ABSTRACT
The bauxite mining and processing operation taken over by Guyana is a major factor in the economic life of the country: it is the largest single generator of foreign exchange, of government revenue, and of highly paid employment. From 1928 through 1950 Guyana's bauxite was the raw material foundation for the burgeoning power and position of Alcan as an aluminum company. In April 1970, the ruling People's National Congress adopted a resolution at its annual convention calling on the government, by itself or in association with cooperatives, to hold a minimum of 51 percent of the equity in enterprises exploiting Guyana's forest and mining resources. The period between April and December 1970 was marked by thorough technical preparations for the negotiations with Alcan. Alcan's main objective at this point was to secure a reasonably favorable settlement on the terms of the government's compensation for the nationalization of Demba.
