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° — — Orticeeas Koes wh 0 id 2010-106 ; . oN ~ GSe GIN, IG, MO. 27 ' * UNITED STATES GQ@ERNMENT . “© ey ial "BAK 'AD Adm. ’ . ff a — Memorandum te atin TO ; MR. JENKINS pate: 5/10/74 - £ iA FROM 3 @R-R.FRA Che ‘ a . % a { J , 6? ~ \ . Plen. & Eval. suBjECcr: HEARNAP vee: New —— tainin Legol Coun ‘ . Telephone Re. — Remymemo dated 5/7/74 (copy attached). We are Director See’y — now in receipt of the Hearst Corporation proposal for a confidential reward for use by the FBI in connection with . "f captioned investigation. It is attached. Y Mi Briefly, the Hearst Corporation wishes to confidentially turn over to the Bureau a maximum of $100,000 for the purpose of paying rewards in this case and except for making these funds available, wishes no involvement in their disbursement. This offer has been discussed in detail with Assistant Directors Mintz and Gebhardt, as well as SAC Charlie Bates and we all concur that the receipt of this proposal be orally acknowledged through John Clements, Hearst Corporation representative here in Washington, D.C., that we reiterate our position which has been previously stated orally and in writing, that the FBI will, under no circumstances, enter into any negotiations regarding the bor distribution of: "reward" money but should a confidential reward nl be offered would only furnish the necessary information to ij appropriate persons designated by the Hearst Corporation to adjudicate its disbursement. Observation: Circumstances may develop in this investigation where an additional $100,000 might be useful in turning a source. Consequently, we should not completely close the door on their offer at this time, since at a later date, based on developments, we may be able to persuade the Hearst people to make the funds they offer available under our conditions. (But they will determine who | Vo . is to be paid.) agi RECOMMENDATION: | REC.83 Jf, Jif: } 7 ele Ot nee That the Director approve.our-econtatting John AM Nay ‘fal a, ‘Elements, Hearst Corporation Washington representative, in line , “jv ine with the foregoing. te way 24 1974 _ Enclosures thee we —— oo ft typ ae ¢ . / Via 1 - Mr. Gebhardt - Encs. at 7 Ny 1 - Mr. Mintz - Encs. 1 - Mr .Franck -.Encs. \Y J § 6TQ:jo (4) ps