THE ASSESSMENT IS BASED ON STATISTICAL INFORMATION IN THE RISKS INTERNATIONAL DATA BASE, WHICH CONTAINS INFORMATION ON SIGNIFICANT TERRORIST ACTIONS IN ALL NONCOMMUNIST COUNTRIES. GOVERNMENT, POLICE, AND PRESS REPORTS WERE USED TO COMPILE THE DATA. TERRORISM WAS DEFINED AS THREATENED OR ACTUAL USE OF FORCE AND VIOLENCE TO ATTAIN A POLITICAL GOAL THROUGH FEAR, COERCION, AND INTIMIDATION. TERRORIST ACTIONS ANALYZED INCLUDE KIDNAPPING, HIJACKINGS, ASSASSINATION, MAIMINGS, ATTACKS AGAINST FACILITIES, AND BOMBINGS. LATIN AMERICA RANKED SECOND ONLY TO EUROPE IN TERRORIST ACTIVITY, AMONG THE SIX REGIONS ANALYZED FROM 1970 THROUGH 1978. INCIDENTS IN LATIN AMERICA CONSTITUTED 24.5 PERCENT OF ALL WORLDWIDE TERRORIST INCIDENTS. THE 1,357 INCIDENTS IN LATIN AMERICA INCLUDED 496 BOMBINGS, 371 FACILITY ATTACKS, 215 ASSASSINATIONS, 257 KIDNAPPINGS, AND 18 HIJACKINGS. TERRORISM HAS BEEN INCREASING IN THE REGION: OVER 60 PERCENT OCCURRED IN THE LAST 3 YEARS. ABOUT 45 PERCENT HAVE TARGETED BUSINESSES, INCLUDING 15.5 PERCENT WHICH HAVE TARGETED U.S. FIRMS. SIX NATIONS (ARGENTINA, COLOMBIA, EL SALVADOR, GUATEMALA, MEXICO, AND NICARAGUA) ACCOUNTED FOR OVER THREE-QUARTERS OF THE TERRORIST ACTIONS. DURING 1979, FOUR COUNTRIES (COLOMBIA, NICARAGUA, EL SALVADOR, AND GUATEMALA) ARE EXPECTED TO HAVE CONTINUING HIGH LEVELS OF TERRORISM: IN GUATEMALA, FROM RIGHT-WING VIGILANTE GROUPS; IN THE OTHER COUNTRIES, FROM RADICAL MARXIST GROUPS. IN THE REST OF LATIN AMERICA, LOW OR MODERATE LEVELS OF TERRORISM ARE EXPECTED. BUSINESS, INCLUDING U.S.-OWNED BUSINESSES, WILL CONTINUE TO BE SIGNIFICANT TARGETS. TABLES, ANALYSES OF RISKS AND TERRORIST GROUPS IN EACH COUNTRY, AND FOOTNOTES ARE INCLUDED. FOR SIMILAR ANALYSES OF OTHER REGIONS, SEE NCJ-63625, 63627-28. (CFW)