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This is filed pursuant to Rule 497(e).
File Nos. 33-45328 and 811-06554.
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ALLIANCE CAPITAL [LOGO] (R)
THE ALLIANCE BONDS FUNDS
- Alliance North American
Government Income Trust, Inc.
_______________________________________________________________
Supplement dated April 12, 2000 to the Prospectus and
Application dated March 1, 2000 of The Alliance Bond Funds. The
following information supplements the information under the
heading "General Information Pending Legal Proceedings
Involving North American Government Income."
On March 17, 2000, the parties executed a Memorandum of
Understanding ("MOU") preliminarily resolving the litigation.
Under the proposed settlement set forth in the MOU, Alliance
would issue to settling class members certificates entitling
them to invest up to an aggregate of $250 million in Class A
shares of any Alliance-managed fund offering Class A shares
without paying an initial sales charge as described in the
prospectuses for those funds. In addition, defendants agreed to
pay attorneys' fees and expenses to plaintiffs' counsel in an
amount not to exceed approximately $4.1 million.
On March 22, 2000, the District Court preliminarily approved the
settlement as set forth in the MOU, subject to its subsequent
full review and final approval of the proposed settlement.
Defendants shall give reasonable notice to settling class
members of the terms of the proposed settlement in accordance
with the orders of the District Court, and the District Court
will thereafter render a decision on final approval of the
settlement based on, in part, any objections received as to the
proposed settlement.
The Fund and Alliance believe that the allegations in the
Consolidated Complaint, the Amended Complaint, and the Corrected
Complaint are without merit and are entering into the proposed
settlement solely to avoid the costs, burdens and risks of
litigation. The Fund and Alliance do not believe that the
settlement, if approved as set forth in the MOU, will have a
material adverse effect on the Fund or Alliance. In the event
the settlement is approved, the Fund shall not bear any
liability or cost of the settlement.
_______________________________________________________________
You should retain this Supplement with your Prospectus for
future reference.
(R) This is a registered mark used under license from the owner,
Alliance Capital Management L.P.
00250117.BC2
