A Bold Proposal for Chileanization Haldeman: Frank said to Mr. Saez, "Raul, we've been thinking it over and we come with the following in mind. Twenty- five percent to us is just the same as 1 percent; in the same analogy, 49 percent is a minority and is just the same as 1 percent or 25 percent. We just don't think that solves any problems for you, much less for us, because that will always be a bone of contention. And 50-50- -we don't want to have an arbitration court to manage the company. So we would think that the best thing for you, for the country, and for us is that you buy 51 percent of the company." Saez never flicked an eyebrow, and Javier Lagarrigue fumbled for his cigarettes and couldn't get one lit. Michaelson was smoking and gave him his Zippo lighter. Raul said, "Fine. How much do you put the value at on the property?" Milliken said, "We had American Appraisal assess this and it was assessed at $200 million; so 51 percent would cost $101 million. Call it $100 million. We have the appraisal, and it does not include the value of the ore." Okay; fine. Yes. Frank said, "Furthermore on that, Bob has engineered a program. Bob, you explain it," and I explained what it involved this tunnel and so on--in very few words. I didn't have any maps or anything like that. I said it would increase production by 60 percent. Raul said, "That's wonderful. How about the corporate structure?" Frank said, "I don't think we should have a big, numerous board. We should have- -not an executive committee but, say, seven or nine on the board, of which you would have the majority." Raul said, "I think nine is too much; seven is better. When you get nine, you get a lot of political hacks who want to get in. Four will be enough for us, because we can fill them with people who are capable and know the business." Okay, so we would have three, and maybe we would have one alternate each. "Yes, that would be fine." Saez said, "Frank, who's going to manage the company?" "The board, and you have the majority."
Presidential Palace, Santiago, Chile
Index to Haldeman Interview