Bob Haldeman Interview (39)

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