It is funded by the National Science Foundation and ARPA by Grant IRI--9314961. The official grant title is "Integrated Techniques for Generation and Interpretation". "Coconut" stands for "Cooperative, coordinated natural language utterances". The project's long-range goal is to create a unified architecture for interactive discourse, incorporating both interpretation and generation, viewed from both an intentional and an informational perspective. The project focuses on four theoretical problems in particular: (1) the recognition by the hearer of the speaker's plan; (2) a formalization of the notion of the "conversational record"; (3) a computational treatment of discourse structure; and (4) the analysis of quantity implicatures and other phenomena that crucially involve interactions between the processes of generation and interpretation. At the same time, the project is developing an environment for tracking coordination in human task-oriented discourse. Using abductive reasoning as a framework, we are extending this environment to develop a discourse simulator for the domain.