LIBERTY FUNDS TRUST III
NT-NSAR, 2001-01-02
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United States
Securities and Exchange Commission
Washington, D.C. 20549

Form 12b-25

Notification of Late Filing

(Check one) :

__ Form 10-K  __ Form 20-F  __Form 11-K  __Form 10-Q  X Form N-SAR

For the Period Ended:    10/31/2000

Part I - Registrant Information

Full Name of Registrant
Liberty Funds Trust III

Former Name if Applicable

Address of Principal Executive Office (Street & Number)

One Financial Center
Boston, MA 02111

Part II - Rules 12-b-25 (b)and (c)

If the subject report could not be filed without unreasonable effort or expense
and the registrant seeks relief pursuant to Rule 12b-25 (b), the following
should be completed.

(a)  The reasons described in reasonable detail in Part III of this form could
not be eliminated without unreasonable effort or expense.

(b) The subject anual report, semi-annual report, transition report on Form
10-K, 11-K, 10-Q, N-SAR, or the transition report or portion thereof, could
not be filed within the prescribed time period.

The registrant requests additional time to file form NSAR so that it can
complie the necessary information to file a complete and accurate document.

Part IV - Other Information

(1)  Name and telephone number of person to contact in regard to this
notification

     Gail Knudsen, Assistant Controller

(2)  Have all other periodic reports required under section 13 or 15(d) of the
Securities Exchange Act of 1934 or Section 30 of the Investment Company Act of
1940 during the proceeding 12 months been filed?

     Yes

(3)  Is it anticipated that any significant change in results of operations
from the corresponding period for the last fiscal year will be reflected by the
earnings statements to be included in the subject report or portion thereof?

     No

(Name of Registrant as Specified in Charter) Liberty Funds Trust III

has caused this notification to be signed on its behalf by the undersigned
hereunti duly authorized.



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