Juan Velasco Alvarado hardware. Relations between the United States and Peru were tense and even hostile, as soon as General Velasco and his junta took power. Just five days after Velasco seized power in 1968, the General began the nationalization of the Peruvian Economy with the expropriation and nationalization of the American International Petroleum Company (IPC) oil fields located in the northern Peruvian oil port and refinery of Talara, Piura, near the Peruvian border with Ecuador, Piura, being the region where Velasco was born. IPC was a subsidiary of Standard Oil, and although the claims over the IPC were ultimately resolved in negotiations
Juan Bautista Alvarado a new flag—a single red star on a white background, but neither were used after Alvarado made peace with Mexico. Alvarado, at age 27, was then appointed governor, but the city council of Los Angeles protested. Alvarado, Castro, and Graham went south and negotiated a compromise after three months, avoiding a civil war. However, the city council of San Diego then voiced its disagreement with Alvarado's revolt. This time, the Mexican government was involved and there were rumors that the Mexican Army was ready to step in. Alvarado was able to negotiate another compromise to keep the peace. Mexico reneged