<PAGE>

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
______________________

FORM  10-K

Annual report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

For the Fiscal year ended December 31, 1998                                    
        
   
GOVERNMENT TRUST  G-1
(Exact name of Registrant as specified
in its governing instrument)

State or other jurisdiction of incorporation:
           New York
Commission File Number:
           0-18978
IRS Employer Identification No.:
           13-6963453

c/o The Chase Manhattan Bank
Corporate Trustee Administration
450 West 33rd Street
New York, New York  10001
(212) 946-8608
_________________________
(Address, including zip code, and telephone number of principal
executive offices )

Securities Registered Pursuant to Section 12(g) of the Act :

Zero Coupon Certificates, Class G-1
( Title of Class )

Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of 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      X            No








<PAGE>




DOCUMENTS INCORPORATED BY REFERENCE

Semiannual Report as of May 15, 1998   Exhibit B

Semiannual Report as of November 16, 1998    Exhibit C

Annual Report as of March 31, 1999        Exhibit D   










































<PAGE>


Part  I

Item  1. Business

                Not Applicable .

Item  2. Properties .

                See list of assets set forth in Exhibit A.

Item  3. Legal  Proceedings.

                None

Item  4. Submission  of  Matters to a Vote of  Security  Holders.

                None

PART  II

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

                (a) Market  Information .
    
                Certificates are not traded on any market or exchange.

                (b) Holders .
                  
                The number of registered holders for Zero Coupon
                Certificates, Class G-1 on December 31, 1998 was 8.

                (c) Dividends .

                $9,807,000.00 distributed to holders for Zero Coupon
                Certificates, Class G-1 on May 15, 1998.

                $23,410,000.00 distributed to holders for Zero Coupon
                Certificates, Class  G-1 on November 16, 1998.

Item  6.      Selected  Financial  Data

                Not  Applicable.








<PAGE>


Item  7.      Management's  Discussion  and  Analysis  of  Financial
                Condition  and  Results  of  Operations .

                Not  Applicable.

Item  8. Financial Statements and Supplementary Data.

                Not  Applicable .

Item  9. Changes in and Disagreements with Accountants on Accounting
                and Financial Disclosure.

            Not Applicable.

PART  III

Item  10.       Directors and Executive Officers of  the Registrant.

                Not  Applicable.

Item  11.       Executive  Compensation .

                Not  Applicable.

Item  12 .      Security  Ownership of Certain Beneficial Owners and
                Management

                (a) Security ownership of certain beneficial owners.
______________________________________________________________________________

(1) Title of    (2)  Name  and        (3) Amount and     (4) Percent
Class           address               nature  of         of class
                of  benefi-           Beneficial
                cial  owner           ownership
______________________________________________________________________________

Current  Coupon  Cede & Co.           $305,860,000       99.63%
Certificates,    P.O. Box 20          
Class  G-1     Bowling Green Station
                 New York, NY 10004     
______________________________________________________________________________

                (b) Security  ownership of  management
        
                Not  Applicable.

                (c) Changes  in  control.

                Not  Applicable.
    

<PAGE>



Item  13.       Certain  Relationships  and  Related  Transactions.

                (a) Transactions  with  management  and  others.

                Not  Applicable.

                (b) Certain business relationships.

                Not  Applicable .

                (c) Indebtedness of management .

                Not  Applicable .

                (d) Transactions  with  promoters.

                Not  Applicable .

PART  IV

Item  14.       Exhibits, Financial Schedules, Reports on Form 8-K.

                (a) The following is a list of documents filed as part
                of this report :

                Exhibit                   Document
                   A                      List  of  Assets  held
                                          by  Trust  on
                                          December 31, 1998

                   B                      Semiannual Report
                                          as of May 15, 1998

                   C                      Semiannual Report as
                                          of November 16, 1998

                   D                      Annual Report as of
                                          March 31, 1999

                (b) Not  applicable

                (c) Not  applicable








<PAGE>


SIGNATURES


Pursuant to the requirements of  Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.


Government  Trust  G-1
(Registrant)

By : ______Dennis Kildea_______
       Assistant Vice President

Date :   March 31,  1999                     

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the report has been signed below by the following 
persons on behalf of the registrant and in the capacities and on the dates
indicated.


By : ______Andrew  Taylor______
           Vice President


Date :      March 31, 1999
                             

By : ______Dennis Kildea________
       Assistant Vice President


Date :      March 31, 1999                                 

















<PAGE>

Exhibit  A

GOVERNMENT  TRUST  G-1

U. S. Government  Securities

Maturity                 Par Amount                   Coupon

May 15, 1999                    2,137,000                    0.0000
November 15, 1999               1,831,000                    0.0000
May 15, 2000                    1,776,000                    0.0000
November 15, 2000               1,720,000                    0.0000
May 15, 2001                    1,016,000                    0.0000
November 15, 2001                 953,000                   15.7500
May 15, 2002                    1,003,000                    0.0000
November 15, 2002                 979,000                    0.0000
May 15, 2003                      953,000                    0.0000
November 15, 2003                 936,000                    0.0000
May 15, 2004                    1,285,000                    0.0000
November 15, 2004               1,543,000                   11.6250
May 15, 2005                    1,576,000                   12.0000
November 15, 2005               1,615,000                    0.0000
May 15, 2006                    1,559,000                    0.0000
November 15, 2006               1,503,000                    0.0000
May 15, 2007                    1,311,000                    0.0000
November 15, 2007                 933,000                    0.0000
May 15, 2008                      679,000                    0.0000
November 15, 2008                 654,000                    0.0000
May 15, 2009                      301,000                    0.0000
November 15, 2009                 189,000                    0.0000
May 15, 2010                      182,000                    0.0000
November 15, 2010                 177,000                    0.0000
May 15, 2011                       69,000                    0.0000
November 15, 2011                 402,000                    0.0000
May 15, 2012                      683,000                    0.0000


The  Hellenic Republic of Greece G-1  Note

Principal  Amount               Rate  of              
Outstanding                     Interest                     Due Date

203,079,077.28                  9.0572%                      May 15, 2012









<PAGE>   

Exhibit B

THE CHASE MANHATTAN BANK
450 West 33rd Street
New York , New York  10001

Trustee's Semiannual Report

To the Holders of

Government Trust G-1 Zero Coupon Certificates
(Hellenic Republic of Greece FMS Refinancing )

            and

Defense Security Assistance Agency
The Pentagon
Washington , DC  20301-2800
Attention of the Comptroller,  DSAA


i. On May 15, 1998, the aggregate amount distributed to the Holders was         
$9,807,000.00.  The portions thereof allocable to principal and interest
payments on the Related Note(s) was $8,825,704.38 and to payments         
from the Related Securities Trust was $981,295.62.
    
ii. The aggregate Initial Amount of the Certificates issued by such Trust and  
    
remaining outstanding after such distribution is $330,406,000.00.

iii. The unpaid principal amount of the Related Note(s) following such
distribution is $ 216,687,077.28.

iv. The sum of the amount referred to in (i) above, plus the amount paid to
the Trustee in respect of the Trustee's fees and expenses was less than the
sum of ninety percent (90%) of the amount required to have been paid by the    
    
Borrower on the Related Note(s) on the immediately preceding Note Payment
Date plus the payment received by the Trustee from the related Securities
Trust in respect of such Certificate Payment Date in the amount of $480.50. 

No Payment Default has occurred and is continuing since our previous report.

To the best of my knowledge and belief, this Semiannual Report is complete
and accurate.


By: __________________                                                         
                       
           Dennis Kildea
      Assistant Vice President

Report dated as of May 15, 1998
(Tax ID No. 13-6963453)

<PAGE>

Exhibit C

THE CHASE MANHATTAN BANK
450 West 33rd Street
New York , New York  10001

Trustee's Semiannual Report

To the Holders of

Government Trust G-1 Zero Coupon Certificates
(Hellenic Republic of Greece FMS Refinancing)

           and

Defense Security Assistance Agency
The Pentagon
Washington , DC  20301-2800
Attention of the Comptroller,  DSAA


i. On November 16, 1998, the aggregate amount distributed to the Holders was   
    
$23,410,000.00.  The portions thereof allocable to principal and interest
payments on the Related Note(s) was $21,068,704.37 and to payments from         
the Related Securities Trust was $2,341,295.63.
    
ii. The aggregate Initial Amount of the Certificates issued by such Trust      
    
and remaining outstanding after such distribution is $306,996,000.00.

iii. The unpaid principal amount of the Related Note(s) following such
distribution is $203,079,077.28.

iv. The sum of the amount referred to in (i) above, plus the amount paid to
the Trustee in respect of the Trustee's fees and expenses was less than
the sum of ninety percent (90%) of the amount required to have been paid by
the Borrower on the Related Note(s) on the immediately preceding Note
Payment Date plus the payment received by the Trustee from the related
Securities Trust in respect of such Certificate Payment Date by $4,680.51. 

No Payment Default  has occurred and is continuing since our previous report.

To the best of my knowledge and belief, this Semiannual Report is complete
and accurate.


By: __________________                                             
           Dennis Kildea
    Assistant Vice President

Report dated as of November 16, 1998
(Tax ID No. 13-6963453)

<PAGE>
Exhibit D

THE CHASE MANHATTAN BANK
450  West  33rd  Street
New  York,  New  York   10001
Trustee's  Annual  Report

To  the  holders  of:
-  Government Trust G-1 Zero Coupon Certificates, Class G-1
    (Hellenic Republic of Greece FMS Refinancing)
-  Defense  Security  Assistance  Agency
   The  Pentagon
   Washington,  D.C.   20301-2800
   Attention  of  the  Comptroller , DSAA

 i. During the year ending December 31, 1998, $33,217,000.00 aggregate
amount was distributed to the holders of the Zero Coupon Certificates
and this amount is allocable as follows:
a. 90% from interest payments made on the Hellenic Republic of Greece
   Promissory Note on May 1, 1998 and November 2, 1998.
b. 10% from the proceeds of maturities of United States Treasury Strips
   due May 15, 1998 and November 16, 1998.

ii. The aggregate Initial Amount of the Certificates issued by such Trust
and remaining outstanding after such distributions is $306,996,000.00.

iii. The unpaid principal amount of the Hellenic Republic of Greece
Promissory Notes following  the  May  15, 1998 and  November 16, 1998           
distributions is $203,079,077.28.

iv. The sum of the amount referred to in (i), above, plus the amount paid to    
the Trustee in respect of the Trustee's fees and expenses was less than the
sum of ninety percent (90%) of the amount required to have been paid by the
Borrower on the Related Note(s) on the immediately preceding Note Payment
Dates plus the payment received by the Trustee from the Related Securities
Trust in respect of such Certificate Payment Dates in the amount of $5,161.01

Please  be  advised  that  no  Payment  Default  has  occurred  and  is
continuing with respect to the May  15, 1998 and November 16, 1998
Certificate  Payment  Dates. There  have  been  no  payments  under the
Guaranty with respect to the  May  1, 1998 and November 2, 1998  Note
Payment Dates next preceding  the  May  15, 1998 and  November 16, 1998
Certificate Payment Dates.  To  the  best  of  my  knowledge  and  belief,
this Annual Report is complete and accurate.  All  capitalized  terms  used
herein have the meanings assigned to them in the Declaration of Trust dated
as of January 15, 1991.

By ___________________________
         Dennis Kildea                     
    Assistant Vice President
Report dated as of  March 31, 1999
Tax I.D. No. 13-6963453

<PAGE> 

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To The Chase Manhattan Bank, as Trustee of
  Government Trust G-1:

We have audited the accompanying Distribution Report of Government Trust
G-1 as of December 31, 1998 and for the year then ended.  The Distribution
Report is the responsibility of the Trustee.  Our responsibility is to
express an opinion on the Distribution Report based on our audit.

We conducted our audit in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the Distribution Report is free
of material misstatement.  An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the Distribution Report.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
Distribution Report presentation.  We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the Distribution Report referred to above presents fairly,
in all material respects, amounts distributed to Zero Coupon Certificate
holders, the aggregate amount of Zero Coupon Certificates outstanding,
the unpaid principal amount of the Promissory Note and funds in excess
of amounts distributed of Government Trust G-1 as of December 31, 1998
and for the year then ended, in conformity with generally accepted
accounting principles.

Arthur Andersen LLP

New York, New York
March 31, 1999




















<PAGE>


GOVERNMENT TRUST G-1

DECEMBER 31, 1998 DISTRIBUTION REPORT


I.  During the year ended December 31, 1998, $33,217,000 was distributed
    to the holders of the Trust's Zero Coupon Certificates.  This amount was
    attributable to:

    a. Approximately 90% from payments made on the Hellenic Republic of
       Greece's Promissory Note and

    b. Approximately 10% from cash receipts relating to United States
       Treasury Securities in the Securities Trust.

II. The aggregate amount of Zero Coupon Certificates issued by the Trust and
    outstanding on December 31, 1998 was $306,996,000.

III.The unpaid principal amount of the Hellenic Republic of Greece's
    Promissory Note on December 31, 1998 was $203,079,077.28.

IV. The amount distributed to the holders of the Trust's Zero Coupon
    Certificates, as set forth in (I) above, together with the Trustee's
    fees and expenses, was equal to the sum of (a) the amounts paid by the
    Hellenic Republic of Greece on its Promissory Note during 1998 and
    (b) the payments received by the Trustee from the Securities Trust
    during 1998.  There were no remaining funds in the Trust as of December
    31, 1998.


The accompanying notes are an integral part of this report.




















<PAGE>


GOVERNMENT TRUST G-1

NOTES TO DISTRIBUTION REPORT


NOTE A - ORGANIZATION AND OPERATION

Government Trust G-1 (the "Trust") was formed in January, 1991 by The Chase
Manhattan Bank, as Trustee, to issue Zero Coupon Certificates (see Note B),
the proceeds of which were used to loan funds to the Hellenic Republic of
Greece (the "Borrower," see Note C) and to purchase a beneficial interest
in a government securities trust (the "Securities Trust"), for which The
Chase Manhattan Bank also acts as Trustee.  The Trust was created for the
limited purpose of conducting transactions related to the Zero Coupon
Certificates, the Borrower's Promissory Note and the Securities Trust.

All capitalized terms used in this Distribution Report not defined herein
are used as defined in the Trust's Declaration of Trust dated as of January
15, 1991.

NOTE B - G-1 ZERO COUPON CERTIFICATES

The Trust's Zero Coupon Certificates (the "Zero Coupon Certificates")
represent an undivided fractional interest in the Trust.  Holders of the Zero
Coupon Certificates are entitled to semi-annual distributions on May 15 and
November 15.  The Trust is required to distribute to the Zero Coupon
Certificate holders from funds held by the Trust, amounts equal to 90% of
the principal and interest required to be paid by the Borrower on its
Promissory Note (see Note C) and payments from the Securities Trust, less
amounts paid to the Trustee for periodic fees and expenses.  The government
securities in the Securities Trust held for the benefit of the Trust consist
of U.S. Treasury Securities and are projected to provide the Trust, on or
before each Zero Coupon Certificate Payment Date, with funds equal to at
least 10% of the principal and interest due on the Borrower's Promissory
Note on that Zero Coupon Certificate Payment Date.

(continued on next page)














<PAGE>


NOTE B - G-1 ZERO COUPON CERTIFICATES (continued)

Amortization of the outstanding Zero Coupon Certificate principal of
$306,996,000 at December 31, 1998 is scheduled as follows:

Payment Date                          Amount
___________                          _______

May 15, 1999                       23,954,000
November 15, 1999                  20,899,000
May 15, 2000                       20,343,000
November 15, 2000                  19,776,000
May 15, 2001                       12,748,000
November 15, 2001                  12,120,000
May 15, 2002                       11,874,000
November 15, 2002                  11,617,000
May 15, 2003                       11,372,000
November 15, 2003                  11,183,000
May 15, 2004                       14,685,000
November 15, 2004                  17,264,000
May 15, 2005                       16,711,000
November 15, 2005                  16,141,000
May 15, 2006                       15,590,000
November 15, 2006                  15,019,000
May 15, 2007                       13,110,000
November 15, 2007                   9,308,000
May 15, 2008                        6,792,000
November 15, 2008                   6,526,000
May 15, 2009                        3,013,000
November 15, 2009                   1,866,000
May 15, 2010                        1,825,000
November 15, 2010                   1,753,000
May 15, 2011                          688,000
November 15, 2011                   4,006,000
May 15, 2012                        6,813,000
                                    ________
                                 $306,996,000














<PAGE>


NOTE C - PROMISSORY NOTE

Interest at 9.0572% is payable by the Borrower on its Promissory Note semi-
annually on each Note Payment Date, which is the tenth business day before
a Zero Coupon Certificate Payment Date (see Note B).  Principal payments on
the Promissory Note commence on November 2, 1998 and are payable on the
same basis as interest payments.

The United States of America, acting through the Defense Security Assistance
Agency of the Department of Defense, has guaranteed the punctual payment of
90% of the principal and interest due on the Promissory Note.

The Borrower is required to remit to the Trust 100% of the principal and
interest due on its Promissory Note.  However, to the extent that the total
of (a) payments from the Borrower on its Promissory Note, (b) any payments
received by the Trust with respect to the Defense Security Assistance
Agency's Guaranty and (c) payments received by the Trust from the Securities
Trust, less (d) amounts paid by the Trust to the Trustee for periodic fees
and expenses, exceed the required Zero Coupon Certificate Payment, the
excess is to be returned to the Borrower.