BLACKROCK STRATEGIC TERM TRUST INC, N-30D, 1995-08-28

BLACKROCK STRATEGIC TERM TRUST INC
N-30D, 1995-08-28

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--------------------------------------------------------------------------------
THE BLACKROCK STRATEGIC TERM TRUST INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
--------------------------------------------------------------------------------

July 14, 1995

Dear Shareholder:

The fixed income markets benefited from extremely bullish sentiment and
rallied during the semi-annual period between January 1, 1995 and June 30, 1995.
The U.S. economy appears to have responded to the Fed's vigilance toward
inflation with low absolute levels of inflation and moderate rates of growth.
This scenario is suggestive of a "soft landing" for the economy, which has
sparked a significant Treasury market rally and resulted in overall strength in
most fixed income markets. Closed-end bond funds responded to the broader
markets by staging a significant rebound during the first six months of 1995
from their all-time low stock prices during the fourth quarter of 1994.

BlackRock Financial Management, Inc. your Trust's investment adviser, is
pleased to report that its acquisition by PNC Bank, N.A. ("PNC") was officially
completed on February 28, 1995. PNC is a commercial bank whose principal office
is in Pittsburgh, Pennsylvania and is wholly-owned by PNC Bank Corp., a bank
holding company. The merger was structured to assure continuity of performance
and service through stability of our organization. BlackRock retains its name
and continues to operate out of its New York office. All members of BlackRock's
management team have signed long-term employment contracts and will continue to
be responsible for managing BlackRock's business so that shareholders will
notice no changes in the management of the Trust.

You will note several enhancements to the Trust's semi-annual report
designed to improve the report's usefulness to you. The letter to shareholders
which reviews the markets and Trust's investment strategy over the semi-annual
period is provided by the Trust's portfolio managers. In addition, we have
included an investment summary section which provides a synopsis of the Trust's
investment objectives and guidelines and reviews its investment strategy. We
appreciate your investment in The BlackRock Strategic Term Trust Inc. and look
forward to continuing to serve your financial needs.

Sincerely,

Laurence D. Fink Ralph L. Schlosstein
Chairman President

<PAGE>

July 14, 1995

Dear Shareholder:

The dramatic rally in the capital markets changed the market landscape for
fixed income investors over the six month period ending June 30, 1995. As we
present this semi-annual report for The BlackRock Strategic Term Trust Inc. (BGT
or "the Trust"), we are pleased to review the strong performance of the Trust,
from both a Net Asset Value (NAV) and stock price perspective as well as to
discuss the opportunities available to the Trust in the current market
environment.

The Trust's shares are traded on the New York Stock Exchange under the
symbol BGT. BGT is a diversified closed-end bond fund whose investment objective
is to manage a portfolio of investment grade fixed income securities that will
return $10 per share (the initial offering price) to investors on or about
December 31, 2002 while providing high monthly income. As of the last fiscal
period-end, the Trust's NAV has appreciated in price by 9.6%, having ranged from
$8.09 to $8.90. Over the same time period, the stock price of the Trust has
risen 5.26% having ranged from $7.13 to $8.13. BlackRock believes that the Trust
is well positioned to meet its targeted termination value.

It is important to evaluate the performance of the Trust in the context of
the closed-end fund marketplace. Investors who endured the market slump of 1994
and opted to "Hold" or acquire more shares of the Trust during the tumultuous
last months of the year witnessed a substantial increase in both NAV and share
price during the first half of 1995 as the market environment for fixed income
securities improved. As the closed-end bond market continues to lag the overall
market rally, many bond funds continue to trade at discounts despite the
appreciation of both NAV and stock price since the lows of last year. As the NAV
of the Trust draws closer to its termination value, a narrowing of its stock
price discount to NAV is expected to reflect such NAV growth.

The Fixed Income Markets

As the economy showed signs of a slowdown early this year, market
participants endlessly debated the direction of monetary policy and hotly
contested the likelihood that a "soft landing" for the economy had been
achieved. As economic reports grew increasingly pessimistic, the specter of
inflation diminished. With investor confidence in the value of fixed income
securities renewed, market demand increasingly accelerated.

While attuned to the possibility of a rejuvenated economy during the third
and fourth quarters of 1995, and the possibility of accompanying inflationary
pressure, BlackRock believes that the fixed income markets offer many pockets of
value to investors in the coming months. We believe that the Federal Reserve
will remain biased toward ease, which was echoed by Mr. Greenspan when he
acknowledged a better inflation environment by commenting in June that the
forces driving inflation "are very clearly easing". As such, BlackRock expects
continued solid performance of fixed income securities and continued decline in
interest rates, albeit modestly, over the balance of the year.

While fixed income markets in general have performed exceptionally well over
the last six months, falling yields and sustained high levels of interest rate
volatility together have created a less favorable environment for investors in
many mortgage-backed securities relative to other fixed income sectors. Due to
the ability of mortgage holders to refinance their mortgage at any time, the
"optionality of mortgage-backed securities", and the experience of investors who
witnessed unprecedented levels of mortgage refinancing in 1992 and 1993, lower
levels of interest rates have ignited fears of a similar acceleration in
prepayments. In some cases mortgage-backed security prices built in fast
prepayment expectations far in excess of actual prepayment experience, which
remained slow for the first months of the year. This presented selected
purchasing opportunities in those sectors of the mortgage market that are less
vulnerable to prepayment risk and reduce the likelihood of reinvesting cash
proceeds at lower yields.

Selected areas of the mortgage market continue to hold good relative value
for investors, even in light of the less favorable environment as described
above. These sectors include issues that have more stable cash flows and are
therefore less exposed to high levels of interest rate volatility and
accelerated prepayments. For example, seasoned mortgage pass-throughs are
fixed-rate issues which are relatively older than other pools on the market.
Because they have weathered several refinancing cycles, prepayments on these
securities are expected to be more predictable and to accelerate less in a
declining rate environment. In addition, five and seven year "balloon" mortgages
are attractive. While a security backed by a balloon

<PAGE>

mortgage amortizes in the same way as a thirty-year generic mortgage loan, the
balloon mortgage pays down entirely on the balloon date, e.g., five or seven
years after issue. This shorter time horizon to maturity significantly increases
the predictability of its income stream.

As demand increased for fixed income securities which offered strong cash
flow stability, corporate securities outperformed their counterparts in the
mortgage sector over the last five months, although new issuance has increased
supply. In particular, corporates which do not give the issuer the right to
redeem such securities prior to their maturity dates (non-callable) benefited
from their reduced exposure to volatility and continued strong corporate profits
(as evidenced by the astounding strength of the stock market). While a slowdown
in earnings and the prospects of a slower economy may put pressure on the
corporate market, significant demand from investors who seek to avoid the
volatility of mortgage product is expected to continue. Therefore, relatively
defensive purchases in the finance and non-cyclical industrial (e.g. food and
chemical) sectors which offer high credit quality and reduced exposure to
slowing economic growth appear attractive at this time.

The Trust's Portfolio and Investment Strategy

Reflecting the current and projected earnings level of the Trust's
portfolio, the Board of Directors for Trust voted at the end of June to reduce
the Trust's monthly dividend to $0.042 per share from $0.052 per share effective
with the July 1995 dividend. Based on the current stock price of $7.38, this
represents a current yield of 6.78% on an annualized basis. The dividend is
being set in accordance with the Trust's investment objective to manage a
portfolio of investment grade fixed income securities that will return $10 per
share (the initial offering price) to investors on or about December 31, 2002
while providing high monthly income.

Over the life of a term trust, dividends are expected to decline as assets
are reinvested in shorter maturity securities. Two other factors have put
pressure on the dividends of the Trust: (i) the bond market rally, which
resulted in a reduction in bond yields and (ii) a flatter yield curve, which has
resulted in a sharp reduction in the amount of income which the Trust earns from
leverage.

The Trust is now utilizing its broadened investment authority to purchase
investment grade corporate bonds, capturing opportunities to invest in
securities with a higher degree of cash flow stability and call protection. As
such restructuring develops over the remaining life of the Trust, the Trust
expects to own securities that have more cash flow predictability in a wide
array of interest rate environments versus its existing portfolio of prepayment
sensitive securities.

The current investment strategy for the Trust emphasizes the following
themes:

* Continue to target securities consistent with the Trust's maturity date

- Increase allocation to securities which mature on or before the
termination date

* De-emphasize mortgage securities with highest exposure to accelerating
prepayments and interest rate volatility

- Maintain minimal exposure to mortgage derivatives which, although high
yielding, have very unpredictable cash flows and have very little
liquidity in the current market

- Continue to invest in the mortgage securities where yield advantage
provides adequate compensation for cash flow risk

- Focus investments on seasoned pass-throughs which have weathered several
refinancing cycles

- Increase allocation to multifamily mortgage securities with "balloon"
dates to mitigate cash flow variability

* Increase allocation to corporate bonds upon opportunity

The following chart compares the Trust's portfolio composition as of June
30, 1995 and December 31, 1994. Consistent with the above themes, BlackRock
modified the Trust's allocation adding to its agency multiple class mortgage
pass-throughs, adjustable rate mortgages and corporate bond holdings as it
decreased its mortgage pass-throughs, CMO Residuals and taxable zero coupon bond
holdings.

3
<PAGE>

--------------------------------------------------------------------------------
The BlackRock Strategic Term Trust Inc.
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Composition June 30, 1995 December 31, 1994
--------------------------------------------------------------------------------
Taxable Zero Coupon Bonds 25% 27%
--------------------------------------------------------------------------------
Mortgage Pass-Throughs 24% 32%
--------------------------------------------------------------------------------
Agency Multiple Class Mortgage Pass-Throughs 24% 17%
--------------------------------------------------------------------------------
U.S. Government Securities 8% 6%
--------------------------------------------------------------------------------
Adjustable Rate Mortgages 7% 5%
--------------------------------------------------------------------------------
Corporate Bonds 4% -
--------------------------------------------------------------------------------
Municipal Zero Coupon Bonds 3% 3%
--------------------------------------------------------------------------------
CMO Residuals 2% 4%
--------------------------------------------------------------------------------
Stripped Mortgage-Backed Securities 2% 1%
--------------------------------------------------------------------------------
Asset-Backed Securities 1% 2%
--------------------------------------------------------------------------------
Commercial Mortgage-Backed Securities - 1%
--------------------------------------------------------------------------------
Multiple Class Mortgage Pass-Throughs - 1%
--------------------------------------------------------------------------------
FNMA Project Loans - 1%
--------------------------------------------------------------------------------

We look forward to managing the Trust in the coming months to benefit from
the many opportunities available to investors in the investment grade fixed
income markets as well as to position the Trust such that its exposure to
interest rate volatility is reduced.

Robert S. Kapito Keith T. Anderson
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Financial Management, Inc. BlackRock Financial Management, Inc.

------------
1Yield on Closing Stock Price is calculated by dividing the current annualized
distribution per share by the closing stock price per share.
2Dividend is not constant and is subject to change.
3New dividend rate effective with July 1995 payment.

<PAGE>

(Left Column)

--------------------------------------------------------------------------------
The BlackRock Strategic Term Trust Inc.
Portfolio of Investments
June 30, 1995
(Unaudited)
--------------------------------------------------------------------------------
Principal
Amount Value
(000) Description (Note 1)
--------------------------------------------------------------------------------
LONG-TERM INVESTMENTS-149.8%
Mortgage Pass-Throughs-46.3%
Federal Home Loan Mortgage
Corporation,
$13,392 7.50%, 2/1/17 ............................... $ 13,433,383
13,252 8.00%, 9/1/23 ............................... 13,500,510
2,741 9.00%, 6/1/21 ............................... 2,971,325
Federal National Mortgage
Association,
20,000 7.00%, 1/1/99, 7 Yr ......................... 20,150,000
6,055 7.25%, 1/1/23 ............................... 6,126,630
12,500 7.50%, 1/1/99, 7 Yr ......................... 12,699,125
8,435 7.50%, 4/1/08, 15 Yr ........................ 8,574,385
3,480 8.00%, 12/1/24 .............................. 3,543,908
4,445 8.50%, 1/1/23 ............................... 4,583,606
35,806 9.00%, 9/1/24 ............................... 37,294,539
4,240 10.50%, 11/1/00, 15 Yr ...................... 4,449,547
Government National Mortgage
Association,
2 6.50%, 9/15/08, 15 Yr ....................... 2,250
1,886 7.00%, 10/15/22 ............................. 1,836,660
43,501 8.50%, 7/15/17-1/15/23 ...................... 45,171,469
4,111 9.00%, 10/15/17 ............................. 4,317,168
259 10.00%, 11/15/09 ............................ 281,414
13,351(D)(D) 6.50%, 4/20/25, 1 Year
CMT (ARM) ................................. 13,457,187
11,104(D)(D) 6.50%, 5/20/25, 1 Year
CMT (ARM) ................................. 11,232,853
20,201(D)(D) 7.00%, 11/20/24, 1 Year
CMT (ARM) ................................. 20,667,904
8,351(D)(D) 7.00%, 10/20/24, 1 Year
CMT (ARM) ................................. 8,543,677
4,000 Federal Deposit Insurance
Corporation TR 1994, 9/25/25 ................ 4,077,220
------------
236,914,760
------------

Multiple Class Mortgage
Pass-Throughs-37.6%
4,881+ Collateralized Mortgage
Obligation Trust 26,
Class A, 4/23/17 (P) ........................ 3,634,843
Federal Home Loan Mortgage
Corporation, Multiclass
Mortgage Participation
Certificates,
22,000(D)(D) Series 90, Class 90-G,
10/15/20 .................................... 22,886,820
14,144(D)6 Series 1039, Class 1039-J,
2/15/21 ..................................... 13,865,505

(Right Column)

--------------------------------------------------------------------------------
Principal
Amount Value
(000) Description (Note 1)
--------------------------------------------------------------------------------
Multiple Class Mortgage
Pass-Throughs
$ 5,000(D) Series 1295, Class 1295-JB,
3/15/07 .................................... $ 4,310,335
1,500 Series 1321, Class 1321-E,
1/15/06 .................................... 1,507,063
161 Series 1262, Class 1262-J,
3/15/22 (I) ................................ 11,632,250
28,628(D) Series 1, Class 1-Z, 4/15/19 ............... 30,112,869
1,625(D) Series 1488, Class 1488-PF,
9/15/06 .................................... 1,634,146
27 Series 1375, Class 1375-H,
12/15/05 (I) ............................... 507,100
254 Series 1443, Class 1443-J,
12/15/22 (I) ............................... 4,968,848
1,883 Series 1488, Class 1488-F,
9/15/06 .................................... 1,803,819
4,972 Series 1626, Class 1626-PV,
12/15/08 (I) ............................... 1,194,954
2,067 Series 1662, Class 1662-P,
11/15/07 (I) ............................... 591,630
4,075(D)(D) Series 1747, Class 1747-G,
2/15/21 .................................... 4,105,331
Federal National Mortgage
Association, REMIC Pass-
Through Certificates,
175 Series 2, Class M, 7/25/18 (I) ............ 4,071,737
77 Trust 1991-79, Class 79-B,
7/25/98 (P) ................................ 64,060
2,704(D)(D) Trust 1991-146, Class 146-S,
10/25/06 ................................... 2,689,809
10,000(D) Trust 1992-43, Class 43-E,
4/25/22 .................................... 10,090,600
2,185 Trust 1992-129, Class 129-G,
6/25/18 .................................... 1,927,176
2,000 Trust 1992-155, Class 155,
12/25/06 ................................... 1,842,500
35,550(D) Trust 1992-156, Class 156-H,
4/25/06 .................................... 30,190,367
52 Trust 1992-156, Class 156-HA,
4/25/06 (I) ................................ 1,859,000
9,800 Trust 1993-124, Class 124-D,
8/25/22 (P) ................................ 7,830,788
536 Trust 1993-132, Class 132-CA
10/25/22 (P) ............................... 270,868
5,000 Trust 1993-245, Class 245-JA,
3/25/19 (I) ................................ 1,143,750
4,750 Trust 1994-M1, Class M1-D,
10/25/03 ................................... 4,701,016
3,431(D)(D) Trust 1994-47, Class 47-P,
09/25/22 (P) ............................... 2,948,263

See Notes to Financial Statements.

<PAGE>
(Left column)
--------------------------------------------------------------------------------
Principal
Amount Value
(000) Description (Note 1)
--------------------------------------------------------------------------------
Multiple Class Mortgage
Pass-Throughs (con't)
Federal National Mortgage
Association, REMIC Pass-
Through Certificates
$ 550 Trust 1994-54, Class E
11/25/73..................................... $ 252,771
4,496 Trust 1992-93, Class D,
5/25/19 (I/O)................................ 910,524
4,816 Trust 1993-124, Class 124-M,
10/25/22..................................... 1,791,469
24,473 Trust 1994-G61, Class DB,
3/25/24...................................... 15,357,106
4,532 Trust G93-26, Class 26-PT,
12/25/17 (I)................................. 1,179,082
737 FBS Mortgage Corporation
Series 1992-E, Class A2,
11/25/07..................................... 594,326
------------
192,470,725
------------
Collateralized Mortgage
Obligation Residuals**-3.4%
2,011 American Housing Trust 8,
Senior Mortgage Pass-Through
Certificates, Series 8, Class R
(REMIC) 01/25/21*............................ 1,878,328
Federal Home Loan Mortgage
Corporation, REMIC
Multiclass Mortgage
Participation Certificates,
690 Series 87, Class 87-R,
11/15/20..................................... 295,000
4 Series 88, Class 88-R,
10/15/20..................................... 343,750
10 Series 1016, Class 1016-R,
11/15/20..................................... 107,310
100 Series 1033, Class 1033-R,
01/15/06..................................... 1,136,729
1,880 Series 1060, Class 1060-R,
03/15/21..................................... 1,217,210
2 Series 1060, Class 1060-RS,
03/15/21..................................... 1,000
1,789 Series 1064, Class 1064-R,
04/15/21..................................... 1,131,000
2 Series 1064, Class 1064-RS,
04/15/21..................................... 1,000
2 Series 1068, Class 1068-R,
04/15/21..................................... 1,667,086
2 Series 1068, Class 1068-RS,
04/15/21..................................... 1,000
2 Series 1073, Class 1073-R,
05/15/21..................................... 1,237,500

(Right column)
--------------------------------------------------------------------------------
Principal
Amount Value
(000) Description (Note 1)
--------------------------------------------------------------------------------
Collateralized Mortgage
Obligation Residuals
$ 2 Series 1073, Class 1073-RS,
05/15/21..................................... $ 1,000
4 Series 1075, Class 1075-R,
05/15/21..................................... 2,002,988
102 Series 1102, Class 1102-R,
06/21/95..................................... 1,009,988
Federal National Mortgage
Association, REMIC Pass-
Through Certificates,
10 Trust 1989-64, Class 64-R,
10/25/19..................................... 750,000
2 Trust 1991-9, Class 9-R,
02/25/06..................................... 940,500
2 Trust 1991-9, Class 9-RL,
02/25/06..................................... 1,000
3 Trust 1991-48, Class 48-R,
05/25/06..................................... 2,683,500
3 Trust 1991-48, Class 48-RL,
05/25/06..................................... 1,000
28 Trust 1991-50, Class 50-R,
05/25/06..................................... 755,506
1,214 Ryland Acceptance Corp,
Collateralized Mortgage
Bond Series 83, 10/01/18..................... 66,250
13 SLCMO, Series U, Class U-6,
12/27/18*.................................... 204,979
------------
17,433,624
------------
Taxable Zero Coupon
Bonds-41.9%
Financing Corp (FICO Strips),
6,339 02/08/02................................... 4,187,353
18,000 03/07/02................................... 11,836,440
6,754 03/26/02................................... 4,424,275
12,950\d\d 04/06/02................................... 8,487,689
3,667 05/02/02................................... 2,392,607
9,425 06/27/02................................... 6,094,205
5,311 08/08/02................................... 3,393,941
5,400 09/09/02................................... 3,435,102
4,472 09/26/02................................... 2,833,817
2,992 10/06/02................................... 1,888,012
3,667 11/02/02................................... 2,303,353
4,535 11/11/02................................... 2,845,576
3,616 12/06/02................................... 2,258,951
29,300\d 12/27/02................................... 18,236,613

See Notes to Financial Statements.
6
<PAGE>
(left column)

--------------------------------------------------------------------------------
Principal
Amount Value
(000) Description (Note 1)
--------------------------------------------------------------------------------
Taxable Zero Coupon Bonds (con't)
Financing Corp (FICO Strips)
$ 6,848 02/03/03..................................... $ 4,199,013
6,311 02/08/03..................................... 3,865,123
10,117 03/07/03..................................... 6,166,817
11,647 04/05/03..................................... 7,053,190
9,632 05/02/03..................................... 5,801,643
2,500 06/06/03..................................... 1,497,450
5,000 06/27/03..................................... 2,983,600
5,311 08/08/03..................................... 3,140,501
7,545\d\d 11/02/03..................................... 4,389,153
3,214 12/06/03..................................... 1,859,235
4,033 05/02/04..................................... 2,259,448
7,545\d\d 11/02/06..................................... 3,498,239
Aid to Israel,
2,932 02/15/02..................................... 1,891,950
2,932 08/15/02..................................... 1,871,924
2,932 02/15/03..................................... 1,806,009
2,932 08/15/03..................................... 1,743,340
2,932 02/15/04..................................... 1,682,817
7,716 08/15/04..................................... 4,269,628
Government Trust Certificates,
5,880 11/15/01..................................... 3,975,880
15,350 05/15/02..................................... 10,041,203
25,000 11/15/02..................................... 15,754,250
14,966 05/15/03..................................... 9,101,573
Certificates on Government Receipts,
7,505 05/15/03, Series 1........................... 4,560,638
7,600 05/15/03, Series 2........................... 4,618,368
15,425 Tennessee Valley Authority
04/15/02..................................... 10,101,524
33,000\d U.S. Treasury Strip, 08/15/02.................. 21,330,210
280\d U.S. Treasury Strip, 05/15/04.................. 160,925
------------
214,241,585
------------
United States Government Securities-7.3%
United States Treasury Notes,
20 7.500%, 02/15/05............................. 21,778
33,000\d\d 6.125%, 05/31/97............................. 33,170,280
4,000 6.250%, 05/31/00............................. 4,042,480
------------
37,234,538
------------
Stripped Mortgage-Backed Securities-2.4%
Federal National Mortgage
Association,
4,950 Trust 11, Class 2, 2/1/17 (I/O).............. 1,204,962
17,064 Trust 19, Class 2, 6/1/17 (I/O).............. 4,356,597
11,743 Trust 22, Class 2,
11/1/16 (I/O)................................ 3,086,297

(Right column)

--------------------------------------------------------------------------------
Principal
Amount Value
(000) Description (Note 1)
--------------------------------------------------------------------------------
Stripped Mortgage-Backed Securities
Federal National Mortgage Assocation,
$ 2,077 Trust 1993-G35,
Class N, 11/25/23 (P/O)...................... $ 859,401
2,103 Trust 225, Class 1,
06/01/23 (P/O)............................... 1,640,508
Federal Home Loan Mortgage Corporation,
5,206 Series 39, Class J,
3/25/24 (I/O)................................ 999,955
1,513 Salomon Brothers Mortgage
Securities, Series 87-3,
Class B, 10/23/17 (I/O)...................... 468,693
------------
12,616,413
------------
Asset-Backed Securities-0.7%
3,441 Fleetwood Credit Corp.,
Series 1991, Class A
2/15/06...................................... 3,515,679
------------
Municipal Bond-4.7%
18,150 Los Angeles County California,
Pension Series A 8.30%,
06/30/02 (MBIA Insured)...................... 19,699,466
5,000 New York State Power
Authority, 5.25%, 01/01/18................... 4,505,950
------------
24,205,416
------------
Corporate Bonds-5.5%
7,500 Hydro Quebec, A+,@
8.05%, 07/07/24.............................. 8,148,900
2,190 Paine Webber Group Inc., BBB+,@
7.875%, 02/15/03............................. 2,223,113
Smith Barney Holdings Inc., A3+,@
3,000 6.625%, 06/01/00............................. 2,974,020
4,500 7.98%, 03/01/00.............................. 4,721,175
1,500 7.00%, 05/15/00.............................. 1,516,650
8,500 Transamerica Finance, A,@
Corporation 6.75%, 06/01/00.................. 8,568,481
------------
28,152,339
------------
Total investments before
securities sold short-149.8%
(Cost $764,494,455)
(See Note 3)................................. 766,785,079
------------

See Notes to Financial Statements.
7

<PAGE>
(Left column)

--------------------------------------------------------------------------------
Principal
Amount Value
(000) Description (Note 1)
--------------------------------------------------------------------------------
Securities Sold Short-(15.1%)
$66,500 U.S. Treasury Note........................... $(73,576,265)
3,525 U.S. Treasury Note........................... (3,981,029)
------------
Total securities sold short
(proceeds $65,619,402)..................... (77,557,294)
------------
Total investments net of
short sales-134.7%
(cost $698,875,053)........................ 689,227,785
Liabilities in excess of other
assets-(34.7%)............................. (177,518,558)
------------
NET ASSETS 100%.............................. $511,709,227
============
(Right column)

* Private placement restricted as to resale. See Note 3.
** Illiquid securities representing 2.0% of portfolio assets. See Note 3.
\d Partial principal amount pledged as collateral for reverse repurchase
agreements, See Note 4.
\d\d Entire principal amount pledged as collateral for reverse repurchase
agreements, See Note 4.
+ Amount pledged as collateral for Financial Futures.
@ Using the higher of Standard & Poor's or Moody's rating.

----------------------------------------------------------------------
Key to Abbreviations
ARM - Adjustable Rate Mortgage
CMO - Collateralized Mortgage Obligation.
CMT - Contstant Maturity Treasury
MBIA - Municipal Bond Insurance Association.
P/O - Principal Only Class.
P - Denotes a CMO with Principal Only Characteristics.
I/O - Interest Only Class.
I - Denotes a CMO with Interest Only Characteristics
REMIC - Real Estate Mortgage Investment Conduit.
---------------------------------------------------------------------

See Notes to Financial Statements.

<PAGE>
(Left column)

-----------------------------------------------------------
The BlackRock Strategic Term Trust Inc.
Statement of Assets and Liabilities
June 30, 1995
(Unaudited)
-----------------------------------------------------------

Assets
Investments, at value
(cost $764,494,455) (Note 1)............... $766,785,079
Cash......................................... 2,227,393
Receivable for investments sold.............. 6,936
Interest receivable.......................... 5,961,268
Deposits with brokers for investments
sold short (Note 1)........................ 79,103,000
Receivable for variation margin.............. 217,311
Deferred organization expenses (Note 1)...... 6,853
Prepaid expenses and other receivables....... 29,636
------------
854,337,476
------------
Liabilities
Reverse repurchase agreement (Note 4........ 227,974,250
Payable for investments purchased........... 13,570,452
Payable for dollar rolls (Note 4)........... 20,150,000
Investment sold short, at value
(proceeds $65,619,402) (Note 1)........... 77,557,294
Advisory fee payable (Note 2)............... 151,403
Interest payable............................ 1,527,859
Administration fee payable (Note 2)......... 97,929
Other accrued expenses and liabilities...... 1,599,062
------------
342,628,249
------------
Net Assets.................................. $511,709,227
============
Net assets were comprised of:
Common stock, at par (Note 5)............. $ 575,106
Paid-in capital in excess of par.......... 535,942,670
------------
536,517,776
Undistributed net investment income....... 245,784
Accumulated net realized losses........... (15,344,121)
Net unrealized depreciation............... (9,710,212)
------------
Net assets, June 30, 1995................. $511,709,227
============
Net asset value per share:
($511,709,227 / 57,510,639 shares of
common stock issued and outstanding)...... $8.90
=====

(Right column)

-----------------------------------------------------------
The BlackRock Strategic Term Trust Inc.
Statement of Operations
Six Months Ended June 30, 1995
(Unaudited)
-----------------------------------------------------------

Net Investment Income
Income
Interest (including net accretion of
discount of $3,921,149 and net of
interest expense of $10,446,649)......... $20,399,554
-----------
Expenses
Investment advisory........................ 1,076,777
Administration............................. 297,976
Reports to shareholders.................... 227,801
Custodian.................................. 157,782
Transfer agent............................. 70,741
Audit...................................... 59,910
Directors.................................. 51,442
Registration............................... 15,207
Legal...................................... 5,957
Miscellaneous.............................. 219,252
-----------
Total operating expenses............... 2,182,845
-----------
Net investment income........................ 18,216,709
-----------
Realized and Unrealized Gain (Loss) on
Investments (Note 3)
Net Realized gain (loss) on:
Investments............................... (3,288,352)
Short Sales............................... (1,701,172)
Futures................................... 566,559
-----------
(4,422,965)
-----------
Change in net unrealized depreciation on:
Investments............................... 57,676,183
Short Sales............................... (8,867,830)
Futures................................... (46,909)
-----------
48,761,444
-----------
Net gain on investments..................... 44,338,479
-----------
Net Increase in Net Assets Resulting
from Operations........................... $62,555,188
===========

See Notes to Financial Statements.

<PAGE>

--------------------------------------------------------------------------------
The BlackRock Strategic Term Trust Inc.
Statement of Cash Flows
June 30, 1995
(Unaudited)
--------------------------------------------------------------------------------

Increase (Decrease) in Cash
Cash Flows used for operating activities:
Interest received (excluding net discount
amortization of $3,921,149) ............................... $ 25,288,935
Operating expenses paid ..................................... (1,317,235)
Interest expenses paid (10,795,919)
Proceeds from disposition of short-term
portfolio investments, net ................................ 755,000
Variation margin on futures ................................. 302,339
Purchase of long term portfolio investments ................. (505,784,892)
Proceeds from disposition of long-term
portfolio investments ..................................... 467,990,410
------------
Net cash flows used for operating
activities ................................................ (23,561,362)
------------
Cash flows provided by financing activities:
Net proceeds from issuance of reverse
repurchase agreements ..................................... 43,302,537
Cash dividends paid ......................................... (17,970,924)
------------
Net cash provided by financing activities ................... 25,331,613
------------
Net increase in cash .......................................... 1,770,251
Cash at beginning of period ................................... 457,142
------------
Cash at end of period ......................................... $ 2,227,393
============

Reconciliation of Net Increase in Net Assets
Resulting from Operations to Net Cash
Flows Provided by Operating Activities
Net increase in net assets resulting
from operations ............................................. $ 62,555,188
------------
Increase in investments ....................................... (47,397,754)
Net realized loss ............................................. 4,422,965
Decrease in unrealized depreciation ........................... (48,761,444)
Decrease in receivable for investments sold ................... 13,410,493
Increase in receivable for variation margin ................... (170,127)
Increase in interest receivable ............................... (1,636,119)
Decrease in other assets ...................................... 87,999
Decrease in payable for investments purchased ................. (14,914,303)
Increase in payable for dollar rolls .......................... 8,527,106
Decrease in deposits with brokers
for short sales ............................................. 17,897,000
Decrease in payable for securities sold short ................. (18,098,706)
Decrease in interest payable .................................. (349,270)
Increase in accrued expenses and
other liabilities ........................................... 865,610
------------
Total adjustments ............................................. (86,116,550)
------------
Net cash flows used for operating activities .................. $(23,561,362)
============
See Notes to Financial Statements.

(Right Column)

--------------------------------------------------------------------------------
The BlackRock Strategic Term Trust Inc.
Statements of Changes
in Net Assets
(Unaudited)
--------------------------------------------------------------------------------
For the Six For the Year
Months ended ended
June 30, December 31,
1995 1994
------------ ------------
Increase (Decrease) in Net Assets
Operations:
Net investment income $ 18,216,709 $ 26,212,175

Net realized (loss) gain on
investments, futures
and short sales (4,422,965) 7,758,771

Net change in unrealized
appreciation/
(depreciation) on
investments, futures and
short sales 48,761,444 (69,246,889)
------------ ------------
Net increase (decrease) in
net assets resulting from
operations 62,555,188 (35,275,943)
Dividends from net
investment income (17,970,924) (27,981,892)

Distribution in excess of net
investment income - (8,082,454)
------------ ------------
Total increase
(decrease) 44,584,264 (71,340,289)

Net Assets
Beginning of year 467,124,963 538,465,252
------------ ------------
End of year $511,709,227 $467,124,963
============ ============

See Notes to Financial Statements.

10
<PAGE>

--------------------------------------------------------------------------------
The BlackRock Strategic Term Trust Inc.
Financial Highlights
(Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
December 28,
Six Months Year Year Year One Month 1990**
Ended Ended Ended Ended Ended through
June 30, December 31, December 31, December 31, December 31, November 30,
1995 1994 1993 1992 1991 1991
------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ........... $ 8.12 $ 9.36 $ 9.76 $10.13 $ 9.94 $ 9.40
------ ------ ------ ------ ------ ------
Net investment income (net interest
expense of $.18, $.19, $.12, $.17,
$.02 and $.07, respectively) ............... .32 .46 .82 .82 .09 .98
Net realized and unrealized gain (loss)
on investments ............................. .77 (1.07) (.39) (.29) .26 .39
------ ------ ------ ------ ------ ------
Net increase (decrease) from
investment operations ........................ 1.09 (.61) .43 .53 .35 1.37
Dividends from net investment income ......... (.31) (.49) (.83) (.90) (.16) (.81)
Distribution in excess of net
investment income .......................... - (.14) - - - -
Capital charge with respect of issuance
of shares .................................. - - - - - (.02)
------ ------ ------ ------ ------ ------
Net asset value, end of period* ................ $ 8.90 $ 8.12 $ 9.36 $ 9.76 $10.13 $ 9.94#
====== ====== ====== ====== ====== ======
Market value, end of period* ................... $ 7.50 $ 7.125 $ 9.75 $ 9.875 $10.625 $10.375@
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(D): .................... 9.16% (20.28%) 7.24% 1.29% 3.96% 19.30%
====== ====== ====== ====== ====== ======
RATIOS TO AVERAGE NET ASSETS:
Operating Expenses ............................. .90% .98% .93% .89% 1.35%(D)(D) .92%(D)(D)
Net Investment Income .......................... 7.51% 5.32% 8.40% 8.32% 11.06%(D)(D) 11.14%(D)(D)
SUPPLEMENTAL DATA:
Average net assets (000) ....................... $488,051 $491,747 $560,543 $568,959 $575,792 $548,431
Portfolio turnover rate ........................ 64% 133% 94% 18% 0% 199%
Net assets, end of period (000) ................ $511,709 $467,125 $538,465 $561,407 $582,514 $571,615
Reverse repurchase agreements outstanding,
end of period (000) .......................... $227,974 $184,672 $175,569 $249,768 $269,867 $273,788
Asset coverage(D)(D)(D) ........................ $ 3,245 $ 3,529 $ 4,067 $ 3,248 $ 3,159 $ 3,088

<FN>
--------------
*NAV and market value published in The Wall Street Journal each Monday.
**Commencement of investment operations.
***The ratios of operating expenses, including excise tax, if applicable,
to average net assets, were 0.90%, 0.98%, 0.93%, 0.92%, 1.38% and 0.92%
for the periods indicated above, respectively.
@Restated to conform to the 1993 presentation.
#Net asset value immediately after the closing of the first public
offering was $9.38.
(D)Total investment return is calculated assuming a purchase of common
stock at the current market value on the first day and a sale at the
current market value on the last day of each period reported. Dividends
and distributions, if any, are assumed for purposes of this calculation
to be reinvested at prices obtained under the Trust's dividend
reinvestment plan. Total investment return does not reflect brokerage
commissions. Total investment return for periods of less than one full
year are not annualized.
(D)(D)Annualized and 1991 is restated to conform with 1992 presentation.
(D)(D)(D)Per $1,000 of reverse repurchase agreements outstanding.
</FN>
</TABLE>

Contained above is the unaudited operating performance 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
determined based upon financial information provided in the financial statements
and market value data for the Trust's shares.

See Notes to Financial Statements.

<PAGE>

--------------------------------------------------------------------------------
The BlackRock Strategic Term Trust Inc.
Notes to Financial Statements
--------------------------------------------------------------------------------

(Left Column)

Note 1. Accounting
Policies

The BlackRock Strategic Term Trust Inc., (the "Trust") a Maryland corporation,
is a diversified, closed-end management investment company. The investment
objective of the Trust is to manage a portfolio of investment grade fixed income
securities that will return at least $10 per share to investors on or about
December 31, 2002, while providing high monthly income. The ability of issuers
of debt securities held by the Trust to meet their obligations may be affected
by economic developments in a specific industry or region. No assurance can be
given that the Trust's investment objective will be achieved.

The following is a summary of significant accounting policies followed by the
Trust:

Securities Valuation: The Trust values mortgage-backed, asset-backed, municipal
and other debt securities on the basis of current market quotations provided by
dealers or pricing services, approved by the Trust's Board of Directors. In
determining the value of a particular security, pricing services may use certain
information with respect to transactions in such securities, quotations from
dealers, market transactions in comparable securities, various relationships
observed in the market between securities, and calculated yield measures based
on valuation technology commonly employed in the market for such securities.
Exchange-traded options are valued at their last sales price as of the close of
options trading on applicable exchanges. In the absence of a last sale, options
are valued at the average of the quoted bid and asked prices as of the close of
business. A futures contract is valued at the last sale price as of the close of
the commodities exchange on which it trades unless the Trust's Board of
Directors determines that such price does not reflect its fair value, in which
case it will be valued at its fair value as determined by the Trust's Board of
Directors. Any securities or other assets for which such current market
quotations are not readily available are valued at fair market value as
determined in good faith under procedures established by and under the general
supervision and responsibility of the Trust's Board of Directors.

Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost, if their term to maturity from date of purchase was 60
days or less, or by amortizing their value on the 61st day prior to maturity, if
their original term to maturity from date of purchase exceeded 60 days.

(Right Column)

In connection with transactions in repurchase agreements, the Trust's
custodian takes possession of the underlying collateral securities, the value of
which at least equals the principal amount of the repurchase agreement,
including accrued interest. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is marked-to-market on a
daily basis to ensure the adequacy of the collateral. If the seller defaults and
the value of the collateral declines or if bankruptcy proceedings are commenced
with respect to the seller of the security, realization of the collateral by the
Trust may be delayed or limited.

Option Selling/Purchasing: When the Trust sells or purchases an option, an
amount equal to the premium received or paid by the Trust is recorded as a
liability or an asset and is subsequently adjusted to the current market value
of the option written or purchased. Premiums received or paid from writing or
purchasing options which expire unexercised are treated by the Trust on the
expiration date as realized gains or losses. The difference between the premium
and the amount paid or received on effecting a closing purchase or sale
transaction, including brokerage commissions, is also treated as a realized gain
or loss. If an option is exercised, the premium paid or received is added to the
proceeds from the sale or cost of the purchase in determining whether the Trust
has realized a gain or a loss on investment transactions. The Trust, as a writer
of an option, may have no control over whether the underlying securities may be
sold (call) or purchased (put) and as a result bears the market risk of an
unfavorable change in the price of the security underlying the written option.

Financial Futures Contracts: A futures contract is an agreement between two
parties to buy or sell a financial instrument for a set price on a future date.
Initial margin deposits are made upon entering into futures contracts and can be
either cash or securities. During the period that the futures contract is open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking-to-market" on a daily basis to reflect the market value of
the contract at the end of each day's trading. Variation margin payments are
made or received, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Trust records a realized gain or loss
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Trust's basis in the contract.

<PAGE>

(Left Column)

Financial futures contracts, when used by the Trust, to help in maintaining a
targeted duration. Duration is a measure of the price sensitivity of a security
or a portfolio to relative changes in interest rates. For instance, a duration
of "one" means that a portfolio's or a security's price would be expected to
change by approximately one percent with a one percent change in interest rates,
while a duration of "five" would imply that the price would move approximately
five percent in relation to a one percent change in interest rates. Futures
contracts can be sold to effectively shorten an otherwise longer duration
portfolio. In the same sense, futures contracts can be purchased to lengthen a
portfolio that is shorter than its duration target. Thus, by buying or selling
futures contracts, the Trust can effectively "hedge" more volatile positions so
that changes in interest rates do not change the duration of the portfolio
unexpectedly.

The Trust may invest in financial futures contracts primarily for the purpose
of hedging its existing portfolio securities or securities the Trust intends to
purchase against fluctuations in value caused by changes in prevailing market
interest rates. Should interest rates move unexpectedly, the Trust may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss. The use of futures transactions involves the risk of imperfect
correlation in movements in the price of futures contracts, interest rates and
the underlying hedged assets. The Trust is also at risk of not being able to
enter into a closing transaction for the futures contract because of an illiquid
secondary market. In addition, since futures are used to shorten or lengthen a
portfolio's duration, there is a risk that the portfolio may have temporarily
performed better without the hedge or that the Trust may lose the opportunity to
realize appreciation in the market price of the underlying positions.

Securities Lending: The Trust may lend its portfolio securities to qualified
institutions. The loans are secured by collateral at least equal, at all times,
to the market value of the securities loaned. The Trust may bear the risk of
delay in recovery of, or even loss of rights in, the securities loaned should
the borrower of the securities fail financially. The Trust receives compensation
for lending its securities in the form of interest on the loan. The Trust also
continues to receive interest on the securities loaned, and any gain or loss in
the market price of the securities loaned, that may occur during the term of the
loan will be for the account of the Trust. The Trust did not engage in
securities lending during the six months ending June 30, 1995.

Short Sales: The Trust may make short sales of securities as a method of hedging
potential price declines in similar

(Right Column)

securities owned. To complete a short sale, the Trust may arrange through a
broker to borrow the securities to be delivered to the buyer. The proceeds
received by the Trust from the short sale are retained by the broker until the
Trust replaces the borrowed securities. In borrowing the securities to be
delivered to the buyer, the Trust becomes obligated to replace the securities
borrowed at their market price at the time of the replacement, whatever that
price may be. A gain, limited to the price at which the Trust sold the security
short, or a loss, unlimited as to dollar amount, will be recognized upon the
termination of a short sale if the market price is greater or less than the
proceeds originally received.

Securities Transactions and Investment Income: Security transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis, and the Trust accretes discount and amortizes premium on
securities purchased using the interest method.

Taxes: It is the Trust's intention to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
sufficient amounts of its taxable income to shareholders. Therefore, no federal
tax provision is required. As part of the tax planning strategy the Trust may
retain a portion of its taxable income and pay an excise tax on the
undistributed amount.

Dividends and Distributions: The Trust declares and pays dividends and
distributions monthly first from net investment income, then from realized
short-term capital gains and other sources, if necessary. Net long-term capital
gains, if any, in excess of loss carryforwards, may be distributed annually.
Dividends and distributions are recorded on the ex-dividend date.

Deferred Organization Expenses: A total of $67,520 was incurred in connection
with the organization of the Trust. These costs have been deferred and are being
amortized ratably over a period of sixty months from the date the Trust
commenced operations.

Note 2. Agreements

The Trust has an Investment Advisory Agreement with BlackRock Financial
Management, Inc., (the "Adviser") and an Administration Agreement with Dean
Witter InterCapital Inc. ("DWI").

The investment advisory fee paid to the Adviser is computed weekly and payable
monthly at an annual rate of 0.45% from January 1, 1995 through December 31,
1998 and 0.30% from January 1, 1999 to the termination or

<PAGE>

(Left Column)

liquidation of the Trust. The administration fee paid to DWI is also computed
weekly and payable monthly at an annual rate of 0.125% from January 1, 1995
through December 31, 1998 and 0.10% from January 1, 1999 to the termination of
the Trust.

Pursuant to the agreements, the Adviser provides continuous supervision of the
investment portfolio and pays the compensation of officers of the Trust who are
affiliated persons of the Adviser. DWI pays occupancy and certain clerical and
accounting costs of the Trust. The Trust bears all other costs and expenses.

On February 28, 1995, the Adviser was acquired by PNC Bank, N.A. Following the
acquisition, the Adviser has become a wholly-owned corporate subsidiary of PNC
Asset Management Group, Inc., the holding company for PNC's asset management
business.

Note 3. Portfolio
Securities

Purchases and sales of investment securities, other than short-term investments
and dollar rolls, for the six months ended June 30, 1995 aggregated $498,532,161
and $459,658,400 respectively.

The Trust may invest up to 60% of its total assets in securities which are not
readily marketable, including those which are restricted as to disposition under
securities law ("restricted securities"). At June 30, 1995, the Trust held 2.0%
of its portfolio assets in illiquid securities including .2% of its portfolio
assets in securities restricted as to resale.

The federal income tax basis of the Trust's investments at June 30, 1995 was
substantially the same as the basis for financial reporting, and, accordingly,
net unrealized depreciation for federal income tax purposes was $9,710,212
(gross unrealized appreciation-$31,485,603; gross unrealized
depreciation-$41,195,815).

For federal income tax purposes the Trust has a capital loss carryforward of
$10,921,157 which expires in 2002.

During the six months ended June 30, 1995, the Trust entered into financial
futures contracts. Details of open contracts at June 30, 1995 are as follows:

(Right Column)

Value at Value at Unrealized
Number of Expiration Trade June 30, Appreciation/
Contracts Type Date Date 1995 (Depreciation)
--------- ---- ---------- -------- ------- --------------
<S> <C> <C> <C> <C> <C>
700,000 Long
positions: Sept.
5 Yr. 1995 75,267,294 75,140,625 $(126,669)

Short
position: Sept.
73,000 30 Yr. 1995 8,340,957 8,287,781 53,176
--------
$(73,493)
========
</TABLE>

Note 4. Borrowings

Reverse Repurchase Agreements: The Trust may enter into reverse repurchase
agreements with qualified, third party broker-dealers as determined by and under
the direction of the Trust's board of directors. Interest on the value of the
reverse repurchase agreements issued and outstanding will be based upon
competitive market rates at the time of issuance. At the time the Trust enters
into a reverse repurchase agreement, it will establish and maintain a segregated
account with the lender containing liquid high grade securities having a value
not less then the repurchase price, including accrued interest, of the reverse
repurchase agreement.

The average monthly balance of reverse repurchase agreements outstanding
during the six months ended June 30, 1995 was $229,288,000 at a weighted average
interest rate of approximately 6.19%. The maximum amount of repurchase
agreements outstanding at any month-end during the six months was $240,625,000
as of May 31, 1995 which was 24.55% of total assets. The amount of reverse
repurchase agreements outstanding at June 30, 1995 was $227,974,250, which was
26.68% of total assets.

Dollar Rolls: The Trust may enter into dollar rolls in which the Trust sells
securities for delivery in the current month and simultaneously contracts to
repurchase substantially similar (same type, coupon and maturity) securities on
a specified future date. During the roll period the Trust forgoes principal and
interest paid on the securities. The Trust will be compensated by the interest
earned on the cash proceeds of the initial sale and the lower repurchase price
at the future date.

The average monthly balance of dollar rolls outstanding during the six months
ended June 30, 1995 was approximately $15,955,000. The maximum amount of dollar
rolls outstanding at any month end during the period was $20,150,000 as of June
30, 1995 which was 2.4% of total assets.

Note 5. Capital

There are 200 million shares of $.01 par value common stock authorized. Of the
57,510,639 shares outstanding at June 30, 1995 the adviser owned 10,639 shares.

<PAGE>

Note 6. Dividends
and Distributions

On June 29, 1995, the Board of Directors of the Trust declared dividends from
undistributed earnings of $.04167 per share payable July 31, 1995 to
shareholders of record on July 14, 1995.

Note 7. Quarterly Data
(Unaudited)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized Net increase
gains (losses) (decrease)
on investments, in net assets
Net investment (futures) resulting from Dividends and Period end
Quarterly Total income and short sales operations Distributions Share price net asset
period income Amount Per share Amount Per share Amount Per share Amount Per share High Low value
------- -------- ---------------- -------------------- ----------------- ---------------- ------------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>

January 1,
1993 to
March 31,
1993 ...... 16,358,703 15,078,204 .26 (11,338,545) (.20) 3,739,659 .06 7,907,713 .14 101/8 93/4 9.74
April 1,
1993 to
June 30,
1993 ...... 12,538,563 11,223,360 .19 7,818,795 .14 19,042,155 .33 11,861,569 .20 10 95/8 9.81
July 1,
1993 to
September 30,
1993 ...... 19,208,346 17,908,214 .31 (4,567,999) (.08) 13,340,215 .24 11,861,569 .20 101/8 91/2 9.84
October 1,
1993 to
December 31,
1993 ...... 4,182,615 2,888,163 .05 (14,505,543) (.25) (11,617,380) (.20) 15,815,426 .29 10 95/8 9.36
January 1,
1994 to
March 31,
1994 ...... 7,559,790 6,303,137 .11 (36,882,912) (.64) (30,579,775) (.53) 7,308,452 .13 93/4 8 8.68
April 1,
1994 to
June 30,
1994 ...... 8,055,506 6,819,246 .12 (11,925,912) (.21) (5,106,666) (.09) 10,063,787 .17 85/8 73/4 8.44
July 1,
1994 to
September 30,
1994 ...... 14,945,849 6,719,851 .12 (4,901,424) (.08) 1,818,427 (.04) 9,705,495 .17 81/8 71/8 8.30
October 1,
1994 to
December 31,
1994 ...... 491,880 6,369,941 .11 (7,777,870) (.14) (1,407,929) (.03) 8,986,612 .16 73/8 65/8 8.12
January 1,
1995 to
March 31,
1995 ...... 11,217,003 0,207,637 .18 25,752,043 .45 35,959,680 .63 8,985,462 .16 75/8 71/8 8.46
April 1,
1995 to
June 30,
1995 ...... 9,182,551 8,009,072 .14 18,586,436 .32 26,595,508 .46 8,985,462 .15 81/8 79/16 8.90
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK STRATEGIC TERM TRUST INC.
DIVIDEND REINVESTMENT PLAN
--------------------------------------------------------------------------------

Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"), shareholders
may elect to have all distributions of dividends and capital gains automatically
reinvested by Dean Witter Trust Company (the "Agent") in Trust Shares pursuant
to the Plan. Shareholders who do not participate in the Plan will receive all
distributions in cash paid by check in United States dollars mailed directly to
the shareholders of record (or if the shares are held in street or other nominee
name, then to the nominee) by the Custodian, as dividend disbursing agent.

The Plan Agent serves as agent for the shareholders in administering the Plan.
After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange, for the participants' accounts. The Trust will not issue shares
under the Plan.

Participants in the Plan may withdraw from the Plan upon written notice to the
Plan Agent and will receive certificates for whole Trust shares and a cash
payment will be made for any fraction of a Trust share.

The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust.

However, each participant will pay a pro rata share of brokerage commissions
incurred with respect to the Plan Agent's open market purchases in connection
with the reinvestment of dividends and distributions. The automatic reinvestment
of dividends and distributions will not relieve participants of any federal
income tax that may be payable on such dividends or distributions.

Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
change sent to all shareholders of the Trust at least 90 days before the record
date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent upon at least 90 days' written notice to all
shareholders of the Trust. All correspondence concerning the Plan should be
directed to the Plan Agent at (800) 576-3143 or BlackRock Financial Management
at (800) 227-7BFM. The addresses are on the front of this report.

--------------------------------------------------------------------------------
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------

There have been no material changes in the Trust's investment objectives or
policies that have not been approved by the shareholders, or to its charter or
by-laws, or in the principal risk factors associated with investment in the
Trust. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trust's portfolio.

At a Special Meeting of Trust Shareholders held on February 15, 1995, the
Shareholders approved the advisory agreement with BlackRock Financial
Management, Inc. The result of the voting is as follows:

Votes For 39,875,914 Votes Against 443,642 Votes Withheld 899,354

The Annual Meeting of Trust Shareholders was held May 16, 1995 to vote on
the following matters:

(1) To broaden the Trust's investment objective to permit investment grade
securities while continuing to maintain the investment objectives of
returning the initial offering price per share on or about the
termination date of the Trust and providing high monthly income.

<PAGE>

(2) To elect three Directors to serve as follows:

Director Class Term Expiring
-------- ----- ---- --------
James Grosfeld ............... I 3 years 1998
James Clayburn La Force, Jr. . I 3 years 1998
Richard E. Cavanagh .......... I 3 years 1998

Directors whose term of office continues beyond this meeting are
Laurence D. Fink, Ralph Schlosstein, Kent Dixon, Andrew F. Brimmer and
Frank J. Fabozzi.

(3) To ratify the selection of Deloitte & Touche LLP as independent public
accountants for the Trust for the fiscal year ending December 31, 1995.

Shareholders approved the broadening of the investment objectives, elected
the three Directors and ratified the selection of Deloitte & Touche LLP. The
results of the voting was as follows:

Votes For Votes Against Votes Withheld
--------- ------------- --------------
<S> <C> <C> <C>
Broadening of Investment Objectives .... 29,930,598 909,599 950,974
James Grosfeld ......................... 31,188,714 - 602,457
James Clayburn La Force, Jr. ........... 31,172,933 - 618,238
Richard E. Cavanagh .................... 31,184,030 - 607,141

Ratification of Deloitte & Touche LLP .. 30,372,227 447,577 971,367
</TABLE>

<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK STRATEGIC TERM TRUST INC.
INVESTMENT SUMMARY
--------------------------------------------------------------------------------

The Trust's Investment Objective

The Trust's investment objective is to manage a portfolio of investment grade
fixed income securities that will return at least $10 per share (the initial
public offering price per share) to investors on or shortly before December 31,
2002 while providing high monthly income.

Who Manages the Trust?

BlackRock Financial Management, Inc. (BlackRock or the Adviser) is the
investment adviser for the Trust. BlackRock is a registered investment adviser
specializing in fixed income securities. Currently, BlackRock manages over $32
billion of assets across the government, mortgage, corporate and municipal
sectors. These assets are managed on behalf of institutional and individual
investors in 21 closed-end funds, several open-end funds and separate accounts
for more than 80 clients in the U.S. and overseas. BlackRock is a subsidiary of
PNC Asset Management Group, Inc. which is a division of PNC Bank, the nation's
twelfth largest banking organization.

What Can the Trust Invest In?

The Trust may invest in all fixed income securities rated investment grade or
higher ("AAA", "AA", "A" or "BBB"). Examples of securities in which the Trust
may invest include U.S. government and government agency securities, zero coupon
securities, mortgage-backed securities, corporate debt securities, asset-backed
securities, U.S. dollar-denominated foreign debt securities and municipal
securities. Under current market conditions, BlackRock expects that the primary
investments of the Trust will be U.S. government securities, securities backed
by government agencies (such as mortgage-backed securities) and corporate debt
securities. What is the Adviser's Investment Strategy? The Adviser will seek to
meet the Trust's investment objective by managing the assets of the Trust so as
to return the initial offering price ($10 per share) at maturity. The Trust will
implement a conservative strategy that will seek to closely match the maturity
of the assets of the portfolio with the future return of the initial investment
at the end of 2002. At the Trust's termination, BlackRock expects that the value
of the securities which have matured, combined with the value of the securities
that are sold and the value of securities that are purchased, if any, will be
sufficient to return the initial offering price to investors. On a continuous
basis, the Trust will seek its objective by actively managing its assets in
relation to market conditions, interest rate changes and, importantly, the
remaining term to maturity of the Trust.

In addition to seeking the return of the initial offering price, the Adviser
also seeks to provide high monthly income to investors. The portfolio managers
will attempt to achieve this objective by investing in securities that provide
competitive income. In addition, leverage will be used (in an amount up to
33-1/3% of total assets) to enhance the income of the portfolio. In order to
maintain competitive yields as the Trust approaches maturity and depending on
market conditions, the Adviser will attempt to purchase securities with call
protection or maturities as close to the Trust's maturity date as possible.
Securities with call protection should provide the portfolio with some degree of
protection against reinvestment risk during times of lower prevailing interest
rates. Since the Trust's primary goal is to return the initial offering price at
maturity, any cash that the Trust receives prior to its maturity date (i.e. cash
from early and regularly scheduled payments of principal on mortgage-backed
securities) will be reinvested in securities with maturities which coincide with
the remaining term of the Trust. Since shorter-term securities typically yield
less than longer-term securities, this strategy will likely result in a decline
in the Trust's income over time. However, the Adviser will attempt to maintain a
yield which is competitive with a comparable maturity Treasury at the same point
in the yield curve (i.e. if the Trust has three years left until its maturity,
the Adviser will attempt to maintain a yield at a spread over a 3-year
Treasury). It is important to note that the Trust will be managed so as to
preserve the integrity of the return of the initial offering price.

<PAGE>

How Are the Trust's Shares Purchased and Sold? Does the Trust Pay Dividends
Regularly?

The Trust's shares are traded on the New York Stock Exchange which provides
investors with liquidity on a daily basis. Orders to buy or sell shares of the
Trust must be placed through a registered broker or financial advisor. The Trust
pays monthly dividends which are typically paid on the last business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the fund through the Trust's transfer agent, Dean Witter
Trust Company. Investors who wish to hold shares in a brokerage account should
check with their financial advisor to determine whether their brokerage firm
offers dividend reinvestment services.

Leverage Considerations in a Term Trust

Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the use of reverse
repurchase agreements and dollar rolls. Leverage permits the Trust to borrow
money at short-term rates and reinvest that money in longer-term assets which
typically offer higher interest rates. The difference between the cost of the
borrowed funds and the income earned on the proceeds that are invested in longer
term assets is the benefit to the Trust from leverage. In general, the portfolio
is typically leveraged at approximately 33-1/3% of total assets.

Leverage also increases the duration (or price volatility of the net assets) of
the Trust, which can improve the performance of the fund in a declining rate
environment, but can cause net assets to decline faster than the market in a
rapidly rising rate environment. BlackRock's portfolio managers continuously
monitor and regularly review the Trust's use of leverage and the Trust may
reduce, or unwind, the amount of leverage employed should BlackRock consider
that reduction to be in the best interests of the shareholders.

Special Considerations and Risk Factors Relevant to Term Trusts

The Trust is intended to be a long-term investment and is not a short-term
trading vehicle.

Return of Initial Investment. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved.

Dividend Considerations. The income and dividends paid by the Trust are likely
to decline to some extent over the term of the Trust due to the anticipated
shortening of the dollar-weighted average maturity of the Trust's assets.

Leverage. The Trust utilizes leverage through reverse repurchase agreements and
dollar rolls, which involves special risks. The Trust's net asset value and
market value may be more volatile due to its use of leverage.

Market Price of Shares. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange and as such are subject to supply
and demand influences. As a result, shares may trade at a discount or a premium
to their net asset value.

Mortgage-Backed and Asset-Backed Securities. The cash flow and yield
characteristics of these securities differ from traditional debt securities. The
major differences typically include more frequent payments and the possibility
of prepayments which will change the yield to maturity of the security.

Corporate Debt Securities. The value of corporate debt securities generally
varies inversely with changes in prevailing market interest rates. The Trust may
be subject to certain reinvestment risks in environments of declining interest
rates.

Zero Coupon Securities. Such securities receive no cash flows prior to maturity,
therefore interim price movements on these securities are generally more
sensitive to interest rate movements than securities that make periodic coupon
payments. These securities appreciate in value over time and can play an
important role in helping the Trust achieve its primary objective.

Illiquid Securities. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects to do so to only a
limited extent. These securities involve special risks.

Non-U.S Securities. The Trust may invest a portion of its assets in non-U.S.
dollar-denominated securities which involve special risks such as currency,
political and economic risks, although under current market conditions does not
do so.

Antitakeover Provisions. Certain antitakeover provisions will make a change in
the Trust's business or management more difficult without the approval of the
Trust's Board of Directors and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.

<PAGE>

-------------------------------------------------------------------------------
THE BLACKROCK STRATEGIC TERM TRUST INC.
GLOSSARY
-------------------------------------------------------------------------------

Adjustable Rate Mortgage-
Backed Securities (ARMs): Mortgage instruments with interest rates
that adjust at periodic intervals at a
fixed amount over the market levels of
interest rates as reflected in specified
indexes. ARMs are backed by mortgage loans
secured by real property.

Asset-Backed Securities: Securities backed by various types of
receivables such as automobiles and credit
card receivables.

Closed-End Fund: Investment vehicle which initially offers a
fixed number of shares and trades on a
stock exchange. The fund invests in a
portfolio of securities in accordance with
its stated investment objectives and
policies.

Collateralized
Mortgage Obligations (CMOs): Mortgage-backed securities which separate
mortgage pools into short-, medium-, and
long-term securities with different
priorities for receipt of principal and
interest. Each class is paid a fixed or
floating rate of interest at regular
intervals. Also known as multiple-class
mortgage pass-throughs.

Discount: When a fund's net asset value is greater
than its stock price the fund is said to be
trading at a discount.

Dividend: This is income generated by securities in a
portfolio and distributed to shareholders
after deduction of expenses. This Trust
declares and pays dividends on a monthly
basis.

Dividend Reinvestment: Shareholders may elect to have all
distributions of dividends and capital
gains automatically reinvested into
additional shares of the Trust.

FHA: Federal Housing Administration, a
government agency that facilitates a
secondary mortgage market by providing an
agency that guarantees timely payment of
interest and principal on mortgages.

FHLMC: Federal Home Loan Mortgage Corporation, a
publicly owned, federally chartered
corporation that facilitates a secondary
mortgage market by purchasing mortgages
from lenders such as savings institutions
and reselling them to investors by means of
mortgage-backed securities. Obligations of
FHLMC are not guaranteed by the U.S.
government, however; they are backed by
FHLMC's authority to borrow from the U.S.
government. Also known as Freddie Mac.

FNMA: Federal National Mortgage Association, a
publicly owned, federally chartered
corporation that facilitates a secondary
mortgage market by purchasing mortgages
from lenders such as savings institutions
and reselling them to investors by means of
mortgage-backed securities. Obligations of
FNMA are not guaranteed by the U.S.
government, however; they are backed by
FNMA's authority to borrow from the U.S.
government. Also known as Fannie Mae.

GNMA: Government National Mortgage Association, a
U.S. Government agency that facilitates a
secondary mortgage market by providing an
agency that guarantees timely payments of
interest and principal on mortgages. GNMA's
obligations are supported by the full faith
and credit of the U.S. Treasury. Also known
as Ginnie Mae.

Government Securities: Securities issued or guaranteed by the U.S.
government, or one of its agencies or
instrumentalities, such as GNMA (Government
National Mortgage Association), FNMA
(Federal National Mortgage Association) and
FHLMC (Federal Home Loan Mortgage
Corporation).

<PAGE>

Interest-Only Securities (I/O): Mortgage securities that receive only the
interest cash flows from an underlying pool
of mortgage loans or underlying
pass-through securities. Also known as a
Strip.

Market Price: Price per share of a security trading in
the secondary market. For a closed-end
fund, this is the price at which one share
of the fund trades on the stock exchange.
If you were to buy or sell shares, you
would pay or receive the market price.

Mortgage Dollar Rolls: A mortgage dollar roll is a transaction in
which the Trust sells mortgage-backed
securities for delivery in the current
month and simultaneously contracts to
repurchase substantially similar (although
not the same) securities on a specified
future date. During the "roll" period, the
Trust does not receive principal and
interest payments on the securities, but is
compensated for giving up these payments by
the difference in the current sales price
(for which the security is sold) and lower
price that the Trust pays for the similar
security at the end date as well as the
interest earned on the cash proceeds of the
initial sale.

Mortgage Pass-Throughs: Mortgage-backed securities issued by Fannie
Mae, Freddie Mac or Ginnie Mae.

Multiple-Class Pass-Throughs: Collateralized Mortgage Obligations.

Net Asset Value (NAV): Net asset value is the total market value
of all securities and other assets held by
the Trust, plus income accrued on its
investments, minus any liabilities
including accrued expenses, divided by the
total number of outstanding shares. It is
the underlying value of a single share on a
given day. Net asset value for the Trust is
calculated weekly and published in Barron's
on Saturday and The New York Times or The
Wall Street Journal each Monday.

Principal-Only Securities (P/O): Mortgage securities that receive only the
principal cash flows from an underlying
pool of mortgage loans or underlying
pass-through securities.

Project Loans: Mortgages for multi-family, low- to
middle-income housing.

Premium: When a fund's stock price is greater than
its net asset value, the fund is said to be
trading at a premium.

REMIC: A real estate mortgage investment conduit
is a multiple-class security backed by
mortgage-backed securities or whole
mortgage loans and formed as a trust,
corporation, partnership, or segregated
pool of assets that elects to be treated as
a REMIC for federal tax purposes.
Generally, Fannie Mae REMICs are formed as
trusts and are backed by mortgage-backed
securities.

Residuals: Securities issued in connection with
collateralized mortgage obligations that
generally represent the excess cash flow
from the mortgage assets underlying the CMO
after payment of principal and interest on
the other CMO securities and related
administrative expenses.

Reverse Repurchase
Agreements: In a reverse repurchase agreement, the
Trust sells securities and agrees to
repurchase them at a mutually agreed date
and price. During this time, the Trust
continues to receive the principal and
interest payments from that security. At
the end of the term, the Trust receives the
same securities that were sold for the same
initial dollar amount plus interest on the
cash proceeds of the initial sale.

Strips: Arrangements in which a pool of assets is
separated into two classes that receive
different proportions of the interest and
principal distribution from underlying
mortgage-backed securities. IO's and PO's
are examples of strips.

<PAGE>

--------------------------------------------------------------------------------
BlackRock Financial Management, Inc.
Summary of Closed-End Funds
--------------------------------------------------------------------------------

Taxable Trusts
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

Termination
Perpetual Trusts Stock Symbol Date
------------ -----------
<S> <C> <C>

The BlackRock Income Trust Inc. ................................. BKT N/A
The BlackRock North American Government Income Trust Inc. ....... BNA N/A

Term Trusts
The BlackRock 1998 Term Trust Inc. .............................. BBT 12/98
The BlackRock 1999 Term Trust Inc. .............................. BNN 12/99
The BlackRock Target Term Trust Inc. ............................ BTT 12/00
The BlackRock 2001 Term Trust Inc. .............................. BLK 06/01
The BlackRock Strategic Term Trust Inc. ......................... BGT 12/02
The BlackRock Investment Quality Term Trust Inc. ................ BQT 12/04
The BlackRock Advantage Term Trust Inc. ......................... BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. ....... BCT 12/09
</TABLE>

Tax-Exempt Trusts
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

Termination
Perpetual Trusts Stock Symbol Date
------------ -----------
<S> <C> <C>

The BlackRock Investment Quality Municipal Trust Inc. ........... BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc.. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust ........ RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc.. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. .. RNY N/A

Term Trusts
The BlackRock Municipal Target Term Trust Inc. .................. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. ............ BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. . BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust ......... BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. ... BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. ................. BMT 12/10
</TABLE>

If you would like further information please call BlackRock at
(800) 227-7BFM or consult with your financial advisor.

<PAGE>
--------------------------------------------------------------------------------
BlackRock Financial Management, Inc.
An Overview
--------------------------------------------------------------------------------

BlackRock Financial Management Inc. (BlackRock) is a registered investment
adviser which specializes in managing high quality fixed income securities, both
taxable and tax exempt. BlackRock currently manages over $32 billion of assets
across the government, mortgage, corporate and municipal sectors. These assets
are managed on behalf of institutional and individual investors in 21 closed-end
funds, several open-end funds and over 80 institutional clients in the United
States and overseas. BlackRock's institutional investor base includes Chrysler
Corporation Master Retirement Trust, General Retirement System of the City of
Detroit, State Treasurer of Florida, Ford Motor Company Pension Plan, General
Electric Pension Trust and Unisys Corporation Master Trust.

BlackRock was formed in April 1988 by fixed income professionals who sought
to create an asset management firm specializing in managing fixed income
securities for individuals and institutional investors. The professionals at
BlackRock have extensive experience creating, analyzing and trading a variety of
fixed income instruments, including the most complex structured securities. In
fact, individuals at BlackRock are responsible for many of the major innovations
in the mortgage-backed and asset-backed securities market, including the
creation of the CMO, the floating rate CMO, the senior/subordinated pass-through
and the multi-class asset-backed security.

BlackRock is unique among asset management and advisory firms in the
significant emphasis it places on the development of propriety analytical
capabilities. A quarter of the professionals at BlackRock work full-time in the
design, maintenance and use of such systems which are otherwise not generally
available to investors. BlackRock's propriety analytical tools are used for
evaluating, investing in and designing investment strategies and portfolio of
fixed income securities, including mortgage securities, corporate debt
securities or tax-exempt securities and a variety of hedging instruments.

BlackRock has developed investment products which respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. BlackRock introduced the first closed-end mortgage fund, the first
taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAA Rating by S&P and the first closed fund to
invest primarily in North American Government securities. BlackRock's closed-end
funds currently have dividend reinvestment plans which are designed to provide
an ongoing source of demand for the stock in the secondary market. BlackRock
manages a ladder of alternative investment vehicles, with each fund having
specific investment objectives and policies.

In view of our continued desire to provide a high level of service to all of
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
you may have about your BlackRock funds and thank you for the continued trust
you place in our abilities.

<PAGE>

Left Col.

BlackRock

Directors
Laurence D. Fink, Chairman
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force Jr.
Ralph L. Schlosstein

Officers
Ralph L. Schlosstein, President
Keith T. Anderson, Vice President
Michael C. Huebsch, Vice President
Scott Amero, Vice President
Robert S. Kapito, Vice President
Richard M. Shea, Vice President/Tax
Henry Gabbay, Treasurer
James Kong, Assistant Treasurer
Kevin J. Mahoney, Assistant Treasurer
Karen H. Sabath, Secretary

Investment Adviser
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM

Administrator
Dean Witter InterCapital Inc.
Two World Trade Center
New York, NY 10048
(800) 729-8855

Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM

Transfer Agent
Dean Witter Trust Company
Harborside Financial Center-Plaza Two
Jersey City, New Jersey 07311-3977
(800) 526-3143

Independent Auditors
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom
919 Third Avenue
New York, NY 10022
This report is for shareholder information.
This is not a prospectus intended for use in the
purchase or sale of any securities.
The BlackRock Strategic Term Trust Inc.
c/o Dean Witter InterCapital, Inc.
71st Floor
Two World Trade Center
New York, NY 10048
Call toll free (800) 227-7BFM

09247P-10-8

Right Col

The BlackRock
Strategic
Term Trust Inc.
--------------------------
Semi-Annual Report
June 30, 1995