38879 12/97
Statement of Additional Information Supplement
dated December 5, 1997 to:
PUTNAM U.S. GOVERNMENT INCOME TRUST (the "fund")
Statement of Additional Information dated January 30, 1997
In connection with the offering of its shares in Japan, the fund
has undertaken to the Japanese Securities Dealers Association that
the fund will not: (1) invest more than 10% of its net assets in
securities that are not traded on an official exchange or other
regulated market, including, without limitation, the National
Association of Securities Dealers Automated Quotation System (this
restriction shall not be applicable to bonds determined by Putnam
Investment Management, Inc. to be liquid and for which a market
price (including a dealer quotation) is generally obtainable or
determinable); (2) borrow money in excess of 10% of the value of
its total assets; (3) make short sales of securities; (4) invest in
the securities of other registered open-end investment funds or
companies, except as they may be acquired as part of a merger,
consolidation or acquisition of assets; (5) invest more than 5% of
its total assets in the securities of any one issuer (other than
the U.S. government); (6) acquire more than 10% of the outstanding
voting securities of any issuer; and (7) together with other mutual
funds managed by Putnam Investment Management, Inc., acquire more
than 15% of the outstanding voting securities of any issuer.
If the undertaking is violated, the fund will, promptly after
discovery, take such action as may be necessary to cause the
violation to cease, which shall be the only obligation of the fund
and the only remedy in respect of the violation. This undertaking
will remain in effect as long as shares of the fund are qualified
for offer or sale in Japan and such undertaking is required by the
Japanese Securities Dealers Association as a condition of such
qualification.
