  We present photoionization models of the high excitation gas in the Extended
Narrow Line Region (ENLR) of NGC1068. The ENLR line fluxes have been calculated
allowing for attenuation of the central-source ionizing continuum as a function
of distance from the centre. Diffuse continuum emission from low density ENLR
gas is included as an important secondary source of ionization. The observed
high excitation emission further than 25 arcsec from the centre of NGC1068 can
be fitted by photoionization models using a central-source luminosity of
3.6x10^44 erg/s between 10^14.6 and 10^18.4 Hz, with the continuum shape
attenuated by nuclear gas with an integrated column density of N_h=10^22 cm^-2.
The reflected soft X-ray continuum from the attenuating gas could be
responsible for about 10% of the observed, resolved circumnuclear soft X-ray
continuum extending out to 15 arcsec from the centre (Wilson et al 1992).
