NSAR-B

      PAGE  1
000 B000000 03/31/97
000 C000000 0000757440
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 EVERGREEN INVESTMENT TRUST
001 B000000 811-4154
001 C000000 6172103276
002 A000000 200 BERKELY ST
002 B000000 BOSON
002 C000000 MA
002 D010000 02116
002 D020000 2555
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000  3
007 C010100  1
007 C020100 EVERGREEN VALUE FUND
007 C030100 N
007 C010200  2
007 C010300  3
007 C010400  4
007 C010500  5
007 C010600  6
007 C010700  7
007 C020700 EVERGREEN BALANCED FUND
007 C030700 N
007 C010800  8
007 C010900  9
007 C011000 10
011 A00AA01 EVERGREEN KEYSTONE DISTRIBUTOR, INC.
011 B00AA01 8-46906
011 C01AA01 FALLS RIVER
011 C02AA01 NJ
011 C03AA01 00000
013 A00AA01 KPMG PEAT MARWICK LLP
013 B01AA01 BOSTONURGH
013 B02AA01 MA
013 B03AA01 02110
018  00AA00 Y
019 A00AA00 Y
019 B00AA00   78
019 C00AA00 EVERGREENS
020 A000001 SALOMON BROTHERS INC.
      PAGE  2
020 B000001 13-3082694
020 C000001     29
020 A000002 GOLDMAN SACHS
020 B000002 1351088808
020 C000002     26
020 A000003 LEHMAN BROTHERS, INC.
020 B000003 13-2518466
020 C000003     26
020 A000004 BOSTON INSTITUTIONAL SERVICES
020 B000004 04-2479358
020 C000004     22
020 A000005 PAINE WEBBER INC.
020 B000005 13-2638166
020 C000005     20
020 A000006 BONALDSON, LUFKIN & JENRETTE SECS. CORP.
020 B000006 13-2741729
020 C000006     19
020 A000007 ESI SECURITIES
020 B000007 13-3747159
020 C000007     13
020 A000008 PRUDENTIAL SECURITIES INC.
020 B000008 22-2347336
020 C000008     12
020 A000009 CS FIRST BOSTON CORP.
020 B000009 13-5659485
020 C000009     12
020 A000010 JONES & ASSOC.
020 B000010 43-0345811
020 C000010     12
021  000000      191
022 A000001 DLJ CAPITAL MARKETS
022 B000001 13-2741729
022 C000001   2694022
022 D000001         0
022 A000002 BANK OF AMERICA
022 B000002 94-1687665
022 C000002     65168
022 D000002         0
022 A000003 AUTRANET INC.
022 B000003 13-2961507
022 C000003     20977
022 D000003     42444
022 A000004 SMITH BARNEY SHEARSON INC.
022 B000004 13-1912900
022 C000004     11105
022 D000004      7478
022 A000005 BEAR STEARNS
022 B000005 13-3299429
022 C000005      8680
022 D000005         0
022 A000006 GOLDMAN SACHS & CO.
      PAGE  3
022 B000006 13-5108880
022 C000006      5423
022 D000006         0
022 A000007 MERRILL LYNCH PIERCE FENNER & SMITH
022 B000007 13-5674085
022 C000007      1843
022 D000007         0
022 C000008         0
022 D000008         0
022 C000009         0
022 D000009         0
022 C000010         0
022 D000010         0
023 C000000    2828594
023 D000000      51118
077 A000000 Y
080 A00AA00 VIGILANT INSURANCE CO.
080 C00AA00    30400
081 A00AA00 Y
081 B00AA00  43
082 A00AA00 N
082 B00AA00        0
083 A00AA00 N
083 B00AA00        0
084 A00AA00 N
084 B00AA00        0
085 A00AA00 Y
085 B00AA00 N
062 A000100 N
062 B000100   0.0
062 C000100   0.0
062 D000100   0.0
062 E000100   0.0
062 F000100   0.0
062 G000100   0.0
062 H000100   0.0
062 I000100   0.0
062 J000100   0.0
062 K000100   0.0
062 L000100   0.0
062 M000100   0.0
062 N000100   0.0
062 O000100   0.0
062 P000100   0.0
062 Q000100   0.0
062 R000100   0.0
071 A000100   1210510
071 B000100   1274624
071 C000100   1337641
071 D000100   91
072 A000100 12
      PAGE  4
074 N000100  1526958
074 T000100  1523237
075 A000100        0
075 B000100  1390146
025 A000701 DONALDSON, LUFKIN & JENRETTE SECURITIES CORP.
025 B000701 13-2741729
025 C000701 D
025 D000701   22381
025 A000702 SMITH BARNEY INC.
025 B000702 13-1912900
025 C000702 D
025 D000702    4898
025 A000703 MERRILL, LYNCH, PIERCE, FENNER & SMITH INC.
025 B000703 13-5674085
025 C000703 D
025 D000703    4823
025 D000704       0
025 D000705       0
025 D000706       0
025 D000707       0
025 D000708       0
028 A010700     26125
028 A020700         0
028 A030700         0
028 A040700     30996
028 B010700      9883
028 B020700         0
028 B030700         0
028 B040700     16609
028 C010700     16939
028 C020700      4394
028 C030700         0
028 C040700     19346
028 D010700         0
028 D020700         0
028 D030700         0
028 D040700         0
028 E010700         0
028 E020700         0
028 E030700         0
028 E040700         0
028 F010700         0
028 F020700         0
028 F030700         0
028 F040700         0
028 G010700     52947
028 G020700      4394
028 G030700         0
028 G040700     66951
028 H000700       612
029  000700 Y
      PAGE  5
030 A000700     26
030 B000700  4.75
030 C000700  0.00
031 A000700      3
031 B000700      0
032  000700     23
033  000700      0
034  000700 Y
035  000700     42
036 A000700 N
036 B000700      0
042 A000700   0
042 B000700   0
042 C000700   0
042 D000700 100
042 E000700   0
042 F000700   0
042 G000700   0
042 H000700   0
043  000700    302
044  000700      0
062 A000700 N
062 B000700   0.0
062 C000700   0.0
062 D000700   0.0
062 E000700   0.0
062 F000700   0.0
062 G000700   0.0
062 H000700   0.0
062 I000700   0.0
062 J000700   0.0
062 K000700   0.0
062 L000700   0.0
062 M000700   0.0
062 N000700   0.0
062 O000700   0.0
062 P000700   0.0
062 Q000700   0.0
062 R000700   0.0
071 A000700    246036
071 B000700    247581
071 C000700   3496891
071 D000700   28
072 A000700  3
072 B000700     7616
072 C000700     3036
072 D000700        0
072 E000700        0
072 F000700     1171
072 G000700       91
072 H000700        0
      PAGE  6
072 I000700      127
072 J000700       73
072 K000700        0
072 L000700       47
072 M000700       10
072 N000700       41
072 O000700        0
072 P000700        0
072 Q000700        0
072 R000700       14
072 S000700        8
072 T000700      302
072 U000700        0
072 V000700        0
072 W000700       16
072 X000700     1900
072 Y000700        0
072 Z000700     8751
072AA000700    56839
072BB000700        0
072CC010700        0
072CC020700    62291
072DD010700     7410
072DD020700     1159
072EE000700        0
073 A010700   0.1300
073 A020700   0.0000
073 B000700   0.0000
073 C000700   0.0000
074 A000700        0
074 B000700    22381
074 C000700        0
074 D000700   417512
074 E000700        0
074 F000700   465766
074 G000700        0
074 H000700        0
074 I000700        0
074 J000700        0
074 K000700        0
074 L000700    16356
074 M000700       48
074 N000700   922063
074 O000700     2660
074 P000700      426
074 Q000700        0
074 R010700        0
074 R020700        0
074 R030700        0
074 R040700     2101
074 S000700        0
      PAGE  7
074 T000700   916876
074 U010700    59655
074 U020700    11581
074 V010700     0.00
074 V020700     0.00
074 W000700   0.0000
074 X000700    10125
074 Y000700        0
075 A000700        0
075 B000700   946845
076  000700     0.00
062 A001400 N
062 B001400   0.0
062 C001400   0.0
062 D001400   0.0
062 E001400   0.0
062 F001400   0.0
062 G001400   0.0
062 H001400   0.0
062 I001400   0.0
062 J001400   0.0
062 K001400   0.0
062 L001400   0.0
062 M001400   0.0
062 N001400   0.0
062 O001400   0.0
062 P001400   0.0
062 Q001400   0.0
062 R001400   0.0
071 A001400     83136
071 B001400     96084
071 C001400    141492
071 D001400   59
072 A001400 12
074 N001400   137532
074 T001400   137150
075 A001400        0
075 B001400   145147
SIGNATURE   JOHN J. PILEGGI                              
TITLE       PRESIDENT           
 

EX-27

WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

 

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.


<NUMBER>	101
<NAME>	EVERGREEN BALANCED FUND CLASS A
<PERIOD-TYPE>	3-MOS
<FISCAL-YEAR-END>	MAR-31-1997
<PERIOD-START>	JAN-01-1997
<PERIOD-END>	MAR-31-1997
<INVESTMENTS-AT-COST>	803,831,536
<INVESTMENTS-AT-VALUE>	905,659,177
<RECEIVABLES>	16,356,436
<ASSETS-OTHER>	47,547
<OTHER-ITEMS-ASSETS>	0
<TOTAL-ASSETS>	922,063,160
<PAYABLE-FOR-SECURITIES>	2,659,900
<SENIOR-LONG-TERM-DEBT>	0
<OTHER-ITEMS-LIABILITIES>	2,527,057
<TOTAL-LIABILITIES>	5,186,957
<SENIOR-EQUITY>	0
<PAID-IN-CAPITAL-COMMON>	757,904,605
<SHARES-COMMON-STOCK>	3,218,879
<SHARES-COMMON-PRIOR>	3,333,437
<ACCUMULATED-NII-CURRENT>	246,535
<OVERDISTRIBUTION-NII>	0
<ACCUMULATED-NET-GAINS>	56,897,422
<OVERDISTRIBUTION-GAINS>	0
<ACCUM-APPREC-OR-DEPREC>	101,827,641
<NET-ASSETS>	41,429,056
<DIVIDEND-INCOME>	3,035,556
<INTEREST-INCOME>	7,615,522
<OTHER-INCOME>	0
<EXPENSES-NET>	1,899,974
<NET-INVESTMENT-INCOME>	8,751,104
<REALIZED-GAINS-CURRENT>	56,839,210
<APPREC-INCREASE-CURRENT>	(62,291,441)
<NET-CHANGE-FROM-OPS>	3,298,873
<EQUALIZATION>	0
<DISTRIBUTIONS-OF-INCOME>	(369,566)
<DISTRIBUTIONS-OF-GAINS>	0
<DISTRIBUTIONS-OTHER>	0
<NUMBER-OF-SHARES-SOLD>	82,428
<NUMBER-OF-SHARES-REDEEMED>	(223,885)
<SHARES-REINVESTED>	26,899
<NET-CHANGE-IN-ASSETS>	(14,880,064)
<ACCUMULATED-NII-PRIOR>	115,118
<ACCUMULATED-GAINS-PRIOR>	7,713
<OVERDISTRIB-NII-PRIOR>	0
<OVERDIST-NET-GAINS-PRIOR>	0
<GROSS-ADVISORY-FEES>	1,170,691
<INTEREST-EXPENSE>	0
<GROSS-EXPENSE>	1,899,974
<AVERAGE-NET-ASSETS>	43,267,866
<PER-SHARE-NAV-BEGIN>	12.95
<PER-SHARE-NII>	0.12
<PER-SHARE-GAIN-APPREC>	(0.08)
<PER-SHARE-DIVIDEND>	(0.12)
<PER-SHARE-DISTRIBUTIONS>	0.00
<RETURNS-OF-CAPITAL>	0.00
<PER-SHARE-NAV-END>	12.87
<EXPENSE-RATIO>	0.93
<AVG-DEBT-OUTSTANDING>	0
<AVG-DEBT-PER-SHARE>	0

 

EX-27

WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

 

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.


<NUMBER>	101
<NAME>	EVERGREEN BALANCED FUND CLASS B
<PERIOD-TYPE>	3-MOS
<FISCAL-YEAR-END>	MAR-31-1997
<PERIOD-START>	JAN-01-1997
<PERIOD-END>	MAR-31-1997
<INVESTMENTS-AT-COST>	803,831,536
<INVESTMENTS-AT-VALUE>	905,659,177
<RECEIVABLES>	16,356,436
<ASSETS-OTHER>	47,547
<OTHER-ITEMS-ASSETS>	0
<TOTAL-ASSETS>	922,063,160
<PAYABLE-FOR-SECURITIES>	2,659,900
<SENIOR-LONG-TERM-DEBT>	0
<OTHER-ITEMS-LIABILITIES>	2,527,057
<TOTAL-LIABILITIES>	5,186,957
<SENIOR-EQUITY>	0
<PAID-IN-CAPITAL-COMMON>	757,904,605
<SHARES-COMMON-STOCK>	8,334,838
<SHARES-COMMON-PRIOR>	8,453,724
<ACCUMULATED-NII-CURRENT>	246,535
<OVERDISTRIBUTION-NII>	0
<ACCUMULATED-NET-GAINS>	56,897,422
<OVERDISTRIBUTION-GAINS>	0
<ACCUM-APPREC-OR-DEPREC>	101,827,641
<NET-ASSETS>	107,347,482
<DIVIDEND-INCOME>	3,035,556
<INTEREST-INCOME>	7,615,522
<OTHER-INCOME>	0
<EXPENSES-NET>	1,899,974
<NET-INVESTMENT-INCOME>	8,751,104
<REALIZED-GAINS-CURRENT>	56,839,210
<APPREC-INCREASE-CURRENT>	(62,291,441)
<NET-CHANGE-FROM-OPS>	3,298,873
<EQUALIZATION>	0
<DISTRIBUTIONS-OF-INCOME>	(786,903)
<DISTRIBUTIONS-OF-GAINS>	0
<DISTRIBUTIONS-OTHER>	0
<NUMBER-OF-SHARES-SOLD>	165,348
<NUMBER-OF-SHARES-REDEEMED>	(341,159)
<SHARES-REINVESTED>	56,925
<NET-CHANGE-IN-ASSETS>	(14,880,064)
<ACCUMULATED-NII-PRIOR>	115,118
<ACCUMULATED-GAINS-PRIOR>	7,713
<OVERDISTRIB-NII-PRIOR>	0
<OVERDIST-NET-GAINS-PRIOR>	0
<GROSS-ADVISORY-FEES>	1,170,691
<INTEREST-EXPENSE>	0
<GROSS-EXPENSE>	1,899,974
<AVERAGE-NET-ASSETS>	110,841,516
<PER-SHARE-NAV-BEGIN>	12.96
<PER-SHARE-NII>	0.09
<PER-SHARE-GAIN-APPREC>	(0.07)
<PER-SHARE-DIVIDEND>	(0.10)
<PER-SHARE-DISTRIBUTIONS>	0
<RETURNS-OF-CAPITAL>	0
<PER-SHARE-NAV-END>	12.88
<EXPENSE-RATIO>	1.68
<AVG-DEBT-OUTSTANDING>	0
<AVG-DEBT-PER-SHARE>	0

 

EX-27

WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

 

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.


<NUMBER>	101
<NAME>	EVERGREEN BALANCED FUND CLASS C
<PERIOD-TYPE>	3-MOS
<FISCAL-YEAR-END>	MAR-31-1997
<PERIOD-START>	JAN-01-1997
<PERIOD-END>	MAR-31-1997
<INVESTMENTS-AT-COST>	803,831,536
<INVESTMENTS-AT-VALUE>	905,659,177
<RECEIVABLES>	16,356,436
<ASSETS-OTHER>	47,547
<OTHER-ITEMS-ASSETS>	0
<TOTAL-ASSETS>	922,063,160
<PAYABLE-FOR-SECURITIES>	2,659,900
<SENIOR-LONG-TERM-DEBT>	0
<OTHER-ITEMS-LIABILITIES>	2,527,057
<TOTAL-LIABILITIES>	5,186,957
<SENIOR-EQUITY>	0
<PAID-IN-CAPITAL-COMMON>	757,904,605
<SHARES-COMMON-STOCK>	27,591
<SHARES-COMMON-PRIOR>	27,541
<ACCUMULATED-NII-CURRENT>	246,535
<OVERDISTRIBUTION-NII>	0
<ACCUMULATED-NET-GAINS>	56,897,422
<OVERDISTRIBUTION-GAINS>	0
<ACCUM-APPREC-OR-DEPREC>	101,827,641
<NET-ASSETS>	353,161
<DIVIDEND-INCOME>	3,035,556
<INTEREST-INCOME>	7,615,522
<OTHER-INCOME>	0
<EXPENSES-NET>	1,899,974
<NET-INVESTMENT-INCOME>	8,751,104
<REALIZED-GAINS-CURRENT>	56,839,210
<APPREC-INCREASE-CURRENT>	(62,291,441)
<NET-CHANGE-FROM-OPS>	3,298,873
<EQUALIZATION>	0
<DISTRIBUTIONS-OF-INCOME>	(2,467)
<DISTRIBUTIONS-OF-GAINS>	0
<DISTRIBUTIONS-OTHER>	0
<NUMBER-OF-SHARES-SOLD>	3,813
<NUMBER-OF-SHARES-REDEEMED>	(3,891)
<SHARES-REINVESTED>	128
<NET-CHANGE-IN-ASSETS>	(14,880,064)
<ACCUMULATED-NII-PRIOR>	115,118
<ACCUMULATED-GAINS-PRIOR>	7,713
<OVERDISTRIB-NII-PRIOR>	0
<OVERDIST-NET-GAINS-PRIOR>	0
<GROSS-ADVISORY-FEES>	1,170,691
<INTEREST-EXPENSE>	0
<GROSS-EXPENSE>	1,899,974
<AVERAGE-NET-ASSETS>	385,131
<PER-SHARE-NAV-BEGIN>	12.88
<PER-SHARE-NII>	0.1
<PER-SHARE-GAIN-APPREC>	(0.09)
<PER-SHARE-DIVIDEND>	(0.09)
<PER-SHARE-DISTRIBUTIONS>	0
<RETURNS-OF-CAPITAL>	0
<PER-SHARE-NAV-END>	12.8
<EXPENSE-RATIO>	1.68
<AVG-DEBT-OUTSTANDING>	0
<AVG-DEBT-PER-SHARE>	0

 

EX-27

 

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.


<NUMBER>	101
<NAME>	EVERGREEN BALANCED FUND CLASS Y
<PERIOD-TYPE>	3-MOS
<FISCAL-YEAR-END>	MAR-31-1997
<PERIOD-START>	JAN-01-1997
<PERIOD-END>	MAR-31-1997
<INVESTMENTS-AT-COST>	803,831,536
<INVESTMENTS-AT-VALUE>	905,659,177
<RECEIVABLES>	16,356,436
<ASSETS-OTHER>	47,547
<OTHER-ITEMS-ASSETS>	0
<TOTAL-ASSETS>	922,063,160
<PAYABLE-FOR-SECURITIES>	2,659,900
<SENIOR-LONG-TERM-DEBT>	0
<OTHER-ITEMS-LIABILITIES>	2,527,057
<TOTAL-LIABILITIES>	5,186,957
<SENIOR-EQUITY>	0
<PAID-IN-CAPITAL-COMMON>	757,904,605
<SHARES-COMMON-STOCK>	59,654,900
<SHARES-COMMON-PRIOR>	60,120,604
<ACCUMULATED-NII-CURRENT>	246,535
<OVERDISTRIBUTION-NII>	0
<ACCUMULATED-NET-GAINS>	56,897,422
<OVERDISTRIBUTION-GAINS>	0
<ACCUM-APPREC-OR-DEPREC>	101,827,641
<NET-ASSETS>	767,746,504
<DIVIDEND-INCOME>	3,035,556
<INTEREST-INCOME>	7,615,522
<OTHER-INCOME>	0
<EXPENSES-NET>	1,899,974
<NET-INVESTMENT-INCOME>	8,751,104
<REALIZED-GAINS-CURRENT>	56,839,210
<APPREC-INCREASE-CURRENT>	(62,291,441)
<NET-CHANGE-FROM-OPS>	3,298,873
<EQUALIZATION>	0
<DISTRIBUTIONS-OF-INCOME>	(7,410,252)
<DISTRIBUTIONS-OF-GAINS>	0
<DISTRIBUTIONS-OTHER>	0
<NUMBER-OF-SHARES-SOLD>	3,764,660
<NUMBER-OF-SHARES-REDEEMED>	(4,480,218)
<SHARES-REINVESTED>	249,854
<NET-CHANGE-IN-ASSETS>	(14,880,064)
<ACCUMULATED-NII-PRIOR>	115,118
<ACCUMULATED-GAINS-PRIOR>	7,713
<OVERDISTRIB-NII-PRIOR>	0
<OVERDIST-NET-GAINS-PRIOR>	0
<GROSS-ADVISORY-FEES>	1,170,691
<INTEREST-EXPENSE>	0
<GROSS-EXPENSE>	1,899,974
<AVERAGE-NET-ASSETS>	792,350,862
<PER-SHARE-NAV-BEGIN>	12.95
<PER-SHARE-NII>	0.13
<PER-SHARE-GAIN-APPREC>	(0.08)
<PER-SHARE-DIVIDEND>	(0.13)
<PER-SHARE-DISTRIBUTIONS>	0
<RETURNS-OF-CAPITAL>	0
<PER-SHARE-NAV-END>	12.87
<EXPENSE-RATIO>	0.68
<AVG-DEBT-OUTSTANDING>	0
<AVG-DEBT-PER-SHARE>	0

 

EX-99

The Trustees and Shareholders
The Evergreen American Retirement Trust
Evergreen Investment Trust
Evergreen Foundation Trust

In  planning  and  performing  our  audit  of the  financial  statements  of the
Evergreen  Balanced  Funds  (including   Evergreen  American   Retirement  Fund,
Evergreen Balanced Fund,  Evergreen  Foundation Fund and Evergreen Tax Strategic
Foundation  Fund) for the three months ended March 31, 1997, we  considered  its
internal control structure, including procedures for safeguarding securities, in
order to determine our auditing  procedures  for the purpose of  expressing  our
opinion on the financial  statements and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control structure.

The management of the Evergreen  Balanced Funds is responsible for  establishing
and   maintaining   an  internal   control   structure.   In   fulfilling   this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control  structure  policies and
procedures.  Two of the  objectives  of an  internal  control  structure  are to
provide management with reasonable, but not absolute,  assurance that assets are
safeguarded   against  loss  from  unauthorized  use  or  disposition  and  that
transactions  are executed in accordance  with  management's  authorization  and
recorded  properly to permit  preparation of financial  statements in conformity
with generally accepted accounting principles.

Because of inherent  limitations in any internal  control  structure,  errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the  structure  to future  periods is subject to the risks that it may become
inadequate  because of changes in  conditions or that the  effectiveness  of the
design and operation may deteriorate.

Our  consideration  of the  internal  control  structure  would not  necessarily
disclose all matters in the internal  control  structure  that might be material
weaknesses  under standards  established by the American  Institute of Certified
Public  Accountants.  A material  weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively  low level the risk that errors or  irregularities  in amounts that
would be  material in relation to the  financial  statements  being  audited may
occur and not be  detected  within a timely  period by  employees  in the normal
course of performing  their  assigned  functions.  However,  we noted no matters
involving the internal control structure,  including procedures for safeguarding
securities,  that we consider to be material  weaknesses  as defined above as of
May 2, 1997.

This report is intended solely for the information and use of management and the
Securities and Exchange Commission.


KPMG Peat Marwick LLP


May 2, 1997