SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities and Exchange Act of 1934
(Amendment No. 2)
Dreyfus Strategic Governments Income, Inc.
(DSI)
(Name of Issuer)
Common Stock
(Title of Class of Securities)
261938104
(CUSIP Number)
George W. Karpus, President
Karpus Management, Inc. d/b/a
Karpus Investment Management
14 Tobey Village Office Park
Pittsford, New York 14534
(716) 586-4680
(Name, Address, and Telephone Number of Person Authorized to Receive Notices
and Communications)
July 7, 2000
(Date of Event which Requires Filing of this Statement)
If the person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D,
and is filing this schedule because of
Rule 13d-1 (b) (3) or (4), check the following box. [ ]
(Page 1 of 4 pages)
There are no exhibits.
ITEM 1 Security and Issuer
Common Stock
Dreyfus Strategic Governments Income, Inc.
200 Park Avenue
New York, NY 10166
ITEM 2 Identity and Background
a) Karpus Management, Inc. d/b/a Karpus Investment Management
("KIM")
George W. Karpus, President, Director and Controlling Stockholder
JoAnn VanDegriff, Vice President and Director
Sophie Karpus, Director
b) 14 Tobey Village Office park
Pittsford, New York 14534
c) Principal business and occupation - Investment Management for
individuals, pension and profit sharing plans, corporations,
endowments, trust and others, specializing in conservative asset
management (i.e. fixed income investments).
d) None of George W. Karpus, JoAnn VanDegriff, or Sophie Karpus
("the Principals") or KIM has been convicted in the past five years of
any criminal proceeding (excluding traffic violations).
e) During the last five years none of the principals or KIM has been a
party to a civil proceeding as a result of which any of them is
subject to a judgment, decree or final order enjoining future violations
of or prohibiting or mandating activities subject to, federal or state
securities laws or finding any violation with respect to such laws.
f) Each of the Principals is a United States citizen.
KIM is a New York corporation.
ITEM 3 Source and Amount of Funds or Other Considerations
KIM, an independent investment advisor, has accumulated shares of DSI
on behalf of accounts that are managed by KIM ("the Accounts") under
limited powers of attorney. All funds that have been utilized in making
such purchases are from such Accounts.
ITEM 4 Purpose of Transaction
KIM has purchased Shares for investment purposes. Being primarily a
fixed income manager, with a specialty focus in the closed end fund
sector, the profile of DSI fit the investment guidelines for various
Accounts. Shares have been acquired since September 12, 1995.
ITEM 5 Interest in Securities of the Issuer
a) As of the date of this Report, KIM owns 378,780 shares, which
represents 2.59% of the outstanding Shares. Sophie Karpus owns 350
shares purchased on August 19, 1999 at a price of $8.25 per share. Karpus
Investment Management Profit Sharing Plan owns 625 shares, 500 shares
were purchased on November 16, 1998 at a price of $9.00 per share and
125 shares were purchased on August 19, 1999 at a price of $8.25 per
share. None of the other Principals presently owns shares.
b) KIM has the sole power to dispose of and to vote all of such Shares
under limited powers of attorney.
c) The first open market purchase occurred on September 12, 1995. Open
market purchases for the last 60 days for the Accounts. There have been
no dispositions and no acquisitions, other than by such open
purchases, during such period unless indicated.
Date
Shares
Price Per
Date
Shares
Price Per
Share
Share
5/5/00
-5000
8.4375
6/1/00
-3500
7.875
5/8/00
1250
7.75
6/19/00
-4725
8
5/12/00
-2000
7.875
6/22/00
8000
9.0625
5/15/00
-7800
7.7147
6/23/00
24200
8.9375
5/25/00
-10000
7.75
6/23/00
22000
9.0625
5/31/00
-1000
7.875
6/26/00
3750
8.9375
6/26/00
-200
8.9375
6/30/00
2300
9.0625
The Accounts have the right to receive all dividends from, any proceeds
from the sale of the Shares. KIM reserves the right to further accumulate
or sell shares. None of the Accounts has an interest in shares constituting
more than 5% of the Shares outstanding.
ITEM 6 Contracts, Arrangements, Understandings, or Relationships with Respect
to Securities of the Issuer.
Except as described above, there are no contracts, arrangements,
understandings or relationships of any kind among the Principals and KIM
and between any of them and any other person with respect to any of DSI
securities.
ITEM 7 Materials to be Filed as Exhibits
See Attachment.
Signature
After reasonable inquiry and to the best of my knowledge and belief,
I certify that the information set forth in this statement is true, complete,
and correct.
Karpus Management, Inc.
July 7, 2000 By:________________________
Date Signature
George W. Karpus, President
Name/Title
April 25, 2000
June 28, 2000
Re: Dreyfus Strategic Governments Income (DSI)
Dear:
I would like to congratulate the Board of Directors for approving a proposal
to merge the Fund into Dreyfus A Bonds Plus, Inc. which is an open-end
investment company. It has long been my opinion, that within families of
funds, there are many similar funds, which are excellent merger candidates
for the benefit of all shareholders.
The Board has shown the wisdom in selecting a similar fund within their
family to suggest as a merger candidate. This merger will benefit the
shareholders of both funds by creating the opportunity to lower the expense
ratio of the Dreyfus A Bonds Plus, Inc. Upon merger of the funds, the
previous shareholders of DSI will enjoy the benefit of increased credit
quality of their new fund as well as lower expense ratios.
I commend the Board for recognizing their fiduciary duty to the shareholders
in taking the necessary steps to close the discount at which DSI has
historically traded. DSI came to market carrying safeguards against
substantial discounts (according to the original prospectus) to protect
investors in case the market price eroded against the net asset value.
The Board has the wisdom to conform to this provision and the resulting
benefit to the shareholders.
Since the Board has recommended this merger, it will no longer be necessary
to consider submitting a formal proposal to open end the Fund, which in my
opinion is part of my fiduciary duty to my clients holding the Fund. I
further urge the Board to recommend to the shareholders of DSI that they vote
for the merger of the funds and will totally support the efforts of the Board
to merge funds.
The Board of Directors of Dreyfus A Bonds Plus Fund should also be
congratulated for approving the proposal to merge the funds as was announced
on June 27, 2000.
Your example should be used by other Boards of Directors in consolidating
funds with similar objectives in order to reduce costs for shareholders.
Thank you for taking the time and effort to evaluate the wishes of the
shareholders and recognizing the financial advantages that may be gained to
the shareholders of each fund.
Sincerely,
George W. Karpus
President & C.E.O.
cc: Arthur Levitt Jr., Chairman SEC
David Stephens, Stroock & Stroock & Lavan LLP
