IAI INVESTMENT FUNDS III INC
NSAR-B, 1998-04-01
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<PAGE>      PAGE  1
000 B000000 01/31/98
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000 D000000 N
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000 F000000 Y
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000 J000000 A
001 A000000 IAI INVESTMENT FUND III, INC.
001 B000000 811-4904
001 C000000 6123762600
002 A000000 3700 FIRST BANK PLACE, 601 2ND AVE SOUTH
002 B000000 MINNEAPOLIS
002 C000000 MN
002 D010000 55402
002 D020000 4327
003  000000 N
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007 A000000 Y
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007 C010100  1
007 C020100 IAI INTERNATIONAL FUND
007 C030100 N
007 C010200  2
007 C020200 IAI DEVELOPING COUNTRIES FUND
007 C030200 N
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007 C010400  4
007 C010500  5
007 C010600  6
007 C010700  7
007 C010800  8
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007 C011000 10
008 A00AA01 INVESTMENT ADVISERS, INC.
008 B00AA01 A
008 C00AA01 801-3784
008 D01AA01 MINNEAPOLIS
008 D02AA01 MN
008 D03AA01 55402
008 D04AA01 4327
008 A00AA02 IAI INTERNATIONAL, INC.
008 B00AA02 S
008 C00AA02 801-999999
008 D01AA02 LONDON
008 D05AA02 ENGLAND
010 A00AA01 INVESTMENT ADVISERS, INC.
010 B00AA01 8013784
<PAGE>      PAGE  2
010 C01AA01 MINNEAPOLIS
010 C02AA01 MN
010 C03AA01 55402
010 C04AA01 4327
011 A00AA01 IAI SECURITIES, INC.
011 B00AA01 8-43310
011 C01AA01 MINNEAPOLIS
011 C02AA01 MN
011 C03AA01 55402
011 C04AA01 4327
012 A00AA01 INVESTMENT ADVISERS, INC.
012 B00AA01 84-1664
012 C01AA01 MINNEAPOLIS
012 C02AA01 MN
012 C03AA01 55402
012 C04AA01 4327
013 A00AA01 KPMG PEAT MARWICK, LLP
013 B01AA01 MINNEAPOLIS
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014 A00AA01 IAI SECURITIES, INC.
014 B00AA01 8-43310
015 A00AA01 NORWEST BANK MINNESOTA, N.A.
015 B00AA01 C
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<PAGE>      PAGE  10
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SIGNATURE   SUSAN J HAEDT                                
TITLE       CONTROLLER          
 


<TABLE> <S> <C>

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   <NUMBER> 01
   <NAME> IAI INTERNATIONAL FUND
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<TABLE> <S> <C>

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   <NAME> IAI DEVELOPING COUNTRIES FUND
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<S>                             <C>
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</TABLE>


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