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cc ae -— MEMG, SAC: August iz, 1946 Re: BENJAMIN "BUGS" SIEGEL witha bribe. I pointed out t hat it is rather difficult to make a bribery case if the bribe has been passed; whereas, it is - comparatively easy to make the case if we can see the pay-off, This matter was also disoussed with t the Bureau and it was agreed pre betwee d myself that I would Commun 086 hile the San Francisco Office and advise them to make a quick check EEE if they found him an apparently reliable individual to put him on notice in a general way without revealing the source of our information as to the possibility of a bribe being offered and instructing him to negotiate with whoever offers the bribe in order that we might cover the pay-off. During the conversation with at the Bureau he said that the Bureau was making every effort to get the au hrough for a technical surveillance on the colon one San pre Francisco, I advised him that neither San Francisco or this office knows where SIEGEL is going to stay in San Francisco and he pointed cut that we have blanket authority to cover SIEGEL and indicated that it would be all right for San Francisco to put on a technical and microphone surveillance without any further authority no matter where they finally located SIEGEL. At 9:16 a.m. on August 12, 1946 I sapeke with Special Agent in Charge H. B. FLETCHER at San Francisco and advised him personally that _ it would be all right for san Prancisco to put on technical md microphone evemedliianses «ff GTEORT a2 ennan oe we Tene te bie ot Gan TPeanant sen wt thet securing any further authority, but that the Bureau should be advised the installation. Mr. FLETCHER then referred me to Special Agen who is handling this matter, and I advise at he shou get an idea general reputation and oharacter and if this appeared favorabie he should then be approached in a general way, telling him only that we understand that BEN SIEGEL is interested in the Flamingo Hotel and under the circumstances it is possible that some one might attempt to make a deal on this matter and that if approached by any one he should pr immediately advise the San Francisco Office so that arrangements can be - made for proper coverage. I tol that care should be taken that our sguree of information, which is a technical surveillance, is not revealed. igen ID nd if the situation developed where only s intermediary were involved, hould be instructed not to deal with the inter- modiary but insist that he deal with SIEGEL. In other words wanted to imow if we wore interested only in getting SIEGEL or ir ten would be all right to arrange the set-up in order to apprehend an inter- médiary. I told to go ahead and apprehend an intermediary; after he is in ous tody he probably break down and the chain will work back 2- erase ~~ oe alee nn nd Ww 5iSGSEL sanoqwe éan obtain legal evidence of mie fact that SIEGEL piaced * a2azo- paeeree ot | P i: i: i