[OPE-L:1323] Re: Re: monetary inflows versus capital accumulationm

From: Rakesh Bhandari (bhandari@phoenix.Princeton.EDU)
Date: Wed Sep 22 1999 - 11:18:40 EDT

> And as I have said again and again -- and you have not directly replied
> to yet -- the US government is also concerned with the same regional
> security ands would act in much the same way *with or without* the
> financial support of Japan.

Jerry, I don't get this. During the Cold War Germany must have been able
to count on the US repelling any Soviet aggression even if Germany was not
willing to pay for it, yet Germany did 'pay' for it, as Strange has

> What you haven't mentioned is the possible clout that Japan has due to the
> presence of US military bases in Japan. Given the strong US desire to
> maintain those bases, this can be a significant bargaining chip.

If so much clout, then why does Japan cover a substantial portion of those
costs? And what about my point that the US can secure more open regimes if
Japan is willing to pay for it? Or perhaps the US can threaten to create
more situations, i.e., insecurity, unless Japan is willing to pay for

Yours, Rakesh

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