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PAGE TwO SF 7-855 DISCUSSIONS ARE PROCEEDING WITH THE HEARST FAMILY wITH RESPECT TO SETTING UP A REWARD PROGRAM. EVERY EFFORT BEING MADE TO FINALIZE THIS PHASE BY THE MAY 3, DEADLINE FOR THE FOUR MILLION DOLLAR FUND HELD IN ESCROW IN ORDER THAT FULL PUBLICITY MAY BE AFFORDED THE REWARD OFFER IMMEDIATELY FOLLOWING SLA’S FAILURE TO RESPOND AS REQUIRED UNDER THE TERMS IF SUCH BE THE CASE. RE: OPERATION SNIFF3 AS PREVIOUSLY REPORTED, IT HAS BEEN ESTABLISHED THAT PATRICIA HEARST WAS IN THE LTD RENTAL CAR USED IN THE HIBERNIA BANK ROBBERY. SEARCH OF THE DROP AREA AT THE JAPANESE CULTURAL CENTER WAS NEGATIVE POSSIBLY DUE TO INTENSE CARBEN® MONOXIDE FOULS J NG . SEARCH OF THE IMMEDIATE OUTSIDE AREA NEGATIVE. KIDNAPING ROUTE IN BERKELEY REVISITED WITH NE@ATIVE RESULTS, EXCEPT IN THE AREA OF THE APARTMENT IN WHICH VICTIM RESIDED AT THE TIME OF THE ABDUCTION. PERSONAL ITEMS OF EMILY HARRIS* CLOTHING WERE OBTAINED AND POSITIVE REACTION INDICATED IN PUBLIC GARAGE NEAR SUTTER AND GEARY, WHILE CONDUCTING GRID SEARCH OF AREA AT STOCKTON TUNNEL SIDE. THIS AREA BEING SEARCHED EN PAGE TWO :