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<PAGE> PAGE 9
SIGNATURE EDWARD J. VEILLEUX
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000893566
<NAME> NORTH AMERICAN GOVERNMENT BOND FUND
<S> <C>
<PERIOD-TYPE> YEAR
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<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 62065606
<INVESTMENTS-AT-VALUE> 60083344
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 61091778
<PAYABLE-FOR-SECURITIES> 0
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<SENIOR-EQUITY> 0
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<SHARES-COMMON-STOCK> 7266930
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<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (12772732)
<OVERDISTRIBUTION-GAINS> 0
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</TABLE>
[COOPERS & LYBRAND LOGO] COOPERS & LYBRAND L.L.P.
a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
North American Government Bond Fund, Inc.
In planning and performing our audit of the financial statements and
financial highlights of the North American Government Bond Fund, Inc. for the
year ended March 31, 1996, we considered its internal control structure,
including procedures for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on the financial
statements and financial highlights and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control structure.
The management of North American Government Bond Fund, Inc. is responsible
for establishing and maintaining an internal control structure. In fulfilling
this responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of internal control structure
policies and procedures. Two of the objectives of an internal control structure
are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition and
that transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors
or irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements and financial
highlights being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. However,
we noted no matters involving the internal control structure, including
procedures for safeguarding securities, that we consider to be material
weaknesses, as defined above, as of March 31, 1996.
This report is intended solely for the information and use of management
and the Board of Directors of North American Government Bond Fund, Inc. and for
the Securities and Exchange Commission.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
May 10, 1996
