A new heterotic N = 2 string with manifest target space supersymmetry
is constructed by combining a conventional N = 2 string in the right-m
oving sector and a Green-Schwarz-Berkovits type string in the left-mov
ing sector. The corresponding sigma model is then obtained by turning
on background fields for the massless excitations. We compute the beta
functions and we partially check the OPE's of the superconformal alge
bra perturbatively in alpha', all in superspace. The resulting field e
quations describe N = 1 self-dual supergravity. (C) 1997 Elsevier Scie
nce B.V.