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‘ | Gy . ey @ ©@ FRANCK TO JENKINS MEMO (continued) © Re: HEARNAP i { {1) The amount of money to be offered as a reward should be sufficient to induce the desired response from an informant: or a citizen in terms of providing information necessary to bring this case to a logical conclusion. The figures $100,000 and $250,000 have been discussed; however, the amount of the reward isthe decision of the Hearst Corporation, not the FBI. Nomen th oi" o0L ee OrSy cou f Reason af a (2) With respect to question #2, it should be pointed 47 out to Mr. Miller that while the Hearst Corporation, if deemed desirable, might wish to place the reward money in escrow,that would be their decision and not the province of the FBI. (3) and (4) In response to questions 3 & 4, it should be pointed out to Mr. Miller that the distribution of the funds for the reward would be made by them or persons designated by them based on information we would supply as to the participation or information obtained from an informant which resulted in the solution of the case. Tt is essential that it be made crystal clear that under no circum- stances will the FBI enter into any negotiations regarding the distribution of the "reward" funds but only furnish the necessary information to the appropriate persons designated by the Hearst Corporation to adjudicate its disbursement. (5) In response to question #5, it should be pointed out to Mr. Miller that it would be intended that the_reward money would always be in control of the Hearst Corporation, never the FBI. (6) With regard to question #6 which raises the issue of the tax situation, appropriate documentation from the FBI certainly could be afforded to cover this contingency following the payment of a reward. a {7) With respect to question #7 relating to restrictions by Hearst or the FBI on payments of reward money, the Hearst Corporation would have to decide precisely what the conditions should be for payment, that is, whether it should be merely for the location of subjects, the apprehension of subjects, the conviction of subjects, the safe return of Patricia Bearst or a combination of all four. It is strongly felt that the confidential reward, if decided upon by the Hearst Corporation, should not be made public until the FBI has had sufficient opportunity and is given sufficient latitude to bring the availability of such a reward to logical sources determined by its San Francisco Office in an effort to solve thas case. This procedure will, of course, be expedited and if all possibilities are exhausted in a negative manner, the offer of the reward should then be made public through the news media. {RECOMMENDATION-OVER)