  `Loop-fusion cohomology' is defined on the continuous loop space of a
manifold in terms of \vCech cochains satisfying two multiplicative conditions
with respect to the fusion and figure-of-eight products on loops. The main
result is that these cohomology groups, with coefficients in an abelian group,
are isomorphic to those of the manifold and the transgression homomorphism
factors through the isomorphism.
