FIDELITY HEREFORD STREET TRUST, N-30B-2, 1994-06-20

FIDELITY HEREFORD STREET TRUST
N-30B-2, 1994-06-20

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SPARTAN(Registered trademark)

(registered trademark)
MONEY MARKET
FUND

ANNUAL REPORT
APRIL 30, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 6 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 9 A complete list of the fund's
investments with their market value.

FINANCIAL STATEMENTS 18 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 22 Footnotes to the financial
statements.

REPORT OF INDEPENDENT 25 The auditor's opinion.
ACCOUNTANTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
No one wants to pay more taxes than they have to. But a recent survey of
500 U.S. households, conducted by Fidelity and Yankelovich Partners, showed
that few people took steps to reduce their taxes under the new tax laws
that went into effect last year. In fact, many people were not completely
aware of the changes until they filed their 1993 tax returns.
Whether or not you're someone whose tax bill increased as a result of these
changes, it may make sense to consider ways to keep more of what you earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider your tax-free investments, such as municipal bonds or
municipal bond funds. Often these can provide higher after-tax yields than
comparable taxable investments. For example, if you're in the new 36%
federal income tax bracket and invest $10,000 in a taxable investment
yielding 7%, you'll pay $252 in federal taxes and receive $448 in income.
That same $10,000 invested in a tax-free bond fund yielding 5.5% would
allow you to keep $550 in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center. We look forward to
talking with you.
Best regards,
Edward C. Johnson 3d, Chairman
PERFORMANCE: THE BOTTOM LINE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income) and the
effect of a $5 account closeout fee. Yield measures the income paid by a
fund. Since a money market fund tries to maintain a $1 share price, yield
is an important measure of performance. If Fidelity had not reimbursed
certain fund expenses during the periods shown, the total returns would
have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Money Market Fund 3.13% 32.70% 36.09%

Consumer Price Index 2.36% 19.74% 21.72%

Average All Taxable
Money Market Fund 2.74% 29.21% 32.28%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, one year, five years or since the fund started on January 23,
1989. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, you would end up with $1,050. Comparing the fund's
performance to the consumer price index (CPI) helps show how your
investment did compared to inflation. To measure how the fund stacked up
against its peers, you can compare its return to the average all taxable
money market fund's total returns. This average currently reflects the
performance of 648 taxable money market funds tracked by IBC/Donoghue. (The
periods covered by the CPI and IBC/Donoghue numbers are the closest
available match to those covered by the fund, but may vary slightly due to
reporting differences.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Money Market Fund 3.13% 5.82% 6.02%

Consumer Price Index 2.36% 3.67% 3.82%

Average All Taxable
Money Market Fund 2.74% 5.25% 5.46%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had achieved that return
by performing at a constant rate each year.
YIELDS
4/30/93 7/31/93 10/31/93 1/31/94 4/30/94

3.08% 3.01% 3.01% 3.08% 3.58%
Spartan Money Market
Fund

Average All Taxable 2.61% 2.65% 2.66% 2.74% 3.15%
Money Market Fund

2.54% 2.45% 2.37% 2.30% 2.31%
MMDA

Row: 1, Col: 1, Value: 3.08
Row: 1, Col: 2, Value: 2.61
Row: 1, Col: 3, Value: 2.54
Row: 2, Col: 1, Value: 3.01
Row: 2, Col: 2, Value: 2.65
Row: 2, Col: 3, Value: 2.45
Row: 3, Col: 1, Value: 3.01
Row: 3, Col: 2, Value: 2.66
Row: 3, Col: 3, Value: 2.37
Row: 4, Col: 1, Value: 3.08
Row: 4, Col: 2, Value: 2.74
Row: 4, Col: 3, Value: 2.3
Row: 5, Col: 1, Value: 3.58
Row: 5, Col: 2, Value: 3.15
Row: 5, Col: 3, Value: 2.31
Spartan
Money Market
Fund
Average
All Taxable
Money Market
Fund
MMDA
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. If
Fidelity had not reimbursed certain fund expenses, the 7-day yield would
have been 3.50% for the period ended April 30, 1994. They are compared to
similar yields for the average all taxable money market fund and the
average bank money market deposit account (MMDA). Figures for the average
general purpose money market fund are from IBC/Donoghue. The MMDA average
is supplied by BANK RATE MONITOR.(double dagger) (Both figures are those
available closest to month end.)
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS REFLECT PAST RESULTS RATHER
THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
There are some important
differences between a bank
money market deposit
account (MMDA) and a
money market fund. First, the
U.S. government neither
insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money market fund will
maintain a $1 share price.
Second, a money market
fund returns to its
shareholders income earned
by the fund's investments
after expenses. This is in
contrast to banks, which set
their MMDA rates periodically
based on current interest
rates, competitors' rates, and
internal criteria.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with John Todd,
Portfolio Manager of Spartan
Money Market Fund
Q. JOHN, HOW HAVE SHORT-TERM INTEREST RATES BEHAVED OVER THE PAST YEAR?
A. Short-term rates moved within a narrow range from April 1993 through
January 1994. During that time, the Federal Reserve Board felt comfortable
maintaining a steady monetary policy. The federal funds rate remained at or
near 3.00%, where it had been since September 1992. But by February 1994,
the Fed was concerned that an improving economy might lead to higher
inflation. It responded by tightening monetary policy, raising the fed
funds rate to 3.75% in three separate moves from February through April. It
marked the first time in five years that the Fed had raised short-term
interest rates.
Q. HOW DID YOU POSITION THE FUND TO ROLL WITH THOSE CHANGES?
A. When rates were still relatively stable through late summer and early
fall, I kept the fund's average maturity on the long side - roughly 70 to
80 days. During that time, I still was able to take advantage of the higher
yields available by purchasing issues with longer maturities. By January,
however, I felt that the economy had more momentum than many people
thought. Also, I expected inflation worries to soon play a bigger role in
the Fed's interest rate policy. All of this caused me to shorten the fund's
average maturity from 87 days at the end of December to 68 days by the end
of January. Because I felt further Fed rate hikes would follow on the heels
of the first, I shortened the average maturity to 56 days by the end of
March. In April, I took advantage of some of the more attractive yields
that came to market after the rate hikes. That buying activity lengthened
the average maturity to 58 days by the end of the period.
Q. SO HOW DID THE FUND PERFORM?
A. On April 30, 1994, the fund's seven-day yield was 3.58%, compared to
3.01% at the end of October and 3.08% on April 30, 1993. The recent rise in
yield reflects the Fed's rate increases. The fund's total return for the 12
months ended April 30 was 3.13%. That beat the average total return for all
taxable money market funds tracked by IBC/Donoghue during the same period,
which was 2.74%.
Q. HOW DO YOU SEE THE NEXT SIX MONTHS SHAPING UP?
A. Rather than trying to stimulate the economy as it did in 1993, the Fed
is now adopting a "neutral" stance on interest rates. It's difficult to
define "neutral," but I think a fed funds rate of around 4.50% may be close
- - - - remember, it was 3.75% at the end of April. Once the Fed has achieved
this goal, it may pause and reassess economic growth. Eventually, however,
I expect rates could resume rising. I plan to keep the fund's average
maturity in the 50- to 70-day range for the near future. That should give
me the flexibility to respond to rising rates, while allowing me to capture
a portion of the higher yields available from issues with longer
maturities.
Q. IS THERE ANY OTHER WAY YOU CAN TAKE ADVANTAGE OF RISING RATES?
A. Yes, the fund had a 19% stake in variable- and floating-rate securities
at the end of April. I'll probably keep that level steady, based on the
availability of attractively priced issues. The advantage of variable-rate
instruments comes in the form of stated, periodic interest rate resets. The
frequency of these resets can be negotiated - for example, they often
happen weekly, monthly or quarterly. When rates rise, the fund can obtain a
higher stated interest rate on these issues at their reset intervals.

FUND FACTS
GOAL: current income with
share price stability by
investing in high quality,
short-term securities
START DATE: January 23, 1989
SIZE: as of April 30, 1994,
more than $6.4 billion
MANAGER: John Todd, since
1989; manager, Select Money
Market Portfolio, since 1991;
Daily Money Fund: Money
Market Portfolio and Fidelity
Institutional Cash Portfolios:
Money Market Portfolio, since
1992; joined Fidelity in 1981
(checkmark)

WORDS TO KNOW
BANKERS' ACCEPTANCE (BA): A
short-term note whose
payment is guaranteed by a
bank.
CERTIFICATE OF DEPOSIT (CD): An
interest-bearing deposit with a
specific maturity. Large
denomination CDs, like the
fund buys, have negotiable
interest rates and can be sold
in the secondary market.
COMMERCIAL PAPER: A
short-term note from a bank or
corporation.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity,
weighted by dollar amount, is
short, the fund manager is
expecting rates to fall. When
the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
TIME DEPOSIT (TD): An
interest-bearing deposit with a
specific maturity. Large
denomination TDs, like the
fund buys, differ from CDs in
that they can't be sold in the
secondary market.
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
4/30/94 10/31/93 4/30/93

0 - 30 52 24 50

31 - 90 22 39 27

91 - 180 23 25 7

181 - 397 3 12 16

WEIGHTED AVERAGE MATURITY
4/30/94 10/31/93 4/30/93

Spartan Money Market
Fund 58 days 83 days 70 days

Average All Taxable
Money Market Fund* 45 days 64 days 63 days

ASSET ALLOCATION
AS OF APRIL 30, 1994 AS OF OCTOBER 31, 1993

Row: 1, Col: 1, Value: 41.0
Row: 1, Col: 2, Value: 43.0
Row: 1, Col: 3, Value: 12.0
Row: 1, Col: 4, Value: 4.0
Row: 1, Col: 1, Value: 32.0
Row: 1, Col: 2, Value: 28.0
Row: 1, Col: 3, Value: 38.0
Row: 1, Col: 4, Value: 2.0
Bank CDs,
BAs, TDs,
and notes 41%
Commercial
paper 43%
Government
securities 12%
Other 4%
Bank CDs,
BAs, TDs,
and notes 32%
Commercial
paper 28%
Government
securities 38%
Other 2%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(Registered trademark)
INVESTMENTS APRIL 30, 1994

Showing Percentage of Total Value of Investments

BANKERS' ACCEPTANCES - 1.3%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
DOMESTIC BANKERS ACCEPTANCE - 0.1%
Chemical Bank
8/15/94 3.87% $ 5,000 $ 4,944
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 1.2%
Bank of Tokyo
5/13/94 3.70 25,000 24,969
Dai-Ichi Kangyo Bank, Ltd.
5/16/94 3.70 50,000 49,924
Sanwa Bank, Ltd.
8/9/94 3.93 4,000 3,957
78,850
TOTAL BANKERS' ACCEPTANCES 83,794
CERTIFICATES OF DEPOSIT - 18.7%

DOMESTIC CERTIFICATES OF DEPOSIT - 0.3%
NBD Bank, N.A.
5/2/94 3.75 20,000 20,000
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 15.5%
Banque Nationale de Paris
8/1/94 3.50 25,000 24,985
8/11/94 3.90 25,000 24,982
8/16/94 3.90 25,000 24,984
8/24/94 3.78 50,000 50,002
Fuji Bank, Ltd.
5/3/94 3.77 25,000 25,000
5/4/94 3.75 7,000 7,000
5/9/94 3.75 40,000 40,000
6/3/94 4.00 38,000 37,997
Industrial Bank of Japan, Ltd.
5/24/94 3.90 50,000 50,000
5/25/94 3.90 50,000 50,000
Mitsubishi Bank, Ltd.
10/18/94 4.60 12,000 11,938
National Bank of Canada
5/5/94 3.30 35,000 35,000
Rabobank Nederland, N.V.
12/22/94 4.00 6,000 5,986
Sakura Bank, Ltd.
5/11/94 3.70 140,000 140,000
5/17/94 3.70 8,000 8,000
5/23/94 3.90 62,000 62,000
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED
Sanwa Bank, Ltd.
7/19/94 4.23% $ 10,000 $ 10,000
7/20/94 4.23 110,000 110,000
10/19/94 4.60 10,000 9,999
Societe Generale
6/6/94 3.80 25,000 25,000
8/17/94 4.30 25,000 25,000
9/1/94 4.00 150,000 150,000
Sumitomo Bank, Ltd.
5/6/94 3.80 30,000 29,999
5/31/94 3.94 40,000 39,998
997,870
LONDON BRANCH, EURODOLLAR DOLLAR, FOREIGN BANKS - 2.9%
Sanwa Bank, Ltd.
5/9/94 3.79 75,000 75,000
5/26/94 3.85 40,000 40,000
Sumitomo Bank, Ltd.
5/24/94 3.50 25,000 25,000
6/15/94 4.05 45,000 44,988
184,988
TOTAL CERTIFICATES OF DEPOSIT 1,202,858
COMMERCIAL PAPER - 42.8%

American Express Credit Corporation
5/16/94 3.63 35,000 34,947
Associates Corporation of North America
5/4/94 3.76 18,000 17,994
5/16/94 3.64 50,000 49,924
5/24/94 3.77 35,000 34,916
B.B.V. Finance (Delaware), Inc.
5/9/94 3.71 45,000 44,963
5/17/94 3.62 50,000 49,920
5/19/94 3.62 50,000 49,910
Bankers Trust Corporation
5/3/94 3.77 50,000 49,990
Barclays U.S. Funding Corporation
5/3/94 3.74 100,000 99,979
5/9/94 3.83 3,000 2,997
Bear Stearns Companies Inc.
5/23/94 3.86 18,000 17,958
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
BellAtlantic Financial Services
5/2/94 3.66% $ 16,300 $ 16,298
5/2/94 3.76 5,000 4,999
5/16/94 3.72 14,000 13,978
CIESCO, L.P.
5/2/94 3.61 15,000 14,999
CIT Group Holdings, Inc.
5/4/94 3.76 80,000 79,975
5/11/94 3.76 45,000 44,953
Corporate Asset Funding Company, Inc.
5/10/94 3.71 20,000 19,981
Corporate Receivables Corp.
5/9/94 3.76 15,000 14,988
5/16/94 3.63 5,500 5,492
Dean Witter, Discover & Co.
5/5/94 3.80 23,500 23,490
5/10/94 3.78 14,000 13,987
5/12/94 3.81 26,530 26,499
5/18/94 3.86 25,000 24,955
5/23/94 3.84 19,000 18,956
5/24/94 3.76 17,000 16,959
Dresdner U.S. Finance Inc.
8/24/94 3.85 50,000 49,396
8/29/94 3.82 25,000 24,687
Eastman Kodak
5/17/94 3.91 20,000 19,965
Electronic Data Systems Corporation
6/13/94 3.87 7,000 6,968
6/14/94 3.90 16,000 15,924
Ford Motor Credit Corporation
5/6/94 3.73 75,000 74,961
5/19/94 3.84 7,000 6,987
6/8/94 3.95 45,000 44,813
6/13/94 3.95 5,000 4,977
9/6/94 4.08 25,000 24,644
Ford Motor Credit PLC
6/27/94 4.04 10,000 9,937
GTE Corporation
5/3/94 3.73 30,000 29,994
General Electric Capital Corporation
5/15/94 3.71 (a) 25,000 25,000
5/20/94 3.83 30,000 29,940
5/23/94 3.77 50,000 49,885
6/10/94 3.79 (a) 25,000 25,000
8/4/94 3.92 47,600 47,116
9/19/94 4.09 20,000 19,687
General Motors Acceptance Corporation
5/4/94 3.91 20,000 19,994
5/10/94 3.80 2,000 1,998
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
General Motors Acceptance Corporation - continued
5/16/94 3.81% $ 10,000 $ 9,984
5/31/94 3.75 50,000 49,845
6/1/94 3.75 54,000 53,827
6/27/94 4.00 97,000 96,392
Generale Bank
5/16/94 3.43 25,000 24,965
Goldman Sachs Group, L.P. (The)
7/6/94 4.00 115,000 114,167
Government of Canada
10/17/94 4.50 100,000 97,934
Grand Metropolitan Finance
5/31/94 3.45 25,000 24,929
Hanson Finance (UK) PLC
6/1/94 3.85 13,830 13,785
6/1/94 3.89 17,000 16,944
6/2/94 3.86 10,000 9,966
Household Finance Corporation
5/18/94 3.72 28,000 27,951
6/1/94 3.81 20,000 19,935
6/20/94 4.05 18,000 17,899
6/22/94 4.04 50,000 49,710
IBM Corporation
5/18/94 3.76 71,000 70,875
IBM Credit Corporation
5/16/94 3.74 34,000 33,947
5/18/94 3.76 18,000 17,968
5/23/94 3.82 13,000 12,970
ING Bank
6/21/94 4.00 25,000 24,859
ITT Corporation
6/20/94 3.88 22,000 21,882
ITT Financial
5/16/94 3.70 10,000 9,985
5/23/94 3.82 86,000 85,800
Matterhorn Capital Corporation
(LOC Union Bank of Switzerland)
5/9/94 3.61 30,000 29,976
Morgan Stanley Group, Inc.
5/17/94 3.77 75,000 74,875
New Center Asset Trust
5/9/94 3.77 27,000 26,977
5/10/94 3.77 60,000 59,944
New South Wales Treasury Corp.
8/30/94 3.90 45,000 44,421
Norwest Corporation
5/16/94 3.72 10,000 9,985
PHH Corporation
5/2/94 3.76 20,000 19,998
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Preferred Receivables Funding Corporation
5/5/94 3.76% $ 24,200 $ 24,190
Prudential Home Mortgage Company
5/26/94 3.86 8,000 7,979
Ridge Capital Trust II
(LOC Dai-Ichi Kangyo Bank Ltd.)
5/16/94 3.71 9,000 8,986
5/17/94 3.71 10,000 9,984
Sears Roebuck Acceptance Corp.
5/5/94 3.91 8,000 7,997
5/9/94 3.81 2,000 1,998
5/10/94 3.76 5,000 4,995
5/25/94 3.91 43,000 42,888
South Australian Government Financing Authority
5/20/94 3.82 7,000 6,986
Texaco Inc.
5/9/94 3.78 25,000 24,979
5/9/94 3.79 24,000 23,980
5/23/94 3.72 25,000 24,943
Transamerica Corporation
5/17/94 3.64 8,000 7,987
Weyerhaeuser Company
5/2/94 3.76 13,550 13,549
Whirlpool Corporation
5/9/94 3.84 14,006 13,994
Whirlpool Financial Corporation
5/9/94 3.71 7,000 6,994
Woolwich Equitable Building Society
7/5/94 3.65 25,000 24,838
TOTAL COMMERCIAL PAPER 2,755,842
FEDERAL AGENCIES - 11.6%

FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 0.3%
7/28/94 3.53 18,970 18,809
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 11.3%
9/1/94 4.02 75,000 73,988
9/26/94 4.38 24,000 23,576
10/3/94 4.44 12,790 12,550
10/4/94 4.44 10,000 9,812
10/5/94 4.44 10,000 9,810
10/18/94 3.39 5,000 4,922
10/26/94 4.45 180,000 176,129
10/26/94 4.46 220,000 215,257
FEDERAL AGENCIES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - CONTINUED
10/27/94 4.50% $ 150,000 $ 146,718
11/21/94 3.60 59,000 57,830
730,592
TOTAL FEDERAL AGENCIES 749,401
BANK NOTES - 1.8%

First National Bank of Boston
5/11/94 3.72 18,000 18,000
5/19/94 3.80 35,000 35,000
Old Kent Bank & Trust Company
5/2/94 3.50 25,000 25,000
PNC Bank, N.A.
6/10/94 3.46 40,000 39,990
TOTAL BANK NOTES 117,990
MEDIUM-TERM NOTES (A) - 8.8%

Abbey National PLC, UK
6/24/94 3.98 23,000 23,000
Abbey National Treasury Service
9/30/94 3.86 190,000 190,000
Bank of New York
5/2/94 4.49 35,000 34,984
Comerica Bank-Detroit
5/2/94 4.49 40,000 39,993
Ford Motor Credit Corporation
6/23/94 3.92 12,000 12,011
6/23/94 3.93 20,000 20,019
General Motors Acceptance Corporation
5/7/94 3.47 43,000 43,000
6/8/94 4.07 8,000 8,041
Goldman Sachs Group, L.P. (The) (c)
6/16/94 3.45 42,500 42,500
9/1/94 3.45 40,000 40,000
Huntington National Bank
5/2/94 4.40 37,800 37,732
5/2/94 4.51 7,000 6,982
MEDIUM-TERM NOTES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Norwest Corporation
9/15/94 3.89% $ 48,000 $ 48,000
Society National Bank
5/2/94 4.49 20,000 19,990
TOTAL MEDIUM-TERM NOTES 566,252
SHORT-TERM NOTES (A) - 9.6%

J.P. Morgan Securities
5/2/94 3.94 154,000 154,000
Kingdom of Sweden - A
6/23/94 4.25 33,000 33,000
Kingdom of Sweden - B
6/23/94 3.81 33,000 33,000
Kingdom of Sweden - C
6/23/94 3.94 33,000 33,000
Morgan Stanley Group, Inc.
5/2/94 3.89 40,000 40,000
Norwest Corporation
5/2/94 3.88 35,000 35,000
SMM Trust Company (1993-D) (b)
7/28/94 4.30 19,000 19,000
SMM Trust Company (1994-A) (b)
6/18/94 3.91 180,000 180,000
SMM Trust Company (1994-E) (b)
7/13/94 4.04 46,000 46,000
Swedish National Housing Finance Corp.
5/23/94 3.63 42,000 42,000
TOTAL SHORT-TERM NOTES 615,000
TIME DEPOSITS - 1.2%

Hong Kong & Shanghai Banking Corp.
5/2/94 3.81 74,054 74,054
MUNICIPAL BONDS - 0.8%
New York Public Housing Authority
5/11/94 3.78 55,000 55,000
REPURCHASE AGREEMENTS - 3.4%
MATURITY AMOUNT VALUE (NOTE 1)
(000S) (000S)
WITH GOLDMAN, SACHS & CO.
At 3.80%, dated 4/28/94 due 5/12/94
U.S. Government Obligations
(principal amount $233,433,655)
3.518% to 9.50%, 2/1/98 to 6/1/29 $ 100,148 $ 100,000
At 3.80%, dated 4/28/94 due 5/16/94
U.S. Government Obligations
(principal amount $268,448,704)
3.518% to 9.50%, 2/1/98 to 6/1/29 115,219 115,000
In a joint trading account
(U.S. Treasury Obligations)
dated 4/29/94, due 5/2/94
(Note 2)
At 3.56% 965 965
TOTAL REPURCHASE AGREEMENTS 215,965
TOTAL INVESTMENTS - 100% $ 6,436,156
Total Cost for Income Tax Purposes $ 6,436,156

LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
SMM Trust Company:
(1993-D) 4/26/94 $ 19,000,000
(1994-A) 3/17/94 $ 180,000,000
(1994-E) 4/13/94 $ 46,000,000
3. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $82,500,000 or 1.3% of net
assets.
TAX INFORMATION
At April 30, 1994, the fund had a capital loss carryforward of
approximately $2,193,000 of which $301,000 and $1,892,000 will expire on
April 30, 2001 and 2002, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) APRIL 30, 1994

4.ASSETS 5. 6.

7.Investment in securities, at value (including repurchas 8. $ 6,436,156
e
agreements of $215,965) (Notes 1 and 2) -
See accompanying schedule

9.Cash 10. 8,055

11.Interest receivable 12. 11,316

13. 14.TOTAL ASSETS 15. 6,455,527

16.LIABILITIES 17. 18.

19.Dividends payable $ 289 20.

21.Accrued management fee 1,840 22.

23. 24.TOTAL LIABILITIES 25. 2,129

26.27.NET ASSETS 28. $ 6,453,398

29.Net Assets consist of (Note 1): 30. 31.

32.Paid in capital 33. $ 6,455,591

34.Accumulated net realized gain (loss) on investments 35. (2,193)

36.37.NET ASSETS, for 6,455,080 shares outstanding 38. $ 6,453,398

39.40.NET ASSET VALUE, offering price and redemption p 41. $1.00
rice
per share ($6,453,398(divided by)6,455,080 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED APRIL 30, 1994

42.43.INTEREST INCOME 44. $ 154,536

45.EXPENSES 46. 47.

48.Management fee (Note 3) $ 14,254 49.

50.Non-interested trustees' compensation 29 51.

52. Total expenses before reductions 14,283 53.

54. Expense reductions (Note 4) (398) 13,885

55.56.NET INTEREST INCOME 57. 140,651

58.59.NET REALIZED GAIN (LOSS) ON INVESTMENTS (NOT 60. (1,893)
E 1)

61.62.NET INCREASE IN NET ASSETS RESULTING FROM OPER 63. $ 138,758
ATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEARS ENDED APRIL 30,

1994 1993

64.INCREASE (DECREASE) IN NET ASSETS

65.Operations $ 140,651 $ 167,694
Net interest income

66. Net realized gain (loss) on investments (1,893) 1,579

67. 68.NET INCREASE (DECREASE) IN NET ASSETS RESULTI 138,758 169,273
NG
FROM OPERATIONS

69.Dividends to shareholders from net interest income (140,651) (167,694)

70.Share transactions at net asset value of $1.00 per sh 7,813,321 4,757,446
are
Proceeds from sales of shares

71. Reinvestment of dividends from net interest income 135,945 162,573

72. Cost of shares redeemed (6,035,840) (5,750,405)

73. Net increase (decrease) in net assets and shares 1,913,426 (830,386)
resulting from share transactions

74. 75.TOTAL INCREASE (DECREASE) IN NET ASSETS 1,911,533 (828,807)

76.NET ASSETS 77. 78.

79. Beginning of period 4,541,865 5,370,672

80. End of period $ 6,453,398 $ 4,541,865

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
81. YEARS ENDED APRIL 30,

82. 1994 1993 1992 1991 1990

83.SELECTED PER-SHARE DATA

84.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of period

85.Income from Investment .031 .035 .053 .076 .089

Operations
Net interest income

86.Less Distributions (.031) (.035) (.053) (.076) (.089)
From net interest income

87.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period

88.TOTAL RETURN (dagger) 3.14% 3.51% 5.41% 7.87% 9.32%

89.RATIOS AND SUPPLEMENTAL DATA

90.Net assets, end of perio $ 6,453 $ 4,542 $ 5,371 $ 7,190 $ 8,342
d
(in millions)

91.Ratio of expenses to av .31% .30% .34% .28% .09%
erage
net assets (dagger)(dagger)

92.Ratio of expenses to av .32% .30% .34% .47% .53%
erage
net assets before expens
e
reductions (dagger)(dagger)

93.Ratio of net interest inco 3.12% 3.46% 5.32% 7.62% 8.77%
me
to average net assets

</TABLE>

(dagger) TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE. THE TOTAL
RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING
THE PERIODS SHOWN.
(dagger)(dagger) SEE NOTE 4 OF NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1994

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Money Market Fund (the fund) is a fund of Fidelity Summer Street
Trust (the trust) and is authorized to issue an unlimited number of shares.
The trust is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end management investment company
organized as a Massachusetts business trust. The following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective May 1,
1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of April 30, 1993 have been reclassified to reflect
an increase in paid in capital and a decrease in accumulated net realized
gain on investments of $511,000.
2. OPERATING POLICIES.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for
2. OPERATING POLICIES -
CONTINUED
REPURCHASE AGREEMENTS - CONTINUED
determining that the value of these underlying securities remains at least
equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other registered
investment companies having management contracts with FMR, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by
U.S. Treasury or Federal Agency obligations.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $245,000,000 or 3.8% of net assets.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all expenses
except the compensation of the non-interested Trustees and certain
exceptions such as interest, taxes, brokerage commissions and extraordinary
expenses. FMR receives a fee that is computed daily at an annual rate of
.30% of the fund's average net assets, plus 6% of that portion of gross
income that represents a gross yield in excess of 5%. The maximum fee rate
cannot exceed .60% of the fund's average net assets for the month. In
addition, through December 31, 1995, FMR has agreed to limit the fund's
total operating expenses to an annual rate of .45% of average net assets.
On March 23, 1994, the shareholders of the fund voted to approve a proposal
to amend the management contract replacing the variable management fee
described above with a fixed flat fee of .45% of average net assets. The
new contract went into effect April 1, 1994 and will continue through May
31, 1994, subject to continuation by the fund's Board of Trustees. For the
period, the management fee was equivalent to an annual rate of .32% of
average net assets.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $321,675.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any payments by FMR pursuant to the fund's Distribution and Service
Plan.
4. EXPENSE REDUCTIONS.
Effective April 1, 1994, FMR voluntarily agreed to reimburse the fund's
management fee above an annual rate of .37% of average net assets until
further notice. For the period, the reimbursement reduced the expenses by
$398,000. Effective May 1, 1994, this expense limitation was increased to
.39% of average net assets.
5. SHAREHOLDER MEETING.
At a special meeting of the shareholders of the fund held on March 23,
1994, shareholders approved amendments to certain fundamental investment
limitations of the fund.
In addition, shareholders approved an Agreement and Plan of Conversion and
Termination (the Plan of Conversion), providing for the conversion of the
fund (the current fund) from a separate series of Fidelity Summer Street
Trust, a Massachusetts business trust, to a separate series (the successor
fund) of Fidelity Hereford Street Trust, a Delaware business trust,
effective June 17, 1994. The individual investment objective, policies and
limitations of the successor fund will be identical to those of the current
fund. In connection with the Plan of Conversion, a new management contract,
new sub-advisory agreement and new distribution plan identical to those
currently in effect for the current fund will take effect on June 17, 1994.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Summer Street Trust and the Shareholders of
Spartan
Money Market Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Summer Street Trust: Spartan Money Market Fund, including the
schedule of portfolio investments, as of April 30, 1994, and the related
statement of operations for the year then ended, the statements of changes
in net assets for each of the two years in the period then ended and the
financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility
of the fund's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 1994 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Summer Street Trust: Spartan Money Market Fund, the results of
its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND
Dallas, Texas
May 20, 1994
TO VISIT FIDELITY

For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI

INVESTMENT ADVISER

Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
John Todd, Vice President
Thomas D. Maher, Assistant
Vice President
Gary L. French, Treasurer
John H . Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
FIDELITY'S TAXABLE
MONEY MARKET FUNDS
Fidelity Cash Reserves
Fidelity Daily Income Trust
Fidelity U.S. Government Reserves
Spartan Money Market Fund
Spartan U.S. Government
Money Market Fund
Spartan U.S. Treasury
Money Market Fund
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0111
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

SPARTAN

(registered trademark)
(registered trademark)
U.S. GOVERNMENT
MONEY MARKET
FUND
ANNUAL REPORT
APRIL 30, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 6 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 9 A complete list of the fund's
investments with their market value.

FINANCIAL STATEMENTS 12 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 16 Footnotes to the financial
statements.

REPORT OF INDEPENDENT 18 The auditor's opinion.
ACCOUNTANTS

DEAR SHAREHOLDER:
No one wants to pay more taxes than they have to. But a recent survey of
500 U.S. households, conducted by Fidelity and Yankelovich Partners, showed
that few people took steps to reduce their taxes under the new tax laws
that went into effect last year. In fact, many people were not completely
aware of the changes until they filed their 1993 tax returns.
Whether or not you're someone whose tax bill increased as a result of these
changes, it may make sense to consider ways to keep more of what you earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider tax-free investments,
like municipal bonds or municipal bond funds. Often these can provide
higher after-tax yields than comparable taxable investments. For example,
if you're in the new 36% federal income tax bracket and invest $10,000 in a
taxable investment yielding 7%, you'll pay $252 in federal taxes and
receive $448 in income. That same $10,000 invested in a tax-free bond fund
yielding 5.5% would allow you to keep $550 in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center. We look forward to
talking with you.
Best regards,
Edward C. Johnson 3d, Chairman
PERFORMANCE: THE BOTTOM LINE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income) and the
effect of a $5 account closeout fee. Yield measures the income paid by a
fund. Since a money market fund tries to maintain a $1 share price, yield
is an important measure of performance. If Fidelity had not voluntarily
reimbursed the fund for expenses during the period, the total returns would
have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan U.S. Government
Money Market Fund 2.88% 22.99%

Consumer Price Index 2.36% 15.70%

Average Government
Money Market Fund 2.63% 20.53%

CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, one year, or since the fund started on February 5, 1990. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, you would end up with $1,050. Comparing the fund's performance
to the consumer price index (CPI) helps show how your investment did
compared to inflation. To measure how the fund stacked up against its
peers, you can compare its return to the average government money market
fund's total returns. This average currently reflects the performance of
201 government money market funds tracked by IBC/Donoghue. The periods
covered by the CPI and IBC/Donoghue numbers are the closest available match
to those covered by the fund.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan U.S. Government
Money Market Fund 2.88% 5.01%

Consumer Price Index 2.36% 3.49%

Average Government
Money Market Fund 2.63% 4.49%

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/30/93 7/31/93 10/31/93 1/31/94 4/30/94

Spartan U.S. Government 2.73% 2.81% 2.77% 2.82% 3.34%
Money Market Fund

If Fidelity had not reimbursed 2.63% 2.71% 2.67% 2.72% n/a
certain fund expenses

Average Government 2.60% 2.51% 2.55% 2.54% 2.99%
Money Market Fund

2.54% 2.45% 2.37% 2.30% 2.31%
MMDA

</TABLE>

Row: 1, Col: 1, Value: 2.73
Row: 1, Col: 2, Value: 2.6
Row: 1, Col: 3, Value: 2.54
Row: 2, Col: 1, Value: 2.81
Row: 2, Col: 2, Value: 2.51
Row: 2, Col: 3, Value: 2.45
Row: 3, Col: 1, Value: 2.77
Row: 3, Col: 2, Value: 2.55
Row: 3, Col: 3, Value: 2.37
Row: 4, Col: 1, Value: 2.82
Row: 4, Col: 2, Value: 2.54
Row: 4, Col: 3, Value: 2.3
Row: 5, Col: 1, Value: 3.34
Row: 5, Col: 2, Value: 2.99
Row: 5, Col: 3, Value: 2.31
Spartan U.S.
Government
Money Market
Fund
Average
Government
Money Market
Fund
MMDA
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. This is
compared to similar yields for the average government money market fund and
the average bank money market deposit account (MMDA). Figures for the
average government money market fund are from IBC/Donoghue. The MMDA
average is supplied by BANK RATE MONITOR.(double dagger) (Both figures are
those available closest to month end.)
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS REFLECT PAST RESULTS RATHER
THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
There are some important
differences between a bank
money market deposit
account (MMDA) and a
money market fund. First, the
U.S. government neither
insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money market fund will
maintain a $1 share price.
Second, a money market
fund returns to its
shareholders income earned
by the fund's investments
after expenses. This is in
contrast to banks, which set
their MMDA rates periodically
based on current interest
rates, competitors' rates, and
internal criteria.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Leland Barron, Portfolio Manager of Spartan U.S.
Government Money Market Fund
Q. LELAND, BRING US UP TO SPEED ON THE MOVEMENTS IN SHORT-TERM INTEREST
RATES OVER THE PAST YEAR.
A. Short-term interest rates moved within a narrow range from April 1993
through January 1994. During that time, the Federal Reserve Board was
content to keep the federal funds rate - the rate banks charge each other
for overnight loans - at 3.00%, where it had been since September 1992. But
all of that changed on February 4, when the Fed raised the fed funds rate
to 3.25%, its first rate hike in five years. And two more quarter of a
percentage point increases followed in March and April. These moves had the
effect of raising most short-term interest rates.
Q. GIVEN THOSE CHANGES, WHAT WAS YOUR STRATEGY?
A. I kept the fund's average maturity in a fairly aggressive range -
usually 65 to 75 days - during the fall months. Back then, I locked in some
higher yields that were available while rates were stable or drifting
slightly higher. However, by the end of December, I felt that inflation
worries triggered by the improving economy might lead the Fed to push up
short-term rates. To give the fund more flexibility, I reduced its average
maturity to 61 days by the end of December.
Q. HOW WAS THE FUND POSITIONED WHEN THE FED RAISED RATES?
A. The fund's average maturity was 63 days at the end of January. In
hindsight, I wish it had been a bit shorter. By mid-January, I felt the Fed
might wait to see if the nation's strong fourth quarter economic growth was
sustainable before it raised rates. So when the Fed made its so-called
preemptive strike against inflation at the beginning of February, it came
as something of a surprise. However, immediately after the Fed's move, I
began preparing the fund for even higher rates. I reduced its average
maturity to 44 days by the end of February. By March 31, the average
maturity had crept up slightly - to 50 days - because I had purchased some
higher-yielding instruments that became available after the rise in
interest rates. But I didn't allow the average maturity to move any higher
because I was anticipating further Fed rate hikes; it was 48 days at the
end of April.
Q. SO HOW DID THE FUND PERFORM?
A. The fund's seven-day yield was 3.34% on April 30, 1994, compared to
2.77% at the end of October and 2.73% at the end of April 1993. In part,
the most recent rise reflected the three Fed rate hikes. For the year ended
April 30, 1994, the fund had a total return of 2.88%. The average
government money market fund tracked by IBC/Donoghue returned 2.63% during
the same period.
Q. WHAT'S YOUR THINKING ON THE MARKET FOR THE COMING MONTHS?
A. Because the Fed appears intent on keeping inflation in check, I think
short-term interest rates are likely to rise over the next several months.
But the Fed lowered rates gradually, and I expect it to take the same
approach toward raising rates. That's why I plan to keep the fund's average
maturity in the 45- to 55-day range for a while. That should give the fund
a defensive posture while still allowing me to go after higher-yielding
issues when they become available. In addition, I'll look for opportunities
to purchase more variable and floating rate instruments, which made up
10.50% of the fund's investments on April 30. What makes them attractive is
a feature that resets their coupons (stated interest rates) at fixed
intervals. So when rates are rising, the fund can obtain a higher coupon on
these issues at their reset intervals.

FUND FACTS
GOAL: to provide current
income with share price
stability by investing in high
quality, short-term securities
START DATE: February 5, 1990
SIZE: as of April 30, 1994,
more than $780 million
MANAGER: Leland Barron,
since July 1991; manager,
Fidelity U.S. Government
Reserves, since July 1991 and
Spartan U.S. Treasury Money
Market Fund, since January
1991; joined
Fidelity in 1981
(checkmark)

WORDS TO KNOW
AGENCY ISSUE: Debt security
issued by a government
agency, such as the Federal
National Mortgage Association
(Fannie Mae). Although their
credit ratings are high, most
agency issues are not backed
by the full faith and credit of the
U.S. government.
AVERAGE MATURITY: The average
maturity of debt securities in a
fund, weighted by dollar
amount. When the average
maturity is short, the fund
manager believes interest
rates will rise. When the
average maturity is long, the
fund manager is expecting
rates to fall.
DISCOUNT RATE: The interest rate
the Federal Reserve charges
member banks for loans.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The amount of time
remaining before a debt
security is scheduled to be
redeemed.
REPURCHASE AGREEMENT:
Agreement between a seller
and a buyer in which the seller
promises to repurchase a block
of securities at a set price and
time. Also known as a "repo."
TREASURY OBLIGATION: Debt
security issued directly by the
U.S. government. Payment of
principal and interest are
guaranteed.
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
4/30/94 10/31/93 4/30/93

0 - 30 65 58 56

31 - 90 11 6 14

91 - 180 23 18 22

181 - 397 1 18 8

WEIGHTED AVERAGE MATURITY
4/30/94 10/31/93 4/30/93

Spartan U.S. Government
Money Market Fund 48 days 70 days 58 days

Average Government
Money Market Fund* 43 days 61 days 56 days

ASSET ALLOCATION
AS OF APRIL 30, 1994 AS OF OCTOBER 31, 1993

Row: 1, Col: 1, Value: 39.0
Row: 1, Col: 2, Value: 2.0
Row: 1, Col: 3, Value: 60.0
Row: 1, Col: 1, Value: 32.0
Row: 1, Col: 2, Value: 22.0
Row: 1, Col: 3, Value: 46.0
Federal agency
issues 39%
U.S. Treasury
obligations 1%
Repurchase
agreements 60%
Federal agency
issues 32%
U.S. Treasury
obligations 22%
Repurchase
agreements 46%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(Registered trademark)
INVESTMENTS APRIL 30, 1994

Showing Percentage of Total Value of Investments

FEDERAL AGENCIES - 38.6%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
FEDERAL FARM CREDIT BANK - AGENCY COUPONS - 2.4%
10/3/94 3.36% $ 10,000,000 $ 10,000,989
10/3/94 3.38 9,000,000 9,000,000
19,000,989
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 0.8%
6/16/94 3.37 6,000,000 5,999,393
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 3.7%
10/21/94 4.48 19,475,000 19,065,084
11/28/94 4.18 10,000,000 9,762,625
28,827,709
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS - 4.8%
5/2/94 3.85 (a) 30,000,000 30,000,000
6/30/94 3.40 7,000,000 7,000,285
37,000,285
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 20.3%
6/27/94 3.34 15,000,000 14,922,100
6/30/94 3.31 10,000,000 9,946,333
8/1/94 3.20 10,000,000 9,919,500
9/6/94 3.29 15,000,000 14,827,733
9/22/94 3.33 28,000,000 27,634,880
9/23/94 4.01 7,000,000 6,889,478
9/30/94 4.04 11,000,000 10,816,544
10/4/94 4.27 21,000,000 20,619,620
10/6/94 4.19 15,000,000 14,729,426
10/19/94 4.05 10,000,000 9,812,375
10/25/94 3.40 18,000,000 17,707,065
157,825,054
STUDENT LOAN MARKETING ASSOCIATION - AGENCY COUPONS (A) - 6.6%
5/3/94 4.26 26,000,000 26,000,000
7/1/94 3.74 12,400,000 12,400,000
10/11/94 4.15 13,250,000 13,249,308
51,649,308
TOTAL FEDERAL AGENCIES 300,302,738
U.S. TREASURY OBLIGATIONS - 1.4%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
U.S. TREASURY BILLS
10/20/94 3.36% $ 11,000,000 $ 10,827,618
REPURCHASE AGREEMENTS - 60.0%
MATURITY AMOUNT VALUE (NOTE 1)
(000S) (000S)
WITH BEAR STEARNS & CO., INC.
At 3.55%, dated 4/29/94 due 5/2/94:
U.S. Treasury Obligations
(principal amount $195,560,000)
5.125% to 8.625%, 1/15/95 to 6/30/98 $ 190,056,208 190,000,000
WITH FIRST BOSTON CORPORATION
At 3.85%, dated 4/26/94 due 5/24/94:
U.S. Government Obligations
(principal amount $32,022,069)
4.911% to 12.50%, 5/1/7 to 8/1/22 18,053,900 18,000,000
WITH GOLDMAN, SACHS & CO.
At 3.82%, dated 3/22/94 due 6/20/94:
U.S. Treasury Obligations
(principal amount $36,374,000)
4.625% to 6.875%, 8/15/94 to 8/15/95 36,343,800 36,000,000
SWISS BANK CORPORATION GOVERNMENT SECURITIES, INC.
At 3.55%, dated 4/29/94 due 5/2/94:
U.S. Treasury Obligations
(principal amount $198,400,000)
9/29/94 to 3/9/95 190,056,208 190,000,000
WITH UNION BANK OF SWITZERLAND
At 3.55%, dated 4/29/94 due 5/2/94:
U.S. Treasury Obligations
(principal amount $30,780,000)
8.75%, 10/15/97 32,484,607 32,475,000
TOTAL REPURCHASE AGREEMENTS 466,475,000
TOTAL INVESTMENTS - 100% $ 777,605,356
Total Cost For Income Tax Purposes $ 777,605,356

LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
INCOME TAX INFORMATION
At April 30, 1994, the fund had a capital loss carryforward of
approximately $81,000 of which $20,000, $10,000 and $51,000 will expire on
April 30, 1999, 2001 and 2002, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
APRIL 30, 1994

5.ASSETS 6. 7.

8.Investment in securities, at value (including 9. $ 777,605,356
repurchase agreements of $466,475,000) (Notes 1
and 2) -
See accompanying schedule

10.Cash 11. 1,942,919

12.Interest receivable 13. 1,040,649

14. 15.TOTAL ASSETS 16. 780,588,924

17.LIABILITIES 18. 19.

20.Dividends payable $ 10,081 21.

22.Accrued management fee 283,583 23.

24. 25.TOTAL LIABILITIES 26. 293,664

27.28.NET ASSETS 29. $ 780,295,260

30.Net Assets consist of: 31. 32.

33.Paid in capital 34. $ 780,376,646

35.Accumulated net realized gain (loss) on investments 36. (81,386)

37.38.NET ASSETS, for 780,376,646 shares outstanding 39. $ 780,295,260

40.41.NET ASSET VALUE, offering price and redemption 42. $1.00
price per share ($780,295,260 (divided by) 780,376,646 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED APRIL 30, 1994

43.44.INTEREST INCOME 45. $ 26,349,906

46.EXPENSES 47. 48.

49.Management fee (Note 3) $ 4,328,130 50.

51.Non-interested trustees' compensation 5,194 52.

53. Total expenses before reductions 4,333,324 54.

55. Expense reductions (Note 4) (736,316) 3,597,008

56.57.NET INTEREST INCOME 58. 22,752,898

59.60.NET REALIZED GAIN (LOSS) ON INVESTMENTS 61. (51,505)
(NOTE 1)

62.63.NET INCREASE IN NET ASSETS RESULTING FROM 64. $ 22,701,393
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED APRIL 30,

1994 1993

65.INCREASE (DECREASE) IN NET ASSETS

66.Operations $ 22,752,898 $ 39,123,850
Net interest income

67. Net realized gain (loss) on investments (51,505) (9,606)

68. 69.NET INCREASE (DECREASE) IN NET ASSETS 22,701,393 39,114,244
RESULTING
FROM OPERATIONS

70.Dividends to shareholders from net interest income (22,752,898) (39,123,850)

71.Share transactions at net asset value of $1.00 per 665,902,289 903,689,093
share
Proceeds from sales of shares

72. Reinvestment of dividends from net interest income 21,953,462 37,662,906

73. Cost of shares redeemed (805,300,969) (1,454,898,207)

74. Net increase (decrease) in net assets and shares (117,445,218) (513,546,208)
resulting
from share transactions

75. 76.TOTAL INCREASE (DECREASE) IN NET ASSETS (117,496,723) (513,555,814)

77.NET ASSETS 78. 79.

80. Beginning of period 897,791,983 1,411,347,797

81. End of period $ 780,295,260 $ 897,791,983

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
82. YEARS ENDED APRIL 30, FEBRUARY 5, 1990
(COMMENCEMEN
T
OF OPERATIONS) TO
APRIL 30,

83. 1994 1993 1992 1991 1990

84.SELECTED PER-SHARE DATA

85.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period

86.Income from Invest .029 .032 .052 .076 .019
ment
Operations
Net interest income

87.Less Distributions (.029) (.032) (.052) (.076) (.019)
From net interest
income

88.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period

89.TOTAL RETURN (dagger) 2.89% 3.24% 5.33% 7.84% 1.94%

90.RATIOS AND SUPPLEMENTAL DATA

91.Net assets, $ 780,295 $ 897,792 $ 1,411,348 $ 1,878,250 $ 49,339
end of period
(000 omitted)

92.Ratio of expenses .45% .45% .40% .17% -
to average net
assets (dagger)(dagger)

93.Ratio of expenses .54% .55% .55% .55% .55%*
to
average net assets
before expense
reductions (dagger)(dagger)

94.Ratio of net interes 2.85% 3.25% 5.29% 7.34% 8.49%*
t
income to average
net assets

</TABLE>

* ANNUALIZED
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS
SHOWN.
(dagger)(dagger) SEE NOTE 4 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1994

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan U.S. Government Money Market Fund (the fund) is a fund of Fidelity
Summer Street Trust (the trust) and is authorized to issue an unlimited
number of shares. The trust is registered under the Investment Company Act
of 1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between
the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these underlying securities remains at
least equal to the resale price.
REVERSE REPURCHASE AGREEMENTS. The fund is permitted to engage in reverse
repurchase agreements for temporary purposes when it is able to invest the
cash so acquired at a rate higher than the cost related to the agreement.
The fund engaged in reverse repurchase agreements during the period earning
net interest income of $47,666 which is included in Interest Income on the
Statement of Operations.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all expenses
except the compensation of the non-interested Trustees and certain
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
exceptions such as interest, taxes, brokerage commissions and extraordinary
expenses. FMR receives a fee that is computed daily at an annual rate of
.55% of the fund's average net assets.
On March 23, 1994, the shareholders of the fund voted to approve a proposal
that would amend the management contract by reducing the fee rate to .45%
of the fund's average net assets. The new contract went into effect April
1, 1994 and will continue through May 31, 1994, subject to the continuation
by the fund's Board of Trustees.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $49,506.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any payments by FMR pursuant to the fund's Distribution and Service
Plan.
4. EXPENSE REDUCTIONS.
For the period May 1, 1993 to March 31, 1994, FMR voluntarily agreed to
reimburse the fund's operating expenses (excluding interest, taxes,
brokerage commissions and extraordinary expenses) above an annual rate of
.45% of average net assets. For the period, the reimbursement reduced the
expenses by $736,316.
5. SHAREHOLDER MEETING.
At a special meeting of the shareholders of the fund held on March 23,
1994, shareholders approved amendments to certain fundamental investment
limitations of the fund.
In addition, shareholders approved an Agreement and Plan of Conversion and
Termination (the Plan of Conversion), providing for the conversion of the
fund (the current fund) from a separate series of Fidelity Summer Street
Trust, a Massachusetts business trust, to a separate series (the successor
fund) of Fidelity Hereford Street Trust, a Delaware business trust,
effective June 17, 1994. The individual investment objective, policies and
limitations of the successor fund will be identical to those of the current
fund. In connection with the Plan of Conversion, a new management contract,
new sub-advisory agreement and new distribution plan identical to those
currently in effect for the current fund will take effect on June 17, 1994.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Summer
Street Trust and the Shareholders of
Spartan U.S. Government Money
Market Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Summer Street Trust: Spartan U.S. Government Money Market Fund,
including the schedule of portfolio investments, as of April 30, 1994, and
the related statement of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended
and the financial highlights for each of the four years in the period then
ended and for the period February 5, 1990 (commencement of operations) to
April 30, 1990. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 1994 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Spartan U.S. Government Money Market Fund, the results of its operations
for the year then ended, the changes in its net assets for each of the two
years in the period then ended, and the financial highlights for each of
the four years in the period then ended and for the period February 5, 1990
(commencement of operations) to April 30, 1990, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND
Dallas, Texas
May 20, 1994
TO WRITE FIDELITY

Please locate the address that is closest to you. We'll give your
correspondence immediate attention and send you written confirmation upon
completion of your request. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER

Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Leland Barron, Vice President
Thomas D. Maher, Assistant
Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Morgan Guaranty Trust Co. of New York
New York, NY
FIDELITY'S TAXABLE
MONEY MARKET FUNDS
Fidelity Cash Reserves
Fidelity Daily Income Trust
Fidelity U.S. Government Reserves
Spartan Money Market Fund
Spartan U.S. Government
Money Market Fund
Spartan U.S. Treasury
Money Market Fund
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0111
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE