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Gebhardt to Miller Memorandum r : HEARNAP I pointed out that there is no need to ever divulge how we ascertained the location of the subjects since the utilization of paid informants has been a law enforcement technique for many years. The subjects may be located (1) through the use of a computer printout ; (2) a neighborhood investigation by our Agents; (3) a chance sighting by a San Francisco Police Department officer; (4) an anonymous phone call; (5) a disillusioned subject 3; or (6) an informant who would expect to be paid $50,000. The means by which we ascertain the location of the subjects is of no concern to the public. Certainly the informant will not disclose his involvement and we will not disclose his involvement. Mr. Adams raised the question as to what our position would be if an informant furnished us information concerning only two or three or four of the subjects but not all of them. Would the $50,000 payment be authorized? My position was that this was a matter for discussion and that there was no pat statement in discussing the matter with an informant at this point. All we could say was that for $50,000 we would expect information leading © to the location ,arresfands m of all the subjects involved in this case. If we only apprehended three subjects, such a situation would have | to be discussed on an individual basis. It was pointed out we would certainly not give $50,000 for one of the SLA members on the periphery. On the other hand, we may decide to give $50,000 for the apprehension of Donald De Freeze, but the warding we would give to Bates would be that "the sum of $50,000 is authorized as payment to any informant who §2 d and would furnish the necessary information leading to the locationZ’4rrest ies of the subjects involved in the kidnaping and bank robbery case." After a complete discussion of the matter, Mr. Kelley approved this amount of money and also pointed it might be necessary to raise the “ante. " He stated clearly if the case is resolved through this means and some question is raised as to how we located the subjects, the answer should be that "the informatj rding the location of the subjects was developed | thr. uri ive i igati ."' This would be completely true since the utilization of informants is an investigative technique and recognized as such. The matter has been discussed with Assistant Director Cleveland and he suggested the only addition to the statement above is that it be "ona COD basis. " CONTINUED - OVER -2-