. 556.

80 Williams Commission Report, p. 52.

81 Williams Commission Report, p. 52, pp. 120–2.

82 I am following Lowi, , “American Business,” pp. 683–4, 699.

83 New York Times, 12 22, 1974, Part III, p. 6. A similar argument is made by Cohen, B.J., “U.S. Foreign Economic Policy,” Orbis, 15, 1 (Spring 1971): 232–46.

84 Torem, Charles and Laurence Craig, William, “Control of Foreign Investment in France,” Michigan Law Review, 66, 4 (02 1968): 669. On French monetary policy see Schmiegelow, Henrik and Schmiegelow, Michele, “The New Mercantilism in International Relations: The Case of France's External Monetary Policy,” International Organization, 29, 2 (Spring 1975), pp, 367–92.

85 Michelet, Charles-Albert, “France,” in Vernon, Raymond (ed.), Big Business and the State: Changing Relations in Western Europe (Cambridge, Mass.: Harvard University Press, 1974), pp. 122–3. Behrman, Jack N., National Interests and the Multinational Enterprise, pp. 35, 134. McArthur, and Scott, , Industrial Planning in France, pp. 254–60. Johnstone, Allan W., United States Direct Investment in France: An Investigation of the French Charges (Cambridge, Mass.: MIT Press, 1965). Gilpin, Robert, France in the Age of the Scientific State (Princeton N.J.: Princeton University Press, 1968), pp. 376.

86 Behrman, , National Interests, pp. 150, 162. Bertin, Gilles Y., “Foreign Investment in France,” in Litwak, Isaiah A. and Maule, Christopher J. (ed.), Foreign Investment: The Experience of Host Countries (New York: Praeger Publishers, 1970), p. 119.

87 Behrman, , U.S. International Business, pp. 34, 36. Vernon, , The Economic and Political Consequences of Multinational Enterprise, p. 183.

88 McArthur, and Scott, , Industrial Planning in France, pp. 359–68. Behrman, , National Interests, pp. 45, 135.

89 Morse, , Foreign Policy and Interdependence.

90 Vernon, , Economic Consequences, p. 92. Damm, Walter, “The Economic Aspects of European Direct Investment in the United States,” in Rolfe, Sidney E. and Damm, Walter (ed.), The Multinational Corporation in the World Economy (New York: Praeger Publishers, 1970), pp. 37–8.

91 Fred Bergsten, C., “Coming Investment Wars?Foreign Affairs, 53, 1 (10 1974): 148. Vernon, Economic Consequences, p. 113.

92 Magdoff, , Age of Imperialism. Moran, Theodore H., “Foreign Expansion as an ‘Institutional Necessity’ for U.S. Corporate Capitalism: The Search for a Radical Model,” World Politics, 25, 3 (04 1973): 369–86. Vernon, , Sovereignty at Bay, pp. 60112.

93 Barnet, Richard and Müller, Ronald, “Multinational Corporations II,” New Yorker, 12 9, 1974, p. 100.

94 Gilpin, , American Hegemony, chapter 4–11.

95 Lipson, Charles H., “Corporate Preferences and Public Policies: Foreign Aid Sanctions and Investment Protection,” unpublished paper, pp. 45, 25–6.

96 US Senate, Committee on Finance, The Multinational Corporation and the World Economy, 02 26, 1973, pp. 16–7.

97 Williams Commission Report, p. 178.

98 Bergsten, , “Investment Wars,” p. 149.

99 I am following the treatment of Gilpin's American Hegemony, chapter 5–15, to 5–21.

100 Quoted in Stein, Arthur, “The Kennedy Administration and the Balance of Payments,” Honors Thesis, Cornell University, 1972, p. 43. See the discussion on pp. 35–44.

101 Stein, Arthur, “The Kennedy Administration and the Balance of Payments,” Honors Thesis, Cornell University, 1972, p. 43, p. 58.

102 Cooper, , Economics of Interdependence, pp. 137–8.

103 Behrman, , U.S. International Business, pp. 204–11.

104 Pizer, Samuel, “Capital Restraint Program,” Williams Commission Report: Papers (Vol. 1), p. 100.

105 Behrman, , U.S. International Business, pp. 148–53, 184–85.

106 Vernon, , Sovereignty at Bay, p. 212.

107 Gilpin, , American Hegemony, Chapter 7, p. 24. Behrman, , National Interests. p. 135.

108 McArthui, and Scott, , Industrial planning in France, pp. 342–59. See also Commissariat Générale du Plan, Commission de Gén'Énergie, Préparation du VIePlan: Rapport du Comité - Pétrole (La Documentation Françhise, 1971).

109 Adelman, , World Petroleum Markets, p. 236.

110 Hartshorn, J. E., Politics and World Oil Economics: An Account of the International Oil Industry in its Political Environment (New York: Frederick A. Praeger, 1967), p. 263.

111 Mulfinger, Albert, Auf dem Wag zur gemeinsamen Mineralölpolitik: Die Interventionen der öffentlichen Hand auf dam Gebiet der Mineralölindustrie in Hinblick auf den gemeinschaftlichen Mineralölmarkt (Berlin: Duncker & Humblot, 1972), p. 100.

112 Johnston, , United States Direct Investment, pp. 33–4. Sheahan, , Promotion and Control, p. 201.

113 Touret, Denis, La Régime Française d'Importation du Pétrole et la Communauté Économique Européenne (Paris: Pichon et Durand-Auzias, 1968).

114 Johnston, , United States Direct Foreign Investment, p. 34.

115 Mulfinger, , Mineralölpolitik, pp. 119–21.

116 Mulfinger, , Mineralölpolitik, p. 118.

117 Mulfinger, , Mineralölpolitik, p. 97. Johnston, , United States Direct Investment, pp. 51–2.

118 Johnston, , United States Direct Investment, p. 46.

119 Keesing's Contemporary Archives, 02 12, 1972, PP. 25083–8.

120 Adelman, M. A., “Is the Oil Shortage Real? Oil Companies as OPEC Tax-Collectors,” Foreign Policy, 9 (Winter 19721973): 96.

121 Krasner, Stephen D., “The Great Oilsheikdown,” Foreign Policy, 13 (Winter 19731974): 131.

122 Engler, Robert, The Politics of Oil: A Study of Private Power and Democratic Directions (New York: Macmillan, 1961), P. 9. For a somewhat more balanced but concurring conclusion see Vernon, Sovereignty at Bay, p. 214.

123 Nash, Gerald D., United States Oil Policy 1890–1964: Business and Government in Twentieth Century America (Pittsburgh: University of Pittsburgh Press, 1968).

124 Engler, , The Politics of Oil, p. 308.

125 Engler, , The Politics of Oil, p. 335.

126 Engler, , The Politics of Oil, p. 277.

127 Gilpin, , American Hegemony, pp. 519, 5–20.

128 Cooper, , Economics of Interdependence, pp. 102–3.

129 Tanzer, Michael, The Political Economy of International Oil and the Underdeveloped Countries (Boston: Beacon Press, 1969), pp. 50–5, 319–44.

130 Shaffer, Edward H., The Oil Import Program of the United States: An Evaluation (New York: Praeger, 1968), pp. 13–4.

131 Adelman, , “Is the Oil Shortage Real?” p. 78.

132 New York Times, 02 12, 1975, p. 36.

133 Gerschenkron, Alexander, Economic Backwardness in Historical Perspective: A Book of Essays (Cambridge, Mass.: Harvard University Press, 1962), pp. 530.

134 Fred Bergsten, C., Keohane, Robert O. and Nye, Joseph S., “International Economics and International Politics: A Framework for Analysis,” International Organization 29, 1 (Winter 1975), 1820. A comparative study of foreign economic policy is, thus, very much a matter of proper perspective. Lowi and others have been right in arguing that foreign policy issues in American politics are treated more consistently than other issues in domestic politics; yet in comparison to France, United States foreign economic policy undeniably looks inconsistent. Similarly, Morse is partially correct in pointing out how international markets have undermined French foreign policy; but he fails to consider that for other governments, like the American, international processes may have primarily political repercussions.

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