PSYCHOLOGICAL TERROR METHODS, COUPLED WITH INTIMIDATION, AIM TO FORCE THE OBJECT OF TERROR TO BEHAVE IN A MANNER MOST FAVORABLE FOR THE SUBJECT. THESE METHODS HAVE AN INDIRECT PREVENTIVE CHARACTER AND ARE INTENDED TO PRODUCE A PSYCHOLOGICAL EFFECT. AN APPLICATION OF POLICE TERROR DIRECTED AT CRIMINAL ELEMENTS IS THE STREET CRIME UNIT OF THE NEW YORK CITY POLICE DEPARTMENT. THE UNIT FOCUSES ON SUCH STREET CRIMES AS ROBBERY, PERSONAL GRAND LARCENY, AND ASSAULT. ITS PRIMARY STRATEGY EMPLOYS OFFICERS DISGUISED AS POTENTIAL CRIME VICTIMS PLACED IN AN AREA WHERE THEY ARE LIKELY TO BE VICTIMIZED. DECOY WORK RAISES THE SERIOUS LEGAL QUESTION OF ENTRAPMENT. AUTHORITIES CLAIM THEY DO NOT INDUCE PERSONS TO COMMIT CRIMES AND THAT THE INTENT TO COMMIT CRIME EXISTS IN THE CRIMINAL'S MIND. ONE STUDY CONTENDS THAT THE GREATEST FAILURE OF U.S POLICE DEPARTMENTS IS THE LACK OF ANY OUTSIDE UNIT WHICH MONITORS THE POLICE. THIS STUDY ALSO INDICATES THAT RATES OF VIOLATION BY POLICE OFFICERS ARE HIGHEST IN HIGH-CRIME AREAS OF MAJOR METROPOLITAN CITIES. POLICE AND OFFICIALS IN THE FEDERAL BUREAU OF INVESTIGATION HAVE BEEN CRITICIZED FOR INVADING THE PRIVATE LIVES OF CITIZENS. THE PRIVACY ACT OF 1974 IS INTENDED TO REDUCE THE AMOUNT OF INFORMATION COLLECTED BY AND TO LESSEN THE FLOW OF INFORMATION BETWEEN FEDERAL AGENCIES. THE LAW ENFORCEMENT BUREAUCRACY SHOULD BE INVESTIGATED THOROUGHLY BY IMPARTIAL OUTSIDE INVESTIGATIVE AGENCIES TO MINIMIZE POLICE BRUTALITY, HARASSMENT, AND TERROR. A BIBLIOGRAPHY IS PROVIDED. (DEP)