Moloney murine leukemia virus (M-MuLV) and Moloney murine sarcoma virus (M-MSV) exert a regulatory effect on the class I genes of the murine major histocompatibility complex (MHC). We have previously shown that M-MuLV infection of mouse fibroblasts results in a substantial increase in cell surface expression of H-2K, H-2D, and H-2L proteins, whereas M-MSV, upon coinfection of the same cells, is apparently able to override the MuLV-induced increase in H-2 expression. As a result of this modulation, immune recognition of the infected cells is profoundly altered. Our efforts have been directed toward elucidating the molecular basis for this phenomenon. We report here that stimulation of interferon production as a result of infection with MuLV does not occur and, therefore, is not the cause of MuLV-induced enhancement of MHC expression. Control of H-2 class I and 02-microglobulin gene expression by M-MuLV, and probably by M-MSV, takes place at the transcriptional level as indicated by nuclear runoff studies and analysis of steady-state mRNA levels. Our demonstration that M-MuLV controls expression of widely separated endogenous cellular genes (those coding for H-2D, H-2K, H-2L, and (l2-microglobulin), transfected class I MHC genes, and unintegrated chimeric genes consisting of fragments of class I MHC genes linked to sequences encoding a procaryotic enzyme, chloramphenicol acetyltransferase, suggests that M-MuLV exerts its effect in trans and not by proviral integration in the vicinity of the H-2 gene complex. Finally, we show that the sequences of at least one MHC gene, which are responsive to trans regulation by M-MuLV, lie within 1.2 kilobases upstream of the initiation codon for that gene. Class I genes of the H-2 gene complex in mouse, and the HLA complex in humans, encode protein products which are expressed in association with P2-microglobulin on the surfaces of nucleated cells (23). In addition to serving as the target molecules in allogeneic graft rejection, these proteins are essential for the recognition and elimination of neoplastic and virus-infected cells by the cytotoxic T cells (CTLs) of the host immune system (37, 44). The level of expression of H-2 class I proteins on virus-infected cells has been correlated with the degree of effectiveness with which they are destroyed by the CTLs (18, 34). It is, therefore, reasonable to expect that viruses with the capability of altering H-2 expression in the cells they infect may be influencing their own survival.Previously, this laboratory has reported that cells chronically express significantly increased surface levels of H-2K, H-2D, and H-2L proteins after infection with the Moloney murine leukemia virus (M-MuLV) (18). These infected cells are efficiently lysed by M-MuLV-specific CTLs and also by allospecific CTLs, a reflection of their increased level of H-2 class I antigens. Coinfection of cells with M-MuLV and the replication-defective, acutely transforming Moloney murine sarcoma virus (M-MSV) eliminates the H-2 enhancement, as well as profoundly decreas...