The formation and evolution of binaries which contain two neutron star
s or a neutron star with a black hole companion are discussed in detai
l. The evolution of the distributions in orbital period and eccentrici
ty for neutron star binaries are studied as a function of time. In the
model which fits the observations of high mass binary pulsars best th
e deposition of orbital energy into common envelopes has to be very ef
ficient and a kick velocity distribution has to contain a significant
contribution of low velocity kicks. The estimated age of the populatio
n has to be between several 100 Myr and 1 Gyr. The birthrate of neutro
n stars binary is similar to 3.4 x 10(-5) yr(-1) (assuming 100% binari
ty) and their merger rate is similar to 2 X 10(-5) yr(-1). The merger
rate of neutron star binaries is consistent with the estimated rate of
gamma-ray bursts, if the latter are beamed into an opening angle of a
few degrees. We argue that PSR B2303+46 is possibly formed in a scena
rio in which the common envelope is avoided while for the other three
known high-mass binary pulsars a common envelope is required to explai
n their orbital period.