<PAGE> PAGE 1
000 B000000 01/31/95
000 C000000 0000771588
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 MH/KP GOVERNMENT INCOME FUND INC.
001 B000000 811-3663
001 C000000 2127132000
002 A000000 1285 AVENUE OF THE AMERICAS
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10019
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 MITCHELL HUTCHINS ASSET MANAGEMENT INC.
008 B000001 A
008 C000001 801-13219
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10019
010 A000001 MITCHELL HUTCHINS ASSET MANAGEMENT INC.
010 B000001 801-13219
010 C010001 NEW YORK
010 C020001 NY
010 C030001 10019
011 A000001 PAINWEBBER INCORPORATED
011 B000001 8-16267
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10019
012 A000001 PFPC, INC.
012 B000001 84-0000000
012 C010001 WILMINGTON
<PAGE> PAGE 2
012 C020001 DE
012 C030001 19809
013 A000001 DELOITTE & TOUCHE
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10019
014 A000001 PAINE WEBBER INCORPORATED
014 B000001 8-16267
015 A000001 INVESTORS FIDUCIARY TRUST CO.
015 B000001 C
015 C010001 KANSAS CITY
015 C020001 MO
015 C030001 64105
015 E060001 X
018 000000 Y
019 A000000 Y
019 B000000 64
019 C000000 PAINEWEBBR
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 PRUDENTIAL SECURITIES
022 B000001 22-2347336
022 C000001 903079
022 D000001 39894
022 A000002 MORGAN STANLEY & CO, INC.
022 B000002 13-2655998
022 C000002 820445
022 D000002 43142
022 A000003 GOLDMAN SACHS & CO.
022 B000003 13-5108880
022 C000003 239138
022 D000003 40565
022 A000004 BEAR STEARNS & CO., INC.
022 B000004 13-4946705
022 C000004 85946
022 D000004 26624
022 A000005 FIRST BOSTON CORP
022 B000005 13-5659485
022 C000005 108313
022 D000005 0
022 A000006 LEHMAN BROTHERS SECURITIES INC
022 B000006 13-2518466
<PAGE> PAGE 3
022 C000006 21938
022 D000006 75842
022 A000007 SALOMON BROTHERS INC.
022 B000007 13-3082694
022 C000007 10114
022 D000007 9093
022 A000008 SMITH INC.
022 B000008 13-5674085
022 C000008 24429
022 D000008 23631
022 A000009 BANK OF AMERICA
022 B000009 94-1687665
022 C000009 21082
022 D000009 0
022 A000010 NATIONAL WESTMINSTER BANK
022 B000010 11-0773597
022 C000010 19996
022 D000010 0
023 C000000 2289744
023 D000000 263244
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 Y
027 000000 Y
028 A010000 465
028 A020000 243
028 A030000 0
028 A040000 2325
028 B010000 678
028 B020000 229
028 B030000 0
028 B040000 2417
028 C010000 247
028 C020000 202
028 C030000 0
028 C040000 3999
<PAGE> PAGE 4
028 D010000 282
028 D020000 244
028 D030000 0
028 D040000 3193
028 E010000 269
028 E020000 186
028 E030000 0
028 E040000 3435
028 F010000 89
028 F020000 185
028 F030000 0
028 F040000 2649
028 G010000 2030
028 G020000 1289
028 G030000 0
028 G040000 18018
028 H000000 1695
029 000000 Y
030 A000000 14
030 B000000 2.25
030 C000000 0.00
031 A000000 8
031 B000000 0
032 000000 0
033 000000 6
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 100
043 000000 316
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.625
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
<PAGE> PAGE 5
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 1000
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 11.6
<PAGE> PAGE 6
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 86.2
062 O000000 0.0
062 P000000 0.0
062 Q000000 2.2
062 R000000 0.0
063 A000000 0
063 B000000 25.4
064 A000000 Y
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
<PAGE> PAGE 7
070 O010000 Y
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 245380
071 B000000 263244
071 C000000 95943
071 D000000 256
072 A000000 12
072 B000000 4612
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 407
072 G000000 0
072 H000000 0
072 I000000 55
072 J000000 38
072 K000000 0
072 L000000 44
072 M000000 22
072 N000000 48
072 O000000 1
072 P000000 0
072 Q000000 0
072 R000000 17
072 S000000 5
072 T000000 307
072 U000000 18
072 V000000 0
072 W000000 12
072 X000000 974
072 Y000000 0
072 Z000000 3638
072AA000000 0
072BB000000 4974
072CC010000 0
072CC020000 1973
072DD010000 3309
072DD020000 329
072EE000000 0
073 A010000 0.7756
073 A020000 1.5836
073 B000000 0.0000
073 C000000 0.0000
074 A000000 74
074 B000000 5800
<PAGE> PAGE 8
074 C000000 0
074 D000000 43240
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 1087
074 J000000 0
074 K000000 0
074 L000000 328
074 M000000 66
074 N000000 50595
074 O000000 0
074 P000000 47
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 423
074 S000000 0
074 T000000 50125
074 U010000 3313
074 U020000 378
074 V010000 13.58
074 V020000 13.57
074 W000000 0.0000
074 X000000 2741
074 Y000000 0
075 A000000 0
075 B000000 65010
076 000000 0.00
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 VIGILANT INSURANCE COMPANY
080 C000000 14525
081 A000000 Y
081 B000000 21
082 A000000 Y
082 B000000 10
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
<PAGE> PAGE 9
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE JULIAN SLUYTERS
TITLE TREASURER
[ARTICLE] 6
[CIK] 0000771588
[NAME] MITCHELL HUTCHINS/KIDDER PEABODY GOVERNMENT INCOME FUND, INC.
[SERIES]
[NUMBER] 101
[NAME] CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JAN-31-1995
[PERIOD-START] FEB-01-1994
[PERIOD-END] JAN-31-1995
[INVESTMENTS-AT-COST] 45,959,371
[INVESTMENTS-AT-VALUE] 44,986,970
[RECEIVABLES] 293,984
[ASSETS-OTHER] 125,632
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 45,406,587
[PAYABLE-FOR-SECURITIES] 246,563
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 175,244
[TOTAL-LIABILITIES] 421,807
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 54,635,356
[SHARES-COMMON-STOCK] 3,313,196
[SHARES-COMMON-PRIOR] 5,041,896
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (8,678,176)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] (972,401)
[NET-ASSETS] 44,984,779
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 4,203,600
[OTHER-INCOME] 0
[EXPENSES-NET] (894,069)
[NET-INVESTMENT-INCOME] 3,309,531
[REALIZED-GAINS-CURRENT] (4,463,921)
[APPREC-INCREASE-CURRENT] (1,770,589)
[NET-CHANGE-FROM-OPS] (6,234,510)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 3,309,531
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 2,160,857
[NUMBER-OF-SHARES-REDEEMED] (28,426,526)
[SHARES-REINVESTED] 2,408,464
[NET-CHANGE-IN-ASSETS] (30,091,715)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (4,385,509)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 365,360
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 894,069
[AVERAGE-NET-ASSETS] 58,343,636
[PER-SHARE-NAV-BEGIN] 14.93
[PER-SHARE-NII] .78
[PER-SHARE-GAIN-APPREC] (1.35)
[PER-SHARE-DIVIDEND] (.78)
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 13.58
[EXPENSE-RATIO] 1.53
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000771588
[NAME] MITCHELL HUTCHINS/KIDDER PEABODY GOVERNMENT INCOME FUND INC.
[SERIES]
[NUMBER] 102
[NAME] CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JAN-31-1995
[PERIOD-START] FEB-01-1994
[PERIOD-END] JAN-31-1995
[INVESTMENTS-AT-COST] 1,307,408
[INVESTMENTS-AT-VALUE] 1,279,746
[RECEIVABLES] 8,363
[ASSETS-OTHER] 3,597
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,291,683
[PAYABLE-FOR-SECURITIES] 7,014
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 4,985
[TOTAL-LIABILITIES] 11,999
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,554,214
[SHARES-COMMON-STOCK] 94,291
[SHARES-COMMON-PRIOR] 110,398
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (246,868)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] (27,662)
[NET-ASSETS] 1,279,684
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 107,354
[OTHER-INCOME] 0
[EXPENSES-NET] (28,210)
[NET-INVESTMENT-INCOME] 79,144
[REALIZED-GAINS-CURRENT] (126,985)
[APPREC-INCREASE-CURRENT] (50,368)
[NET-CHANGE-FROM-OPS] (177,353)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 79,144
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 389,801
[NUMBER-OF-SHARES-REDEEMED] (678,196)
[SHARES-REINVESTED] 71,137
[NET-CHANGE-IN-ASSETS] (394,611)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (95,986)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 10,393
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 28,210
[AVERAGE-NET-ASSETS] 1,659,704
[PER-SHARE-NAV-BEGIN] 14.92
[PER-SHARE-NII] .74
[PER-SHARE-GAIN-APPREC] (1.35)
[PER-SHARE-DIVIDEND] (.74)
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 13.57
[EXPENSE-RATIO] 1.78
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000771588
[NAME] MITCHELL HUTCHINS/KIDDER PEABODY GOVERNMENT INCOME FUND INC.
[SERIES]
[NUMBER] 103
[NAME] CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JAN-31-1995
[PERIOD-START] FEB-01-1994
[PERIOD-END] JAN-31-1995
[INVESTMENTS-AT-COST] 3,943,727
[INVESTMENTS-AT-VALUE] 3,860,286
[RECEIVABLES] 25,226
[ASSETS-OTHER] 10,781
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 3,896,293
[PAYABLE-FOR-SECURITIES] 21,157
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 15,038
[TOTAL-LIABILITIES] 36,195
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 4,688,204
[SHARES-COMMON-STOCK] 284,478
[SHARES-COMMON-PRIOR] 246,483
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (744,655)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] (83,441)
[NET-ASSETS] 3,860,098
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 301,046
[OTHER-INCOME] 0
[EXPENSES-NET] (51,360)
[NET-INVESTMENT-INCOME] 249,686
[REALIZED-GAINS-CURRENT] (383,045)
[APPREC-INCREASE-CURRENT] (151,932)
[NET-CHANGE-FROM-OPS] (534,977)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 249,686
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 2,214,602
[NUMBER-OF-SHARES-REDEEMED] (1,879,840)
[SHARES-REINVESTED] 226,656
[NET-CHANGE-IN-ASSETS] 26,441
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (214,264)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 31,351
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 51,360
[AVERAGE-NET-ASSETS] 5,006,408
[PER-SHARE-NAV-BEGIN] 14.92
[PER-SHARE-NII] .84
[PER-SHARE-GAIN-APPREC] (1.35)
[PER-SHARE-DIVIDEND] (.84)
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 13.57
[EXPENSE-RATIO] 1.03
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
<PAGE>
<TABLE>
<S> <C>
SULLIVAN & CROMWELL
NEW YORK TELEPHONE: (212) 558-4000 125 Broad Street, New York 10004-2498
TELEX: 62694 (INTERNATIONAL) 127816 (DOMESTIC) __________
CABLE ADDRESS: LADYCOURT, NEW YORK
FACSIMILE: (212) 558-3588 (125 Broad Street) 250 PARK AVENUE, NEW YORK 10177-0021
(212) 558-3792 (250 Park Avenue) 1701 PENNSYLVANIA AVE, N.W. WASHINGTON, D.C. 20006-5805
444 SOUTH FLOWER STREET, LOS ANGELES 90071-2901
8, PLACE VENDOME, 75001 PARIS
ST. OLAVE'S HOUSE, 9a IRONMONGER LANE, LONDON EC2V 8EY
101 COLLINS STREET, MELBOURNE 3000
2-1, MARUNOUCHI I-CHOME, CHIYODA-KU, TOKYO 100
</TABLE>
March 28, 1995
Mitchell Hutchins/Kidder, Peabody Government
Income Fund, Inc.,
1285 Avenue of the Americas,
New York, New York 10019.
[Logo] ________________________________________________________
Two World Financial Center Telephone: (212) 436-2000
New York, New York 10281-1414 Facsimile: (212) 436-5000
The Board of Directors,
Mitchell Hutchins / Kidder, Peabody Government Income Fund, Inc.:
In planning and performing our audit of the financial statements of the
Mitchell Hutchins / Kidder, Peabody Government Income Fund, Inc. for the year
ended January 31, 1995, we considered its internal control structure, including
procedures for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, and not to
provide assurance on the internal control structure.
The management of the Fund is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and
related costs of control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded against
loss from unauthorized use or disposition and that transactions are executed in
accordance with management's authorization and recorded properly to permit
preparation of financial statements in conformity with generally accepted
accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operations may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants.
<PAGE>
A material weakness is a condition in which the design or operation of the
specific internal control structure elements does not reduce to a relatively
low level the risk that errors or irregularities in amounts that would be
material in relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving
the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
January 31, 1995.
This report is intended solely for the information and use of management, the
Board of Directors and the Securities and Exchange Commission.
Deloitte & Touche LLP
March 13, 1995
