This invention describes the discovery of a novel phenomena in retrovirus transcription, namely transcriptional trans-activation. Described herein are novel trans-acting factors which may be employed to enhance the production of heterologous genes. Described is a novel trans- acting directing gene, designated herein as the "luk" gene and the 35,000 to 45,000, more specifically about 42,000 dalton molecular weight protein encoded thereby.PPThe present invention demonstrates the LTR elements of HTLV can function as transcriptional promoters for heterologous genes on both unintegrated and integrated DNA. In general, the HTLV-1 LTR is a stronger promoter than is the HLTV-II LTR in its requirements for cellular and/or viral trans-acting factors in order to function efficiently. HTLV infection results in the production of trans- acting factors that dramatically increase the rate of HTLV LTR-promoted transcription.
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