PRINCIPAL SPECIAL MARKETS FUND INC
NSAR-A, 1999-08-20
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<PAGE>      PAGE  1
000 A000000 06/30/99
000 C000000 0000898745
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 PRINCIPAL SPECIAL MARKETS FUND, INC.
001 B000000 811-07572
001 C000000 5152475476
002 A000000 PRINCIPAL FINANCIAL GROUP
002 B000000 DES MOINES
002 C000000 IA
002 D010000 50392
002 D020000 0200
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000  4
007 C010100  1
007 C020100 INTERNATIONAL SMALLCAP PORTFOLIO
007 C030100 N
007 C010200  2
007 C020200 INTERNATIONAL EMERGING MARKETS PORTFOLIO
007 C030200 N
007 C010300  3
007 C020300 INTERNATIONAL SECURITIES PORTFOLIO
007 C030300 N
007 C010400  4
007 C020400 MORTGAGE-BACKED SECURITIES PORTFOLIO
007 C030400 N
007 C010500  5
007 C010600  6
007 C010700  7
007 C010800  8
007 C010900  9
007 C011000 10
020 A000001 JAMES CAPPEL INC.
020 B000001 52-1348224
020 C000001     91
020 A000002 MERRILL LYNCH
020 B000002 13-5674085
020 C000002     82
020 A000003 GOLDMAN SACHS CO.
020 B000003 13-5108880
020 C000003     76
020 A000004 CREDIT SUISSE FIRST BOSTON
<PAGE>      PAGE  2
020 B000004 13-5659485
020 C000004     73
020 A000005 ABM AMRO SECURITIES
020 B000005 13-3227945
020 C000005     58
020 A000006 MORGAN STANLEY & CO.
020 B000006 13-2655998
020 C000006     45
020 A000007 SALOMON BROTHERS, SMITH BARNEY
020 B000007 13-3082694
020 C000007     35
020 A000008 ROBERT FLEMING
020 B000008 13-3298866
020 C000008     34
020 A000009 BEAR STEARNS & CO.
020 B000009 13-3299429
020 C000009     26
020 A000010 SG WARBURG & CO.
020 B000010 13-3340045
020 C000010     25
021  000000      856
022 A000001 GENERAL ELECTRIC CAPITAL CORP.
022 B000001 13-1500700
022 C000001    306696
022 D000001         0
022 A000002 ASSOCIATES CORP. OF NORTH AMERICA
022 B000002 74-1494554
022 C000002    206205
022 D000002         0
022 A000003 FIRST CHICAGO CAPITAL MARKETS
022 B000003 36-3595942
022 C000003     58642
022 D000003         0
022 A000004 MERRILL LYNCH
022 B000004 13-5674085
022 C000004      4581
022 D000004     10670
022 A000005 GOLDMAN SACHS CO.
022 B000005 13-5108880
022 C000005      7769
022 D000005      2943
022 A000006 CREDIT SUISSE FIRST BOSTON CORP
022 B000006 13-5659485
022 C000006      5205
022 D000006      3304
022 A000007 SALOMON BROTHERS, SMITH BARNEY
022 B000007 13-3082694
022 C000007      2480
022 D000007      5478
022 A000008 AMERICAN EXPRESS CREDIT CORP.
022 B000008 11-1988350
<PAGE>      PAGE  3
022 C000008      7713
022 D000008         0
022 A000009 HOUSEHOLD FINANCE
022 B000009 36-1239445
022 C000009      7527
022 D000009         0
022 A000010 LEHMAN BROTHERS
022 B000010 13-2501865
022 C000010       776
022 D000010      6401
023 C000000     639783
023 D000000      47334
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<PAGE>      PAGE  4
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<PAGE>      PAGE  5
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<PAGE>      PAGE  7
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<PAGE>      PAGE  8
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<PAGE>      PAGE  9
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<PAGE>      PAGE  10
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<PAGE>      PAGE  11
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<PAGE>      PAGE  14
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SIGNATURE   A S FILEAN
TITLE       VICE PRES/SECRETARY


WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6

<S>                             <C>
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<EXPENSE-RATIO>                                   1.00



</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6

<S>                             <C>
<PERIOD-TYPE>                   6-MOS
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<PERIOD-END>                               JUN-30-1999
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6

<S>                             <C>
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<TABLE> <S> <C>

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