ORIGIN OF THE CORONAL LINE EMISSION IN NGC-1068

We present recent observations of several near infrared emission lines of highly ionized (IP greater than or equal to 100eV) species in NGC1 068 which appear to be emitted predominantly within the NE ionization cone; peak at greater than or equal to 30pc from the nucleus and are b lueshifted by similar or equal to 300 km s(-1) relative to the systemi c velocity. The blueshift is the same as that observed for the better known Fe coronal lines in the visible and the absence of red-shifted c omponents in the less extincted infrared lines suggests that any emiss ion in the counter-cone to the SW is intrinsically faint rather than h eavily obscured. Following a review of the possible ionization mechani sms and comparison of the line ratios with recent models we conclude t hat the coronal emission,arises predominantly in outflowing gas photoi onized by the EUV continuum of the AGN.