<PAGE> 1
MSTC CASH RESERVES CLASS
OF THE
LIQUID ASSETS PORTFOLIO
OF
SHORT-TERM INVESTMENTS CO.
Supplement dated March 27, 1997
to the Statement of Additional Information dated December 30, 1996
A "business day of the Portfolio" is any day on which both the Federal
Reserve Bank of New York and The Bank of New York, the Fund's custodian bank,
are open for business. The Portfolio, however, reserves the right to change the
time for which purchase and redemption requests must be submitted to the
Portfolio for execution on the same day on any day when the U.S. primary
broker-dealer community is closed for business or trading is restricted due to
national holidays.
On March 11, 1997, the Board of Directors increased the size of the
Board of Directors from nine (9) Directors to ten (10) Directors, and elected
Mr. Jack Fields to fill the vacancy created by such increase in size. Mr.
Fields' address is P.O. Box 2406, Humble, TX 77347 and he is 45 years old.
Mr. Fields' principal occupation during the last five years was as a member of
the U.S. House of Representatives.
On March 12, 1997, Messrs. Crockett, Fields, Frischling, and Sklar were
appointed by the Board of Directors as members of the Audit Committee of the
Board of Directors; Messrs. Fields, Frischling, Robinson, and Sklar were
appointed by the Board of Directors as members of the Investments Committee of
the Board of Directors; and Messrs. Fields and Robinson were appointed by the
Board of Directors as members of the Nominating and Compensation Committee of
the Board of Directors. In addition, on March 12, 1997, Mr. Crockett was
appointed Vice Chairman of the Nominating and Compensation Committee.
