We describe a numerical method for calculating the (3+1) dimensional general relativistic hydrodynamics of a coalescing neutron-star binary system. The relativistic field equations are solved at each time slice with a spatial 3-metric chosen to be conformally flat. Against this solution to the general relativistic field equations the hydrodynamic variables and gravitational radiation are allowed to respond. The gravitational radiation signal is derived via a multipole expansion of the metric perturbation to the hexadecapole order including both mass and current moments and a correction for the slow motion approximation. Using this expansion, the effect of gravitational radiation on the system evolution can also be recovered by introducing an acceleration term in the matter evolution.

15 pages, 5 figures. Figures available by anonymous ftp at ftp://cygnus.phys.nd.edu/pub/gr/gr-qc9601017/