NEW ENGLAND FUNDS TRUST III
N-18F1, 1995-08-23
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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

NOTIFICATION OF ELECTION PURSUANT TO RULE 18f-1
UNDER THE INVESTMENT COMPANY ACT OF 1940

NEW ENGLAND FUNDS TRUST III
Exact Name of Registrant

NOTIFICATION OF ELECTION


     The undersigned registered open-end investment company hereby notifies the
Securities and Exchange Commission that it elects to commit itself to pay in
cash all redemptions by a shareholder of record as provided by Rule 18f-1 under
the Investment Company Act of 1940.  It is understood that this election is
irrevocable while such Rule is in effect unless the Commission by order upon
application permits the withdrawal of this Notification of Election.


SIGNATURES


     Pursuant to the requirements of Rule 18f-1 under the Investment Company
Act of 1940, the Registrant has caused this Notification of Election to be duly
executed on its behalf in the City of Boston and The Commonwealth of
Massachusetts on the 22nd day of August 1995.


                              NEW ENGLAND FUNDS TRUST III



                              By: /s/HENRY L.P. SCHMELZER
                                     Henry L.P. Schmelzer
                                     Sole Trustee


ATTEST:


/s/SHEILA M. BARRY
_________________________










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