TERRORIST ACTIVITIES HAVE INCREASED STEADILY BETWEEN 1970 AND 1978. THIS ASSESSMENT LOOKS AT THE INCREASED SOPHISTICATION IN TERRORIST METHODS: KIDNAPPING, ASSASSINATION, AND ATTACKS AGAINST GOVERNMENT, BUSINESS, AND POLICE FACILITIES ALL REQUIRE MORE PLANNING, EQUIPMENT, TRAINED PERSONNEL, AND SAFE HIDEWAYS THAN DOES A SIMPLE BOMBING. IN ADDITION, THE MODERN TERRORIST IS WILLING TO TAKE HIGHER RISKS THAN PREVIOUSLY, THUS BECOMING A MORE FORMIDABLE OPPONENT. BUSINESS IS A PRIORITY TERRORIST TARGET, FOLLOWED BY GOVERNMENT AND OTHER FACILITIES. THE PRIORITY TARGETS HAVE CHANGED SINCE 1970 WHEN MOST TARGETS WERE POLITICAL AND GOVERNMENT PERSONNEL. INDIVIDUAL BUSINESS EXECUTIVES TODAY ARE INVALUABLE TO THE TERRORIST BECAUSE THEIR RANSOMS ARE THE PRIMARY SOURCE FOR OPERATIONAL TERRORIST FUNDS. ON A REGIONAL BASIS, TERRORIST ACTIVITIES HAVE INCREASED MOST SIGNIFICANTLY IN EUROPE AND LATIN AMERICA DURING THE LAST 3 YEARS. IN ITALY, FOR EXAMPLE, BOMBINGS, ATTACKS AGAINST BUSINESS FACILITIES AND KIDNAPPINGS OF BUSINESS AND GOVERNMENT EXECUTIVES WERE THE PREFERRED TACTIC WHILE IN SPAIN ASSASSINATION AND BOMBING WERE PARAMOUNT. THE OTHER MAJOR AREA OF TERRORIST ACTIVITY IS LATIN AMERICA, WHERE BOMBINGS AND KIDNAPPINGS OF CORPORATE PERSONNEL HAVE BEEN FREQUENT. EL SALVADOR, COLOMBIA, AND MEXICO HAVE BEEN THE LEADING COUNTRIES IN THIS REGARD. DETAILS OF THE KIDNAPPINGS AND RANSOM DEMANDS ARE DESCRIBED, AND CHARTS INDICATE THE INCIDENCE OF TERROR BY LOCATION AND KIND. STATISTICAL INFORMATION IS DERIVED FROM THE RISKS INTERNATIONAL DATA BASE WHICH INCLUDE FOREIGN AND U.S. GOVERNMENT REPORTS, POLICE REPORTS, AND PRESS INFORMATION. TERMINOLOGY AND DATA BASE DESCRIPTIONS ARE GIVEN. (RFC)