SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
STATEMENT BY REGISTERED CLOSED-END INVESTMENT COMPANY
WITH RESPECT TO PURCHASES OF ITS OWN SECURITIES PURSUANT
TO RULE N-23C-1 DURING THE LAST CALENDAR MONTH
Report For Calendar Month Ending: October 31, 2000
MERRILL LYNCH MUNICIPAL STRATEGY FUND, INC.
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<TABLE>
<CAPTION>
Approx Asset
Number of Value or Approx Asset Name of
Date of each Identification Shares Price per Coverage per Share at Seller or of
Transaction of Security Purchased Share Time of Purchase Seller's Broker
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<S> <C> <C> <C> <C> <C>
Oct. 26, 2000 Auction Market 299 $25,000 $7,475,000 Morgan Stanley
Preferred Stock Dean Witter
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Oct. 26, 2000 Auction Market 225 $25,000 $5,625,000 Salomon Smith
Preferred Stock Barney
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</TABLE>
MERRILL LYNCH MUNICIPAL
STRATEGY FUND, INC.
By /s/ Kenneth A. Jacob
Vice President
Date of Statement: November 2, 2000