Hey DH_Epic. I can't find the original Link, but I found the archived thread HERE:
http://forums.civfanatics.com/archive/index.php/t-84754.html
Just scroll down to the appropriate posts for a description, or read this:
.....On the 'Intelligence' side of the coin, I would like to see it work like this:
1) You have a number of structures which produce 'Intelligence Points' (IPs) every turn. The IP's produced can also be boosted by assigning more money to your foreign affairs budget!
2) In your Foreign Advisor Screen, you can 'divvy up' your intelligence points into 'Domestic/Internal Security'; 'Espionage' and 'Sabotage'. You can, if you wish, further divide these points up into Economic, Military, Scientific, Civil/Cultural. If you don't, then you will get an even mix of targets for your 'undercover' activities.
3) In this same screen, you can also adjust the % of your intelligence points you wish to focus on each nation. Of course, you have to have had some prior contact with this nation in order to do so!
4) These overall % allocations determine both the FREQUENCY and the chance for success of 'undercover' missions against other nations. If you have embassies and or trade with those nations, then the chance of success against that specific nation is improved.
5) When your tech and/or your IP's reach certain thresholds, you will recieve the ability to perform additional-very nasty/subversive-activities. These include counterintelligence, assassinating Great Leaders, conducting bioterrorism, inciting civil-wars/rebellions and planting of nuclear devices. Not sure how it would work-either (a) your intelligence chief advises you of opportunities to conduct such operations or (b) you have buttons for these missions which become usable at the appropriate time. Either way, it will cost money out of your treasury, and success will STILL depend on your IP's.
6) All other covert operations attempts will occur automatically, with your intelligence chief/foreign advisor advising you of success or failure-and what repurcussions this might have on future international relations.
Oh, and this 'in-game' example:
Hey guys. Here is some 'in-game' examples to answer some of your questions regarding intelligence-especially the one about false or outdated intelligence.
Please note that all numbers are for illustrative purposes only!
Lets say that 5 IP's=a 1% chance of a successful espionage. It is the Late-Classical age, and the English have 800 IP's accumulated, of which they have allocated a final amount of 10% (or 80 IP's) to espionage against Germany. This means that they have a 16% chance of a successful espionage mission against Germany. Now, this means that Englands espionage attempts against Germany will be both (a) infrequent and (b) prone to failure-how they fail, though, will vary from attempt to attempt. Sometimes it will just be a 'couldn't find anything', othertimes it will be a 'caught in the act' and sometimes it will be 'wrong/outdated' info. Getting back to the above example, say the RNG determines that the most recent espionage attempt was a failure, but that it was an 'outdated info' failure. In your messages for that turn, your Intelligence Advisor informs you that spies have revealed that Germany is at war with France.
In an attempt to curry favour with France, therefore, England mobilises a small force to take a German city which lies on the German/French border. It will then hand the city over to France as a 'gift'. However, what the player doesn't know is that France and Germany WERE at war, around 8 turns ago, but are now in an MPP. Thus, when England attacks Germany based on this outdated intelligence, they find themselves at war with both Germany AND France!!! The dangers of false intelligence I guess!!
If England were caught spying on Germany, they could have the option of expelling said spy OR, if they have sufficient IP's devoted to Domestic Intelligence, they could feed the spy deliberately false information! The spies would still have a chance of gathering real info, but will also often get wrong info courtesy of German counterintelligence.
Of course, Germany could opt to go to war over the spying incident. Though this would still carry a strong rep-hit, said hit would not be as great as merely going to war for no reason-and would probably carry a lesser war weariness penalty in the first few turns.
Of course, if the English were caught in the act of SABOTAGE, then Germany could go to war with little or no rep-hit, and a reasonably long respite from war weariness effects!
Sorry for the overlong post guys

!
Yours,
Aussie_Lurker.