The phrasing of McFarlane's questions shows the shortcomings of his thinking--and of present U.S. policy which tends to agree with him.
He asks: "How will the United States compete with the Soviet Union in developing countries where we have important interests?"
First, let's take the most ancillary point hidden in the phrase, "in countries where we have important interests." This seems to limit our interest to certain countries, whereas all countries are important to both the U.S. and the Soviets in a very small world with terrible economic inequalities and injustices.
Further, these so-called "developing" countries are not developing. Most of them have stayed stagnant for at least a decade since the word "developing" was first applied to them.
As to the word "compete," it is not written in stone that we must always compete in these countries. Cooperative projects are also possible.