  Using 12CO and 13CO observations we present column density maps of the
molecular cloud (V = -135 km/s) in the direction of 1E1740.7-2942. Hydrogen
column densities of the cloud scatter between (3.5 - 11) 10**22 cm-2, depending
on the method used. From this we conclude, deriving first a simple analytic
formula, that despite of the weakness of the iron fluorescent 6.4 keV line
(Churazov et al. 1996), the source may lie inside the cloud, or at least close
to its edge. The combined ASCA/BATSE spectrum from September 1993 and 1994 can
be modelled with a two-phase accretion disc corona model, where the hot region
is detached from the cold disc. Geometrically, the hot phase can be interpreted
e.g. as a number of active regions (magnetic loops) above the disc, or as a
spherical hot cloud around the central object.
