<PAGE> PAGE 1
000 B000000 03/31/99
000 C000000 0000893566
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 NORTH AMERICAN GOVERNMENT BOND FUND, INC.
001 B000000 811-7292
001 C000000 2124465606
002 A000000 717 FIFTH AVENUE
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10022
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 INTERNATIONAL STRATEGY AND INVESTMENT, INC.
008 B000001 A
008 C000001 801-38408
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10022
010 A000001 BT ALEX. BROWN INCORPORATED
010 B000001 8-31213
010 C010001 BALTIMORE
010 C020001 MD
010 C030001 21202
011 A000001 ISI GROUP, INC.
011 B000001 8-29659
011 C010001 NEW YORK
011 C020001 MD
011 C030001 10022
012 A000001 INVESTMENT COMPANY CAPITAL CORP.
012 B000001 84-5477
012 C010001 BALTIMORE
<PAGE> PAGE 2
012 C020001 MD
012 C030001 21202
013 A000001 PRICEWATERHOUSE COOPERS L.L.P.
013 B010001 BALTIMORE
013 B020001 MD
013 B030001 21202
015 A000001 BANKERS TRUST COMPANY
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10006
015 E010001 X
018 000000 Y
019 A000000 N
019 B000000 0
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 1. GOLDMAN, SACHS & CO.
022 B000001 13-5108880
022 C000001 1251425
022 D000001 28988
022 A000002 2. MORGAN STANLEY DEAN WITTER
022 B000002 13-2655998
022 C000002 86337
022 D000002 0
022 A000003 3. J.P. MORGAN SECURITIES INC.
022 B000003 13-3224016
022 C000003 81620
022 D000003 0
022 A000004 4. SMITH BARNEY HARRIS UPHAM
022 B000004 13-1912900
022 C000004 45375
022 D000004 30220
022 A000005 5. DEUTSCHE MORGAN GRENTELL
022 B000005 13-2730828
022 C000005 18595
022 D000005 22772
022 A000006 6. FOX - PITT, KELTON
022 B000006 06-1058201
022 C000006 9029
022 D000006 0
022 A000007 7. BANAMEX
<PAGE> PAGE 3
022 B000007 N/A
022 C000007 6587
022 D000007 0
022 A000008 8. LEHMAN BROTHERS
022 B000008 13-2518466
022 C000008 2239
022 D000008 0
022 A000009 9. CS FIRST BOSTON
022 B000009 13-3704587
022 C000009 1380
022 D000009 0
022 A000010 10. INVEX
022 B000010 N/A
022 C000010 1
022 D000010 975
023 C000000 1503267
023 D000000 83543
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 846
028 A020000 161
028 A030000 0
028 A040000 622
028 B010000 933
028 B020000 168
028 B030000 0
028 B040000 554
028 C010000 1150
028 C020000 345
028 C030000 0
028 C040000 408
028 D010000 520
028 D020000 0
028 D030000 0
<PAGE> PAGE 4
028 D040000 962
028 E010000 1177
028 E020000 170
028 E030000 0
028 E040000 1012
028 F010000 1004
028 F020000 168
028 F030000 0
028 F040000 932
028 G010000 5630
028 G020000 1012
028 G030000 0
028 G040000 4490
028 H000000 4943
029 000000 Y
030 A000000 305
030 B000000 3.00
030 C000000 0.00
031 A000000 29
031 B000000 0
032 000000 213
033 000000 63
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 221
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.400
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
<PAGE> PAGE 5
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 5000
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 25.6
062 E000000 0.0
<PAGE> PAGE 6
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 55.7
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 17.9
062 R000000 0.0
063 A000000 0
063 B000000 10.1
064 A000000 N
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 N
070 N020000 N
070 O010000 N
<PAGE> PAGE 7
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 83286
071 B000000 88984
071 C000000 48020
071 D000000 173
072 A000000 12
072 B000000 3894
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 221
072 G000000 111
072 H000000 0
072 I000000 39
072 J000000 13
072 K000000 9
072 L000000 19
072 M000000 1
072 N000000 4
072 O000000 0
072 P000000 0
072 Q000000 54
072 R000000 29
072 S000000 53
072 T000000 221
072 U000000 0
072 V000000 0
072 W000000 9
072 X000000 783
072 Y000000 91
072 Z000000 3202
072AA000000 1407
072BB000000 0
072CC010000 0
072CC020000 1424
072DD010000 3202
072DD020000 0
072EE000000 2086
073 A010000 0.6000
073 A020000 0.0000
073 B000000 0.2300
073 C000000 0.0000
074 A000000 1
074 B000000 14317
074 C000000 0
<PAGE> PAGE 8
074 D000000 41132
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 584
074 M000000 23
074 N000000 56057
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 166
074 S000000 0
074 T000000 55891
074 U010000 6636
074 U020000 0
074 V010000 8.42
074 V020000 0.00
074 W000000 0.0000
074 X000000 2225
074 Y000000 0
075 A000000 0
075 B000000 55344
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 Q010000 Y
078 000000 N
080 A000000 ICI MUTUAL
080 C000000 10000
081 A000000 Y
081 B000000 13
082 A000000 Y
082 B000000 25
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
<PAGE> PAGE 9
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE EDWARD J. VEILLEUX
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000893566
<NAME> NORTH AMERICAN GOVERNMENT BOND FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> MAR-31-1999
<INVESTMENTS-AT-COST> 56,671,277
<INVESTMENTS-AT-VALUE> 55,448,946
<RECEIVABLES> 583,757
<ASSETS-OTHER> 23,381
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 56,056,084
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 165,507
<TOTAL-LIABILITIES> 165,507
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 57,119,680
<SHARES-COMMON-STOCK> 6,636,361
<SHARES-COMMON-PRIOR> 5,949,881
<ACCUMULATED-NII-CURRENT> 3,202,208
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION INCOME> (5,918)
<OVERDISTRIBUTION-GAINS>
<ACCUM-APPREC-OR-DEPREC> (1,223,186)
<NET-ASSETS> 55,890,577
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,893,995
<OTHER-INCOME> 0
<EXPENSES-NET> 691,787
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 1,406,544
<APPREC-INCREASE-CURRENT> (1,425,683)
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,202,208)
<DISTRIBUTIONS-OF-GAINS> (2,086,448)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,527,556
<NUMBER-OF-SHARES-REDEEMED> 1,065,714
<SHARES-REINVESTED> 224,638
<NET-CHANGE-IN-ASSETS> (3,872,174)
<ACCUMULATED-NII-PRIOR> (1,823,953)
<ACCUMULATED-GAINS-PRIOR> 661,627
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 221,382
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 783,148
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 8.74
<PER-SHARE-NII> 0.60
<PER-SHARE-GAIN-APPREC> (0.09)
<PER-SHARE-DIVIDEND> (0.60)
<PER-SHARE-DISTRIBUTIONS> 0.00
<PER-SHARE L/T GAINS DISTRIBUTIONS> (0.23)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.42
<EXPENSE-RATIO> 1.25
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
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 North American Government Bond Fund, Inc. (the "Fund") for the
year ended March 31, 1999, we considered its internal control, including control
activities 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 internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements and financial highlights
for external purposes that are fairly presented in conformity with generally
accepted accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, error or fraud may occur
and not be detected. Also, projection of any evaluation of internal control 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 internal control would not necessarily disclose all matters
in internal control 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 one or more
of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud 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 internal control and its operation, including controls over
safeguarding securities, that we consider to be material weaknesses as defined
above as of March 31, 1999.
This report is intended solely for the information and use of management, the
Board of Directors of North American Government Bond Fund, Inc., and the
Securities and Exchange Commission.
PricewaterhouseCoopers LLP
Baltimore, Maryland
April 30, 1999
