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 Frémont arrived in Monterey at the beginning of 1846. Afraid of foreign aggression, Castro assembled his militia, with Alvarado second in command, but Frémont went north to Oregon instead. An unstable political situation in Mexico strained relations among the Californios and it seemed that civil war would break out between north and south. On July 7, Commodore John D. Sloat occupied Monterey, declaring to the citizenry that the Mexican–American War had begun. Pico, Castro, and Alvarado set aside their differences to focus on the American threat, but by the end of August, Pico and Castro fled to Mexico, and Alvarado