We outline an improved theory of short-range magnetic order for strong
ly correlated itinerant electron systems, and apply it to the two-dime
nsional t-J model. Within a spin-rotation-invariant slave-boson functi
onal-integral scheme, the short-range order is incorporated at the sad
dle-point and pair approximation levels. Comparing our numerical resul
ts for the free energy with previous approaches, we observe that long-
range-ordered antiferromagnetic and spiral phases are suppressed due t
o the appearance of a paraphase with pronounced antiferromagnetic shor
t-ranged correlations. In this phase, the presence of well-established
local magnetizations is sufficient to describe the increase of the lo
w-temperature susceptibility upon doping, which, e.g., is experimental
ly observed for the high-T-c material La2-deltaSrdeltaCuO4. (C) 1998 E
lsevier Science B.V. All rights reserved.