176 UTAH INTERNATIONAL: A BIOGRAPHY OF A BUSINESS policy goal “to place the exploitation, refining and marketing of the great [mineral] deposits in the hands of the state.” Reading this message aright, Marcona’s senior management tried again in September to negotiate an expropriation agreement, and this time Lima paid attention. Preliminary talks opened on February 28, 1975, with formal meetings scheduled to begin a month later. Marcona officials felt fairly confident, believing they held a firm bargaining position based on the exclusivity and structure of the company’s shipping and marketing operations. In early 1975, Robinson sent a realistic summary of the situation to the San Francisco office, saying that Marcona “will be in Peru as long as they believe that they are better off with us than without us.... We are going to work it out, but ... you may get the word any day that we didn’t.” In case of a non-negotiated Peruvian takeover, the company planned to suspend immediately ore shipments from Peru and not to cooperate with the government until it agreed to adequate compensation. As the time for the formal talks neared, each party sought to position itself advantageously. In February, Peruvian officials notified Marcona that a government audit revealed the company had underpaid taxes in 1970-73 by some $16.5 million. The national press then accused Marcona of manipulating its shipping records to hide taxable profits. Marcona responded that it had reinvested most of its earnings to develop new technologies that would create a higher demand for Peru’s ore. The company presented itself as a benefactor to Peru, one whose discounts to the national steel works had saved the country $10.6 million dollars between 1952-74. This posturing only served to create an adversarial climate before bargaining ever began. When the talks finally got underway, they became directionless. While company negotiators tried to keep a low profile, members of the Peruvian government’s team exhibited a stern, uncompromising demeanor. In response to a query about the lack of movement in the talks, for instance, Minister of Mines Fernandez Maldonaldo indicated no concern, because nationalization amounted only to questions of “how and when,” questions Velasco answered on July 25, 1975, with an announcement that the government had decided unilaterally to expropriate Marcona. On Peru’s Independence Day