  We have discovered two simultaneous quasi-periodic oscillations (QPOs) at
898.3+/-3.3 Hz and 1158.6+/-9.0 Hz in the 1996 August 1 observation of the
low-mass X-ray binary KS 1731-260 with the Rossi X-ray Timing Explorer. The rms
amplitude and FWHM of the lower frequency QPO were 5.3+/-0.7 % and 22+/-8 Hz,
whereas those of the higher frequency QPO were 5.2+/-1.0 % and 37+/-21 Hz. At
low inferred mass accretion rate both QPOs are visible, at slightly higher mass
accretion rate the lower frequency QPO disappears and the frequency of the
higher frequency QPO increases to ~1178 Hz. At the highest inferred mass
accretion rate this QPO is only marginally detectable (2.1 sigma) near 1207 Hz,
which is the highest frequency so far observed in an X-ray binary. The
frequency difference (260.3+/-9.6 Hz) between the QPOs is equal to half the
frequency of the oscillations observed in a type I burst in this source (at
523.92+/-0.05 Hz, Smith, Morgan and Bradt 1997). This suggests that the neutron
star spin frequency is 261.96 Hz (3.8 ms), and that the lower frequency QPO is
the beat between the higher frequency QPO, which could be a preferred orbital
frequency around the neutron star, and the neutron star spin. During the 1996
August 31 observation we detected an additional QPO at 26.9+/-2.3 Hz, with a
FWHM and rms amplitude of 11+/-5 Hz and 3.4+/-0.6 %.
