"Associate" is an ideal word, and it is well played in the movie. While they will not be friends, allies, or meet on Sundays for tea, they will tolerate each other. Most Latino gangs have a strict code, and at the top of it is family (La Familia). Anyone who brings honor and respect to the family, is family, whether related or not. Likewise, anyone who brings dishonor, disrespect or shame to the family, is cast out of the family (and likely to have a dirt nap), whether related or not. I'm retired now, but began my career working in the county jail. The respect between jailer and prisoner is usually mutual (and necessary in that environment), and for me later, paid dividends on the street. As long as neither crosses the fine line between, it remains "business", with no respect lost, even when caught and arrested.
Also note, Smiley showed some respect toward Hoyt, when Hoyt hit him when he realized he wasn't leaving alive. Smiley saw that he wasn't weak, despite the overwhelming odds. Weakness is shame and dishonor. But business is business.
Life is tough, but it's tougher when you're stupid.
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