  We develop a theory for a novel state of ${}^4$He films, that possesses off
diagonal order (as in the superfluid state), as well as hexatic or bond
orientational order. Within our description, both the hexatic and superfluid
transitions are still of the Kosterlitz-Thouless type, but the superfluid
stiffness is sensitive to the hexatic transition. We briefly discuss the
possible relevance of this work to recent experiments on submonolayer helium
films.
