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A CONCEPTUAL MODEL 



This emergence of private support for diplomacy suggests a possible 

 model: initially, diplomacy as a means of protecting commercial market 

 and raw materials interests abroad; then, as development gathers 

 momentum, a trend toward teamwork of industry and diplomacy 

 for mutual advantage; and perhaps a third stage in which mature 

 industrial relations require a minimum of diplomatic intervention, and 

 even a fourth stage, in which the economic network becomes world- 

 wide and the relationship of industr}^ and diplomacy reflects a com- 

 prehensive and amicable interdependence among nations and their 

 interests. 



Whether this idealized process has validity is controversial. 

 Another view is that initialh^ the interests of the Government and 

 private industry abroad were in close harmony, but that increasingly 

 they have become divergent. According to this model, either industry 

 or Government must alter its objectives in order to restore the pre- 

 vious harmony or else U.S. foreign economic policy will become 

 increasingly inefTectual. But in any event, a confluence of fierce 

 nationalism, effective guerrilla movements, public conscience, and the 

 nuclear presence has rendered imprudent if not actually perilous the 

 show of force for commercial advantage, while private industry has 

 become increasingly international in scope; accordingly, economic 

 enterprise needs to become the partner of diplomacy rather than its 

 beneficiary. In prospect is the possibility that the diplomat will learn 

 how to maximize the contribution of technology in private hands to 

 support diplomatic goals, and that industrial technologists will be 

 motivated to perfect their own role in this partnership. It is to be 

 hoped, for example, that the multinational corporation will come to 

 serve and to be recognized as a mechanism toward mutually beneficial 

 interdependence instead of being regarded as the exploitive villain of 

 the piece and a hostile influence toward developing nations. The U.S.- 

 U.S.S.R. bilateral agreement has paved the way for a substantial 

 increase in the role of U.S. -based multinational corporations to transfer 

 technology to the Soviet Union for mutual benefit. Precisely how, and 

 by what agency, the further use of these institutions for diplomatic 

 benefit might be stimulated, guided, and if necessary controlled, is a 

 livel}^ issue for examination. 



Problems oj Diplomacy Inviting Solution by Private Industry 



The skill of private industry in the use and transmission of tech- 

 nology can help solve problems associated with lagging productivity of 

 foods in developing countries. Food maldistribution, low production, 

 inefficiencies in supply management, are all amenable to technological 

 solution. Global food problems present some of the most intractable 

 and emotion-laden of diplomatic issues. Bilateral and multilateral 

 arrangements to mobilize private industrial resources have helped 

 overcome some persistent deficiencies but there remains great oppor- 

 tunity for further intensification of this effort. Production and dis- 

 tribution of fertilizers and pesticides, export of standard or adapted 

 farm machinery, design and local production of food processing and 

 preservation facilities, and organization of better marketing systems 

 could all benefit from U.S. expertise. 



