  We prove that the higher harmonic signature of an even dimensional oriented
Riemannian foliation of a compact Riemannian manifold with coefficients in a
leafwise U(p,q)-flat complex bundle is a leafwise homotopy invariant. We also
prove the leafwise homotopy invariance of the twisted higher Betti classes.
Consequences for the Novikov conjecture for foliations and for groups are
investigated.
  Replaces The Higher Harmonic Signature for Foliations I: The Untwisted Case,
and contains significant improvements.
