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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM10-K

                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal year ended ____12/31/2002________ Commission file number 33-30048

                              Government Trusts 3-C
              -----------------------------------------------------
             (Exact name of registrant as specified in its charter)


             Illinois                                    36-6913824
-----------------------------------        -------------------------------------
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
incorporation or organization)


Bank One Trust Company, NA (formerly The
First National Bank of Chicago), Trustee
One North State Street, Ninth Floor
Suite IL1-0540, Chicago Illinois                                 60670
-----------------------------------------                  -----------------
(Address of principal executive offices)                      (Zip Code)

Registrant's telephone number, including area code            312 407 2797

Securities registered pursuant to Section 12(b) or Section 12(g) of the Act:
NONE

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) fo the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                            Yes _____         No  X
                                                                 ---

State the aggregate market value of the voting stock help by non-affiliates of
the registrant:

                  NOT APPLICABLE

Indicate the number of shares outstanding of each of registrant's classes of
common stock, as of the last practical date: NOT APPLICABLE

                       Document Incorporated by Reference
                       ----------------------------------

                                      None

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                                     Part I

Item 3  Legal Proceedings

        NONE

Item 4  Submissions of matters to a Vote of Security Holders:

        NONE

Part II

Item 5  Market for Registrant's common Equity and Related Stockholder Matters

        Certificate Holders as of 12-31-2002

                  Trust 3-C:  220

Item 9  Charges and Disagreements with Accountants on Accounting and Financial
        Disclosure

        NONE

Part III

Item 13 Certain Relationships and Related Transactions

        NONE

Item 14 Exhibits Financial Statement Schedules and Reports as Form 8-K

        The following documents are filed as part of this report

        1. The information presented in each Semi Annual Report
        2. The letter of independent public accountant regarding the annual
           audit of the books and records of each trust required under the
           Declaration of Trust stating that the financial statements are
           presented in accordance with Generally Accepted Accounting
           Principles.

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                                    SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934,
Bank One Trust Company, NA (formerly The First National Bank of Chicago) has
duly caused this report to be signed for the registrant Trust by a duly
authorized signatory of the Trustee.

                                   GOVERNMENT TRUST CERTIFICATES


                                         By: Bank One Trust Company, NA
                                             --------------------------
                                         (formerly The First National Bank of
                                         Chicago)
                                         Not in its individual capacity but
                                         solely as Trustee on behalf of the
                                         Trust 3C.

                                   By: /s/ Joan E. Blume
                                       -------------------------
                                           Joan E. Blume
                                           Trust Officer


Date:  as of December 31, 2002

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Government Trust 3-C

Independent Auditors' Report

Financial Statements
As of December 31, 2002

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                          INDEPENDENT AUDITORS' REPORT

Government Trust 3-C:

We have audited the accompanying balance sheet of Government Trust 3-C (the
"Trust") as of December 31, 2002 and the related statements of income, cash
flows and changes in Trust balance for the year then ended. These financial
statements are the responsibility of the management of the Trust. Our
responsibility is to express our opinion on these financial statements based on
our audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards 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. Our procedures included confirmation of the securities that the
Depository was holding as of December 31, 2002 for the account of the Government
of Israel, for the purpose described in Note 4 of the notes to financial
statements. 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 audit provides a
reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Trust at December 31, 2002 and the
results of its operations, cash flows and changes in Trust balance for the year
then ended in conformity with accounting principles generally accepted in the
United States of America.

March 14, 2003

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                              Government Trust 3-C

                                  Balance Sheet

                                December 31, 2002

                                     Assets
                                     ------

Loan Note Receivable - at amortized cost,
  inclusive of unamortized premium of $2,212,957                $302,623,903

Accrued Interest Receivable                                        4,334,131
                                                                ------------
        Total Assets                                            $306,958,034
                                                                ============


                          Liabilities and Trust Balance
                          -----------------------------

Accrued Expenses Payable                                        $      7,260

Trust Balance - Comprised of Owners'
  Equity in Government Trust Certificates                        306,950,774
                                                                ------------

    Total Liabilities and Trust Balance                         $306,958,034
                                                                ============


The accompanying notes are an integral part of these financial statements.

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                              Government Trust 3-C

                               Statement of Income

                      For the year ended December 31, 2002

Interest Income on the Loan Note                                 $26,445,522

Trustee Fees and Other Expenses                                      (45,130)
                                                                 -----------

        Net Income                                               $26,400,392
                                                                 ===========

The accompanying notes are an integral part of these financial statements.

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                              Government Trust 3-C

                             Statement of Cash Flows

                      For the year ended December 31, 2002

                           Increase (Decrease) in Cash

Cash Flows from Operating Activities:

    Trustee Fees and Other Expenses paid                         $   (45,153)

    Principal and Interest received on the Loan Note              27,765,816
                                                                 -----------

    Net Cash Flows from Operating Activities                      27,720,663
                                                                 -----------

Cash Flows used in Financing Activites:

   Distributions to Certificate Owners                           (27,720,663)
                                                                 -----------

   Net Cash Flows used in Financing Activities                   (27,720,663)
                                                                 -----------

   Net Increase in Cash                                                    0
                                                                 -----------

Cash Balance at the beginning of period                                    0
                                                                 -----------

Cash Balance at the end of period                                $         0
                                                                 ===========


The accompanying notes are an integral part of these financial statements.

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                              Government Trust 3-C

                      Statement of Changes in Trust Balance

                      For the year ended December 31, 2002

     Trust                                                         Trust
  Balance at                            Distributions to         Balance at
January 1, 2002         Net Income      Certificate Owners    December 31, 2002
---------------         ----------      ------------------    -----------------

$308,271,045           $26,400,392        $(27,720,663)          $306,950,774
============           ===========        ============           ============



The accompanying notes are an integral part of these financial statements.

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                              GOVERNMENT TRUST 3-C

                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2002

Note 1.  Organization and Operations

Government Trust 3-C (the "Trust") is a limited purpose trust established under
the laws of the state of Illinois pursuant to a Declaration of Trust (the
"Declaration") between the Trust and the First National Bank of Chicago, as
Trustee (the "Trustee"). The Trust was created for the sole purpose of the
issuance and sale of a single class of Zero Coupon Certificates (the
"Certificates"). The assets of the Trust consist of a Promissory Note (a "Loan
Note") from the Government of Israel ("Israel"). The Loan Note is backed by a
full faith and credit guaranty (the "Guaranty") issued by the United States of
America, acting through the Defense Security Assistance Agency of the Department
of Defense (the "DSAA"), of the due and punctual payment of 90% of all payments
of principal and interest due on the Loan Note (the "Guaranteed Portion") and a
security interest in certain collateral, consisting of non-callable securities
issued or guaranteed by the United States Government, sufficient to pay the
remaining 10% of all payments of principal and interest due on the Loan Note
(the "Unguaranteed Secured Portion"). The Loan Note and Certificates are not
subject to prepayment or acceleration.

Note 2.  Loan Note

The Loan Note in the original principal amount of $304,460,946 evidences a loan
made by the Trust to Israel subject to the terms and conditions of a Loan
Agreement (the "Loan Agreement") dated as of August 22, 1989 between the Trust
and Israel. The Loan Note is carried at amortized cost in the Balance Sheet
because of the Trust's intent and ability to hold the Loan Note to maturity. The
proceeds from the Loan Note were used to prepay certain loans made to Israel
from the Federal Financing Bank. Semiannual payments of interest at an annual
rate of 8.9549% are due on the Loan Note on each May 3 and November 3 (each a
"Note Payment Date"). On the May 3, 2002 and November 3, 2002 Note Payment
Dates, Israel made its scheduled payments of principal on the Loan Note in the
amounts of $405,000 and $405,000, respectively. Scheduled principal payments are
due on each Note Payment Date as follows:

Payment                  Principal          Payment                Principal
Date                     Payment            Date                   Payment
-------------------      ------------       -------------------    -------------

May 3, 2003              $ 1,495,000        May 3, 2007            $  3,617,000
November 3, 2003          15,101,000        November 3, 2007          8,937,000
May 3, 2004               15,973,000        May 3, 2008              12,600,000
November 3, 2004          53,217,000        November 3, 2008         12,600,000
May 3, 2005               32,626,000        May 3, 2009              12,600,000
November 3, 2005          37,213,000        November 3, 2009         12,600,000
May 3, 2006               25,791,000        May 3, 2010              11,946,000
November 3, 2006          12,600,000        November 3, 2010         17,471,000
                                            May 3, 2011              10,553,000
                                            November 3, 2011          3,470,946

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The Government of the United States, acting through the DSAA, has agreed to
guarantee the repayment of the Guaranteed Portion due to the Trust under the
Loan Note. Israel has agreed to pledge certain collateral as security for the
repayment of the Unguaranteed Secured Portion, as more fully described in Note
4. The estimated fair value of the Loan Note approximates the fair value of the
Certificates. The estimated fair value of the Certificates at December 31, 2002
was approximately $378 million. The estimate of the fair value of the
Certificates is based upon the present values of the cash flows using
risk-adjusted spreads to the U.S. Treasury curve.

Although management of the Trust is not aware of any factor that would
significantly affect the estimated fair value of the Loan Note or the
Certificates, the Loan Note and the Certificates have not been revalued for
purposes of these financial statements since that date and, therefore, current
estimates of fair value may differ significantly from the amount presented
herein.

Note 3. The Zero Coupon Certificates

On August 22, 1989, the Trust issued 45 separate series of Certificates, Class
3-C. Twenty-seven series of such Certificates matured prior to December 31,
2002. Each of the remaining series of Certificates will mature on one of the
semiannual certificate payment dates from May 15, 2003 to November 15, 2011.
Scheduled distributions are due on the maturity dates as follows:

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Maturity                 Distribution      Maturity               Distribution
Date                     Amount            Date                   Amount
--------------------     -------------     ------------------     --------------

May 15, 2003              $14,923,177      May 15, 2008           $16,794,601
November 15, 2003          28,462,351      November 15, 2008       16,231,387
May 15, 2004               28,659,344      May 15, 2009            15,668,174
November 15, 2004          65,189,359      November 15, 2009       15,104,960
May 15, 2005               42,219,585      May 15, 2010            13,887,746
November 15, 2005          45,348,220      November 15, 2010       18,878,766
May 15, 2006               32,262,817      May 15, 2011            11,179,821
November 15, 2006          17,918,972      November 15, 2011        3,625,107
May 15, 2007                8,372,759
November 15, 2007          13,531,081

Each of the Certificates evidences an undivided fractional interest in the
Trust, and represents the right to receive a portion of the semiannual payments
due on the Loan Note held by the Trust.

Note 4. The Collateral

In accordance with the Collateral Depository Agreement (the "Depository
Agreement") between Israel, the Trustee, and Chase Manhattan Bank, as depository
(the "Depository"), and in order to provide security for the payment of the
Unguaranteed Secured Portion, Israel has pledged certain collateral, consisting
of non-callable securities issued or guaranteed by the United States Government
(together with the proceeds thereof, the "Collateral"). The Collateral is of
such amounts and has such payment dates as to enable the Trustee to receive on
or immediately prior to each semiannual Certificate Payment Date an amount
sufficient to pay the Unguaranteed Secured Portion if timely payment on the Loan
Note has not been received by the related Note Payment Date. All of the
Collateral was deposited with the Depository on the date that the loans
evidenced by the Loan Note were made by the Trust to Israel.

Note 5. The Trustee

Pursuant to the Declaration, the Trustee established a separate trust account
for the Trust. All payments received with respect to the Loan Note, the Guaranty
and any relevant Collateral are deposited in the trust account for the benefit
of the holders of the Certificates after deducting fees of the Trustee and any
additional expenses of the Trust. Any excess funds remaining in the trust
account after the payment of principal on the Certificates will revert to Israel
to the extent such funds were provided by Israel but not needed for the above
purpose.

<PAGE>

Note 6. Income Taxes

The Trust is classified as a Grantor Trust for tax purposes and will not be
subject to Federal income taxes. Each Certificateholder will be treated for
Federal income tax purposes as the owner of a pro rata undivided fractional
interest in the net assets held by the Trust. The difference between the
financial reporting and income tax bases of the Trust's assets and liabilities
is not significant.

                                   * * * * * *