  We have observed the polarized light at 2 micron in the center of NGC 1068
with HST NICMOS Camera 2. The nucleus is dominated by a bright, unresolved
source, polarized at a level of 6.0 pm 1.2% with a position angle of 122degr pm
1.5degr. There are two polarized lobes extending up to 8'' northeast and
southwest of the nucleus. The polarized flux in both lobes is quite clumpy,
with the maximum polarization occurring in the southwest lobe at a level of 17%
when smoothed to 0.23'' resolution. The perpendiculars to the polarization
vectors in these two lobes point back to the intense unresolved nuclear source
to within one 0.076'' Camera 2 pixel, thereby confirming that this is the
illuminating source of the scattered light and therefore the probable AGN
central engine. Whereas the polarization of the nucleus is probably caused by
dichroic absorption, the polarization in the lobes is almost certainly caused
by scattering, with very little contribution from dichroic absorption. Features
in the polarized lobes include a gap at a distance of about 1'' from the
nucleus toward the southwest lobe and a ``knot'' of emission about 5''
northeast of the nucleus. Both features had been discussed by ground-based
observers, but they are much better defined with the high spatial resolution of
NICMOS. The northeast knot may be the side of a molecular cloud that is facing
the nucleus, which cloud may be preventing the expansion of the northeast radio
lobe at the head of the radio synchrotron-radiation-emitting jet. We also
report the presence of two ghosts in the Camera 2 polarizers. These had not
been detected previously (Hines et al. 2000) because they are relatively faint
and require observations of a source with a large dynamic range.
