For those who don't have Lisp handy, here's some sample output:

  JOE WAS  NEAR  THE CAVE.
  JOE KNEW  THAT JOE WAS  NEAR  THE CAVE.
  IRVING WAS  NEAR  THE OAK-TREE.
  IRVING KNEW  THAT IRVING WAS  NEAR  THE OAK-TREE.
  JOE KNEW  THAT IRVING WAS  NEAR  THE OAK-TREE.
   THE WATER WAS  NEAR  THE RIVER.
  JOE KNEW  THAT  THE WATER WAS  NEAR  THE RIVER.
   THE HONEY WAS  NEAR  THE ELM-TREE.
  IRVING KNEW  THAT  THE HONEY WAS  NEAR  THE ELM-TREE.
   THE WORM WAS  NEAR  THE GROUND.
  JOE KNEW  THAT  THE WORM WAS  NEAR  THE GROUND.
  IRVING KNEW  THAT JOE WAS  NEAR  THE CAVE.
   THE FISH WAS  NEAR  THE RIVER.
  IRVING KNEW  THAT  THE FISH WAS  NEAR  THE RIVER.
  One day, 
  JOE WAS  THIRSTY .
  JOE WANTED   NOT TO BE  THIRSTY .
  JOE WANTED   TO BE  NEAR  THE WATER.
  JOE WENT  TO  THE RIVER.
  JOE WAS  NEAR  THE RIVER.
  JOE DRANK  THE WATER.
  JOE WAS  NOT THIRSTY .
  The end.