<PAGE> PAGE 1
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000 C000000 0000808332
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000 F000000 Y
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000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 KEYSTONE AMERICA GOVERNMENT SECURITIES
001 B000000 811-4949
001 C000000 6173383200
002 A000000 200 BERKELEY STREET
002 B000000 BOSTON
002 C000000 MA
002 D010000 02116
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
022 A000001 HSBC SECURITIES INC.
022 C000001 372891
022 D000001 0
022 A000002 PAINE WEBBER INC.
022 B000002 13-2638166
022 C000002 31779
022 D000002 21349
022 A000003 AUTRANET, INC.
022 B000003 13-2961507
022 C000003 11128
022 D000003 8016
022 A000004 DONALDSON, LUFKIN AND JENRETTE
022 B000004 13-2741729
022 C000004 12537
022 D000004 4588
022 A000005 SMITH BARNEY HARRIS & UPHAM
022 B000005 13-1912900
022 C000005 4577
022 D000005 7979
022 A000006 SMITH BARNEY SHEARSON INC.
022 B000006 13-1912900
022 C000006 3115
022 D000006 8896
022 A000007 SMITH BARNEY INC.
022 B000007 13-1912900
022 C000007 5246
022 D000007 5697
022 A000008 FUJI GOVERNMENT SECURITIES INC.
022 C000008 0
<PAGE> PAGE 2
022 D000008 10627
022 A000009 DEAN WITTER & CO.
022 C000009 10525
022 D000009 0
022 A000010 FUJI SECURITIES
022 C000010 78878
022 D000010 2535
023 C000000 811836
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SIGNATURE KEVIN MORRISSEY
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> KEYSTONE GOVERNMENT SECURITIES FUND CLASS A
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-START> AUG-01-1994
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 57,424,970
<INVESTMENTS-AT-VALUE> 57,544,151
<RECEIVABLES> 993,266
<ASSETS-OTHER> 45,296
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 58,582,713
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,641,889
<TOTAL-LIABILITIES> 1,641,889
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 31,295,121
<SHARES-COMMON-STOCK> 3,097,266
<SHARES-COMMON-PRIOR> 4,065,523
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (44,557)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (2,284,586)
<ACCUM-APPREC-OR-DEPREC> 810,017
<NET-ASSETS> 29,775,995
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,623,952
<OTHER-INCOME> 0
<EXPENSES-NET> (323,723)
<NET-INVESTMENT-INCOME> 2,300,229
<REALIZED-GAINS-CURRENT> (232,521)
<APPREC-INCREASE-CURRENT> 366,815
<NET-CHANGE-FROM-OPS> 2,434,523
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,223,950)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 291,673
<NUMBER-OF-SHARES-REDEEMED> (1,409,532)
<SHARES-REINVESTED> 149,602
<NET-CHANGE-IN-ASSETS> (8,764,689)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (99,937)
<OVERDIST-NET-GAINS-PRIOR> (2,072,965)
<GROSS-ADVISORY-FEES> (214,662)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (459,340)
<AVERAGE-NET-ASSETS> 32,372,267
<PER-SHARE-NAV-BEGIN> 9.48
<PER-SHARE-NII> 0.67
<PER-SHARE-GAIN-APPREC> 0.11
<PER-SHARE-DIVIDEND> (0.65)
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 102
<NAME> KEYSTONE GOVERNMENT SECURITIES FUND CLASS B
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-START> AUG-01-1994
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 57,424,970
<INVESTMENTS-AT-VALUE> 57,544,151
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<TOTAL-LIABILITIES> 1,641,889
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 19,183,104
<SHARES-COMMON-STOCK> 1,879,324
<SHARES-COMMON-PRIOR> 1,623,379
<ACCUMULATED-NII-CURRENT> 12,370
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (973,671)
<ACCUM-APPREC-OR-DEPREC> (157,490)
<NET-ASSETS> 18,064,313
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,263,697
<OTHER-INCOME> 0
<EXPENSES-NET> (271,436)
<NET-INVESTMENT-INCOME> 992,261
<REALIZED-GAINS-CURRENT> (51,973)
<APPREC-INCREASE-CURRENT> 244,596
<NET-CHANGE-FROM-OPS> 1,184,884
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (962,253)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 804,244
<NUMBER-OF-SHARES-REDEEMED> (608,903)
<SHARES-REINVESTED> 60,604
<NET-CHANGE-IN-ASSETS> 2,678,120
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (7,623)
<OVERDIST-NET-GAINS-PRIOR> (931,712)
<GROSS-ADVISORY-FEES> (103,145)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (324,552)
<AVERAGE-NET-ASSETS> 15,510,627
<PER-SHARE-NAV-BEGIN> 9.48
<PER-SHARE-NII> 0.59
<PER-SHARE-GAIN-APPREC> 0.12
<PER-SHARE-DIVIDEND> (0.58)
<PER-SHARE-DISTRIBUTIONS> 0.00
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 103
<NAME> KEYSTONE GOVERNMENT SECURITIES FUND CLASS C
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-START> AUG-01-1994
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 57,424,970
<INVESTMENTS-AT-VALUE> 57,544,151
<RECEIVABLES> 993,266
<ASSETS-OTHER> 45,296
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<OTHER-ITEMS-LIABILITIES> 1,641,889
<TOTAL-LIABILITIES> 1,641,889
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10,923,559
<SHARES-COMMON-STOCK> 945,843
<SHARES-COMMON-PRIOR> 1,845,763
<ACCUMULATED-NII-CURRENT> 6,418
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1,296,115)
<ACCUM-APPREC-OR-DEPREC> (533,346)
<NET-ASSETS> 9,100,516
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,061,376
<OTHER-INCOME> 0
<EXPENSES-NET> (230,066)
<NET-INVESTMENT-INCOME> 831,310
<REALIZED-GAINS-CURRENT> (142,060)
<APPREC-INCREASE-CURRENT> 72,825
<NET-CHANGE-FROM-OPS> 762,075
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (790,931)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 295,567
<NUMBER-OF-SHARES-REDEEMED> (1,253,057)
<SHARES-REINVESTED> 57,570
<NET-CHANGE-IN-ASSETS> (8,407,914)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (25,473)
<OVERDIST-NET-GAINS-PRIOR> (1,162,543)
<GROSS-ADVISORY-FEES> (86,966)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (285,005)
<AVERAGE-NET-ASSETS> 13,146,572
<PER-SHARE-NAV-BEGIN> 9.49
<PER-SHARE-NII> 0.61
<PER-SHARE-GAIN-APPREC> 0.10
<PER-SHARE-DIVIDEND> (0.58)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.62
<EXPENSE-RATIO> 1.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Trustees and Shareholders
Keystone Government Securities Fund
(Formerly Keystone America Government Securities Fund)
In planning and performing our audit of the financial statements of Keystone
Government Securities Fund for the year ended July 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, not to provide assurance on the internal control
structure.
The management of Keystone Government Securities 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 internal 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 operation 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. 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
July 31, 1995.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
KPMG Peat Marwick LLP
September 1, 1995
