Until the late 1970s the theory of international economic policy co-operation was not well devel oped. As Pelkmans (1979, p. 97) aptly remarked: economic theory there is a great discrepancy between the sophisticated analysis of interna tional markets and the scanty treatment of the internationalization of policy. Recently, this lack of analysis has generally been felt quite seriously in the rather embarrassing discussions concerning the drift of world economic affairs in the transition from the old to some new inter national economic order. To start with, an interpretation of the vague term co-operation as any common action aimed at improving a working (Pelkmans) has the (debatable) advantage of including both policies aimed at extending and protecting the successfully established liberal system of inter national trade and policies for closer co operation transcending the free trade international division of labour approach. The first mode of co-operation is by no means positively correlated to the degree of interde pendence of the world economy. Increasing international division of labour ? in particular of the horizontal, substitutive kind ? apparently does not guarantee closer international co operation. Rather, experience tells us that co operation and international solidarity are jeop ardized: trade and investment wars are not merely a threat any longer; calls for fair ? instead of free ? trade are on the agenda; and the tide of new protection has been coming in. Consequently, aspects of international solidarity in the context of different trade patterns and the call for so-called positive policies have to be taken into consideration. That will be done in the next section. Closer co-operation, however, could also be understood from a different, more unilateral perspective, that is, that of the largest trading partner of the world economy, the European Community (EC). Although fundamentally part of the multilateral liberal system, the EC has gradually created a kind of superstructure. Regarding the North-South division of labour, a policy of closer co-operation via preferences and special relationships has evolved. The extension of this system and the methods of operation within the world economy raise specific problems to be analysed in the subsequent section. There is naturally some discrepancy between both strategies of international co-operation distinguished here. Closer analysis of the new co-operative relationship between ASEAN and the EC, however, brings to light an additional element, namely the common concern of the Trilaterals (Japan, USA, EC) in the region. In the presence of the existing and potential tough competition of its trilateral allies, the question