The chapter first describes and discusses the development of and increase in a changing structure of relations between various terrorist groups as they interact within current international systems of global networks; this system consists of a continuously changing "patron-client" network of a multitude of different types of relationships. A second theme, which stems from this discussion, maintains that the future of terrorism will involve the use of these relationships and, with the availability of new weapons and technology, will seek to create new forms and targets of victimization, thus changing and expanding the power and influence of terrorist groups. The third theme of the chapter involves the challenges that these new developments present for the intelligence agencies and security forces of the United States. The U.S. Government must rethink its past and current approaches to government-sponsored covert actions within a realistic, cost-benefit-oriented framework that can co-exist functionally and effectively with its foreign policy. Espionage structures and operations in the future must and will change. The spy satellites that are about to go into space will herald this new era. In the future, covert operations must have some form of monitoring and must be conducted with an evaluation of the consequences they present for future domestic and foreign policy. The development of a clear strategy must focus on improving our tactical intelligence system. 14 references