<PAGE>

                                  UNITED STATES
                       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      12/31/2001      Commission file number 33-23681
                         ------          ------

                         Government Trusts 1-C and 1-D.
         --------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


             Illinois                          36-6889512     36-6889513
----------------------------------         -----------------------------------
(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) 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
                                                ------       ------

State the aggregate market value of the voting stock held 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

<PAGE>


                                     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 12-31-2001

                  Trust 1-C: 10
                  Trust 1-D: 2,086

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.

<PAGE>

                          INDEPENDENT AUDITORS' REPORT

Government Trust 1-C:

We have audited the accompanying balance sheet of Government Trust 1-C (the
"Trust") as of December 31, 2001 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, 2001 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, 2001 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.

DELOITTE & TOUCHE LLP


New York, New York
March 18, 2002

<PAGE>

                              Government Trust 1-C

                                  Balance Sheet

                                December 31, 2001


                                     Assets
                                     ------

Loan Note Receivable - at amortized cost,
  net of unamortized discount of $0                           $        0

Accrued Interest Receivable                                            0
                                                              ----------

        Total Assets                                          $        0
                                                              ==========


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

Accrued Expenses Payable                                      $        0

Trust Balance - Comprised of Owners'
  Equity in Government Trust Certificates                              0
                                                              ----------

        Total Liabilities and Trust Balance                   $        0
                                                              ==========





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



<PAGE>


                              Government Trust 1-C

                               Statement of Income

                      For the year ended December 31, 2001


Interest Income on the Loan Note                                 $11,983,331

Trustee Fees and other expenses                                       (9,566)
                                                                 -----------

        Net Income                                               $11,973,765
                                                                 ===========





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

<PAGE>

                              Government Trust 1-C

                             Statement of Cash Flows

                      For the year ended December 31, 2001

                           Increase (Decrease) in Cash


Cash Flows used in Operating Activities:

  Distributions to Certificate Owners                        $(237,030,342)

  Trustee Fees and other expenses paid                             (12,248)
                                                             -------------

  Net Cash Flows used in Operating Activities                 (237,042,590)
                                                             -------------

Cash Flows from Operating Activities:

  Principal and Interest received on the Loan Note             237,042,590
                                                             -------------

  Net Cash Flows from Operating Activities                     237,042,590
                                                             -------------

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.

<PAGE>

                              Government Trust 1-C

                      Statement of Changes in Trust Balance

                      For the year ended December 31, 2001




      Trust                                                         Trust
    Balance at                          Distributions to          Balance at
January 1, 2001       Net Income      Certificate Owners    December 31, 2001
---------------     --------------    ------------------    -----------------

$225,056,577         $11,973,765        $(237,030,342)       $             0
 ===========          ==========         ============         ==============





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

<PAGE>

                              GOVERNMENT TRUST 1-C

                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

Note 1.  Organization and Operations
         ---------------------------

Government Trust 1-C (the "Trust") was 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 Current Coupon Certificates (the
"Certificates"). The assets of the Trust consisted of a Promissory Note (a "Loan
Note") from the Government of Israel ("Israel"). The Loan Note was 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 were not
subject to prepayment or acceleration.

In connection with the issuance of the Certificates, underwriting discounts of
approximately $6,784,000 and a portion of the total offering expenses of
approximately $2,616,000 associated with the offering of the Trust and the
simultaneous offerings of Government Trust 1-A, 1-B and 1-D, each similar in
organization and operation to the Trust, were paid out of the proceeds to the
Trust.

Note 2.  Loan Note
         ---------

The Loan Note in the original principal amount of $1,005,000,000 evidenced a
loan made by the Trust to Israel subject to the terms and conditions of a Loan
Agreement (the "Loan Agreement") dated as of September 29, 1988 between the
Trust and Israel. 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 9.2575% were due on the Loan Note on each May 3
and November 3 (each a "Note Payment Date"). On the May 3, 2001 and November 3,
2001 Note Payment Dates, Israel made its scheduled payments of principal on the
Loan Notes in the amounts of $117,248,000 and $104,677,000, respectively. There
are no remaining scheduled principal payments on the Loan Note.

Note 3.  The Current Coupon Certificates
         -------------------------------

On September 29, 1988, the Trust issued Certificates, Class 1-C in the aggregate
principal amount of $1,005,000,000, bearing interest at an annual rate of 9.250%
and having a final maturity date of November 15, 2001.

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

<PAGE>

Semiannual payments of interest on the Certificates were due on May 15 and
November 15 of each year (each a "Certificate Payment Date"). On the May 15,
2001 and November 15, 2001 Certificate Payment Dates, the Trust made its
scheduled payments of principal on the certificates in the amounts of
$117,248,000 and $104,677,000, respectively. There are no remaining scheduled
principal payments.

Note 4.  The Trustee
         -----------

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

Note 5.  Income Taxes
         ------------

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


<PAGE>


                          INDEPENDENT AUDITORS' REPORT

Government Trust 1-D:

We have audited the accompanying balance sheet of Government Trust 1-D (the
"Trust") as of December 31, 2001 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, 2001 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, 2001 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.

DELOITTE & TOUCHE LLP


New York, New York
March 18, 2002

<PAGE>

                              Government Trust 1-D

                                  Balance Sheet

                                December 31, 2001

                                     Assets

Loan Note Receivable - at amortized cost,
  net of unamortized premium of $8,277,515                        $1,292,417,515

Accrued Interest Receivable                                           20,161,355
                                                                  --------------

    Total Assets                                                  $1,312,578,870
                                                                  ==============


                          Liabilities and Trust Balance

Accrued Expenses Payable                                          $       15,516

Trust Balance - Comprised of Owners'
Equity in Government Trust Certificates                            1,312,563,354
                                                                  --------------

    Total Liabilities and

      Trust Balance                                               $1,312,578,870
                                                                  ==============





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

<PAGE>

                              Government Trust 1-D

                               Statement of Income

                      For the year ended December 31, 2001

Interest Income on the Loan Note                                   $125,074,941

Trustee Fees and other expenses                                         (97,308)
                                                                   ------------

Net Income                                                         $124,977,633
                                                                   ============



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

<PAGE>

                              Government Trust 1-D

                             Statement of Cash Flows

                      For the year ended December 31, 2001

                           Increase (Decrease) in Cash

Cash Flows used in Operating Activities:

Distributions to Certificate Owners                               $(142,447,500)

Trustee Fees and other expenses paid                                    (97,500)
                                                                  -------------

Net Cash Flows used in Operating Activities                        (142,545,000)
                                                                  -------------

Cash Flows from Operating Activities:

   Interest Received on the Loan Note                               142,545,000
                                                                  -------------

Net Cash Flows from Operating Activities                            142,545,000
                                                                  -------------

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.

<PAGE>

                              Government Trust 1-D

                      Statement of Changes in Trust Balance

                      For the year ended December 31, 2001

      Trust                                                           Trust
    Balance at                           Distributions to           Balance at
January 1, 2001        Net Income      Certificate Owners     December 31, 2001
---------------        ----------      ------------------     -----------------

$1,330,033,221       $124,977,633       $(142,447,500)          $1,312,563,354
==============       ============       =============           ==============



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

<PAGE>

                              GOVERNMENT TRUST 1-D

                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

Note 1.  Organization and Operations
         ---------------------------

Government Trust 1-D (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 will not be
subject to prepayment or acceleration.

In connection with the issuance of the Certificates, underwriting discounts of
approximately $11,150,000 and a portion of the total offering expenses of
approximately $2,616,000 associated with the offering of the Trust and the
simultaneous offerings of Government Trust 1-A through 1-C, each similar in
organization and operation to the Trust, were paid out of the proceeds to the
Trust.

Note 2.  Loan Note
         ---------

The Loan Note in the original principal amount of $1,300,000,000 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 September 29, 1988 between the
Trust and Israel. The proceeds from the Loan Note were used to prepay certain
loans made to Israel from the Federal Financing Bank. Semi-annual payments of
interest at an annual rate of 9.7450% are due on the Loan Note on each May 3 and
November 3 (each a "Note Payment Date"). Scheduled principal payments are due on
each Note Payment Date as follows:

<PAGE>

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

May 3, 2002         $108,373,000       May 3, 2008           $89,940,000
November 3, 2002      99,805,000       November 3, 2008       93,710,000
May 3, 2003           88,997,000       May 3, 2009            92,701,000
November 3, 2003      46,146,000       November 3, 2009       93,710,000
May 3, 2004           39,034,000       May 3, 2010            41,800,000
November 3, 2004      39,693,000       November 3, 2010       47,368,000
May 3, 2005           37,298,000       May 3, 2011            47,368,000
November 3, 2005      33,951,000       November 3, 2011       29,248,000
May 3, 2006           33,951,000       May 3, 2012            22,773,000
November 3, 2006      39,761,000       November 3, 2012       16,877,000
May 3, 2007           40,051,000       May 3, 2013            16,877,000
November 3, 2007      67,844,000       November 3, 2013       16,864,000


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
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, 2001
was approximately $1.6 billion. 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 September 29, 1988, the Trust issued 51 separate series of Certificates,
Class 1-D. Twenty-seven of such series of Certificates matured prior to December
31, 2001. Each of the remaining series of Certificates will mature on one of the
semiannual certificate payment dates from May 15, 2002 to November 15, 2013
(each, a "Maturity Date"). Scheduled distributions are due on the Maturity Dates
as follows:

<PAGE>

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

May 15, 2002          $170,894,566         May 15, 2008           $119,602,178
November 15, 2002      157,050,156         November 15, 2008       118,993,224
May 15, 2003           141,382,900         May 15, 2009            113,421,718
November 15, 2003       94,198,858         November 15, 2009       109,917,338
May 15, 2004            84,840,125         May 15, 2010             53,444,833
November 15, 2004       83,598,657         November 15, 2010        56,977,695
May 15, 2005            79,271,104         May 15, 2011             54,671,466
November 15, 2005       74,108,158         November 15, 2011        34,245,236
May 15, 2006            72,455,169         May 15, 2012             26,346,224
November 15, 2006       76,612,179         November 15, 2012        19,341,464
May 15, 2007            74,966,316         May 15, 2013             18,519,765
November 15, 2007      100,809,333         November 15, 2013        17,685,066



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 Maturity 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 Notes, 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 back 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 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 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.

<PAGE>


                                    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 Trusts 1-C & 1-D.


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


Date: as of December 31, 2001