LETTER TO SHAREHOLDERS
Dear Shareholder:
For the six-month period ended May 31, 1995, Dreyfus Strategic
Governments Income Inc, paid income dividends per share of approximately
$.405, which is equivalent to an annualized distribution rate per share of
8.53%, based on the market price of the Fund's shares.
The first five months of 1995 have been a total reversal of the 1994 bond
market, which was probably the worst in 70 years. On February 1, 1995, the
Federal Reserve Board tightened interest rates for the seventh time in a
series which began in February of 1994. During this one-year period of
raising rates, the Federal Funds rate went from 3% to 6%. This 300
basis-point rise in rates has started to have the desired effect of slowing
the economy. Just prior to the November 1994 elections, the thirty-year
Treasury bond was yielding approximately 8.17%. That very same bond was
yielding approximately 6.65% on May 31, 1995. The 10-year Treasury rate
during the same period has gone from an 8.01% yield to a 6.33% yield.
Since the average maturity of your Fund's portfolio cannot exceed 10
years, we have tried to keep the Fund at its longest possible maturity during
the last six months. By doing this, we hoped to get as much positive return
as possible. It should be understood that just as this Fund outperformed
funds with longer average maturities in 1994's bear market, we will probably
underperform those funds in the 1995 bull market because many of them have
longer maturities and could do better when prices are rising. It should be
noted that the total return based on net asset value for the six-month period
was 10.63%.
With regard to the activity in the portfolio, we have tried to maintain a
high level of current yield. Furthermore, while we can have up to 50% of the
portfolio in non-dollar securities, we have taken a more cautious approach
since the Mexican currency devaluation. The Fund has no emerging market debt.
We have tended to keep our foreign holdings at about a 25% level. We
constantly look for value in all markets and have tried to add value by
dealing within the U.S. Treasury markets. Of course, portfolio composition is
subject to change as we deem appropriate, given the relevant market
conditions.
We will continue to look for attractive current yields and value in those
market sectors in which we are permitted to operate.
Very truly yours,
Garitt A. Kono
Portfolio Manager
June 22, 1995
New York, N.Y.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
<TABLE>
<CAPTION>
DREYFUS STRATEGIC GOVERNMENTS INCOME, INC.
STATEMENT OF INVESTMENTS MAY 31, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-93.3% AMOUNT VALUE
---------------- ----------------
<S> <C> <C>
BANKING AND FINANCE-10.5% Citicorp,
Sub. Notes, 7 1/8%, 2004...................... $ 5,000,000 $ 5,042,415
First Interstate Bancorp,
Notes, 10 1/2%, 1996.......................... 1,000,000 1,026,760
Ford Motor Credit,
Medium-Term Notes, 7 3/4%, 2005............... 5,000,000 5,239,735
Household Financial:
Notes, 6 3/4%, 2000........................... 2,000,000 2,014,200
Retractable Sr. Notes, 11.85%, 1996........... 1,458,789 (a) 1,484,172
RBSG Capital,
Notes (Gtd. by The Royal Bank of Scotland
Group PLC), 10 1/8%, 2004..................... 1,000,000 1,202,149
----------------
16,009,431
----------------
FOREIGN/
GOVERNMENTAL-26.5% Australian Government Securities:
Commonwealth Government Bonds:
13%, 1996................................ 3,587,500 (b) 3,789,297
12%, 2001................................ 2,152,500 (b) 2,515,734
Treasury Corp. of Victoria,
Bonds (Gtd. by The Government of Victoria),
8 1/4%, 2003............................ 3,587,500 (b) 3,438,260
Canadian Government Securities:
Canada Government Bonds, 10 3/4%, 2009........ 1,458,789 (a) 1,768,928
Canada Mortgage and Housing,
Bonds, Ser. DC1, 8 1/2%, 1999............ 8,023,341 (a) 8,299,344
Hydro-Quebec,
Deb. (Gtd. by The Province of Quebec):
Ser. HX, 10 1/2%, 2021.............. 1,458,789 (a) 1,677,608
Ser. IC, 9 5/8%, 2022............... 1,458,789 (a) 1,550,401
Ser. HK, 9 3/8%, 2030............... 5,000,000 5,932,400
Province of British Columbia,
Exchangeable Bonds, Ser. BCCD-F,
9 3/4%, 2001........................... 729,395 (a) 834,719
Province of New Brunswick,
Sinking Fund Deb., Ser. EE, 9 1/8%, 2002 1,094,092 (a) 1,152,626
Province of Newfoundland,
Sinking Fund Deb., 11 5/8%, 2007........ 2,000,000 2,673,860
Province of Quebec,
Deb., 13 1/4%, 2014..................... 3,200,000 4,073,888
Swedish Government Securities;
Swedish Export Credit,
Notes, 6 1/2%, 2001.................... 3,410,595 (c) 2,780,658
----------------
40,487,723
----------------
DREYFUS STRATEGIC GOVERNMENTS INCOME, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
---------------- ----------------
OTHER-6.9%.....City of New York,
General Obligation Taxable Bonds,
Ser. D, 9.85%, 2008................................... $ 3,000,000 $ 3,255,000
Occidental Petroleum,
Sr. Deb., 11 3/4%, 2011............................... 3,000,000 3,244,653
Procter & Gamble,
Bonds, 10 7/8%, 2001.................................. 3,646,973 (a) 4,010,941
----------------
10,510,594
----------------
U.S. GOVERNMENT
AND AGENCIES-49.4% Government National Mortgage Association I:
10%, 1998............................................. 103,085 109,366
7 1/2%, 2023.......................................... 4,006,525 4,039,058
8%, 2023.............................................. 8,823,279 9,060,361
U.S. Treasury Bonds:
13 1/8%, 5/15/2001.................................... 3,400,000 4,584,155
12%, 8/15/2013........................................ 16,800,000 24,706,500
U.S. Treasury Notes:
9 1/4%, 1/15/1996..................................... 7,000,000 7,140,000
9 3/8%, 4/15/1996..................................... 9,000,000 9,260,154
9 1/8%, 5/15/1999..................................... 11,000,000 12,189,375
7 1/2%, 2/15/2005..................................... 4,000,000 4,338,124
----------------
75,427,093
----------------
TOTAL BONDS AND NOTES
(cost $142,431,592)................................... $142,434,841
=============
SHORT-TERM INVESTMENT-2.1%
TIME DEPOSIT; Republic National Bank of New York (London),
6%, 6/1/1995
(cost $3,229,000)...................................... $ 3,229,000 $ 3,229,000
=============
TOTAL INVESTMENTS (cost $145,660,592)................................................ 95.4% $145,663,841
====== =============
CASH AND RECEIVABLES (NET)..................................................... 4.6% $ 7,041,543
====== =============
NET ASSETS..................................................................... 100.0% $152,705,384
====== =============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Denominated in Canadian Dollars.
(b) Denominated in Australian Dollars.
(c) Denominated in Swedish Krona.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS STRATEGIC GOVERNMENTS INCOME, INC.
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $145,660,592)-see statement..................................... $145,663,841
Cash.................................................................... 2,234,975
Receivable for investment securities sold............................... 4,018,891
Interest receivable..................................................... 3,016,306
Prepaid expenses........................................................ 7,438
-------------
154,941,451
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 89,705
Payable for investment securities purchased............................. 1,984,500
Accrued expenses........................................................ 161,862 2,236,067
-------------- -------------
NET ASSETS ................................................................ $152,705,384
=============
REPRESENTED BY:
Paid-in capital-Note 4.................................................. $161,189,503
Accumulated distributions in excess of investment income-net-Note 1(c).. (168,276)
Accumulated net realized (loss) on investments.......................... (8,319,092)
Accumulated net unrealized appreciation on investments-Note 3........... 3,249
-------------
NET ASSETS at value applicable to 14,640,617 outstanding shares
of Common Stock, equivalent to $10.43 per share
(100 million shares of $.001 par value authorized)...................... $152,705,384
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS STRATEGIC GOVERNMENTS INCOME, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME (net of $37,761 foreign taxes withheld at source)....... $ 6,490,394
EXPENSES:
Management fee-Note 2(a).............................................. $ 511,041
Professional fees..................................................... 47,677
Shareholders' reports................................................. 35,109
Directors' fees and expenses-Note 2(b)................................ 31,083
Shareholder servicing costs........................................... 29,170
Custodian fees........................................................ 28,914
Registration fees..................................................... 14,341
Miscellaneous......................................................... 4,108
-----------
TOTAL EXPENSES.................................................. 701,443
-----------
INVESTMENT INCOME-NET........................................... 5,788,951
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (543,915)
Net unrealized appreciation on investments.............................. 9,105,997
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 8,562,082
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $14,351,033
===========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS STRATEGIC GOVERNMENTS INCOME, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED SIX MONTHS ENDED
MAY 31, NOVEMBER 30, MAY 31, 1995
1994 1994* (UNAUDITED)
------------- ------------------- -------------------
<S> <C> <C> <C>
OPERATIONS:
Investment income-net............................... $ 13,264,214 $ 6,225,216 $ 5,788,951
Net realized (loss) on investments.................. (4,714,313) (3,481,992) (543,915)
Net unrealized appreciation (depreciation) on
investments for the period.......................... (5,607,686) (3,349,473) 9,105,997
-------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................... 2,942,215 (606,249) 14,351,033
-------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income-net............................... (13,750,031) (4,197,958) (5,933,554)
Paid-in-capital..................................... --- (2,197,706) ---
-------------- -------------- --------------
TOTAL DISTRIBUTIONS............................... (13,750,031) (6,395,664) (5,933,554)
-------------- -------------- --------------
CAPITAL STOCK TRANSACTIONS:
Dividends reinvested-Note 1(c)...................... 773,178 --- ---
Cost of Treasury Stock acquired-Note 4.............. --- (1,974,310) (875,728)
-------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS.................. 773,178 (1,974,310) (875,728)
-------------- -------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........... (10,034,638) (8,976,223) 7,541,751
NET ASSETS:
Beginning of period................................. 164,174,494 154,139,856 145,163,633
-------------- -------------- --------------
End of period [including undistributed investment
income-net; $664,913 on May 31, 1994 and distributions
in excess of investment income-net of ($23,673) and
($168,276) on November 30, 1994 and May 31, 1995]... $154,139,856 $145,163,633 $152,705,384
============== ============== ==============
SHARES SHARES SHARES
--------------- -------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares issued for dividends reinvested.............. 69,684 -- ---
Shares of Treasury Stock acquired................... -- (222,700) (97,300)
--------------- --------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING..... 69,684 (222,700) (97,300)
=============== =============== ===============
* The Fund changed its fiscal year end from May 31 to November 30.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS STRATEGIC GOVERNMENTS INCOME, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the financial statements and market price
data for the Fund's shares.
SIX MONTHS ENDED SIX MONTHS ENDED
YEAR ENDED MAY 31, NOVEMBER 30, MAY 31, 1995
-------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994 1994(1) (UNAUDITED)
-------- -------- -------- -------- --------- ----------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period............. $10.76 $10.70 $10.92 $11.06 $11.03 $10.30 $ 9.85
------- ------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net... 1.10 1.06 1.01 .95 .89 .42 .40
Net realized and unrealized
gain (loss) on investments (.08) .24 .19 .02 (.70) (.44) .59
------- ------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS........ 1.02 1.30 1.20 .97 .19 (.02) .99
------- ------- ------- ------- ------- ------- -------
DISTRIBUTIONS FROM:
Investment income-net... (1.08) (1.08) (1.03) (.91) (.92) (.28) ( .41)
Net realized gain
on investments........ -- -- (.03) (.09) -- -- --
Paid-in-capital......... -- -- -- -- -- (.15) --
------- ------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS... (1.08) (1.08) (1.06) (1.00) (.92) ( .43) ( .41)
------- ------- ------- ------- ------- ------- -------
Net asset value, end
of period....... $10.70 $10.92 $11.06 $11.03 $10.30 $ 9.85 $10.43
======== ======= ======= ======= ====== ======= =========
Market Value, end of period $9 7/8 $11 1/8 $11 1/2 $11 1/2 $10.00 $ 9 1/8 $ 9 1/2
======= ======= ======= ======= ======= ======== =========
TOTAL INVESTMENT RETURN (2). .47% 24.63% 13.83% 9.36% (5.23%) (8.98%)(3) 17.59%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets.... .89% .87% .88% .88% .89% .92%(3) .96%(3)
Ratio of net investment income
to average net assets. 10.11% 9.67% 9.18% 8.57% 8.18% 8.28%(3) 7.93%(3)
Portfolio Turnover Rate. 16.34% 26.38% 56.29% 43.00% 22.76% 65.21%(4) 47.56%(4)
Net Assets, end of period
(000's Omitted) $156,198 $159,751 $163,197 $164,174 $154,140 $145,164 $152,705
(1) The Fund changed its fiscal year end from May 31 to November 30.
(2) Calculated based on Market Value.
(3) Annualized.
(4) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS STRATEGIC GOVERNMENTS INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act") as
a non-diversified closed-end management investment
company. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
(A) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures, but excluding domestic-debt securities) are valued at the
last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on the last business day of each week and month. Securities not listed on an
exchange or the national securities market, or securities for which there
were no transactions, are valued at the average of the most recent bid and
asked prices. Bid price is used when no asked price is available. Investments
denominated in foreign currencies are translated to U.S. dollars at the
prevailing rates of exchange.
Most domestic-debt securities (excluding short-term investments) are
valued on the last business day of each week and month by an independent
pricing service ("Service") approved by the Board of Directors. Domestic-debt
securities for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the
Service from dealers in such securities) and asked prices (as calculated by
the Service based upon its evaluation of the market for such securities).
Other domestic-debt securities are carried at fair value as determined by the
Service, based on methods which include consideration of: yields or prices of
securities of comparable quality, coupon, maturity and type; indications as
to values from dealers; and general market conditions. Short-term investments
are carried at amortized cost, which approximates value.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income including, where applicable, amortization of discount on investments,
is recognized on the accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and net short-term realized
capital gain, if any, are normally declared and paid monthly. Dividends from
net long-term realized capital gain, if any, are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
For shareholders who elect to receive their distributions in additional
shares of the Fund, in lieu of cash, such distributions will be reinvested at
the lower of the market price or net asset value per share (but not less than
95% of the market price) based on the record date's respective price. If the
net asset value per share on the record date is lower than the market price
per share, shares will be issued by the Fund at the record date's net asset
value on the payable date of the distribution. If the net asset value per
share is less than 95% of market value, shares will be issued by the Fund at
95% of market value. If the market price is lower than the net asset value
per share on the record date, Mellon Bank, N.A. will purchase Fund shares in
the open market commencing on the payable date, and reinvest those shares
accordingly. As a result of purchasing Fund shares in the open market, Fund
shares outstanding will not be affected by this form of reinvestment.
DREYFUS STRATEGIC GOVERNMENTS INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
On May 30, 1995, the Board of Directors declared a cash dividend of
$.0675 per share from investment income-net, payable on June 27, 1995 to
shareholders of record as of the close of business on June 13, 1995.
(D) QUARTERLY RESULTS OF OPERATIONS:
NET INCREASE
NET REALIZED & (DECREASE)
UNREALIZED IN NET ASSETS
TOTAL INVESTMENT NET INVESTMENT GAIN (LOSS) RESULTING FROM
INCOME INCOME ON INVESTMENTS OPERATIONS
----------------- ----------------- ----------------- -----------------
(000'S) PER (000'S) PER (000'S) PER (000'S) PER
QUARTER ENDED OMITTED SHARE OMITTED SHARE OMITTED SHARE OMITTED SHARE
--------------- --------- -------- ------- --------- --------- --------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
August 31, 1993................ $ 3,716 $ 0.25 $ 3,323 $ 0.22 $ 1,842 $ 0.12 $ 5,165 $ 0.34
November 30, 1993.............. 3,627 0.24 3,286 0.22 (3,727) (0.25) (441) (0.03)
February 28, 1994.............. 3,668 0.25 3,301 0.22 (1,395) (0.09) 1,906 0.13
May 31, 1994................... 3,703 0.25 3,354 0.23 (7,042) (0.48) (3,688) (0.25)
-------- ----- -------- -------- ----- ------ ------ -------
TOTAL...................... $ 14,714 $ 0.99 $ 13,264 $ 0.89 $(10,322) $(0.70) $ 2,942 $ 0.19
======== ====== ========= ======= ========== ======== ======== =======
August 31, 1994................ $ 3,558 $ 0.24 $ 3,210 $ 0.21 $ (2,386) $(0.15) $ 824 $ 0.06
November 30, 1994.............. 3,360 0.23 3,015 0.21 (4,445) (0.29) (1,430) (0.08)
-------- ----- -------- -------- -------- ------- -------- -------
TOTAL...................... $ 6,918 $ 0.47 $ 6,225 $ 0.42 $ (6,831) $(0.44) $ (606) $(0.02)
========= ====== ========== ======= ========== ======== ======== =======
February 28, 1995.............. $ 3,227 $ 0.22 $ 2,893 $ 0.20 $ 2,919 $ 0.20 $ 5,812 $ 0.40
May 31, 1995................... 3,263 0.22 2,896 0.20 5,643 0.39 8,539 0.59
-------- ------- ------- ------ ----- ------- ------- -------
TOTAL..................... $ 6,490 $ 0.44 $ 5,789 $ 0.40 $ 8,562 $ 0.59 $ 14,351 $ 0.99
======== ====== ========== ======== ========= ====== ========= =======
</TABLE>
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such
qualification is in the best interests of its shareholders, by complying with
the applicable provisions of the Internal Revenue Code, and to make
distributions of taxable income sufficient to relieve it from substantially
all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $7,419,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1994. The
carryover does not include net realized securities losses from November 1,
1994 through November 30, 1994 which are treated, for Federal income tax
purposes, as arising in fiscal 1995. If not applied, $768,000 of the
carryover expires in fiscal 2001 and $6,651,000 expires in fiscal 2002.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .70 of 1% of the average
weekly value of the Fund's net assets and is payable monthly.
(B) Prior to February 1, 1995, certain officers of the Fund were
"affiliated persons," as defined in the Act, of the Adviser and/or Dreyfus
Service Corporation.
Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS STRATEGIC GOVERNMENTS INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended May 31, 1995,
amounted to $66,373,080 and $65,928,542, respectively.
At May 31, 1995, accumulated net unrealized appreciation on investments
was $3,249, consisting of $3,694,543 gross unrealized appreciation and
$3,691,294 gross unrealized depreciation.
At May 31, 1995, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
NOTE 4-CAPITAL STOCK:
The Fund repurchased 97,300 shares of Treasury Stock during the six
months ended May 31, 1995 at an average market price per share of $9.00 and a
weighted average discount from net asset value of 8.68% per share. At May 31,
1995, paid-in-capital is net the cost of $2,850,038 of Treasury Stock
reacquired.
Fund shares traded at an average discount of more than 10% from their net
asset value for the 12-week period ended December 30, 1994. In accordance with
the Fund's Prospectus for its initial public offering, under such circumstances
the Fund will submit a proposal to shareholders to convert the Fund from a
closed-end to an open-end fund at its next annual shareholders meeting
scheduled for August 18, 1995.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may purchase shares of its
common stock in the open market when it can do so at prices below the then
current net asset value per share.
DREYFUS STRATEGIC GOVERNMENTS INCOME, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS STRATEGIC GOVERNMENTS INCOME, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Strategic Governments Income, Inc., including the statement of
investments, as of May 31, 1995, and the related statements of operations and
changes in net assets and financial highlights for the six month period ended
May 31, 1995. These financial statements and financial highlights are the
responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the period
ended November 30, 1994 and financial highlights for each of the five years
in the period ended November 30, 1994 and in our report dated January 13,
1995, we expressed an unqualified opinion on such statement of changes in net
assets and financial highlights.
Ernst & Young LLP Signature Logo)
New York, New York
July 10, 1995
DREYFUS STRATEGIC GOVERNMENTS
INCOME, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND PAYING AGENT AND REGISTRAR
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Printed in U.S.A. 854SA955
Strategic
Governments
Income, Inc.
Semi-Annual Report
May 31, 1995
(Dreyfus Logo)
