Via compactification on a circle, the matrix model of M-theory propose
d by Banks et al. suggests a concrete identification between the large
N limit of two-dimensional N = 8 supersymmetric Yang-Mills theory and
type IIA string theory. In this paper we collect evidence that suppor
ts this identification. We explicitly identify the perturbative string
states and their interactions, and describe the appearance of D-parti
cle and D-membrane states. (C) 1997 Elsevier Science B.V.