Finding Common Ground U.S. Export Controls in a Changed Global Environment, Commissioned Papers (1991) / Chapter Skim
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The United States and The Federal Republic of Germany: Differences Among Allies
The United States and The Federal Republic of Germany: Differences Among Allies
Pages 4-24
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From page 4... ...
and the F.R.~. reflect a variety of factors, including fundamental dissimilarities in their approaches to East- West relations; their divergent roles in the international political arena; dissimilarities in their external economic relations; and West Germany's unique situation 1 For more on these differences see for example, Heinrich Vogel, East-West Trade and Technology Transfer Reconsidered, Bundesinstitut fur ostwissenschafttiche und internationals Studien, mimeo Spring 1990; Reinhard Rode, Sanktion und Geschaft die OstwirtSchaftspolitik der USA unter Reagan, Frankfurt, 1986; Hans - Di eter Jacobsen, D i e oat-west Wi rtschaf tsbe z i ehungen a ~ s cleutsch-amerik~n~sches Problem, Baden Baden: Nomos, 1986; Claudia Wormann, Osthandel, als Problem der Atiantischen Allianz, Bonn: Europa Union veriag, 1986; Reinhard Rode and Hanns-D.
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From page 5... ...
The first relates to each country's fundamental beliefs, both with respect to the nature of the East-West conflict, and also with regard to the policy responses which are required to contain that conflict. A second divisive issue has been the question of whether export controls should be used as foreign policy instruments in the form of economic sanctions.
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From page 6... ...
We want to leave the option for technological cooperation open for our Eastern neighbors. It goes without saying that this cooperation must be conducted in full accordance with our security interests "3 The West German government has always worked to develop a network of economic relationships with the Eastern bloc, with the aim of creating mutual dependencies which in turn would heighten the interests of both blocs in improving their political relations.4 Economic interdependence was considered to generate spillover effects into the political realm of international relations.
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From page 7... ...
Economic cooperation is seen as an instrument to alleviate the negative consequences of Germany's division and to create a modus vivendi with its Eastern neighbors.7 In the eyes of West German policymakers, the economic dimension of East-West relations is an important instrument in improving the Federal Republic's overall 5 This follows closely the functional approach to international relations. See for example David Mitrany, "The Functional Approach to World Organization," International Affairs, Vol.48 (1948)
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From page 8... ...
5 (19831. 9 For more on West German Approach to East West economic relations see for example, Angela Stent, "The Federal Republic of Germany", in Reinhard Rode, Hans-Dieter Jacobsen, Economic Warfare or Detente, Boulder: Westview Press, 1985; Hans-Dieter Jacobsen, Die Os -- West Wirtschaftsbeziehungen als deutschamerikanisches r.
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From page 9... ...
traditionally saw economic relations with the Eastern bloc as an instrument of reward or punishment for specific actions, the F.R.G. pursued improved economic relations with the Eastern bloc with little strings attached and few qid pro quos.
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From page 10... ...
that economic sanctions against the Eastern bloc are ineffective.l3 The West Germans view sanctions as ineffective partly because of the relatively small degree of economic interdependence between the Soviet Union and the Western alliance. In the words of one high ranking West German official: "In light of the small involvement 12 Interview; another area where these differences have also come to be ref lected in the different approaches of the two allies to the CSCE and their valuation of these processes, see for example Jurgen Notzold, 'iPolitische Vorausset~ungen der Wirschaftsbezishungen zwischen West und Ost", .
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From page 11... ...
Three Factors seem to have influenced U.S. decisions to forgo for the time being any economic sanctions towards the Soviet Union: a more long term outlook on the current political and economic transformations occurring in the Eastern bloc; the ineffectiveness of economic sanctions towards the Soviets; and thirdly the position of its West European allies especially France and the F.R.G.
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From page 12... ...
Reasons given for such a policy include the good export opportunities for the U.S. and Japan, "USA bleiben im Cocom hart," Nachrichten fur Aussenhandel, October 30, 1989; "Neue Lage fur Cocom," Handelsblatt, 10/3071989; "CoCom to update restrictions," Financial Times, October 5, 1989.
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From page 13... ...
has used its hegemonial position in Cocom as an instrument to further its commercial interests. The second is the F.R.G.'s liberal attitude towards foreign trade as an 21Reinhard Rode, "Wiviel Exportkontrolle?
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From page 14... ...
technology more difficult, W Hein, Beschrankungen des internationalen Technologietransfers durch die USA -- Auswirkungen auf die Innovationsentscheidungen deutscher Unternehmen, Studie im Auf~rag des Bundesministeriums fur Forschung und Technologie, Washington, D
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From page 15... ...
to limit the overall world market position of the West German machine tool industry.26 Question about commercial policy were also raised in conjunction with the establishment of the Chine green line, where compared to other communist countries, the U.S. has a strong market position.
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From page 16... ...
30 Hans-Dieter Jacobsen, "Legitime Sicherheits Interessen welt uberzogen," in: "Die Verf~uchte Cocom-liste," Blatter fur Deutsche und Internationale Politick. ; see also the contributions by Klaus Richter and Paul Zieber, both representatives of the private sector, in the same issue.
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From page 17... ...
competitiveness in the global market place is reflected in recent reports that advocate the continuation of export controls in light of the fact that the Soviet Union could be a potential economic competitor.33 But regardless of whether the U.S. has used its dominant role in Cocom as an instrument of commercial policy, all respondents insisted that there is little use in arguing over past disputes, given the urgency of the challenges presented to the allies in responding to the recent developments in the East.
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From page 18... ...
industry doesn't build these old-fashioned machines [anymore] ."37 Thus both the government and the private sector in the Federal Republic consider it essential that a major overhaul of the list will not generate competitive disadvantages for a particular industrial sector due to competitive concerns from another country.38 As some commentators suggested, this could be 34 Interviews; see also 'West Prepares to loosen Strings on High-Tech Exports to Eastlt, Washington Post' 2.1S.1990.
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From page 19... ...
External Trade: Basic Right vs. Privilege Unlike in the United States, where external trade is a privilege which is regulated through a licensing procedure, in the Federal Republic foreign trade is a basic right, 40 and the movement of goods t services/ capital/ and finance is generally unrestricted.4i Export controls are therefore in stark contradiction to the basic principles of the F.R.G.'s external trade relations.
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Historically, the United States has engaged in only limited trade with the Eastern bloc. Between 1985 and 1989 t for example/ U.S.
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From page 21... ...
On the export side the Federal Republic shipped goods worth $70 billion to the East which amounts to an average of 5% of all West German exports during that period (see Appendix A, Table 11. The importance of Eastern trade to the West German economy is reflected in the fact that close commercial relationships with the East have always had the support of industry and the leadership in Bonn irrespective of whether a conservative or social democratic government was in power.
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From page 22... ...
The situation is very different in the F.~.G., where many manufacturers that export to the Eastern bloc are small to medium size businesses. Thus in many cases the exports to the East make up a considerable share of their total production; and 46 In the case of machine tools for example, the F.~.G.
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From page 23... ...
This policy matched with the F.R.G.'s longstanding economic interests in Eastern Europe and the Soviet Union. While the encouragement of East-West economic relationships have always been an integral part of the Federal Republic's policy towards the Eastern bloc, these economic relationships have always been a major point of contention between the U.S.
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From page 24... ...
the changes in the Eastern Europe and especially the Soviet Union are often attributed to its hard line stance towards the Eastern bloc in the early 1980s, West-Germans and Europeans in general have a more differentiated view pointing to a series of factors including the successful strategy of positive linkage within the CSCE process. 50Hans Dietrich Genscher: "Wie gent es 1984 mit den West-Ost Beziehungen weiter?
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