A BRUTAL TERRORIST attack in mid-June on a small Russian city has forced the Russian government into a reevaluation of its policy toward Chechnya. Led by field commander Shamil Basaev, Chechen fighters swarmed through Budennovsk, killing scores of civilians and subduing the population in a matter of hours. The assault shocked the Russian government, which had been complacently predicting victory on its terms, into negotiating with the Chechen separatists, led by Dzhokhar Dudaev.