WASHINGTON INSIGHT

BAKER INFLUENCE: Secretary of State James A. Baker III is moving toward a decidedly wider role in formulating U.S. international economic policy, until now almost exclusively the province of the Treasury Department.

Last week’s appointment of Baker confidante Robert B. Zoellick to be undersecretary of state for economic affairs (replacing Richard T. McCormack) was designed to lay the groundwork for the shift, top policy-makers say. Zoellick, a former aide to Sen. Jesse Helms who was on Baker’s staff during his days at the Treasury Department and served as his counselor at the State Department, is experienced in economic issues and dogged about making sure the secretary’s influence is felt.

Although State Department staffers deny it publicly, knowledgeable officials say that Baker is moving in partly to offset the performance of Treasury Secretary Nicholas F. Brady, which he believes has fallen short, often at considerable cost to U.S. interests. During Brady’s tenure the American dollar has fallen through the floor, U.S.-initiated global trade negotiations have collapsed and worldwide confidence in U.S. economic management has declined.

“He’ll be stepping in more and more,” one top official said of Baker.