Abstract
A generally covariant scalar field theory of gravitation is presented. The principle of equivalence as well as the principle of general covariance are preserved. A functional solution of Einstein's field equations is obtained for the general time-independent case. The theory predicts correctly the results of the three crucial tests of general relativity. Implications concerning the self-energy of point particles is presented. A new theory of cosmology is given and its application to the time-scale problem and to the derivation of the Mach principle are discussed. A new principle called the principle of observation is introduced.

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