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SUPPLEMENT TO THE STATEMENTS OF ADDITIONAL INFORMATION OF
MORGAN STANLEY DEAN WITTER CALIFORNIA TAX-FREE DAILY INCOME TRUST
Dated February 26, 1998
MORGAN STANLEY DEAN WITTER HAWAII MUNICIPAL TRUST Dated January 30, 1998
MORGAN STANLEY DEAN WITTER LIMITED TERM MUNICIPAL TRUST Dated June 30, 1998
MORGAN STANLEY DEAN WITTER LIQUID ASSET FUND INC. Dated October 24, 1997
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
Dated March 23, 1998
MORGAN STANLEY DEAN WITTER NEW YORK MUNICIPAL MONEY MARKET TRUST
Dated February 26, 1998
MORGAN STANLEY DEAN WITTER SHORT-TERM BOND FUND Dated June 30, 1998
MORGAN STANLEY DEAN WITTER SHORT-TERM U.S. TREASURY TRUST Dated July 29, 1998
MORGAN STANLEY DEAN WITTER TAX-FREE DAILY INCOME TRUST Dated February 27, 1998
MORGAN STANLEY DEAN WITTER U.S. GOVERNMENT MONEY MARKET TRUST
Dated March 2, 1998
The Directors/Trustees of each investment company named above have
approved certain changes to the Systematic Withdrawal Plan of each company, to
take effect on October 1, 1998. EFFECTIVE OCTOBER 1, 1998, the disclosure in
the section of each of the above Statements of Additional Information entitled
"SHAREHOLDER SERVICES -- Systematic Withdrawal Plan" or "REDEMPTION OF
FUND/TRUST SHARES -- Systematic Withdrawal Plan" is hereby replaced by the
following:
Systematic Withdrawal Plan. As discussed in the Prospectus, a
systematic withdrawal plan (the "Withdrawal Plan") is available for
shareholders whose shares of Morgan Stanley Dean Witter Funds have an
aggregate value of $10,000 or more. Shares of any Fund from which
redemptions will be made pursuant to the Plan must have a value of $1,000
or more (referred to as a "SWP Fund"). The required share values are
determined on the date the shareholder establishes the Withdrawal Plan. The
Withdrawal Plan provides for monthly, quarterly, semi-annual or annual
payments in any amount not less than $25, or in any whole percentage of the
value of the SWP Funds' shares, on an annualized basis. If the SWP Fund
shares, including shares acquired in exchange for shares of other Funds,
are subject to a contingent deferred sales charge ("CDSC"), any applicable
CDSC will be imposed on shares redeemed under the Withdrawal Plan (see
"Purchase of Fund Shares" in the Statements of Additional Information of
the Funds offered with a CDSC), except that the CDSC, if any, will be
waived on redemptions under the Withdrawal Plan of up to 12% annually of
the value of each SWP Fund account, based on the share values next
determined after the shareholder establishes the Withdrawal Plan. (For
shareholders who established the Withdrawal Plan prior to October 1, 1998,
the value of each SWP Fund account for the purpose of the 12% CDSC waiver
will be determined at 4:00 p.m., New York time, on October 2, 1998.)
Redemptions for which this CDSC waiver policy applies may be in amounts up
to 1% per month, 3% per quarter, 6% semi-annually or 12% annually. Under
this CDSC waiver policy, amounts withdrawn each period will be paid by
first redeeming shares not subject to a CDSC because the shares were
purchased by the reinvestment of dividends or capital gains distributions,
the CDSC period has elapsed or some other waiver of the CDSC applies. If
shares subject to a CDSC must be redeemed, shares held for the longest
period of time will be redeemed first and continuing with shares held the
next longest period of time until shares held the shortest period of time
are redeemed. Any shareholder participating in the Withdrawal Plan will
have sufficient shares redeemed from his or her account so that the
proceeds (net of any applicable CDSC) to the shareholder will be the
designated monthly, quarterly, semi-annual or annual amount.
A shareholder may suspend or terminate participation in the Withdrawal
Plan at any time. A shareholder who has suspended participation may resume
payments under the Withdrawal Plan, without requiring a new determination
of the account value for the 12% CDSC waiver. The Withdrawal Plan may be
terminated or revised at any time by the Fund.
Prior to adding an additional SWP Fund to an existing Withdrawal Plan,
the required $10,000/$1,000 share values must be met, to be calculated on
the date the shareholder adds the additional SWP Fund. However, the
addition of a new SWP Fund will not change the account value for the 12%
CDSC waiver for the SWP Funds already participating in the Withdrawal Plan.
Dividends and capital gains distributions on shares held under the
Systematic Withdrawal Plan will be invested in additional full and
fractional shares at net asset value (without a sales charge). Shares will
be credited to an open account for the investor by the Transfer Agent; no
share certificates will be issued. A shareholder is entitled to a share
certificate upon written request to the Transfer Agent, although in that
event the shareholder's Withdrawal Plan will be terminated.
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The Transfer Agent acts as agent for the shareholder in tendering to
the Fund for redemption sufficient full and fractional shares to provide
the amount of the periodic withdrawal payment designated in the
application. The shares will be redeemed at their net asset value
determined, at the shareholder's option, on the tenth or twenty-fifth day
(or next following business day) of the relevant month, quarter, or
semi-annual or annual period and normally a check for the proceeds will be
mailed by the Transfer Agent, or amounts credited to a shareholder's Dean
Witter Reynolds Inc. or other selected broker-dealer brokerage account, or
amounts deposited electronically into the shareholder's bank account via
the Automated Clearing House, within five business days after the date of
redemption.
Withdrawal Plan payments should not be considered as dividends, yields
or income. If periodic withdrawal plan payments continuously exceed net
investment income and net capital gains, the shareholder's original
investment will be correspondingly reduced and ultimately exhausted. Each
withdrawal constitutes a redemption of shares and any gain or loss realized
must be recognized for federal income tax purposes. Although a shareholder
of Morgan Stanley Dean Witter Hawaii Municipal Trust and Morgan Stanley
Dean Witter Multi-State Municipal Series Trust may make additional
investments while participating in the Withdrawal Plan, withdrawals made
concurrently with purchases of additional shares are inadvisable because of
sales charges applicable to the purchase of additional shares of those
Funds. Shareholders who acquired their shares of the other Funds other than
by exchange may make additional investments under the Withdrawal Plan
subject only to the Fund's minimum investment requirement.
Any shareholder who wishes to have payments under the Withdrawal Plan
made to a third party, or sent to an address other than the one listed on
the account, must send complete written instructions to the Transfer Agent
to enroll in the Withdrawal Plan. The shareholder's signature on such
instructions must be guaranteed by an eligible guarantor acceptable to the
Transfer Agent (shareholders should contact the Transfer Agent for a
determination as to whether a particular institution is such an eligible
guarantor). A shareholder may, at any time, change the amount and interval
of withdrawal payments and the address to which checks are mailed through
his or her Morgan Stanley Dean Witter Financial Advisor or other selected
broker-dealer representative or by written notification to the Transfer
Agent. In addition, the party and/or the address to which checks are mailed
may be changed by written notification to the Transfer Agent, with
signature guarantees required in the manner described above. The
shareholder may also terminate the Withdrawal Plan at any time by written
notice to the Transfer Agent. In the event of such termination, the account
will be continued as a regular Shareholder Investment Account. The
shareholder may also redeem all or part of the shares held in the
Withdrawal Plan account (see "Redemptions and Repurchases" or "Redemption
of Fund/Trust Shares" in the Prospectus) at any time. Shareholders wishing
to enroll in the Withdrawal Plan should contact their Morgan Stanley Dean
Witter Financial Advisor or other selected broker-dealer representative.
September 11, 1998
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