<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
Two World Trade Center, New York, New York 10048
LETTER TO THE SHAREHOLDERS May 31, 1997
DEAR SHAREHOLDER:
During the twelve months ended May 31, 1997, the economy accelerated, moving
from trend-line growth to moderately strong growth to very strong growth. In
March, with evidence of an overwhelmingly strong economy, the Federal Reserve
Board raised the federal-funds rate 25 basis points to 5.5 percent. Although
the current inflation environment remains favorable, members of the Federal
Open Market Committee voiced concerns regarding the continuing strength in
employment and a probable rise of inflationary pressures in the near future.
Interest rates on U.S. Treasuries were volatile over the course of the past
twelve months, with two-year Treasury yields ranging from 6.54 percent to
5.58 percent. However, these yields ended the period virtually unchanged at
6.20 percent compared to 6.24 percent twelve months ago.
PERFORMANCE AND PORTFOLIO STRUCTURE
On May 31, 1997, Dean Witter Short-Term U.S. Treasury Trust had net assets in
excess of $230 million. The Fund's total return for the twelve-month period
was 5.63 percent compared to 6.61 percent for the Lehman Brothers 1 -3 Year
Government Bond Index and 5.94 percent for the Lipper Short U.S. Treasury
Funds Average. This performance includes income distributions totaling
approximately $0.53 per share and a change in net asset value from $9.84 per
share on May 31, 1996, to $9.85 per share on May 31, 1997. The accompanying
chart compares the performance of the Fund to the performances of the Lehman
Brothers Index and the Lipper Index. The Fund's performance for the
twelve-month period reflected the volatility of the markets and the higher
interest rate environment.
At the end of the period under review, the Fund's average maturity was
approximately 2.2 years. The Fund maintains a diversified investment strategy
across the maturity spectrum, to a maximum of five years. The Fund, whose
income is free from state and local taxes in all 50 states and
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
LETTER TO THE SHAREHOLDERS MAY 31, 1997, continued
the District of Columbia, continues to offer investors an attractive
alternative to other short-term investments and a competitive level of
income.
LOOKING AHEAD
For the balance of 1997, we expect that the U.S. economy will moderate from
its current strong pace and that the Federal Reserve Board will look for
sustained confirmation of a strong economy and rising inflationary pressures
before taking further action to slow the economy.
We appreciate your ongoing support of Dean Witter Short-Term U.S. Treasury
Trust and look forward to continuing to serve your investment objectives in
the months and years to come.
Very truly yours,
/s/ Charles A. Fiumefreddo
CHARLES A. FIUMEFREDDO
Chairman of the Board
<TABLE>
<CAPTION>
GROWTH OF $10,000
DATE TOTAL LEHMAN (3) LIPPER IX (4)
- ---- ----- ------ ---------
<S> <C> <C> <C>
August 13, 1991 $10,000 $10,000 $10,000
May 31, 1992 $10,655 $10,684 $10,692
May 31, 1993 $11,373 $11,413 $11,484
May 31, 1994 $11,401 $11,644 $11,670
May 31, 1995 $12,110 $12,501 $12,495
May 31, 1996 $12,606 $13,161 $13,028
May 31, 1997 $13,315 (2) $14,031 (3) $13,802 (4)
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR LIFE OF FUND
------ ------------
5.63 (1) 5.06 (1)
______Fund ______Lehman(3) ______Lipper(4)
Past performance is not predictive of future returns.
- -------------------------------------------
(1) Figure shown assumes reinvestment of all distributions. There is no sales
charge.
(2) Closing value assuming a complete redemption on May 31, 1997.
(3) The Lehman Brothers 1-3 Year Government Bond Index is a sub-index of the
Lehman Brothers Government Bond Index and is comprised of Agency and
Treasury securities with maturities of one to three years. The index does
not include any expenses, fees or charges. The index is unmanaged and should
not be considered an investment.
(4) The Lipper Short U.S. Treasury Funds Average tracks the performance of all
funds which invest at least 65% of their assets in U.S. Treasury bills,
notes, and bonds with dollar-weighted average maturities of less than three
years.
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
RESULTS OF SPECIAL MEETING (unaudited)
* * *
On May 21, 1997, a special meeting of shareholders of Dean Witter Short-Term
U.S. Treasury Trust was held for the purpose of voting on four separate
matters, the results of which were as follows:
(1) APPROVAL OF A NEW INVESTMENT MANAGEMENT AGREEMENT BETWEEN THE FUND AND
DEAN WITTER INTERCAPITAL INC., THEN A WHOLLY OWNED SUBSIDIARY OF DEAN
WITTER, DISCOVER & CO. ("DWDC"), IN CONNECTION WITH THE MERGER OF MORGAN
STANLEY GROUP INC. WITH DWDC.
<TABLE>
<CAPTION>
VOTE NO. OF SHARES
- ---------- ---------------
<S> <C>
For ....... 12,935,846
Against .. 480,544
Abstain.... 1,442,606
</TABLE>
(2) ELECTION OF TRUSTEES:
<TABLE>
<CAPTION>
FOR WITHHELD
------------ -----------
<S> <C> <C>
Michael Bozic .......... 13,853,531 1,005,465
Charles A. Fiumefreddo 13,867,509 991,487
Edwin J. Garn .......... 13,887,473 971,523
John R. Haire .......... 13,873,658 985,338
Wayne E. Hedien ........ 13,878,178 980,818
Dr. Manuel H. Johnson . 13,887,115 971,881
Michael E. Nugent ...... 13,889,305 969,691
Philip J. Purcell ...... 13,882,367 976,629
John L. Schroeder ...... 13,892,191 966,805
</TABLE>
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
RESULTS OF SPECIAL MEETING (unaudited) continued
(3) APPROVAL OF A NEW INVESTMENT POLICY WITH RESPECT TO INVESTMENTS IN
CERTAIN OTHER INVESTMENT COMPANIES:
<TABLE>
<CAPTION>
VOTE NO. OF SHARES
- ---------- ---------------
<S> <C>
For ....... 12,184,282
Against .. 748,867
Abstain .. 1,925,847
</TABLE>
(4) RATIFICATION OF THE SELECTION OF PRICE WATERHOUSE LLP AS THE FUND'S
INDEPENDENT ACCOUNTANTS:
<TABLE>
<CAPTION>
VOTE NO. OF SHARES
- ---------- ---------------
<S> <C>
For ....... 13,134,380
Against .. 444,721
Abstain .. 1,279,895
</TABLE>
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
PORTFOLIO OF INVESTMENTS May 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION
AMOUNT IN AND COUPON
THOUSANDS MATURITY DATE RATE VALUE
- ----------- ---------------------------------------------------------------- -------- -------------
<S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (92.1%)
U.S. Treasury Notes (80.8%)
$1,100 02/28/98 ........................................................ 5.125% $1,094,522
7,000 01/31/98 ........................................................ 5.625 6,993,000
6,800 10/31/98 ........................................................ 5.875 6,783,816
26,200 05/31/98 ........................................................ 6.00 26,228,820
26,600 09/30/98 ........................................................ 6.00 26,599,202
3,000 05/15/98 ........................................................ 6.125 3,007,230
100 07/31/00 ........................................................ 6.125 99,299
15,000 09/30/00 ........................................................ 6.125 14,874,600
10,900 12/31/01 ........................................................ 6.125 10,739,334
1,750 07/31/98 ........................................................ 6.25 1,755,898
13,500 04/30/01 ........................................................ 6.25 13,402,530
18,000 10/31/01 ........................................................ 6.25 17,829,720
1,500 02/28/02 ........................................................ 6.25 1,484,220
10,000 06/30/97 ........................................................ 6.375 10,012,300
10,000 05/15/99 ........................................................ 6.375 10,030,800
1,600 01/15/00 ........................................................ 6.375 1,604,032
8,000 04/30/00 ........................................................ 6.75 8,081,760
20,000 02/29/00 ........................................................ 7.125 20,383,600
5,000 02/15/98 ........................................................ 7.25 5,048,450
-------------
186,053,133
-------------
U.S. Treasury Strips (11.3%)
18,300 05/15/99 (Coupon) .............................................. 0.00 16,246,008
12,000 08/15/00 (Principal) ........................................... 0.00 9,801,600
-------------
26,047,608
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Identified Cost $212,892,601)(a) .............................. 92.1% 212,100,741
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ................. 7.9 18,166,448
-------- -------------
NET ASSETS ..................................................... 100.0% $230,267,189
======== =============
</TABLE>
- ------------
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$626,770 and the aggregate gross unrealized depreciation is $1,418,630,
resulting in net unrealized depreciation of $791,860.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
May 31, 1997
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $212,892,601) ...................................... $212,100,741
Cash ................................................................. 45,086
Receivable for:
Investments sold ................................................... 39,244,137
Interest ........................................................... 2,947,538
Shares of beneficial interest sold ................................. 300,488
Prepaid expenses and other assets .................................... 42,017
--------------
TOTAL ASSETS ....................................................... 254,680,007
--------------
LIABILITIES:
Payable for:
Investments purchased .............................................. 23,235,744
Shares of beneficial interest repurchased .......................... 873,078
Plan of distribution fee ........................................... 68,956
Investment management fee .......................................... 68,956
Dividends to shareholders .......................................... 68,035
Accrued expenses and other payables .................................. 98,049
--------------
TOTAL LIABILITIES .................................................. 24,412,818
--------------
NET ASSETS:
Paid-in-capital ...................................................... 248,878,557
Net unrealized depreciation .......................................... (791,860)
Accumulated undistributed net investment income ...................... 394,587
Accumulated net realized loss ........................................ (18,214,095)
--------------
NET ASSETS ......................................................... $230,267,189
==============
NET ASSET VALUE PER SHARE,
23,379,838 shares outstanding (unlimited shares authorized of $.01
par value) .......................................................... $ 9.85
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF OPERATIONS
For the year ended May 31, 1997
<TABLE>
<CAPTION>
<S> <C>
NET INVESTMENT INCOME:
INTEREST INCOME ........................ $16,113,858
-------------
EXPENSES
Investment management fee .............. 902,158
Plan of distribution fee ............... 890,492
Transfer agent fees and expenses ...... 129,498
Registration fees ...................... 70,096
Professional fees ...................... 45,122
Shareholder reports and notices ....... 39,730
Trustees' fees and expenses ............ 18,229
Custodian fees ......................... 16,777
Organizational expenses ................ 6,642
Other .................................. 16,814
-------------
TOTAL EXPENSES ....................... 2,135,558
-------------
NET INVESTMENT INCOME ................ 13,978,300
-------------
NET REALIZED AND UNREALIZED GAIN
(LOSS):
Net realized loss ...................... (293,887)
Net change in unrealized depreciation . 112,927
-------------
NET LOSS ............................. (180,960)
-------------
NET INCREASE ........................... $13,797,340
=============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
MAY 31, 1997 MAY 31, 1996
- ------------------------------------------------------ -------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income ................................. $ 13,978,300 $ 14,778,861
Net realized loss ..................................... (293,887) (87,549)
Net change in unrealized appreciation/depreciation ... 112,927 (3,742,190)
-------------- --------------
NET INCREASE ........................................ 13,797,340 10,949,122
Dividends from net investment income .................. (13,860,110) (14,943,028)
Net decrease from transactions in shares of beneficial
interest ............................................. (28,307,309) (10,553,025)
-------------- --------------
NET DECREASE ........................................ (28,370,079) (14,546,931)
NET ASSETS:
Beginning of period ................................... 258,637,268 273,184,199
-------------- --------------
END OF PERIOD
(Including undistributed net investment income of
$394,587 and $276,397, respectively) ................ $230,267,189 $258,637,268
============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1997
1. ORGANIZATION AND ACCOUNTING POLICIES
Dean Witter Short-Term U.S. Treasury Trust (the "Fund") is registered under
the Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end management investment company. The Fund's investment objective is
current income, preservation of principal and liquidity. The Fund seeks to
achieve its objective by investing its assets in U.S. Treasury securities
backed by the full faith and credit of the U.S. Government. The Fund was
organized as a Massachusetts business trust on June 4, 1991 and commenced
operations on August 13, 1991.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures. Actual results could differ
from those estimates.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- (1) portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest available bid price prior to the time of valuation; (2) when market
quotations are not readily available, including circumstances under which it
is determined by Dean Witter InterCapital Inc. (the "Investment Manager")
that sale or bid prices are not reflective of a security's market value,
portfolio securities are valued at their fair value as determined in good
faith under procedures established by and under the general supervision of
the Trustees (valuation of debt securities for which market quotations are
not readily available may be based upon current market prices of securities
which are comparable in coupon, rating and maturity or an appropriate matrix
utilizing similar factors); and (3) short-term debt securities having a
maturity date of more than sixty days at time of purchase are valued on a
mark-to-market basis until sixty days prior to maturity and thereafter at
amortized cost based on their value on the 61st day. Short-term debt
securities having a maturity date of sixty days or less at the time of
purchase are valued at amortized cost.
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on
the trade date (date the order to buy or sell is executed). Realized gains
and losses on security transactions are determined by the identified cost
method. Discounts are accreted over the life of the respective securities.
Interest income is accrued daily.
C. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1997, continued
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends
and distributions to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassification. Dividends
and distributions which exceed net investment income and net realized capital
gains for financial reporting purposes but not for tax purposes are reported
as dividends in excess of net investment income or distributions in excess of
net realized capital gains. To the extent they exceed net investment income
and net realized capital gains for tax purposes, they are reported as
distributions of paid-in-capital.
E. ORGANIZATIONAL EXPENSES -- The Investment Manager paid the organizational
expenses of the Fund in the amount of approximately $135,000 which have been
reimbursed for the full amount thereof. Such expenses have been deferred and
were fully amortized using the straight-line method from the commencement of
operations through August 12, 1996.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement with the Investment Manager,
the Fund pays the Investment Manager a management fee, accrued daily and
payable monthly, by applying the annual rate of 0.35% to the net assets of
the Fund determined as of the close of each business day.
Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities,
equipment, clerical, bookkeeping and certain legal services and pays the
salaries of all personnel, including officers of the Fund who are employees
of the Manager. The Investment Manager also bears the cost of telephone
services, heat, light, power and other utilities provided to the Fund.
3. PLAN OF DISTRIBUTION
Dean Witter Distributors Inc. (the "Distributor"), an affiliate of the
Investment Manager, is the distributor of the Fund's shares and, in
accordance with a Plan of Distribution (the "Plan") pursuant to Rule 12b-1
under the Act, finances certain expenses in connection with the distribution
of shares of the Fund.
Under the Plan, the Distributor bears the expense of all promotional and
distribution related activities on behalf of the Fund, except for expenses
that the Trustees determine to reimburse, as described below. The
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1997, continued
following activities and services may be provided by the Distributor under
the Plan: (1) compensation to, and expenses of, account executives of Dean
Witter Reynolds Inc., an affiliate of the Investment Manager and Distributor,
other employees and selected broker-dealers; (2) sales incentives and bonuses
to sales representatives and to marketing personnel in connection with
promoting sales of the Fund's shares; (3) expenses incurred in connection
with promoting sales of the Fund's shares; (4) preparing and distributing
sales literature; and (5) providing advertising and promotional activities,
including direct mail solicitation and television, radio, newspaper, magazine
and other media advertisements.
The Fund is authorized to reimburse the Distributor for specific expenses the
Distributor incurs or plans to incur in promoting the distribution of the
Fund's shares. The amount of each monthly reimbursement payment may in no
event exceed an amount equal to a payment at the annual rate of 0.35% of the
Fund's average daily net assets during the month. For the year ended May 31,
1997, the distribtion fee was accrued at the annual rate of 0.35%.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales/maturities of portfolio
securities excluding short-term investments for the year ended May 31, 1997
aggregated $348,884,792 and $403,901,066, respectively.
Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At May 31, 1997, the Fund had
transfer agent fees and expenses payable of approximately $13,540.
The Fund has an unfunded noncontributory defined benefit pension plan
covering all independent Trustees of the Fund who will have served as
independent Trustees for at least five years at the time of retirement.
Benefits under this plan are based on years of service and compensation
during the last five years of service. Aggregate pension costs for the year
ended May 31, 1997 included in Trustees' fees and expenses in the Statement
of Operations amounted to $5,176. At May 31, 1997, the Fund had an accrued
pension liability of $37,638 which is included in accrued expenses in the
Statement of Assets and Liabilities.
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 1997, continued
5. FEDERAL INCOME TAX STATUS
At May 31, 1997, the Fund had a net capital loss carryover of approximately
$18,110,000, which may be used to offset future capital gains to the extent
provided by regulations, which is available through
May 31 of the following years:
<TABLE>
<CAPTION>
AMOUNTS IN THOUSANDS
- -------------------------
2003 2004 2005
- --------- -------- ------
<S> <C> <C>
$11,507 $6,271 $332
</TABLE>
Capital losses incurred after October 31 ("post-October losses") within the
taxable year are deemed to arise on the first business day of the Fund's next
taxable year. The Fund incurred and will elect to defer net capital losses of
approximately $103,000 during fiscal 1997.
As of May 31, 1997, the Fund had temporary book/tax differences primarily
attributable to post-October losses.
6. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
MAY 31, 1997 MAY 31, 1996
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Shares sold ............................... 25,650,127 $ 253,738,691 34,443,060 $ 344,385,684
Shares issued in reinvestment of
dividends................................. 1,132,124 11,170,571 1,214,559 12,124,758
-------------- --------------- -------------- ---------------
26,782,251 264,909,262 35,657,619 356,510,442
Shares repurchased ........................ (29,680,876) (293,216,571) (36,751,484) (367,063,467)
-------------- --------------- -------------- ---------------
Net decrease............................... (2,898,625) $ (28,307,309) (1,093,865) $ (10,553,025)
============== =============== ============== ===============
</TABLE>
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR ENDED MAY 31 AUGUST 13, 1991*
THROUGH
------------------------------------------------------ MAY 31, 1992
1997 1996 1995 1994 1993
- ---------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period .... $9.84 $9.98 $9.88 $10.34 $10.21 $10.00
---------- ---------- ---------- ---------- ---------- ----------------
Net investment income ................... 0.54 0.54 0.49 0.49 0.54 0.44
Net realized and unrealized gain (loss) -- (0.14) 0.10 (0.45) 0.13 0.20
---------- ---------- ---------- ---------- ---------- ----------------
Total from investment operations ....... 0.54 0.40 0.59 0.04 0.67 0.64
---------- ---------- ---------- ---------- ---------- ----------------
Less dividends and distributions from:
Net investment income .................. (0.53) (0.54) (0.49) (0.50) (0.53) (0.43)
Net realized gain ...................... -- -- -- -- (0.01) --
---------- ---------- ---------- ---------- ---------- ----------------
Total dividends and distributions ...... (0.53) (0.54) (0.49) (0.50) (0.54) (0.43)
---------- ---------- ---------- ---------- ---------- ----------------
Net asset value, end of period .......... $9.85 $9.84 $9.98 $9.88 $10.34 $10.21
========== ========== ========== ========== ========== ================
TOTAL INVESTMENT RETURN+ ................ 5.63% 4.09% 6.22% 0.25% 6.75% 6.55%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses ................................ 0.83% 0.84% 0.84% 0.79% 0.80% 0.79%(2)(3)
Net investment income ................... 5.42% 5.33% 4.93% 4.74% 5.18% 5.49%(2)(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands .$230,267 $258,637 $273,184 $516,017 $584,206 $523,555
Portfolio turnover rate ................. 149% 63% 30% 49% 21% 12%(1)
</TABLE>
- ------------
* Commencement of operations.
+ Calculated based on the net asset value as of the last business day of
the period.
(1) Not annualized.
(2) Annualized.
(3) If the Fund had borne all expenses that were assumed or waived by the
Investment Manager, the above annualized expense and net investment
income ratios would have been 0.81% and 5.47%, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES
OF DEAN WITTER SHORT-TERM U.S. TREASURY TRUST
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Dean Witter
Short-Term U.S. Treasury Trust (the "Fund") at May 31, 1997, the results of
its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended and the financial highlights
for each of the five years in the period then ended and for the period August
13, 1991 (commencement of operations) through May 31, 1992, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Fund's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted
our audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at May 31,
1997 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
July 10, 1997
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo DEAN WITTER
Edwin J. Garn
John R. Haire SHORT-TERM
Dr. Manual H. Johnson
Michael E. Nugent U.S. TREASURY
Philip J. Purcell
John L. Schroeder TRUST
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Barry Fink
Vice President, Secretary and General Counsel
Rajesh K. Gupta
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center -- Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its offers and trustees,
fees, expenses and other pertinent information, please see the prospectus of
the Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospective.
ANNUAL REPORT
MAY 31, 1997
