A theory of generation of radio waves observed by ground-based facilities in the frequency range 150--700 kHz is discussed. This work is a continuation of an earlier discussion (Wu et al., 1989) in which it was proposed that the trapped electrons along the auroral field lines can lead to a cyclotron instability which amplifies the whistler waves observed at ground level. The objective of the present study is to investigate the propagation effect on the wave amplification and to examine whether the proposed mechanism is indeed viable. ¿1991 American Geophysical Union