IN DEALING WITH TERRORIST ACTS, IT IS BELIEVED THAT CRISIS MANAGEMENT TECHNIQUES ARE VERY IMPORTANT IN LIMITING DAMAGE FROM TERRORIST ATTACKS. A REEXAMINATION OF THE 'NO BARGAINING' POLICY IS URGED FOR A NATION THREATENED WITH VERY DISRUPTIVE ACTS. WHEN THE DESTRUCTION OF A MAJOR CITY IS THREATENED A GOVERNMENT MAY HAVE LITTLE CHOICE BUT TO MAKE CONCESSIONS THAT COULD POTENTIALLY UNDERMINE ITS ABILITY TO GOVERN. FIRST STEPS TO TAKE WHEN DEVELOPING BARGAINING STRATEGY TO DEAL WITH A MASSIVE TERRORIST THREAT ARE SUGGESTED. BEHAVIORAL, TECHNICAL, AND TACTICAL EXPERTS MUST MAKE A CAREFUL EVALUATION OF THREAT CREDIBILITY. IF THE THREAT IS CONSIDERED TO BE REAL, THE GOVERNMENT MUST BE PREPARED TO BARGAIN BY MAKING MONETARY, POLITICAL AND, IN SOME CASES, MILITARY CONCESSIONS. IF A THREAT CANNOT BE SUBSTANTIATED, HOWEVER, THERE SHOULD BE NO NEGOTIATION. IT IS IMPORTANT FOR A CAREFUL ANALYSIS OF CAUSE AND EFFECT TO BE MADE OF EVERY CONCESSION OFFERRED TO THE TERRORISTS. IN SOME CASES GRANTING A CONCESSION CAN GIVE THE GOVERNMENT FUTURE LEVERAGE OVER THE TERRORISTS. THE MORE ASSETS A TERRORIST GROUP GAINS, THE MORE EXPOSED IT MAY BECOME FOR A TARGETED ATTACK. IT IS NOTED THAT IF THE GOVERNMENT'S BARGAINING STRATEGY IS NOT COMPLETELY SUCCESSFUL, MEASURES MUST BE TAKEN TO LIMIT THE POTENTIAL PHYSICAL, INSTITUTIONAL, AND PSYCHOLOGICAL DAMAGE THAT MAY BE INFLICTED BY THE TERRORISTS. THIS SHOULD BE DONE IN A MANNER SIMILAR TO CIVIL DEFENSE OPERATIONS FOR DEALING WITH MASSIVE NATURAL DISASTERS. AREAS OF PRACTICAL INTERNATIONAL COOPERATION AGAINST TERRORISM ARE CITED. REFERENCES ARE PROVIDED. (RCB)