FIDELITY HEREFORD STREET TRUST, N-30D, 1997-06-05

FIDELITY HEREFORD STREET TRUST
N-30D, 1997-06-05

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SPARTAN

(registered trademark)
(registered trademark)
U.S. TREASURY
MONEY MARKET
FUND
ANNUAL REPORT
APRIL 30, 1997
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

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
values.

FINANCIAL STATEMENTS 11 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 15 Notes to the financial statements.

REPORT OF INDEPENDENT 17 The auditors' opinion.
ACCOUNTANTS

To reduce expenses and demonstrate respect for our environment, we have
initiated a project through which we will begin eliminating duplicate
copies of most financial reports and prospectuses to most households, even
if they have more than one account in the fund. If additional copies of
financial reports, prospectuses or historical account information are
needed, please call 1-800-544-6666.

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.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND
MONEY.
PRESIDENT'S MESSAGE

(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Through the first four months of 1997, stock and bond markets experienced
the kind of short-term volatility that can affect them from time to time.
After climbing steadily upward for more than two years, stock prices saw a
sharp correction in late March and early April. Returns in the bond market
were essentially stagnant as the Federal Reserve Board implemented a
long-expected increase in short-term interest rates at the end of March.
While it's impossible to predict the future direction of the markets with
any degree of certainty, there are certain basic principles that can help
investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will greatly
reduce your vulnerability to any single decline. We know from experience,
for example, that stock prices have gone up over longer periods of time,
have significantly outperformed other types of investments and have stayed
ahead of inflation.
Second, you can further manage your investing risk through diversification.
A stock mutual fund, for instance, is already diversified, because it
invests in many different companies. You can increase your diversification
further by investing in a number of different stock funds, or in such other
investment categories as bonds. You should also keep money you'll need in
the near future in a more stable investment.
Finally, no matter what your time horizon or portfolio diversity, it makes
good sense to follow a regular investment plan, investing a certain amount
of money in a fund at the same time each month or quarter and periodically
reviewing your overall portfolio. By doing so, you won't get caught up in
the excitement of a rapidly rising market, nor will you buy all your shares
at market highs. While this strategy - known as dollar cost averaging -
won't assure a profit or protect you from a loss in a declining market, it
should help you lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are available
24 hours a day, seven days a week to provide you the information you need
to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d
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 the value of an
investment, assuming reinvestment of the fund's dividend income and the
effect of the fund's $5 account closeout fee on an average-sized account.
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, the past five year
and the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan U.S. Treasury Money Marke 4.92% 22.41% 64.51%
t

100% U.S. Treasury Money Market 4.71% 21.29% 61.36%
Funds Average

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years, or since the fund
started on January 5, 1988. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. To measure how the fund's performance stacked up against its
peers, you can compare it to the 100% U.S. Treasury money market funds
average, which reflects the performance of 35 100% U.S. Treasury money
market funds with similar objectives tracked by IBC Financial Data, Inc.
over the past one year. (The periods covered by IBC Financial Data, Inc.
numbers are the closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan U.S. Treasury Money Market 4.92% 4.13% 5.48%

100% U.S. Treasury Money Market 4.71% 3.93% 5.31%
Funds Average

AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and show you
what would have happened if the fund had performed at a constant rate each
year.
YIELDS
4/29/97 1/28/97 10/29/96 7/30/96 4/30/96

Spartan U.S. Treasury 4.95% 4.84% 4.82% 4.77% 4.77%
Money Market

100% U.S. Treasury Money 4.72% 4.56% 4.60% 4.58% 4.51%
Market Funds Average

4/30/97 1/29/97 10/30/96 7/31/96 5/1/96

2.64% 2.62% 2.66% 2.69% 2.67%
MMDA

Row: 1, Col: 1, Value: 4.95
Row: 1, Col: 2, Value: 4.72
Row: 1, Col: 3, Value: 2.64
Row: 2, Col: 1, Value: 4.84
Row: 2, Col: 2, Value: 4.56
Row: 2, Col: 3, Value: 2.62
Row: 3, Col: 1, Value: 4.819999999999999
Row: 3, Col: 2, Value: 4.6
Row: 3, Col: 3, Value: 2.66
Row: 4, Col: 1, Value: 4.77
Row: 4, Col: 2, Value: 4.58
Row: 4, Col: 3, Value: 2.69
Row: 5, Col: 1, Value: 4.77
Row: 5, Col: 2, Value: 4.51
Row: 5, Col: 3, Value: 2.67
Spartan
U.S. Treasury
Money Market
100% U.S.
Treasury Money
Market Funds
Average
MMDA
6% -
5% -
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. You can
compare these yields to the 100% U.S. Treasury money market funds average
and the bank money market deposit account (MMDA) average. Figures for the
100% U.S. Treasury money market funds average are from IBC Financial Data,
Inc. The MMDA average is supplied by BANK RATE MONITOR(Trademark).
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND 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

NOTE TO SHAREHOLDERS: Robert Litterst became Portfolio Manager of Spartan
U.S. Treasury Money Market Fund on April 1, 1997.
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST YEAR, BOB?
A. At the beginning of the period, the economy was growing slowly and most
investors believed that the Federal Reserve Board would continue the policy
it had pursued since January 1996 of lowering short-term interest rates to
stimulate growth. However, economic activity picked up sharply in the
second quarter, with gross domestic product (GDP) increasing by a strong
4.7%. At that point, market sentiment shifted to an expectation that the
Fed would increase rates to slow the economy and head off potential
inflation. The Fed adopted a bias toward raising rates at its July Federal
Open Market Committee meeting and maintained that stance for the rest of
the year. The Fed held off raising rates for two reasons. First, the
economy slowed in the third quarter, confirming the Fed's official
forecast. Second, statistics showed minimal inflationary pressures building
in the economy. However, the Fed became more concerned after the fourth
quarter of 1996.
Q. WHY WAS THAT?
A. The economy began to pick up again. As a result, the Fed raised the rate
banks charge each other for overnight loans - known as the fed funds rate -
by 0.25% to 5.50% on March 25. In spite of a positive inflation backdrop,
above-trend demand growth and tight labor market conditions made it
difficult for the Fed to hold off making its move. The Fed was concerned
that if economic strength were sustained at current levels, there might be
increased inflation down the road.
Q. HOW WAS THE FUND MANAGED DURING THIS PERIOD?
A. For most of the period, the fund maintained a longer average maturity
than its peers. Early on, the previous manager, Leland Barron, felt market
rates factored in too many interest rate decreases by the Fed. Usually,
that would mean a manager would keep a fund's maturity on the shorter side.
However, U.S. Treasury securities maturing in three months or less tend to
sell at expensive levels due to strong demand from money managers seeking
safe, liquid investments for short-term investing. As a result, it often
pays to invest in securities with maturities that are a bit longer, in
order to pick up meaningful yield. To keep the maturity within a reasonable
range, Leland balanced these longer securities with investments with very
short maturities - overnight to one-month securities. I've maintained the
same structure in the fund - balancing more attractively valued longer-term
securities with others with very short maturities.
Q. HOW DID THE FUND PERFORM?
A. On April 30, 1997, the fund's seven-day yield was 4.95%, compared to
4.77% 12 months ago. The fund's total return for the 12 months was 4.92%,
compared to the average total return of 4.71% for the all 100% U.S.
Treasury money market funds average tracked by IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. I believe the Fed will need to continue to increase interest rates
because the economy is growing at a stronger pace than the Fed prefers to
see. At the same time, there are three reasons why I don't think the Fed
will embark on the same kind of protracted program of interest rate
increases it pursued in 1994 and early 1995, when it raised rates seven
times over 12 months for a total increase of 3.00%. First, inflation
presently remains under control. Second, real interest rates are relatively
high. Before the Fed began raising rates in 1994, the real fed funds rate -
the stated fed funds rate minus inflation - stood at about 0%. Presently,
the real fed funds rate already is at 3%. That is a meaningful difference.
Finally, the dollar has been strong relative to other major currencies,
which tends to reduce economic activity and moderate overall inflation. It
appears to me that unless the economy slows dramatically, the Fed will
raise rates by at least 0.25% by the beginning of the third quarter. At
that point, I expect the Fed to pause and see if the economy slows to a
more sustainable pace.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT
AS STATED ON THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY
TIME BASED ON MARKET AND OTHER CONDITIONS.

FUND FACTS
GOAL: income while
maintaining a stable $1
share price by investing in
U.S. Treasury money market
securities whose interest is
free from state and local
taxes
START DATE: January 5, 1988
FUND NUMBER: 415
TRADING SYMBOL: FDLXX
SIZE: as of April 30, 1997
more than $1.9 billion
MANAGER: Robert Litterst,
since April 1997; manager of
several Fidelity and Spartan
taxable money market funds;
joined Fidelity in 1991
(checkmark)
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
4/30/97 10/31/96 4/30/96

0 - 30 21 25 21

31 - 90 42 39 37

91 - 180 27 33 34

181 - 397 10 3 8

WEIGHTED AVERAGE MATURITY
4/30/97 10/31/96 4/30/96

Spartan U.S. Treasury 80 days 73 days 79 days
Money Market Fund

100% U.S. Treasury 62 days 63 days 62 days
Money Market Funds
Average*

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF APRIL 30, 1997 AS OF OCTOBER 31, 1996

Row: 1, Col: 1, Value: 17.0
Row: 1, Col: 2, Value: 83.0
Row: 1, Col: 1, Value: 55.0
Row: 1, Col: 2, Value: 45.0
U.S. Treasury
bills 17%
U.S. Treasury
notes 83%
U.S. Treasury
bills 55%
U.S. Treasury
notes 45%
* SOURCE: IBC'S MONEY FUND REPORT (registered trademark)
INVESTMENTS APRIL 30, 1997

Showing Percentage of Total Value of Investments in Securities

U.S. TREASURY OBLIGATIONS - 100.0%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
U.S. TREASURY BILLS - 16.9%
7/24/97 5.55% $ 456 $ 450
7/24/97 5.58 322 318
7/31/97 5.20 177,000 174,705
8/21/97 5.74 240 236
8/21/97 5.75 6,591 6,480
8/21/97 5.84 12,045 11,838
9/18/97 5.72 33,720 33,011
11/13/97 5.40 4,532 4,405
4/2/98 6.00 35,000 33,151
4/30/98 6.01 30,000 28,282
4/30/98 6.04 20,000 18,848
4/30/98 6.07 11,000 10,364
322,088
U.S. TREASURY NOTES - 83.1%
5/15/97 5.00 26,250 26,264
5/15/97 5.13 50,000 50,065
5/15/97 5.18 45,000 45,020
5/15/97 5.25 11,000 11,013
5/15/97 5.26 25,518 25,548
5/15/97 5.27 50,000 50,022
5/15/97 5.28 166,768 166,874
5/15/97 5.30 15,716 15,723
5/31/97 5.14 64,348 64,420
5/31/97 5.21 73,460 73,506
5/31/97 5.22 174,000 174,053
5/31/97 5.25 66,000 66,039
5/31/97 5.28 50,000 50,027
5/31/97 5.29 30,000 30,016
5/31/97 5.35 48,922 48,939
5/31/97 5.45 150,000 150,039
6/30/97 5.27 77,475 77,514
6/30/97 5.30 23,968 23,979
6/30/97 5.35 8,174 8,177
7/15/97 5.35 5,000 5,031
7/15/97 5.38 20,000 20,125
7/15/97 5.39 12,200 12,276
7/31/97 5.20 30,938 30,984
7/31/97 5.27 2,355 2,358
7/31/97 5.32 120,000 120,134
7/31/97 5.42 22,000 22,019
7/31/97 5.45 38,000 38,031
8/15/97 5.23 75,000 75,265
11/30/97 5.30 3,577 3,575
2/28/98 5.72 15,000 14,916
2/28/98 5.75 30,000 29,824
U.S. TREASURY OBLIGATIONS - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
U.S. TREASURY NOTES - CONTINUED
3/31/98 5.60% $ 15,000 $ 15,038
3/31/98 5.73 19,000 19,023
3/31/98 5.93 20,000 19,847
1,585,684
TOTAL INVESTMENTS - 100% $ 1,907,772
Total Cost for Income Tax Purposes $ 1,907,772
INCOME TAX INFORMATION
At April 30, 1997, the fund had a capital loss carryforward of
approximately $242,000 of which $195,000 and $47,000 will expire on April
30, 2002 and 2004, respectively.
A total of 100% of the dividends distributed during the fiscal year was
derived from interest on U.S. Government securities which is generally
exempt from state income tax.
The fund will notify shareholders in January 1998 of the applicable
percentage for use in preparing 1997 income tax returns.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) APRIL 30, 1997

ASSETS

Investment in securities, at value - $ 1,907,772
See accompanying schedule

Receivable for investments sold 29,888

Interest receivable 37,678

TOTAL ASSETS 1,975,338

LIABILITIES

Payable to custodian bank $ 5,837

Payable for investments purchased 57,494

Distributions payable 326

Accrued management fee 721

Other payables and accrued expenses 28

TOTAL LIABILITIES 64,406

NET ASSETS $ 1,910,932

Net Assets consist of:

Paid in capital $ 1,911,043

Accumulated net realized gain (loss) on investments (111)

NET ASSETS, for 1,911,043 shares outstanding $ 1,910,932

NET ASSET VALUE, offering price and redemption price per $1.00
share ($1,910,932 (divided by) 1,911,043 shares)

</TABLE>

STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED APRIL 30, 1997

INTEREST INCOME $ 98,809

EXPENSES

Management fee $ 8,438

Non-interested trustees compensation 8

Total expenses before reductions 8,446

Expense reductions (72) 8,374

NET INTEREST INCOME 90,435

NET REALIZED GAIN (LOSS) ON INVESTMENTS 24

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 90,459

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996

INCREASE (DECREASE) IN NET ASSETS

Operations $ 90,435 $ 91,555
Net interest income

Net realized gain (loss) 24 (47)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 90,459 91,508
FROM OPERATIONS

Distributions to shareholders from net interest income (90,435) (91,555)

Share transactions at net asset value of $1.00 per share 2,044,938 1,906,021
Proceeds from sales of shares

Reinvestment of distributions from net interest income 87,196 87,350

Cost of shares redeemed (2,015,989) (1,876,256)

NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 116,145 117,115
RESULTING FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 116,169 117,068

NET ASSETS

Beginning of period 1,794,763 1,677,695

End of period $ 1,910,932 $ 1,794,763

</TABLE>

FINANCIAL HIGHLIGHTS
YEARS ENDED APRIL 30, NINE MONTH YEARS ENDED JULY 31,
PERIOD ENDED
APRIL 30,

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1997 1996 1995 1994 1993

SELECTED PER-SHARE DATA

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

Income from Investment .048 .051 .036 .030 .028
Operations
Net interest income

Less Distributions

From net interest income (.048) (.051) (.036) (.030) (.028)

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

TOTAL RETURN B 4.92% 5.25% 3.66% 2.99% 2.87%

RATIOS AND SUPPLEMENTAL
DATA

Net assets, end of period $ 1,911 $ 1,795 $ 1,678 $ 1,556 $ 1,749
(in millions)

Ratio of expenses to average .45% .45% .45% A, .45% .42%
net assets C C C

Ratio of expenses to .45% .43% .45% A .45% .42%
average net assets after D
expense reductions

Ratio of net interest income to 4.82% 5.14% 4.85% A 2.94% 2.85%
average net assets

</TABLE>

A ANNUALIZED
B 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.
C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1997

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan U.S. Treasury Money Market Fund (the fund) is a fund of Fidelity
Hereford 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 Delaware business trust. The financial statements
have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and
assumptions at the date of the financial statements. 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 substantially 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 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.
REVERSE REPURCHASE AGREEMENTS. At all times that a reverse repurchase
agreement is outstanding, the fund identifies cash and liquid securities as
segregated in its custodian records with a value at least equal to its
obligation under the agreement.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (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 .45% of the fund's average net
assets.
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$38,000 for the period.
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
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE - CONTINUED
payable to FMR. The fee is paid prior to any voluntary expense
reimbursements which may be in effect.
4. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of the fund with the fund's
custodian and transfer agent whereby credits realized as a result of
uninvested cash balances were used to reduce a portion of the fund's
expenses. During the period, the fund's expenses were reduced by $72,000
under these arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees and the Shareholders
of Spartan U.S. Treasury Money
Market Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of Spartan
U.S. Treasury Money Market Fund, at April 30, 1997, the results of its
operations for the year then ended, the changes in its net assets and the
financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Spartan U.S. Treasury Money Market Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities owned
at April 30, 1997 by correspondence with the custodian, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Dallas, Texas
May 27, 1997
MANAGING YOUR INVESTMENTS

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SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
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INVESTMENT ADVISER
(registered trademark)
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
Sarah H. Zenoble, Vice President
Robert Litterst, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Thomas R. Williams *
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Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
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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
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SPARTAN(registered trademark)

(registered trademark)
MONEY MARKET
FUND

ANNUAL REPORT
APRIL 30, 1997
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

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.

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

FINANCIAL STATEMENTS 20 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 24 Notes to the financial statements.

REPORT OF INDEPENDENT 26 The auditors' opinion.
ACCOUNTANTS

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and the
effect of the fund's $5 account closeout fee on an average-sized account.
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, the past five year
and life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Money Market Fund 5.21% 24.48% 58.68%

All Taxable Money Market Funds Averag 4.94% 22.26% 52.58%
e

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
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, the value of your investment would
be $1,050. To measure how the fund's performance stacked up against its
peers, you can compare it to the all taxable money market funds average,
which reflects the performance of 843 taxable money market funds with
similar objectives tracked by IBC Financial Data, Inc. over the past one
year. (The periods covered by IBC Financial Data, Inc. numbers are the
closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Money Market Fund 5.21% 4.48% 5.74%

All Taxable Money Market Funds Averag 4.94% 4.10% 5.25%
e

5.22% 5.10% 5.12% 5.11% 5.02%
Spartan Money Market
Fund

All Taxable Money Market 4.96% 4.82% 4.82% 4.82% 4.75%
Funds Average

4/30/97 1/29/97 10/30/96 7/31/96 5/1/96

2.64% 2.62% 2.66% 2.69% 2.67%
MMDA

Row: 1, Col: 1, Value: 5.44
Row: 1, Col: 2, Value: 5.22
Row: 1, Col: 3, Value: 2.85
Row: 2, Col: 1, Value: 5.3
Row: 2, Col: 2, Value: 5.01
Row: 2, Col: 3, Value: 2.81
Row: 3, Col: 1, Value: 5.02
Row: 3, Col: 2, Value: 4.75
Row: 3, Col: 3, Value: 2.67
Row: 4, Col: 1, Value: 5.109999999999999
Row: 4, Col: 2, Value: 4.819999999999999
Row: 4, Col: 3, Value: 2.69
Row: 5, Col: 1, Value: 5.119999999999999
Row: 5, Col: 2, Value: 4.819999999999999
Row: 5, Col: 3, Value: 2.66
6% -
5% -
4% -
3% -
2% -
1% -
0%
Spartan
Money Market Fund
All Taxable Money
Market Funds Average
MMDA
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. You can
compare these yields to the all taxable money market funds average and the
bank money market deposit account (MMDA) average. Figures for the all
taxable money market funds average are from IBC Financial Data, Inc. The
MMDA average is supplied by BANK RATE MONITOR.(Trademark)
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

An interview with John Todd, Portfolio Manager of Spartan Money Market Fund
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST YEAR, JOHN?
A. At the beginning of the period, the economy was responding positively to
three interest rate decreases the Federal Reserve Board had implemented
through January 31, 1996. As the second quarter of 1996 unfolded, the
economy was responding positively to lower interest rates, and was in fact
accelerating. By the third quarter, the market began to reflect the belief
that the Fed would reverse its policy and start to raise rates. With the
economy growing at a stronger rate than the Fed felt was consistent with
stable inflation and with resource utilization high, it was believed that
the Fed needed to slow the economy to prevent inflationary pressures from
building. As we progressed through the third and fourth quarters, however,
it became evident that the Fed was in the midst of a monetary experiment.
By that, I mean that the Fed was allowing the economy to grow at a faster
rate without intervening to slow it, as long as the inflation outlook
remained positive. Working through the first quarter of 1997, we saw the
economic momentum that had developed in the fourth quarter continue to
build.
Q. HOW DID THE FED RESPOND?
A. In testimony before both houses of Congress, Fed Chairman Alan Greenspan
repeatedly warned of the risks to the inflation outlook if the Fed failed
to respond to an economy growing at a pace that was inconsistent with
stable inflation. Growth in real gross domestic product (GDP) - meaning
nominal growth minus inflation - in the first quarter was unusually strong
and, back-to-back with the fourth quarter, marked the first time in three
years the GDP grew well in excess of 3% in back-to-back quarters. Given the
momentum in the economy, the Fed chose to raise the rate banks charge each
other for overnight loans - known as the fed funds rate - by 0.25% to 5.50%
at its March meeting.
Q. WHAT KIND OF STRATEGY DID YOU PURSUE?
A. Early in the period, I kept the fund's average maturity in line with its
peers, in the mid 50-day range. In the third and fourth quarter of 1996, I
felt prices prematurely reflected an interest rate increase. As a result, I
managed the fund with a longer average maturity than most of its peers, in
the mid-60s. Because of Greenspan's testimony, during the first quarter of
1997 I brought the maturity in shorter than other funds - at about 50 days.
Once the market began adjusting to new rates and expecting further Fed
interest rate increases, I began to extend the fund's maturity. That's
because I found many longer-maturity instruments attractively valued
because their prices and yields reflected a much more aggressive Fed
interest rate posture than I felt was likely.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on April 30, 1997, was 5.23%, compared to
5.02% 12 months ago. For the 12 months that ended April 30, 1997, the fund
had a total return of 5.21%, compared to 4.94% for the all taxable money
market funds average, according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. While I believe it's likely the Fed will continue to raise interest
rates, I don't believe it will do so as aggressively as it did in 1994 and
early 1995, when the Fed raised the fed funds rate seven times for a total
of 3%. There are distinct differences between 1994 and the current
environment. First, real short-term rates - meaning nominal short-term
rates minus inflation - are at 3% currently, the same level at which the
Fed stopped raising rates in 1995. Second, in 1994 the dollar was weak,
whereas it has been quite strong over the past 12 to 18 months. A strong
dollar has a further dampening effect on the economy because overseas
demand for American goods suffers as those goods become more expensive when
the dollar rises. Third, inflation is not expected to come on strong. This
comparison with 1994 offers a convenient frame of reference. While that
period saw one of the more dramatic interest rate cycles in some time, the
present situation is
less severe. Accordingly, I believe interest rates likely will go up, but
not to the same extent as 1994 and early 1995.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: seeks high current
income with share price
stability by investing in
high-quality, short-term
money market securities of
all types
START DATE: January 23, 1989
FUND NUMBER: 454
TRADING SYMBOL: SPRXX
SIZE: as of April 30, 1997,
more than $9.2 billion
MANAGER: John Todd, since
1989; manager, Fidelity
Select Money Market
Portfolio, since 1991;
short-term and money
market investments for the
Fidelity Asset Manager
funds, since December
1996; Fidelity Cash
Reserves, since April 1997;
joined Fidelity in 1981
(checkmark)
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS
4/30/97 10/31/96

0 - 30 57 45

31 - 90 20 26

91 - 180 11 25

181 - 397 12 4

WEIGHTED AVERAGE MATURITY
4/30/97 10/31/96

Spartan Money Market
Fund 69 days 60 days

All Taxable 53 days
Money Market Funds 52 days
Average *

ASSET ALLOCATION (% OF FUNDS INVESTMENTS)
AS OF APRIL 30, 1997 AS OF OCTOBER 31, 1996

Row: 1, Col: 1, Value: 66.0
Row: 1, Col: 2, Value: 27.0
Row: 1, Col: 3, Value: 7.0
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 1, Value: 51.0
Row: 1, Col: 2, Value: 34.0
Row: 1, Col: 3, Value: 11.0
Row: 1, Col: 4, Value: 4.0
Bank CDs,
BAs, TDs,
and notes 66%
Commercial
paper 27%
Government
securities 7%
Other 0%
Bank CDs,
BAs, TDs,
and notes 51%
Commercial
paper 34%
Government
securities 11%
Other 4%
* SOURCE: IBC'S MONEY FUND REPORT (registered trademark)
INVESTMENTS APRIL 30, 1997

Showing Percentage of Total Value of Investments in Securities

BANKERS' ACCEPTANCES - 0.0%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
DOMESTIC BANKERS' ACCEPTANCES
Chase Manhattan Bank
8/1/97 5.54% $ 2,483 $ 2,449
CERTIFICATES OF DEPOSIT - 46.7%
DOMESTIC CERTIFICATES OF DEPOSIT - 1.7%
Chase Manhattan Bank (USA)
7/28/97 5.55 35,000 35,000
Morgan Guaranty Trust, NY
8/12/97 5.80 75,000 74,985
3/19/98 5.95 50,000 49,983
159,968
CHICAGO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 1.2%
ABN-AMRO Bank
3/19/98 6.00 45,000 44,992
Bank of Montreal
6/24/97 5.38 70,000 70,000
114,992
PORTLAND BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.5%
Bank of Nova Scotia
4/1/98 6.20 50,000 49,974
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 34.0%
ABN-AMRO Bank
5/16/97 5.55 30,000 30,000
Bank of Tokyo - Mitsubishi Ltd.
5/5/97 5.60 26,000 26,000
5/7/97 5.48 12,000 12,000
5/27/97 5.48 48,000 48,000
5/30/97 5.48 17,000 17,000
6/3/97 5.53 52,000 52,000
6/4/97 5.53 7,000 7,000
7/10/97 5.83 32,000 32,000
Banque Nationale de Paris
9/30/97 5.85 25,000 25,000
10/7/97 5.95 25,000 24,991
Barclays Bank, PLC
5/12/97 5.56 32,000 32,000
5/19/97 5.61 61,000 61,000
5/27/97 5.54 175,000 175,000
1/16/98 5.80 58,000 57,980
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
Bayerische Hypotheken - und Weschel
5/7/97 5.59% $ 34,000 $ 34,000
5/12/97 5.37 35,000 35,000
Bayerische Landesbank Girozentrale
5/12/97 5.57 86,000 86,000
9/29/97 5.85 25,000 24,982
2/10/98 5.93 40,000 39,907
Bayerische Vereinsbank A.G.
5/19/97 5.54 70,000 70,000
6/18/97 5.37 70,000 70,000
Caisse Nationale de Credit Agricole
5/7/97 5.57 50,000 50,000
6/16/97 5.50 50,000 50,000
Canadian Imperial Bank of Commerce
5/7/97 5.58 40,000 40,000
5/12/97 5.57 22,000 22,000
Commerzbank, Germany
5/14/97 5.55 50,000 50,000
5/22/97 5.55 30,000 30,000
6/2/97 5.56 30,000 30,000
Credit Suisse First Boston (BK)
5/19/97 5.40 50,000 50,000
Deutsche Bank, Germany
5/28/97 5.34 121,000 121,000
9/10/97 6.10 35,000 34,999
10/28/97 5.70 14,000 13,991
4/10/98 6.25 50,000 49,977
4/15/98 6.30 30,000 29,989
Landesbank Hessen - Thuringen
9/5/97 6.20 55,000 55,002
4/1/98 6.25 30,000 29,968
National Westminster Bank, PLC
5/1/97 5.42 22,000 22,000
5/21/97 5.35 50,000 50,000
6/17/97 5.50 50,000 50,000
8/6/97 5.50 46,000 46,000
10/3/97 5.94 60,000 59,975
12/19/97 5.92 20,000 19,993
3/3/98 5.80 60,000 59,985
Rabobank Nederland, N.V.
5/20/97 5.53 30,000 30,000
3/20/98 6.00 55,000 54,986
3/24/98 6.05 30,000 29,985
4/10/98 6.25 25,000 24,989
4/10/98 6.26 30,000 29,984
Royal Bank of Canada
3/3/98 5.82 75,000 74,988
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.
5/2/97 5.68% $ 24,000 $ 24,000
5/19/97 5.66 17,000 17,000
5/21/97 5.50 8,000 8,000
5/21/97 5.64 50,000 50,000
5/27/97 5.50 23,000 23,000
7/10/97 5.81 26,000 26,000
8/1/97 5.85 24,000 24,000
Societe Generale, France
6/11/97 5.42 25,000 25,000
7/25/97 5.55 55,000 55,000
7/28/97 5.55 55,000 55,000
8/7/97 5.52 50,000 50,000
Sumitomo Bank, Ltd.
5/19/97 5.52 30,000 30,000
5/19/97 5.54 9,000 9,000
5/27/97 5.50 17,000 17,000
5/27/97 5.51 8,000 8,000
5/30/97 5.52 8,000 8,000
6/6/97 5.58 13,000 13,000
Swiss Bank Corp.
5/16/97 5.55 8,000 8,000
6/3/97 5.96 50,000 50,000
7/16/97 5.40 9,000 9,000
7/21/97 5.53 100,000 100,000
8/4/97 5.50 110,000 110,000
12/22/97 5.96 55,000 55,000
12/22/97 5.99 65,000 65,000
12/30/97 6.04 50,000 50,000
2/27/98 5.88 20,000 20,000
Westdeutsche Landesbank Girozentrale
5/5/97 5.62 44,000 44,000
5/12/97 5.56 32,000 32,000
5/13/97 5.58 70,000 70,000
3,224,671
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 9.3%
ABN-AMRO Bank
5/20/97 5.53 25,000 25,000
7/24/97 5.45 20,000 20,001
Abbey National, Treasury Services
5/20/97 5.42 61,000 61,000
5/27/97 5.44 39,000 38,998
8/20/97 5.44 75,000 75,000
3/4/98 5.87 44,000 44,000
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - CONTINUED
Bank of Nova Scotia
5/12/97 5.56% $ 34,000 $ 34,000
5/27/97 5.54 100,000 100,000
Bayerische Hypotheken - und Weschel
5/19/97 5.55 35,000 35,000
Bayerische Landesbank Girozentrale
7/29/97 5.51 25,000 25,003
7/31/97 5.54 40,000 40,001
Bayerische Vereinsbank A.G.
8/26/97 5.44 30,000 30,000
Berliner Handels - und Frankfurter Bank
6/4/97 5.45 35,000 35,000
Commerzbank, Germany
6/23/97 5.51 25,000 25,000
Den Danske Bank Group A/S
5/14/97 5.42 50,000 50,000
5/20/97 5.35 14,000 14,000
8/18/97 5.43 27,000 27,003
Deutsche Bank, Germany
5/27/97 5.54 35,000 35,000
Lloyds Bank, PLC
1/26/98 5.80 19,000 18,988
National Westminster Bank, PLC
5/1/97 5.42 10,000 10,000
Societe Generale, France
5/20/97 5.56 15,000 14,998
Toronto-Dominion Bank
5/12/97 5.56 32,000 32,000
5/12/97 5.57 35,000 35,000
10/6/97 5.88 15,000 15,000
3/3/98 5.87 40,000 40,000
879,992
TOTAL CERTIFICATES OF DEPOSITS 4,429,597
COMMERCIAL PAPER - 26.8%
ABN-AMRO North America Finance, Inc.
5/23/97 5.54 35,000 34,882
5/27/97 5.35 20,000 19,924
6/19/97 5.50 15,000 14,891
AC Acquisition Holding Company
5/13/97 5.43 17,000 16,970
5/14/97 5.43 30,000 29,942
5/21/97 5.65 41,000 40,872
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
AC Acquisition Holding Company - continued
5/22/97 5.65% $ 25,000 $ 24,918
6/12/97 5.64 9,000 8,941
6/13/97 5.64 5,000 4,967
ANZ (DE), Inc.
5/21/97 5.55 10,000 9,969
Abbey National, North America
8/25/97 5.44 50,000 49,147
American Home Products
5/6/97 5.63 15,000 14,988
5/19/97 5.58 17,000 16,953
5/19/97 5.64 37,000 36,896
Asset Securitization Coop. Corp.
5/14/97 5.56 10,000 9,980
Associates Corp. of North America
5/27/97 5.65 30,000 29,879
6/26/97 5.80 55,000 54,511
B.B.V. Finance (Delaware), Inc.
10/8/97 5.88 27,000 26,315
BHF Finance (Delaware), Inc.
6/2/97 5.45 5,000 4,976
BMW U.S. Capital Corp.
5/1/97 5.70 60,000 60,000
5/27/97 5.65 20,000 19,919
Bear Stearns Cos., Inc.
5/21/97 5.37 26,000 25,924
5/28/97 5.61 15,000 14,937
Beneficial Corp.
5/30/97 5.61 53,000 52,762
CIT Group Holdings, Inc.
5/12/97 5.56 25,000 24,958
5/29/97 5.80 25,000 24,888
Caisse d'Amortissement de la Dette Sociale
6/3/97 6.01 125,000 124,341
Caisse des Depots et Consignations
5/14/97 5.45 50,000 49,904
Cheltenham & Gloucester PLC
5/12/97 5.44 35,000 34,943
Chrysler Financial Corporation
5/14/97 5.65 10,000 9,980
5/21/97 5.63 17,000 16,947
5/30/97 5.91 32,000 31,849
Citibank Credit Card Master Trust I (Dakota Certificate Program)
5/14/97 5.39 4,000 3,992
5/19/97 5.39 8,000 7,979
5/21/97 5.39 25,000 24,926
5/30/97 5.44 10,000 9,957
CoreStates Capital Corp.
5/5/97 5.65 (a) 5,000 5,000
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
CoreStates Capital Corp. - continued
5/7/97 5.65% (a) $ 20,000 $ 20,000
Cregem North America, Inc.
5/13/97 5.43 50,000 49,911
6/27/97 5.39 6,000 5,950
Delaware Funding Corporation
5/27/97 5.55 10,000 9,960
Den Danske Corp., Inc.
5/8/97 5.58 15,000 14,984
5/14/97 5.57 15,000 14,970
Enterprise Funding Corp.
5/2/97 5.44 5,000 4,999
5/13/97 5.56 10,051 10,033
5/14/97 5.54 9,000 8,982
5/14/97 5.56 20,000 19,960
5/20/97 5.55 25,123 25,050
Fina Oil and Chemical Company
5/5/97 5.65 5,000 4,997
5/13/97 5.57 20,000 19,963
5/19/97 5.57 5,000 4,986
First Union Corp.
5/30/97 5.56 15,000 14,933
Generale Bank
5/27/97 5.65 12,000 11,952
7/30/97 5.53 20,000 19,731
General Electric Capital Corp.
5/22/97 5.58 41,000 40,868
5/27/97 5.35 25,000 24,905
5/28/97 5.45 50,000 49,799
6/3/97 5.44 35,000 34,830
7/29/97 5.52 25,000 24,668
9/22/97 5.80 60,000 58,646
1/22/98 6.12 35,000 33,487
General Electric Co.
5/28/97 5.45 75,000 74,699
General Motors Acceptance Corp.
5/7/97 5.51 44,000 43,961
5/21/97 5.57 7,000 6,978
6/23/97 5.62 25,000 24,799
6/25/97 5.62 75,000 74,373
8/27/97 5.50 34,000 33,404
10/14/97 6.00 82,000 79,799
10/14/97 6.01 12,000 11,678
10/16/97 6.01 8,000 7,783
10/20/97 6.03 26,000 25,274
Goldman Sachs Group, L.P. (The)
5/5/97 5.45 25,000 24,985
5/12/97 5.45 56,000 55,909
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Goldman Sachs Group, L.P. (The) - continued
1/23/98 6.09% $ 10,000 $ 9,568
1/26/98 6.10 45,000 43,032
Halifax Building Society
5/27/97 5.62 43,000 42,827
Matterhorn Capital Corp.
5/27/97 5.55 15,000 14,940
Merrill Lynch & Co., Inc.
5/22/97 5.57 33,000 32,894
6/18/97 5.42 25,000 24,823
7/28/97 5.54 30,000 29,605
Morgan Stanley Group, Inc.
5/15/97 5.42 56,000 55,884
NationsBank Corp.
7/28/97 5.53 10,000 9,868
Norfolk Southern Corp.
5/12/97 5.60 15,000 14,974
5/19/97 5.43 5,000 4,987
PHH Corp.
5/13/97 5.57 10,000 9,982
5/19/97 5.54 5,000 4,986
5/21/97 5.54 10,000 9,969
Preferred Receivables Funding Corp.
6/9/97 5.64 20,000 19,879
Santander Finance (Delaware), Inc.
6/24/97 5.43 10,000 9,920
Sears Roebuck Acceptance Corp.
5/30/97 5.63 10,000 9,955
Smith Barney, Inc.
5/21/97 5.58 19,000 18,942
SunTrust Banks, Inc.
5/1/97 5.62 (a) 15,000 15,000
Textron, Inc.
5/7/97 5.73 8,000 7,992
5/7/97 5.75 10,000 9,990
5/8/97 5.73 3,000 2,997
5/19/97 5.73 6,000 5,983
5/21/97 5.68 3,000 2,991
5/21/97 5.70 5,000 4,984
Triple A One Funding Corp.
5/5/97 5.57 28,639 28,621
5/13/97 5.58 50,000 49,908
5/29/97 5.66 27,000 26,882
Unifunding, Inc.
5/12/97 5.56 9,000 8,985
5/22/97 5.55 30,000 29,903
TOTAL COMMERCIAL PAPER 2,546,604
FEDERAL AGENCIES (A) - 7.2%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
FEDERAL HOME LOAN BANK - AGENCY COUPONS - 0.4%
6/4/97 5.44% $ 35,000 $ 34,982
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS - 6.8%
5/1/97 5.67 100,000 99,969
5/1/97 5.92 100,000 100,000
5/2/97 5.63 200,000 199,874
5/6/97 5.59 35,000 34,989
6/9/97 5.46 130,000 129,931
6/13/97 5.46 85,000 84,954
649,717
TOTAL FEDERAL AGENCIES 684,699
BANK NOTES - 5.8%
Bank of America National Trust & Savings SF
5/30/97 5.56 115,000 115,000
6/19/97 5.50 50,000 50,000
Comerica Bank - Detroit
3/27/98 6.20 40,000 39,931
First of America Bank - Illinois
11/13/97 5.91 23,000 22,974
First of America Bank - Michigan
6/4/97 5.44 15,000 14,999
Harris Trust & Savings Bank, Chicago
5/12/97 5.55 32,000 32,000
Huntington National Bank
9/30/97 5.50 13,000 13,011
Key Bank NA
5/1/97 5.87 (a) 25,000 24,997
5/1/97 5.88 (a) 44,000 43,993
LaSalle National Bank
6/18/97 5.51 20,000 20,000
9/8/97 6.12 10,000 10,000
9/10/97 6.15 15,000 15,000
Morgan Guaranty Trust, NY
6/6/97 6.00 25,000 24,999
NBD Bank, NA (Michigan)
3/2/98 5.82 40,000 39,990
PNC Bank NA
5/8/97 5.69 (a) 47,000 46,999
5/12/97 5.65 (a) 37,000 36,986
TOTAL BANK NOTES 550,879
MASTER NOTES (A) - 2.6%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Goldman Sachs Group, L.P. (The)
5/8/97 5.55% $ 43,000 $ 43,000
J.P. Morgan Securities
5/1/97 5.88 107,000 107,000
5/8/97 5.69 29,000 29,000
Norwest Corp.
5/1/97 5.69 53,000 53,000
SunTrust Banks, Inc.
5/1/97 5.64 15,000 15,000
TOTAL MASTER NOTES 247,000
MEDIUM-TERM NOTES (A) - 4.0%
Commonwealth Life Insurance Co. (c)
5/1/97 5.96 35,000 35,000
General Motors Acceptance Corp.
5/1/97 5.56 47,000 47,000
6/4/97 5.44 65,000 64,675
2/13/98 5.70 18,000 17,997
Merrill Lynch & Co., Inc.
5/19/97 5.69 35,000 34,998
6/4/97 5.67 17,000 16,997
Morgan Stanley Group, Inc.
5/1/97 5.90 41,000 41,000
Norwest Corp.
7/22/97 5.86 50,000 50,000
Pacific Mutual Life Insurance Co. (c)
6/9/97 5.62 18,000 18,000
Transamerica Life Insurance and Annuity Co. (c)
5/1/97 5.72 20,000 20,000
6/16/97 5.63 30,000 30,000
TOTAL MEDIUM-TERM NOTES 375,667
SHORT-TERM NOTES (A) - 3.9%
Capital One Funding Corp. (1994-C)
5/7/97 5.70 7,663 7,663
Capital One Funding Corp. (1995-E)
5/7/97 5.70 5,800 5,800
Capital One Funding Corp. (1995-D)
5/7/97 5.70 9,630 9,630
Capital One Funding Corp. (1996-B)
5/7/97 5.70 9,800 9,800
SHORT-TERM NOTES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Capital One Funding Corp. (1996-H)
5/7/97 5.70% $ 8,520 $ 8,520
Capital One Funding Corp. (1996-I)
5/7/97 5.70 11,772 11,772
Liquid Asset Backed Securities Trust (1996-1) (b)
5/15/97 5.71 41,000 41,000
Liquid Asset Backed Securities Trust (1996-2) (b)
5/1/97 5.72 57,000 57,000
SMM Trust (1996-I) (b)
5/29/97 5.74 50,000 50,000
SMM Trust (1996-P) (b)
5/16/97 5.72 57,000 57,000
SMM Trust (1997-V) (b)
5/27/97 5.69 60,000 60,000
SMM Trust (1997-W) (b)
5/16/97 5.69 53,000 53,000
TOTAL SHORT-TERM NOTES 371,185
TIME DEPOSITS - 3.0%
Deutsche Bank, Germany
5/1/97 5.70 175,000 175,000
Sumitomo Bank, Ltd.
5/5/97 5.72 45,000 45,000
5/8/97 5.73 15,000 15,000
5/15/97 5.70 8,000 8,000
Westdeutsche Landesbank
5/1/97 5.69 40,000 40,000
TOTAL TIME DEPOSITS 283,000
REPURCHASE AGREEMENTS - 0.0%
MATURITY AMOUNT
(000S)
In a joint trading account
(U.S. Government Obligations)
dated 4/30/97 due 5/1/97
At 5.59% $ 865 865
TOTAL INVESTMENTS - 100% $ 9,491,945
Total Cost for Income Tax Purposes $ 9,491,945
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due date on these types of
securities reflects the next interest rate reset date or, when applicable,
the final maturity date.
2. 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 $318,000,000 or 3.4% of net
assets.
3. Restricted security; subject to resale restrictions.
INCOME TAX INFORMATION
At April 30, 1997 the fund had a capital loss carryforward of approximately
$2,742,000 of which $211,000, $1,893,000, $476,000 and $162,000 will expire
on April 30, 2001. 2002, 2003 and 2004, respectively.
A total of 1.8% of the dividends distributed during the fiscal year was
derived from interest on U.S. Government securities which is generally
exempt from state income tax.
The fund will notify shareholders in January 1998 of the applicable
percentage for use in preparing 1997 income tax returns.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) APRIL 30, 1997

ASSETS

Investment in securities, at value (including repurchase $ 9,491,945
agreements of $865) - See accompanying schedule

Cash 3,282

Receivable for investments sold 7

Interest receivable 65,965

TOTAL ASSETS 9,561,199

LIABILITIES

Payable for investments purchased $ 257,025

Distributions payable 885

Accrued management fee 3,643

TOTAL LIABILITIES 261,553

NET ASSETS $ 9,299,646

Net Assets consist of:

Paid in capital $ 9,302,387

Accumulated net realized gain (loss) on investments (2,741)

NET ASSETS, for 9,301,876 shares outstanding $ 9,299,646

NET ASSET VALUE, offering price and redemption price per $1.00
share ($9,299,646 (divided by) 9,301,876 shares)

</TABLE>

STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED APRIL 30, 1997

INTEREST INCOME $ 493,610

EXPENSES

Management fee $ 40,096

Non-interested trustees' compensation 32

Total expenses before reductions 40,128

Expense reductions (246) 39,882

NET INTEREST INCOME 453,728

NET REALIZED GAIN (LOSS) ON INVESTMENTS 90

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 453,818

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996

INCREASE (DECREASE) IN NET ASSETS

Operations $ 453,728 $ 451,857
Net interest income

Net realized gain (loss) 90 (161)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 453,818 451,696
FROM OPERATIONS

Distributions to shareholders from net interest income (453,728) (451,857)

Share transactions at net asset value of $1.00 per share 13,164,275 12,078,072
Proceeds from sales of shares

Reinvestment of distributions from net interest income 441,878 435,783

Cost of shares redeemed (12,757,142) (11,698,500)

NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 849,011 815,355
RESULTING FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 849,101 815,194

NET ASSETS

Beginning of period 8,450,545 7,635,351

End of period $ 9,299,646 $ 8,450,545

</TABLE>

FINANCIAL HIGHLIGHTS

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

1997 1996 1995 1994 1993

SELECTED PER-SHARE DATA

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

Income from Investment .051 .054 .049 .031 .035
Operations
Net interest income

Less Distributions

From net interest income (.051) (.054) (.049) (.031) (.035)

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

TOTAL RETURN A 5.21% 5.57% 4.97% 3.14% 3.51%

RATIOS AND SUPPLEMENTAL
DATA

Net assets, end of period $ 9,300 $ 8,451 $ 7,635 $ 6,453 $ 4,542
(in millions)

Ratio of expenses to average .45% .45% .44% B .31% B .30%
net assets

Ratio of expenses to average .45% .42% .44% .31% .30%
net assets after expense C
reductions

Ratio of net interest income to 5.09% 5.45% 4.89% 3.12% 3.46%
average net assets

</TABLE>

A TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
B FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1997

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan Money Market Fund (the fund) is a fund of Fidelity Hereford 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 Delaware business trust. The financial statements have been
prepared in conformity with generally accepted accounting principles which
permit management to make certain estimates and assumptions at the date of
the financial statements. 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 substantially 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 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.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements for U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
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
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
interest, taxes, brokerage commissions and extraordinary expenses. FMR
receives a fee that is computed daily at an annual rate of .45% of the
fund's average net assets.
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$228,000 for the period.
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.
4. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of the fund with the fund's
custodian and transfer agent whereby credits realized as a result of
uninvested cash balances were used to reduce a portion of the fund's
expenses. During the period, the fund's expenses were reduced by $246,000
under these arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Hereford Street Trust and the Shareholders of
Spartan Money Market Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Hereford Street Trust: Spartan Money Market Fund, including the
schedule of portfolio investments, as of April 30, 1997, 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, 1997 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 Hereford Street Trust: Spartan Money Market Fund as of April
30, 1997, 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 L.L.P.
Dallas, Texas
May 28, 1997
MANAGING YOUR INVESTMENTS

TO WRITE FIDELITY

INVESTMENT ADVISER
(registered trademark)
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
Sarah H. Zenoble, Vice President
John Todd, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assitant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
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
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
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SPARTAN

(registered trademark)
(registered trademark)
U.S. GOVERNMENT
MONEY MARKET
FUND
ANNUAL REPORT
APRIL 30, 1997
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

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 13 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 17 Notes to the financial statements.

REPORT OF INDEPENDENT 23 The auditors' opinion.
ACCOUNTANTS

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and the
effect of the fund's $5 account closeout fee on an average-sized account.
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, the past five year
and life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan U.S. Government 5.16% 23.51% 43.02%
Money Market Fund

Government Money Market 4.88% 22.05% 38.96%
Funds Average

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years, 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, the value of your investment would
be $1,050. To measure how the fund's performance stacked up against its
peers, you can compare it to the government money market funds average,
which reflects the performance of 413 government money market funds with
similar objectives tracked by IBC Financial Data, Inc. over the past one
year. (The periods covered by IBC Financial Data, Inc. numbers are the
closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan U.S. Government 5.16% 4.31% 5.07%
Money Market Fund

Government Money Market 4.88% 4.06% 4.69%
Funds Average

Spartan U.S. Government 5.18% 5.00% 5.04% 5.04% 5.03%
Money Market Fund

Government Money Market 4.75% 4.63% 4.66% 4.65% 4.57%
Funds Average

4/30/97 1/29/97 10/30/96 7/31/96 5/1/96

2.64% 2.62% 2.66% 2.69% 2.67%
MMDA

Row: 1, Col: 1, Value: 5.18
Row: 1, Col: 2, Value: 4.75
Row: 1, Col: 3, Value: 2.64
Row: 2, Col: 1, Value: 5.0
Row: 2, Col: 2, Value: 4.63
Row: 2, Col: 3, Value: 2.62
Row: 3, Col: 1, Value: 5.04
Row: 3, Col: 2, Value: 4.659999999999999
Row: 3, Col: 3, Value: 2.66
Row: 4, Col: 1, Value: 5.04
Row: 4, Col: 2, Value: 4.649999999999999
Row: 4, Col: 3, Value: 2.69
Row: 5, Col: 1, Value: 5.03
Row: 5, Col: 2, Value: 4.57
Row: 5, Col: 3, Value: 2.67
Spartan U.S.
Government
Money Market
Government
Money
Market Funds
Average
MMDA
6% -
5% -
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. You can
compare these yields to the government money market funds average and the
bank money market deposit account (MMDA) average. Figures for the
government money market funds average are from IBC Financial Data, Inc.
The MMDA average is supplied by BANK RATE MONITOR.(Trademark)
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND 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

NOTE TO SHAREHOLDERS: Robert Litterst became Portfolio Manager of Spartan
U.S. Government Money Market Fund on April 1, 1997.
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST YEAR, BOB?
A. At the beginning of the period, the economy was growing slowly, and most
investors believed that the Federal Reserve Board would continue the policy
it had pursued since January 1996 of lowering short-term interest rates to
stimulate growth. However, economic activity picked up sharply in the
second quarter, with gross domestic product (GDP) increasing by a strong
4.7%. At that point, market sentiment shifted to an expectation that the
Fed would increase rates to slow the economy and head off potential
inflation. The Fed adopted a bias toward raising rates at its July Federal
Open Market Committee meeting and maintained that stance for the rest of
the year. The Fed held off raising rates for two reasons. First, the
economy slowed in the third quarter, confirming the Fed's official
forecast. Second, statistics showed minimal inflationary pressures building
in the economy. However, the Fed became more concerned after the fourth
quarter of 1996.
Q. WHY WAS THAT?
A. The economy began to pick up again. As a result, the Fed raised the rate
banks charge each other for overnight loans - known as the fed funds rate -
by 0.25% to 5.50% on March 25. In spite of a positive inflation backdrop,
strong demand growth and tight labor market conditions made it difficult
for the Fed to hold off making its move. The Fed was concerned that if
economic strength were sustained at current levels, there might be
increased inflation down the road.
Q. HOW WAS THE FUND MANAGED DURING THIS PERIOD?
A. Over the year, the fund tended to have a shorter average maturity than
its peers. That was primarily because the fund took a neutral approach to
the outlook for interest rates. In addition, up to 45% of the fund was
invested in variable rate instruments. The yield on these investments is
reset periodically to reflect moves in rates in the short-term market. They
tend to reduce the average maturity of the fund, but were attractive
because they offered a yield advantage. The fund's position in these
securities fell to about 26% at the end of the period because they weren't
offering as much value and the supply was limited. More recently, I've used
a barbell strategy - concentrating the fund on either end of the maturity
spectrum - investing in overnight to one-month securities on the one hand
and agency issues with maturities of one year on the other. The one-year
notes were attractively valued because they priced in more Fed increases
than I felt would occur. The very short-term securities help to balance the
maturity of the portfolio.
Q. HOW DID THE FUND PERFORM?
A. On April 30, 1997, the fund's seven-day yield was 5.18%, compared to
5.03% 12 months ago. The fund's total return for the 12 months that ended
April 30, 1997, was 5.16%, compared to the average total return of 4.88%
for the government money market funds average tracked by IBC Financial
Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. I believe the Fed will need to continue to increase interest rates
because the economy is growing at a stronger pace than what the Fed prefers
to see. At the same time, there are three reasons why I don't think the Fed
will embark on the same kind of protracted program of interest rate
increases it pursued in 1994, when it raised rates seven times over 12
months for a total increase of 3%. First, inflation presently remains under
control. Second, real interest rates are relatively high. Before the Fed
began raising rates in 1994 and early 1995, the real fed funds rate - the
stated fed funds rate minus inflation - stood at about 0%. Presently, the
real fed funds rate is already at 3%. That is a meaningful difference.
Finally, the dollar has been strong relative to other major currencies,
which tends to reduce economic activity and moderate overall inflation. It
appears to me that unless the economy slows dramatically, the Fed will
raise rates by at least 0.25% by the beginning of the
third quarter. At that point, I expect the Fed to pause and see if the
economy slows to a more sustainable pace.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: high current income,
preservation of capital
START DATE: February 5, 1990
FUND NUMBER: 458
TRADING SYMBOL: SPAXX
SIZE: as of April 30, 1997,
more than $815 million
MANAGER: Robert Litterst,
since April 1997; manager,
several Fidelity and Spartan
taxable money market funds;
joined Fidelity in 1991
(checkmark)
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
4/30/97 10/31/96 4/30/96

0 - 30 66 71 34

31 - 90 18 13 15

91 - 180 0 9 16

181 - 397 16 7 35

WEIGHTED AVERAGE MATURITY
4/30/97 10/31/96 4/30/96

Spartan U.S. Government
Money Market Fund 63 days 42 days 36 days

Government Money
Market 47 days 49 days 51 days
Funds Average *

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF APRIL 30, 1997 AS OF OCTOBER 31, 1996

Row: 1, Col: 1, Value: 52.0
Row: 1, Col: 2, Value: 4.0
Row: 1, Col: 3, Value: 44.0
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 1, Value: 59.0
Row: 1, Col: 2, Value: 9.0
Row: 1, Col: 3, Value: 32.0
Row: 1, Col: 4, Value: 0.0
Federal agency
issues 52%
U.S. Treasury
obligations 4%
Repurchase
agreements 44%
Other 0%
Federal agency
issues 59%
U.S. Treasury
obligations 9%
Repurchase
agreements 32%
Other 0%
* SOURCE: IBC'S MONEY FUND REPORT (registered trademark)
INVESTMENTS APRIL 30, 1997

Showing Percentage of Total Value of Investments in Securities

FEDERAL AGENCIES - 52.4%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FEDERAL FARM CREDIT BANK - AGENCY COUPONS - 2.4%
4/1/98 6.01% $ 10,000,000 $ 9,982,632
4/1/98 6.05 10,000,000 9,977,941
19,960,573
FEDERAL HOME LOAN BANK - AGENCY COUPONS - 12.6%
5/2/97 5.60 (a) 32,000,000 31,989,477
5/28/97 5.61 (a) 16,000,000 15,995,934
6/19/97 5.46 15,000,000 14,990,352
6/27/97 5.60 15,520,000 15,522,654
3/18/98 5.88 (a) 25,000,000 25,000,000
103,498,417
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 5.1%
5/29/97 5.32 9,000,000 8,963,285
7/25/97 5.41 20,000,000 19,751,139
7/28/97 5.35 4,000,000 3,949,009
10/30/97 5.79 10,000,000 9,715,372
42,378,805
FEDERAL HOME LOAN MORTGAGE CORP. - AGENCY COUPONS - 1.9%
3/17/98 5.79 8,000,000 7,989,620
4/8/98 6.04 8,000,000 7,980,263
15,969,883
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 4.8%
7/3/97 5.61 4,970,000 4,921,903
7/15/97 5.56 10,000,000 9,885,625
7/18/97 5.56 5,420,000 5,355,529
7/21/97 5.57 16,395,000 16,192,481
8/26/97 5.40 3,000,000 2,948,715
39,304,253
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS - 19.7%
5/1/97 5.46 (a) 19,000,000 18,996,925
5/1/97 5.58 (a) 9,000,000 9,032,556
5/1/97 5.59 (a) 12,000,000 12,043,364
5/1/97 5.67 (a) 30,000,000 29,990,642
5/1/97 5.92 (a) 10,000,000 10,000,000
5/4/97 5.60 (a) 21,000,000 20,990,588
5/6/97 5.59 (a) 10,000,000 9,996,877
6/9/97 5.46 (a) 15,000,000 14,992,063
6/13/97 5.46 (a) 10,000,000 9,994,612
FEDERAL AGENCIES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS - CONTINUED
3/18/98 5.91% $ 7,000,000 $ 6,983,116
4/15/98 6.06 10,000,000 9,989,004
4/17/98 6.11 9,000,000 8,984,448
161,994,195
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 5.9%
5/21/97 5.31 10,120,000 10,090,483
5/29/97 5.32 5,170,000 5,148,909
6/13/97 5.35 14,000,000 13,912,961
6/17/97 5.37 8,000,000 7,945,114
7/24/97 5.41 11,825,000 11,679,592
48,777,059
TOTAL FEDERAL AGENCIES 431,883,185
U.S. TREASURY OBLIGATIONS - 3.8%
U.S. TREASURY BILLS - 2.3%
3/5/98 5.67 10,000,000 9,541,208
3/5/98 5.68 10,000,000 9,540,567
19,081,775
U.S. TREASURY NOTES - 1.5%
11/15/97 5.46 12,000,000 12,106,656
TOTAL U.S. TREASURY OBLIGATIONS 31,188,431
MEDIUM-TERM NOTES (A) - 0.3%
EXPORT-IMPORT BANK, U.S. (AS GUARANTOR FOR K.A. LEASING, LTD.) (B)
5/15/97 5.81 2,214,343 2,214,343
REPURCHASE AGREEMENTS - 43.5%
MATURITY VALUE
AMOUNT (NOTE 1)
In a joint trading account
(Notes 2 and 3)
(U.S. Government Obligations):
dated 4/30/97 due 5/1/97
At 5.59% $ 83,797,018 $ 83,784,000
dated 4/2/97 due 5/5/97
At 5.57% 35,178,704 35,000,000
dated 4/8/97 due 5/5/97
At 5.54% 8,033,240 8,000,000
dated 4/8/97 due 5/5/97
At 5.53% 30,124,425 30,000,000
dated 4/30/97 due 5/5/97
At 5.50% 19,014,514 19,000,000
dated 4/30/97 due 5/5/97
At 5.50% 12,009,167 12,000,000
dated 4/8/97 due 5/7/97
At 5.54% 10,044,628 10,000,000
dated 4/8/97 due 5/7/97
At 5.54% 10,044,628 10,000,000
dated 4/8/97 due 5/8/97
At 5.53% 20,092,167 20,000,000
dated 4/23/97 due 5/14/97
At 5.49% 16,051,240 16,000,000
dated 4/23/97 due 5/14/97
At 5.49% 1,003,203 1,000,000
dated 4/23/97 due 5/14/97
At 5.52% 8,025,760 8,000,000
dated 4/30/97 due 5/21/97
At 5.52% 13,041,860 13,000,000
dated 4/29/97 due 5/29/97
At 5.53% 24,110,600 24,000,000
dated 4/30/97 due 5/30/97
At 5.55% 17,078,625 17,000,000
dated 4/30/97 due 5/30/97
At 5.56% 27,125,100 27,000,000
dated 4/3/97 due 6/2/97
At 5.59% 25,232,917 25,000,000
TOTAL REPURCHASE AGREEMENTS 358,784,000
TOTAL INVESTMENTS - 100% $ 824,069,959
Total Cost for Income Tax Purposes $ 824,069,959
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due date on these types of
securities reflects the next interest rate reset date or, when applicable,
the final maturity date.
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
Export-Import Bank,
U.S. (as guarantor for
K.A. Leasing, Ltd.) 7/8/94 $2,214,343
INCOME TAX INFORMATION
At April 30,1997, the fund had a capital loss carryforward of approximately
$162,000 of which $11,000, $10,000, $52,000, $53,000 and $36,000 will
expire on April 30, 1999, 2001, 2002, 2003 and 2004, respectively.
A total of 22.2% of the dividends distributed during the fiscal year was
derived from interest on U.S. Government securities which is generally
exempt from state income tax.
The fund will notify shareholders in January 1998 of the applicable
percentage for use in preparing 1997 income tax returns.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
APRIL 30, 1997

ASSETS

Investment in securities, at value (including $ 824,069,959
repurchase agreements of $358,784,000) -
See accompanying schedule

Interest receivable 3,733,557

TOTAL ASSETS 827,803,516

LIABILITIES

Payable for investments purchased $ 9,715,372

Share transactions in process 1,898,784

Distributions payable 114,575

Accrued management fee 323,852

TOTAL LIABILITIES 12,052,583

NET ASSETS $ 815,750,933

Net Assets consist of:

Paid in capital $ 815,913,420

Accumulated net realized gain (loss) on investments (162,487)

NET ASSETS, for 815,913,420 shares outstanding $ 815,750,933

NET ASSET VALUE, offering price and redemption price per $1.00
share ($815,750,933 (divided by) 815,913,420 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED APRIL 30, 1997

INTEREST INCOME $ 45,803,806

EXPENSES

Management fee $ 3,765,132

Non-interested trustees' compensation 5,694

Total expenses before reductions 3,770,826

Expense reductions (16,656) 3,754,170

NET INTEREST INCOME 42,049,636

NET REALIZED GAIN (LOSS) ON INVESTMENTS 8,871

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 42,058,507

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996

INCREASE (DECREASE) IN NET ASSETS

Operations $ 42,049,636 $ 40,672,383
Net interest income

Net realized gain (loss) 8,871 (36,511)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 42,058,507 40,635,872
FROM OPERATIONS

Distributions to shareholders from net interest income (42,049,636) (40,672,383)

Share transactions at net asset value of $1.00 per share 995,343,307 809,405,827
Proceeds from sales of shares

Reinvestment of distributions from net interest income 40,493,872 38,628,312

Cost of shares redeemed (981,570,366) (793,716,471)

NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 54,266,813 54,317,668
RESULTING FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 54,275,684 54,281,157

NET ASSETS

Beginning of period 761,475,249 707,194,092

End of period $ 815,750,933 $ 761,475,249

</TABLE>

FINANCIAL HIGHLIGHTS

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

1997 1996 1995 1994 1993

SELECTED PER-SHARE DATA

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

Income from Investment .050 .054 .047 .029 .032
Operations
Net interest income

Less Distributions

From net interest income (.050) (.054) (.047) (.029) (.032)

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

TOTAL RETURN A 5.16% 5.52% 4.79% 2.89% 3.24%

RATIOS AND SUPPLEMENTAL
DATA

Net assets, end of period $ 815,751 $ 761,475 $ 707,194 $ 780,295 $ 897,792
(000 omitted)

Ratio of expenses to average .45% .45% .45% .45% .45%
net assets B B

Ratio of expenses to average .45% .41% .45% .45% .45%
net assets after expense C
reductions

Ratio of net interest income to 5.02% 5.42% 4.67% 2.85% 3.25%
average net assets

</TABLE>

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan U.S. Government Money Market Fund(the fund) is a fund of Fidelity
Hereford 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 Delaware business trust. The financial statements
have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and
assumptions at the date of the financial statements. 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 substantially 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 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.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements for U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
REVERSE REPURCHASE AGREEMENTS. At all times that a reverse repurchase
agreement is outstanding, the fund identifies cash and liquid securities as
segregated in its custodian records with a value at least equal to its
obligation under the agreement.
RESTRICTED SECURITIES. The fund is permitted to invest in securities that
are
2. OPERATING POLICIES - CONTINUED
RESTRICTED SECURITIES - CONTINUED
subject to legal or contractual restrictions on resale. These securities
generally 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 $2,214,343 or 0.3% of net
assets.
3. JOINT TRADING ACCOUNT.
At the end of the period, the fund had 20% or more of its total investments
in repurchase agreements through a joint trading account. These repurchase
agreements were with entities whose creditworthiness has been reviewed and
found satisfactory by FMR. The maturity values of the joint trading account
investments are shown in the schedule of investments.The investments in
repurchase agreements through the joint trading account are summarized as
follows:
SUMMARY OF JOINT TRADING
Dated April 30, 1997, due May 1, 1997 at 5.59%
Number of dealers or banks 5
Maximum amount with one dealer or bank 29.8%
Aggregate principal amount of agreements $840,000,000
Aggregate maturity amount of agreements $840,130,517
Aggregate market value of transferred assets $865,132,746
Coupon rates of transferred assets 6.00% to 13.50%
Maturity dates of transferred assets 3/1/00 to 7/1/36
Dated April 2, 1997, due May 5, 1997 at 5.57%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $201,021,167
Aggregate market value of transferred assets $207,134,518
Coupon rates of transferred assets 5.00% to 9.50%
Maturity dates of transferred assets 6/1/97 to 12/1/34
Dated April 8, 1997, due May 5, 1997 at 5.54%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $45,000,000
Aggregate maturity amount of agreements $45,186,975
Aggregate market value of transferred assets $46,712,286
Coupon rates of transferred assets 6.81% to 7.77%
Maturity dates of transferred assets 3/1/23 to 4/1/27
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
Dated April 8, 1997, due May 5, 1997 at 5.53%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $300,000,000
Aggregate maturity amount of agreements $301,244,250
Aggregate market value of transferred assets $309,000,001
Coupon rates of transferred assets 4.75% to 14.00%
Maturity dates of transferred assets 5/15/97 to 6/1/36
Dated April 30, 1997, due May 5, 1997 at 5.50%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $125,000,000
Aggregate maturity amount of agreements $125,095,486
Aggregate market value of transferred assets $130,111,739
Coupon rates of transferred assets 5.50% to 13.25%
Maturity dates of transferred assets 8/1/00 to 4/1/31
Dated April 30, 1997, due May 5, 1997 at 5.50%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $200,152,778
Aggregate market value of transferred assets $205,759,789
Coupon rates of transferred assets 5.00% to 7.50%
Maturity dates of transferred assets 12/1/98 to 8/1/33
Dated April 8, 1997, due May 7, 1997 at 5.54%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $100,000,000
Aggregate maturity amount of agreements $100,446,278
Aggregate market value of transferred assets $103,000,000
Coupon rates of transferred assets 5.50% to 8.50%
Maturity dates of transferred assets 5/1/22 to 12/20/26
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
Dated April 8, 1997, due May 7, 1997 at 5.54%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $100,000,000
Aggregate maturity amount of agreements $100,446,278
Aggregate market value of transferred assets $102,347,353
Coupon rates of transferred assets 5.25% to 9.00%
Maturity dates of transferred assets 5/15/98 to 7/31/98
Dated April 8, 1997, due May 8, 1997 at 5.53%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $200,921,667
Aggregate market value of transferred assets $205,530,631
Coupon rates of transferred assets 5.75% to 12.50%
Maturity dates of transferred assets 11/15/98 to 3/1/35
Dated April 23, 1997, due May 14, 1997 at 5.49%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $20,000,000
Aggregate maturity amount of agreements $20,064,050
Aggregate market value of transferred assets $21,467,726
Coupon rates of transferred assets 6.50% to 9.00%
Maturity dates of transferred assets 5/1/02 to 4/1/27
Dated April 23, 1997, due May 14, 1997 at 5.49%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $125,000,000
Aggregate maturity amount of agreements $125,400,313
Aggregate market value of transferred assets $127,641,068
Coupon rates of transferred assets 4.75% to 5.875%
Maturity dates of transferred assets 10/31/98 to 12/31/98
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
Dated April 23, 1997, due May 14, 1997 at 5.52%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $50,000,000
Aggregate maturity amount of agreements $50,161,000
Aggregate market value of transferred assets $51,758,103
Coupon rates of transferred assets 6.74% to 8.02%
Maturity dates of transferred assets 12/1/23 to 9/1/30
Dated April 30, 1997, due May 21, 1997 at 5.52%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $80,000,000
Aggregate maturity amount of agreements $80,257,600
Aggregate market value of transferred assets $82,402,281
Coupon rates of transferred assets 5.93% to 7.65%
Maturity dates of transferred assets 10/1/24 to 11/1/30
Dated April 29, 1997, due May 29, 1997 at 5.53%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $250,000,000
Aggregate maturity amount of agreements $251,152,083
Aggregate market value of transferred assets $258,816,356
Coupon rates of transferred assets 6.01% to 11.50%
Maturity dates of transferred assets 12/1/03 to 4/1/27
Dated April 30, 1997, due May 30, 1997 at 5.55%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $100,000,000
Aggregate maturity amount of agreements $100,462,500
Aggregate market value of transferred assets $103,002,652
Coupon rates of transferred assets 5.75% to 13.00%
Maturity dates of transferred assets 9/1/00 to 6/1/29
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
Dated April 30, 1997, due May 30, 1997 at 5.56%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $250,000,000
Aggregate maturity amount of agreements $251,158,333
Aggregate market value of transferred assets $256,913,288
Coupon rates of transferred assets 5.75% to 12.50%
Maturity dates of transferred assets 11/15/98 to 3/1/35
Dated April 3, 1997, due June 2, 1997 at 5.59%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $250,000,000
Aggregate maturity amount of agreements $252,329,167
Aggregate market value of transferred assets $258,579,653
Coupon rates of transferred assets 6.07% to 8.26%
Maturity dates of transferred assets 2/2/02 to 1/1/27
4. 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
.45% of the fund's average net assets.
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$18,916 for the period.
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.
5. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of the fund with the fund's
custodian and transfer agent whereby credits realized as a result of
uninvested cash balances were used to reduce a portion of the fund's
expenses. During the period, the fund's expenses were reduced by $16,656
under these arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Hereford 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 Hereford Street Trust: Spartan U.S. Government Money Market Fund,
including the schedule of portfolio investments, as of April 30, 1997, 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 con-
firmation of securities owned as of April 30, 1997 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 Hereford Street Trust: Spartan U.S. Government Money Market
Fund as of April 30, 1997, 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 L.L.P.
Dallas, Texas
May 28, 1997
INVESTMENT ADVISER
(registered trademark)
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
Sarah H. Zenoble, Vice President
Robert Litterst, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
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
Exchanges/Redemptions 1-800-544-7777
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 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE