We present CO 1 --> 0 and 2 --> 1 observations of NGC 205, which is a
dwarf elliptical galaxy and a companion to M31. It has long been sugge
sted that NGC 205 has interacted with M31 in the past. The total mass
of gas (molecular, atomic, and X-ray emitting) associated with NGC 205
is similar to 10(6) M-circle dot, which is 1 order of magnitude less
than the mass that should have been returned to its ISM by evolved sta
rs during its lifetime. A burst of star formation began in NGC 205 sim
ilar to 5 x 10(8) yr ago, ending a few million yr ago; while some of t
he mass that was returned to the ISM would be used up by the starburst
, star formation is a notoriously inefficient process. Moreover, the g
as in NGC 205 is rotating, while the stars are not, so any gas returne
d to the ISM should have zero net angular momentum. We suggest that th
e angular momentum was added when the preexisting gas interacted with
an external gas cloud, either in the disk of M31 or, perhaps less like
ly, in the region surrounding it. The recent starburst could have been
triggered by the interaction, and the blast waves from ensuing supern
ovae would then have removed most of the remaining gas. Sufficient tim
e has passed since these events for planetary nebulae to have contribu
ted most of the gas we see in this galaxy.