Procedures for the operation of the Political-Military Exercise (PME) are detailed in this handbook as a means of involving political science students in the actual dynamics of international policy-making decisions through the PME game experience. Two basic designs for operating the simulation exercise are presented with a discussion of the format alternatives, facilities, materials, and administrative techniques required for each design. The first design, a 1- or 2-day concentrated game, supplements regular classroom procedures; the second substitutes the PME format for normal classroom activity during a major portion of the course. The possible impact of the game on students, a student evaluation of the two methods, and recommendations for research into the effectiveness of the PME as a teaching device are also discussed. Appendices provide examples of documents necessary for operating both designs of the PME; student newspaper accounts and a student history of the Middle Eastern exercises; a PME evaluation questionnaire for students; and a bibliography on games and simulation techniques, on international law, and on contemporary problems in international relations and national security. (JB)