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

	FORM 10-Q



[X]	Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 2001 or

[ ]	Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from               to__________________


Commission File No. 0-17446

	DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.

	(Exact name of registrant as specified in its charter)


		Delaware						     13-3490286
(State or other jurisdiction of		   	  (I.R.S. Employer
incorporation or organization)			      Identification No.)


c/o Demeter Management Corporation
Two World Trade Center, 62 Fl., New York, NY  	    10048
(Address of principal executive offices)	  	       (Zip Code)

Registrant's telephone number, including area code (212) 392-5454




(Former name, former address, and former fiscal year, if changed
since last report)


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>
<table>

	DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.

	INDEX TO QUARTERLY REPORT ON FORM 10-Q

	June 30, 2001

<caption>


PART I. FINANCIAL INFORMATION

				<c>
Item 1. Financial Statements

		Statements of Financial Condition as of June 30, 2001
 		(Unaudited) and December 31, 2000........................2

		Statements of Operations for the Quarters Ended
		June 30, 2001 and 2000 (Unaudited) ......................3

		Statements of Operations for the Six Months Ended
		June 30, 2001 and 2000 (Unaudited).......................4

		Statements of Changes in Partners' Capital for the
		Six Months ended June 30, 2001 and 2000 (Unaudited)......5

		Statements of Cash Flows for the Six Months Ended
		June 30, 2001 and 2000 (Unaudited).......................6

		Notes to Financial Statements (Unaudited).............7-11

Item 2.	Management's Discussion and Analysis of
			Financial Condition and Results of Operations.....12-21

Item 3.	Quantitative and Qualitative Disclosures about
			Market Risk.......................................21-33


Part II. OTHER INFORMATION

Item 1. Legal Proceedings ...................................34

Item 6. Exhibits and Reports on Form 8-K..................34-35


</table>





<page>
<table>
PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

	DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.
	STATEMENTS OF FINANCIAL CONDITION

<caption>	  June 30,	     December 31,
                                                    2001   	    2000
	$	   $
	(Unaudited)
ASSETS

	<c>	<c>
Equity in futures interests trading accounts:
	Cash	7,660,375 	7,441,614

	Net unrealized gain on open contracts (MS & Co.)	648,067   	      1,212,863
Net unrealized gain (loss) on open contracts (MSIL)	     109,486                      	    (168,289)

	Total net unrealized gain on open contracts                                 	757,553	  1,044,574

	     Total Trading Equity	8,417,928 	 8,486,188

Interest receivable (Morgan Stanley DW)	      19,021 	       31,123

	     Total Assets	  8,436,949 	  8,517,311


LIABILITIES AND PARTNERS' CAPITAL

Liabilities

	Redemptions payable	116,485 	  127,081
	Accrued incentive fees  (DWFCM)	30,290 	      21,097
    	Accrued management fees (DWFCM)	      21,092	      21,293

	     Total Liabilities	     167,867	    169,471


Partners' Capital

	Limited Partners (2,522.584 and
	     2,609.949 Units, respectively)	7,941,666 	 8,027,946
	General Partner (104 Units)	     327,416 	     319,894

	     Total Partners' Capital	   8,269,082 	   8,347,840

Total Liabilities and Partners' Capital	   8,436,949 	   8,517,311


NET ASSET VALUE PER UNIT	      3,148.23  	      3,075.90

<fn>
	The accompanying notes are an integral part
	of these financial statements.
</table>

<page>
<table>
	DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.
	STATEMENTS OF OPERATIONS
(Unaudited)


<caption>



	     For the Quarters Ended June 30,

                                                                                                              2001   	   2000
                                                           $                                    $
REVENUES

			<c>		<c>
	Trading profit (loss):
		Realized	  (12,462)	                   1,089,177
	Net change in unrealized	(118,848)		   ( 876,432)

			Total Trading Results	(131,310)	                      212,745

	 Interest income (Morgan Stanley DW)                                         60,494                         92,267

Total                                        (70,816)	                      305,012


EXPENSES

	Brokerage commissions (Morgan Stanley DW)                          122,578			104,800
	Management fees (DWFCM)                                                         62,910			60,410
	Transaction fees and costs                                                              6,460			        6,504
	Incentive fee (DWFCM)	   (48,489)	                             -

		    Total                                                                                 143,459			     171,714


NET INCOME (LOSS)	 (214,275)		     133,298


NET INCOME (LOSS) ALLOCATION

	   Limited Partners	(205,909)		128,647
   General Partner	(8,366)		4,651


NET INCOME (LOSS) PER UNIT

  Limited Partners                                   (80.44)                         44.73
   General Partner                              (80.44)                         44.73

<fn>



	The accompanying notes are an integral part
	of these financial statements.
</table>
<page>
<table>
	DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.
	STATEMENTS OF OPERATIONS
(Unaudited)


<caption>



	    For the Six Months Ended June 30,


	   2001   	   2000
	 $	  $

REVENUES

			<c>		<c>
	Trading profit (loss):
		Realized	 710,477		1,108,208
 	    	Net change in unrealized                                                     (287,021)		                    (502,404)

Total Trading Results                                                        423,456		                       605,804

	Interest income (Morgan Stanley DW)                                         140,125		                       179,572

  Total                                             563,581		                       785,376



EXPENSES

	Brokerage commissions (Morgan Stanley DW)	215,738		236,733
	Management fees (DWFCM)	125,524		121,402
   	Incentive fee (DWFCM)	          10,998                             -
    Transaction fees and costs	    10,982	  	    16,393

		   Total	   363,242		  374,528


NET INCOME 	    200,339		  410,848


NET INCOME ALLOCATION

	   Limited Partners	   192,817		 397,035
	   General Partner	7,522		13,813


NET INCOME PER UNIT

	   Limited Partners	72.33		132.82
	   General Partner	72.33		132.82

<fn>
	The accompanying notes are an integral part
	of these financial statements.
</table>
<page>
<table>
	DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.
	STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
	For the Six Months Ended June 30, 2001 and 2000
	(Unaudited)


<caption>



	 Units of
	 Partnership	Limited	General
	   Interest   	Partners	Partner	Total
		$	$	$



	<c>		<c>		<c>		<c>
Partners' Capital,
  December 31, 1999	3,150.638  	 7,787,964        	  265,850     	 8,053,814

Net Income	    -	    397,035	    13,813 	     410,848

Redemptions	   (277.268)       	      (737,955)                   -        	     (737,955)

Partners' Capital,
  June 30, 2000 	2,873.370 	 7,447,044    	   279,663 	  7,726,707





Partners' Capital,
  December 31, 2000	2,713.949	8,027,946	  319,894	8,347,840

Net Income	    -	   192,817	      7,522 	   200,339

Redemptions                     (87.365)       	      (279,097)                    -       	   (279,097)

Partners' Capital,
  June 30, 2001         2,626.584            7,941,666   	          327,416           8,269,082






<fn>




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



</table>
<page>
<table>

	DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.
	STATEMENTS OF CASH FLOWS
(Unaudited)



<caption>


	    For the Six Months Ended June 30,

	       2001     	      2000
	     $	      $


CASH FLOWS FROM OPERATING ACTIVITIES

			<c>	<c>
Net income 	200,339		 410,848
Noncash item included in net income:
	    Net change in unrealized	                                                             287,021		502,404

(Increase) decrease in operating assets:
	    Interest receivable (Morgan Stanley DW)	     12,102		                        (725)

Increase (decrease) in operating liabilities:
   	  Accrued incentive fee (DWFCM)                                                      9,193	                          -
  	  Accrued management fees (DWFCM)	     (201)	                          (831)

Net cash provided by operating activities	 508,454	                   911, 696


CASH FLOWS FROM FINANCING ACTIVITIES

Decrease in redemptions payable                                                       (10,596)                      ( 4,620)
Redemptions of Units                                   (279,097)                   (737,955)

Net cash used for financing activities	                                                 (289,693)	                  (742,575)

Net increase in cash                        218,761		                   169,121

Balance at beginning of period                                                         7,441,614                  8,042,490

Balance at end of period                     7,660,375	                  8,211,611






<fn>


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

</table>
<page>
DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2001
(UNAUDITED)
The unaudited financial statements contained herein include, in
the opinion of management, all adjustments necessary for a fair
presentation of the results of operations and financial condition
of Dean Witter Diversified Futures Fund II L.P. (the
"Partnership").  The financial statements and condensed notes
herein should be read in conjunction with the Partnership's
December 31, 2000 Annual Report on Form 10-K.

1. Organization
Dean Witter Diversified Futures Fund II L.P. is a Delaware limited
partnership organized to engage primarily in the speculative
trading of commodity futures contracts and forward contracts on
physical commodities and other commodity interests.

The general partner for the Partnership is Demeter Management
Corporation ("Demeter").  The non-clearing commodity broker is
Morgan Stanley DW Inc. ("Morgan Stanley DW").  Dean Witter
Reynolds Inc. changed its name to Morgan Stanley DW Inc.,
effective April 2, 2001.  The clearing commodity brokers are




<page>
DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Morgan Stanley & Co., Inc. ("MS & Co.") and Morgan Stanley & Co.
International Limited ("MSIL").  The trading manager is Dean
Witter Futures & Currency Management Inc. ("DWFCM" or the
"Trading Manager"). Demeter, Morgan Stanley DW, MS & Co., MSIL
and DWFCM are wholly-owned subsidiaries of Morgan Stanley Dean
Witter & Co.

2. Related Party Transactions
The Partnership's cash is on deposit with Morgan Stanley DW, MS &
Co. and MSIL in futures and forwards trading accounts to meet
margin requirements as needed. Morgan Stanley DW pays interest on
these funds based on current 13-week U.S. Treasury bills. The
Partnership pays brokerage commissions to Morgan Stanley DW.
Management fees and incentive fees (if any) incurred by the
Partnership are paid to DWFCM.

3.  Financial Instruments
The Partnership trades commodity futures contracts and forward
contracts on physical commodities and other commodity interests.
Futures and forwards represent contracts for delayed delivery of
an instrument at a specified date and price. Risk arises from
changes in the value of these contracts and the potential
inability of counterparties to perform under the terms of the
contracts.  There are numerous factors which may significantly
<page>
DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

influence the market value of these contracts, including interest
rate volatility.

The Partnership accounts for its derivative investments in
accordance with the provisions of Statement of Financial
Accounting Standard No. 133, "Accounting for Derivative
Instruments and Hedging Activities"  ("SFAS No. 133"). SFAS No.
133 defines a derivative as a financial instrument or other
contract that has all three of the following characteristics:

1)	One or more underlying notional amounts or payment
provisions;
2)	Requires no initial net investment or a smaller initial net
investment than would be required relative to changes in
market factors;
3)	Terms require or permit net settlement.

Generally derivatives include futures, forward, swaps or option
contracts and other financial instruments with similar
characteristics such as caps, floors and collars.




<page>
DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.
            NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The net unrealized gains on open contracts, reported as a
component of "Equity in futures interest trading accounts" on the
statements of financial condition and longest contract maturity
were as follows:

                    Net Unrealized Gains on Open
                             Contracts                    Longest Maturity

   	            Exchange-  Off-Exchange-             Exchange-  Off-Exchange-
                   Traded      Traded       Total       Traded       Traded
Date              Contracts   Contracts   Contracts    Contracts    Contracts
                      $           $		   $

June 30, 2001  	 670,588	 86,965 	  757,553   	 Dec. 2001	  Oct. 2001

December 31, 2000	 718,718 	325,856	1,044,574   	 June 2002	  March 2001

The Partnership has credit risk associated with counterparty non-
performance.  The credit risk associated with the instruments in
which the Partnership is involved is limited to the amounts
reflected in the Partnership's statements of financial condition.

The Partnership also has credit risk because Morgan Stanley DW, MS
& Co. and MSIL act as the futures commission merchants or the
counterparties, with respect to most of the Partnership's assets.
Exchange-traded futures contracts are marked to market on a daily
basis, with variations in value settled on a daily basis. Morgan
Stanley DW, MS & Co. and MSIL, each as a futures commission
merchant of the Partnership's exchange-traded futures contracts,


<page>
DEAN WITTER DIVERSIFIED FUTURES FUND II L.P.
            NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

are required, pursuant to regulations of the Commodity Futures
Trading Commission ("CFTC"), to segregate from their own assets,
and for the sole benefit of their commodity customers, all funds
held by them with respect to exchange-traded futures contracts,
including an amount equal to the net unrealized gain on all open
futures contracts, which funds, in the aggregate, totaled
$8,330,963 and $8,160,332 at June 30, 2001 and December 31, 2000,
respectively. With respect to the Partnership's off-exchange-
traded forward currency contracts, there are no daily settlements
of variations in value nor is there any requirement that an amount
equal to the net unrealized gain on open forward contracts be
segregated.  With respect to those off-exchange-traded forward
currency contracts, the Partnership is at risk to the ability of
MS & Co., the sole counterparty on all of such contracts, to
perform.  The Partnership has a netting agreement with MS & Co.
This agreement, which seeks to reduce both the Partnership's and
MS & Co.'s exposure on off-exchange-traded forward currency
contracts, should materially decrease the Partnership's credit
risk in the event of MS & Co.'s bankruptcy or insolvency.








<page>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
        CONDITION AND RESULTS OF OPERATIONS


Liquidity - The Partnership deposits its assets with Morgan
Stanley DW as non-clearing broker and MS & Co. and MSIL as
clearing brokers in separate futures and forwards accounts
established for the Trading Manager, which assets are used as
margin to engage in trading.  The assets are held in either non-
interest-bearing bank accounts or in securities and instruments
permitted by the CFTC for investment of customer segregated or
secured funds.  The Partnership's assets held by the commodity
brokers may be used as margin solely for the Partnership's
trading.  Since the Partnership's sole purpose is to trade in
futures and forwards, it is expected that the Partnership will
continue to own such liquid assets for margin purposes.

The Partnership's investment in futures and forwards may, from
time to time, be illiquid.  Most U.S. futures exchanges limit
fluctuations in prices during a single day by regulations referred
to as "daily price fluctuations limits" or "daily limits".  Trades
may not be executed at prices beyond the daily limit.  If the
price for a particular futures contract has increased or decreased
by an amount equal to the daily limit, positions in that futures
contract can neither be taken nor liquidated unless traders are
willing to effect trades at or within the limit.  Futures prices
have occasionally moved the daily limit for several consecutive

<page>
days with little or no trading.  These market conditions could
prevent the Partnership from promptly liquidating its futures
contracts and result in restrictions on redemptions.

There is no limitation on daily price moves in trading forward
contracts on foreign currency.  The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets, subjecting it to
substantial losses.  Either of these market conditions could
result in restrictions on redemptions.

The Partnership has never had illiquidity affect a material
portion of its assets.

Capital Resources. The Partnership does not have, or expect to
have, any capital assets.  Redemptions of additional units of
limited partnership interest ("Unit(s)") in the future will affect
the amount of funds available for investment in futures and
forwards in subsequent periods.  It is not possible to estimate
the amount and therefore the impact of future redemptions of
Units.



<page>
Results of Operations
General.  The Partnership's results depend on its Trading Manager
and the ability of the Trading Manager's trading programs to take
advantage of price movements or other profit opportunities in the
futures and forwards markets.  The following presents a summary
of the Partnership's operations for the three and six month
periods ended June 30, 2001 and 2000, and a general discussion of
its trading activities during each period.  It is important to
note, however, that the Trading Manager trades in various markets
at different times and that prior activity in a particular market
does not mean that such market will be actively traded by the
Trading Manager or will be profitable in the future.
Consequently, the results of operations of the Partnership are
difficult to discuss other than in the context of its Trading
Manager's trading activities on behalf of the Partnership as a
whole and how the Partnership has performed in the past.

For the Quarter and Six Months Ended June 30, 2001
For the quarter ended June 30, 2001, the Partnership recorded
total trading losses, net of interest income, of $70,816 and
posted a decrease in net asset value per Unit.  The most
significant losses of approximately 2.9% were experienced
primarily during June in the global interest rate futures markets
from short U.S. and German interest rate futures positions as
prices jumped higher on weaker-than-expected U.S. and European
economic data that set the stage for possible interest rate cuts.
<page>
In the metals markets, losses of approximately 2.3% were incurred
primarily during April from short aluminum futures positions as
prices rose on technically-based buying and production concerns.
In the global stock index futures markets, losses of
approximately 1.8% were recorded primarily during late May and
June from long positions in S&P 500 Index futures as global stock
prices declined on worries that the U.S. economic slowdown will
ignite a global downturn and corporate earnings will suffer.  In
the currency markets, losses of approximately 0.1% were recorded
primarily during April and May from short positions in the
Japanese yen as the value of the yen reversed higher versus the
U.S. dollar following a surprise interest rate cut by the U.S.
Federal Reserve and on optimism that the Japanese government
would unveil an emergency package to stimulate that country's
ailing economy.  Offsetting currency gains were recorded during
May from short positions in the euro as its value weakened
relative to the British pound amid pessimism about European
growth prospects.  These losses were partially offset by gains of
approximately 3.0% recorded in the energy markets primarily
during May and June from short natural gas futures positions as
prices declined on reports of growing inventories and a lack of
demand throughout most of the United States.  In soft
commodities, gains of approximately 0.9% were recorded throughout
a majority of the quarter from short cotton futures positions as
prices moved lower on weak export sales and low demand.  Total
expenses for the three months ended June 30, 2001 were $143,459,
<page>
resulting in a net loss of $214,275.  The net asset value of a
Unit decreased from $3,228.67 at March 31, 2001 to $3,148.23 at
June 30, 2001.

For the six months ended June 30, 2001, the Partnership recorded
total trading revenues, including interest income, of $563,581
and posted an increase in net asset value per Unit.  The most
significant gains of approximately 5.0% were recorded throughout
a majority of the first quarter in the global interest rate
futures markets from long positions in Japanese government bond
futures as prices moved higher on concerns regarding that
country's economy.  Additional gains were recorded from short
positions in Australian interest rate futures as prices moved
lower amid the weakening of the Australian dollar.  In soft
commodities, gains of approximately 3.7% were recorded throughout
a majority of the first and second quarter from short cotton
futures positions as prices moved lower on weak export sales and
low demand.  In the currency markets, gains of approximately 1.5%
were recorded during May from short positions in the euro as its
value weakened relative to the British pound amid pessimism about
European economic growth prospects.  These gains were partially
offset by losses of approximately 3.4% recorded in the metals
markets primarily during February from long positions in aluminum
futures as prices moved lower, pressured by the decline in the
U.S. equity market and the subsequent concerns over demand.

<page>
Additional losses were incurred during April from short aluminum
futures positions as prices rose on technically-based buying and
production concerns.  In the energy markets, losses of
approximately 3.4% were recorded throughout the first six months
of the year from crude oil futures and its related products as a
result of volatility in oil prices due to a continually changing
outlook for supply, production and demand.  In the global stock
index futures markets, losses of approximately 1.2% were recorded
primarily during late May and June from long positions in S&P 500
Index futures as global stock prices declined on worries that the
U.S. economic slowdown will ignite a global downturn.  Total
expenses for the six months ended June 30, 2001 were $363,242,
resulting in net income of $200,339.  The net asset value of a
Unit increased from $3,075.90 at December 31, 2000 to $3,148.23
at June 30, 2001.

For the Quarter and Six Months Ended June 30, 2000
For the quarter ended June 30, 2000, the Partnership recorded
total trading revenues, including interest income, of $305,012 and
posted an increase in net asset value per Unit.  The most
significant gains of approximately 9.7% were recorded in the
energy markets primarily during May from long positions in natural
gas futures as prices continued their upward trend on fears that
inventory levels would remain low and that U.S. demand would
outstrip production this summer, when inventories are typically

<page>
refilled for the winter.  Additional gains were recorded during
May and June from long futures positions in crude oil and its
related products as the previous upward movement in oil prices re-
emerged amid rising concerns regarding supplies and production
levels.  In the agricultural markets, gains of approximately 1.1%
were recorded primarily during June from short corn futures
positions as corn prices were pressured lower by a damp weather
forecast in the U.S. Midwest.  In soft commodities, gains of
approximately 0.4% were recorded primarily during June from short
coffee futures positions as prices decreased amid continued
pressure from bearish technical factors and large warehouse
supplies.  These gains were partially offset by losses of
approximately 6.3% recorded throughout a majority of the quarter
primarily from long positions in U.S. interest rate futures as
prices declined on inflation fears provoked by stronger-than-
forecasted U.S. economic data.  Losses were also recorded
throughout the majority of the quarter from short positions in
German bond futures as prices were pushed higher by the rise in
U.S. prices.  In the global stock index futures markets, losses of
approximately 1.6% were incurred primarily during April from long
positions in S&P 500 Index futures as fears of inflation
negatively impacted domestic equity prices.  In the currency
markets, losses of approximately 1.3% were experienced primarily
during April and early May from long positions in the Japanese yen
as its value weakened relative to the U.S. dollar amid fears of an
additional Bank of Japan intervention and as Japanese consumer
<page>
confidence remained sluggish.  In the metals markets, losses of
approximately 0.6% were recorded primarily during June from short
aluminum futures positions as prices increased on consumer and
speculative buying. Total expenses for the three months ended June
30, 2000 were $171,714, resulting in net income of $133,298.  The
net asset value of a Unit increased from $2,644.34 at March 31,
2000 to $2,689.07 at June 30, 2000.

For the six months ended June 30, 2000, the Partnership recorded
total trading revenues, including interest income, of $785,376
and posted an increase in net asset value per Unit.  The most
significant gains of approximately 14.9% were recorded in the
energy markets primarily during May from long positions in
natural gas futures as prices continued their upward trend on
fears that inventory levels would remain low and that U.S. demand
will outstrip production this summer, when inventories are
typically refilled for the winter.  Additional gains were
recorded during February from long positions in crude oil futures
as prices increased due to a combination of cold weather,
declining inventories and increasing demand.  Oil prices also
increased during June in reaction to the dismissal by OPEC of a
price setting mechanism and a promise of a modest production
increase. In the currency markets, gains of approximately 1.1%
were recorded primarily during January from short positions in
the Swedish krona, the euro and the Swiss franc as the value of

<page>
these European currencies weakened relative to the U.S. dollar,
hurt by skepticism about Europe's economic outlook and lack of
support from European officials.  During April, profits were
recorded from short positions in the euro as the value of the
European common currency dropped to record lows versus the U.S.
dollar and British pound.  In the agricultural markets, gains of
approximately 1.0% were recorded primarily during June from short
corn futures positions as corn prices were pressured lower by a
damp weather forecast in the U.S. Midwest.  These gains were
partially offset by losses of approximately 7.5% recorded
throughout a majority of the second quarter from long positions
in U.S. interest rate futures as prices declined on inflation
fears provoked by stronger-than-forecasted U.S. economic data.
Losses were also recorded throughout the majority of the second
quarter from short positions in German bond futures as prices
were pushed higher by the rise in U.S. prices.  In the global
stock index futures markets, losses of approximately 2.9% were
incurred throughout a majority of the first quarter and during
April from long positions in S&P 500 Index futures as domestic
stock prices declined due to volatility in the technology sector
and fears that the Federal Reserve will be forced to take
aggressive action to slow the economy.  In the metals markets,
losses of approximately 2.1% were experienced primarily from long
positions in base metal futures as a previous upward price trend
reversed sharply lower during February in response to interest
rate hikes across the globe.  During June, smaller losses were
<page>
recorded from short aluminum futures positions as prices
increased on consumer and speculative buying.  Total expenses for
the six months ended June 30, 2000 were $374,528, resulting in
net income of $410,848.  The net asset value of a Unit increased
from $2,556.25 at December 31, 1999 to $2,689.07 at June 30,
2000.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
        RISK

Introduction
The Partnership is a commodity pool engaged primarily in the
speculative trading of futures and forwards.  The market-sensitive
instruments held by the Partnership are acquired for speculative
trading purposes only and, as a result, all or substantially all
of the Partnership's assets are at risk of trading loss.  Unlike
an operating company, the risk of market-sensitive instruments is
central, not incidental, to the Partnership's main business
activities.

The futures and forwards traded by the Partnership involve varying
degrees of related market risk.  Market risk is often dependent
upon changes in the level or volatility of interest rates,
exchange rates, and prices of financial instruments and
commodities.  Fluctuations in market risk based upon these factors
result in frequent changes in the fair value of the Partnership's
open positions, and, consequently, in its earnings and cash flow.

<page>
The Partnership's total market risk is influenced by a wide
variety of factors, including the diversification among the
Partnership's open positions, the volatility present within the
markets, and the liquidity of the markets.  At different times,
each of these factors may act to increase or decrease the market
risk associated with the Partnership.

The Partnership's past performance is not necessarily indicative
of its future results.  Any attempt to numerically quantify the
Partnership's market risk is limited by the uncertainty of its
speculative trading.  The Partnership's speculative trading may
cause future losses and volatility (i.e. "risk of ruin") that far
exceed the Partnership's experience to date or any reasonable
expectations based upon historical changes in market value.

Quantifying the Partnership's Trading Value at Risk
The following quantitative disclosures regarding the Partnership's
market risk exposures contain "forward-looking statements" within
the meaning of the safe harbor from civil liability provided for
such statements by the Private Securities Litigation Reform Act of
1995 (set forth in Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934).  All
quantitative disclosures in this section are deemed to be forward-
looking statements for purposes of the safe harbor, except for
statements of historical fact.

<page>
The Partnership accounts for open positions using mark-to-market
accounting principles.  Any loss in the market value of the
Partnership's open positions is directly reflected in the
Partnership's earnings, whether realized or unrealized, and its
cash flow.  Profits and losses on open positions of exchange-
traded futures and forwards are settled daily through variation
margin.

The Partnership's risk exposure in the market sectors traded by
the Trading Manager is estimated below in terms of Value at Risk
("VaR"). The VaR model used by the Partnership includes many
variables that could change the market value of the Partnership's
trading portfolio.  The Partnership estimates VaR using a model
based on historical simulation with a confidence level of 99%.
Historical simulation involves constructing a distribution of
hypothetical daily changes in the value of a trading portfolio.
The VaR model takes into account linear exposures to price and
interest rate risk.  Market risks that are incorporated in the
VaR model include equity and commodity prices, interest rates,
foreign exchange rates, and correlation among these variables.
The hypothetical changes in portfolio value are based on daily
percentage changes observed in key market indices or other market
factors ("market risk factors") to which the portfolio is
sensitive. The historical observation period of the Partnership's
VaR is approximately four years. The one-day 99% confidence level
of the Partnership's VaR corresponds to the negative change in
<page>
portfolio value that, based on observed market risk factors,
would have been exceeded once in 100 trading days.  VaR models,
including the Partnership's, are continuously evolving as trading
portfolios become more diverse and modeling techniques and
systems capabilities improve.  Please note that the VaR model is
used to numerically quantify market risk for historic reporting
purposes only and is not utilized by either Demeter or the
Trading Manager in its daily risk management activities.

The Partnership's Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership's open positions as a percentage of total net assets
by primary market risk category at June 30, 2001 and 2000.  At
June 30, 2001 and 2000, the Partnership's total capitalization
was approximately $8 million.

     Primary Market          June 30, 2001	          June 30, 2000
     Risk Category	        Value at Risk	      Value at Risk

	Currency		     	  (2.93)%				(1.46)%
Commodity				  (2.25)				(1.75)
Interest Rate			  (1.10)				(1.56)
	Equity			    	  (0.10)   			(0.08)

     Aggregate Value at Risk    (3.87)%		 	     (2.63)%


Aggregate Value at Risk represents the aggregate VaR of all the
Partnership's open positions and not the sum of the VaR of the

<page>
individual market categories listed above.  Aggregate VaR will be
lower as it takes into account correlation among different
position and categories.

The table above represents the VaR of the Partnership's open
positions at June 30, 2001 and 2000 only and is not necessarily
representative of either the historic or future risk of an
investment in the Partnership.  Because the Partnership's only
business is the speculative trading of futures and forwards, the
composition of its trading portfolio can change significantly
over any given time period, or even within a single trading day.
Any changes in open positions could positively or negatively
materially impact market risk as measured by VaR.

The table below supplements the quarter-end VaR by presenting the
Partnership's high, low and average VaR as a percentage of total
net assets for the four quarterly reporting periods from July 1,
2000 through June 30, 2001.

Primary Market Risk Category       High       Low       Average
Currency					    (2.93)%	(1.64)%	 (2.48)%

Commodity					    (2.40)		(1.07)	 (1.85)

Interest Rate				    (2.79)	     (0.57)	 (1.62)

Equity					    (0.25)	        -  	 (0.14)

Aggregate Value at Risk		    (3.87)%	(3.28)%	 (3.55)%


<page>
Limitations on Value at Risk as an Assessment of Market Risk
The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements.  Margin requirements generally range between 2% and
15% of contract face value. Additionally, the use of leverage
causes the face value of the market sector instruments held by the
Partnership to typically be many times the total capitalization of
the Partnership.  The value of the Partnership's open positions
thus creates a "risk of ruin" not typically found in other
investments.  The relative size of the positions held may cause
the Partnership to incur losses greatly in excess of VaR within a
short period of time, given the effects of the leverage employed
and market volatility.  The VaR tables above, as well as the past
performance of the Partnership, give no indication of such "risk
of ruin". In addition, VaR risk measures should be viewed in light
of the methodology's limitations, which include the following:
?	past changes in market risk factors will not always result in
accurate predictions of the distributions and correlations of
future market movements;
?	changes in portfolio value caused by market movements may
differ from those of the VaR model;
?	VaR results reflect past trading positions while future risk
depends on future positions;



<page>
?	VaR using a one-day time horizon does not fully capture the
market risk of positions that cannot be liquidated or hedged
within one day; and
?	the historical market risk factor data used for VaR estimation
may provide only limited insight into losses that could be
incurred under certain unusual market movements.

The VaR tables above present the results of the Partnership's VaR
for each of the Partnership's market risk exposures and on an
aggregate basis at June 30, 2001 and for the end of the four
quarterly reporting periods from July 1, 2000 through June 30,
2001.  Since VaR is based on historical data, VaR should not be
viewed as predictive of the Partnership's future financial
performance or its ability to manage or monitor risk.  There can
be no assurance that the Partnership's actual losses on a
particular day will not exceed the VaR amounts indicated above or
that such losses will not occur more than once in 100 trading
days.

Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances not needed for margin.  These balances and any market
risk they may represent are immaterial.


<page>
At June 30, 2001, the Partnership's cash balance at Morgan Stanley
DW was approximately 90% of its total net asset value.  A decline
in short-term interest rates will result in a decline in the
Partnership's cash management income. This cash flow risk is not
considered material.

Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and any
associated potential losses, taking into account the leverage,
optionality and multiplier features of the Partnership's market-
sensitive instruments, in relation to the Partnership's net
assets.

Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership's
market risk exposures - except for (A) those disclosures that are
statements of historical fact and (B) the descriptions of how the
Partnership manages its primary market risk exposures - constitute
forward-looking statements within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act.
The Partnership's primary market risk exposures as well as the
strategies used and to be used by Demeter and the Trading Manager
for managing such exposures are subject to numerous uncertainties,
contingencies and risks, any one of which could cause the actual
results of the Partnership's risk controls to differ materially
from the objectives of such strategies.  Government interventions,
<page>
defaults and expropriations, illiquid markets, the emergence of
dominant fundamental factors, political upheavals, changes in
historical price relationships, an influx of new market
participants, increased regulation and many other factors could
result in material losses as well as in material changes to the
risk exposures and the risk management strategies of the
Partnership. Investors must be prepared to lose all or
substantially all of their investment in the Partnership.

The following were the primary trading risk exposures of the
Partnership at June 30, 2001, by market sector.  It may be
anticipated however, that these market exposures will vary
materially over time.

Currency.  The Partnership's primary market exposure at June 30,
2001 was to exchange rate fluctuations, primarily fluctuations
which disrupt the historical pricing relationships between
different currencies and currency pairs.  Interest rate changes
as well as political and general economic conditions influence
these fluctuations.  The Partnership trades in a large number of
currencies, including cross-rates - i.e., positions between two
currencies other than the U.S. dollar.  For the second quarter of
2001, the Partnership's major exposures were to outright U.S.
dollar positions.  Outright positions consist of the U.S. dollar
vs. other currencies.  These other currencies include major and

<page>
minor currencies.  Demeter does not anticipate that the risk
profile of the Partnership's currency sector will change
significantly in the future.  The currency trading VaR figure
includes foreign margin amounts converted into U.S. dollars with
an incremental adjustment to reflect the exchange rate risk
inherent to the dollar-based Partnership in expressing VaR in a
functional currency other than dollars.

Commodity
Energy.  The next largest market exposure of the Partnership
this quarter was in the energy sector.  At June 30, 2001,
the Partnership's energy exposure was shared primarily by
futures contracts in the crude oil and natural gas markets.
Price movements in these markets result from political
developments in the Middle East, weather patterns, and other
economic fundamentals.  It is possible that volatility will
remain high.  Significant profits and losses, which have
been experienced in the past, are expected to continue to be
experienced in this market.  Natural gas has exhibited
volatility in prices resulting from weather patterns and
supply and demand factors and may continue in this choppy
pattern.

Soft Commodities and Agriculturals.  At June 30, 2001, the
Partnership had exposure in the markets that comprise these
sectors.  Most of the exposure, however, was to the corn,
<page>
cocoa, cotton and coffee markets.  Supply and demand
inequalities, severe weather disruption, and market
expectations affect price movements in these markets.

Metals.  The Partnership's metals market exposure at June
30, 2001 was primarily to fluctuations in the price of base
metals.  During periods of volatility, base metals will
affect performance dramatically.  The Trading Manager will
from time to time trade precious metals, such as gold.
Demeter anticipates that the base metals will remain the
primary metals market exposure of the Partnership.

Interest Rate.  At June 30, 2001, the Partnership's exposure to
the interest rate market complex was primarily spread across the
U.S., Australian and Japanese interest rate sectors.  Interest
rate movements directly affect the price of the sovereign bond
futures positions held by the Partnership and indirectly affect
the value of its stock index and currency positions.  Interest
rate movements in one country as well as relative interest rate
movements between countries materially impact the Partnership's
profitability.  The Partnership's primary interest rate exposure
is generally to interest rate fluctuations in the United States
and the other G-7 countries.  The G-7 countries consist of
France, U.S., Britain, Germany, Japan, Italy and Canada.
However, the Partnership also takes futures positions in the
government debt of smaller nations - e.g. Australia.  Demeter
<page>
anticipates that G-7 interest rates will remain the primary
interest rate exposure of the Partnership for the foreseeable
future.  The changes in interest rates which have the most effect
on the Partnership are changes in long-term, as opposed to short-
term, rates.  Most of the speculative futures positions held by
the Partnership are in medium to long-term instruments.
Consequently, even a material change in short-term rates would
have little effect on the Partnership, were the medium to long-
term rates to remain steady.

Equity.  The stock index futures traded by the Partnership are by
law limited to futures on broadly-based indices.  At June 30,
2001, the Partnership's equity exposure was to the Nikkei (Japan)
stock index.  The Partnership is primarily exposed to the risk of
adverse price trends or static markets in the U.S. and Japanese
stock indices.  Static markets would not cause major market
changes but would make it difficult for the Partnership to avoid
being "whipsawed" into numerous small losses.

Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposure of the
Partnership at June 30, 2001:
Foreign Currency Balances.	The Partnership's primary
foreign currency balances at June 30, 2001 were in euros and
British pounds.  The Partnership controls the non-trading

<page>
risk of these balances by regularly converting these
balances back into dollars upon liquidation of the
respective position.

Qualitative Disclosures Regarding Means of Managing Risk Exposure
The Partnership and the Trading Manager, separately, attempt to
manage the risk of the Partnership's open positions in
essentially the same manner in all market categories traded.
Demeter attempts to manage market exposure by diversifying the
Partnership's assets among different market sectors and trading
approaches, and monitoring the performance of the Trading Manager
daily. In addition, the Trading Manager establishes
diversification guidelines, often set in terms of the maximum
margin to be committed to positions in any one market sector or
market-sensitive instrument.

Demeter monitors and controls the risk of the Partnership's non-
trading instrument, cash.  Cash is the only Partnership
investment directed by Demeter, rather than the Trading Manager.







<page>
PART II.    OTHER INFORMATION

Item 1.   LEGAL PROCEEDINGS
In April 2001 the Appellate Division of New York State dismissed
the class action previously disclosed in the Partnership's Form
10-K for the year ended December 31, 2000.  Because plaintiffs did
not exercise their right to appeal any further, this dismissal
constituted a final resolution of the case.

Item 6.	Exhibits and Reports on Form 8-K
(A)	 Exhibits
3.01	 Limited Partnership Agreement of the Partnership, dated as
of October 28, 1988 is incorporated by reference to Exhibit
3.01 and Exhibit 3.02 of the Partnership's Registration
Statement on Form S-1, (File No. 24662).

10.01	 Management Agreement among the Partnership, Demeter
Management Corporation and Dean Witter Futures & Currency
Management Inc. dated as of October 28, 1988 is
incorporated by reference to Exhibit 10.02 of the
Partnership's Registration Statement on Form S-1, (File No.
24462).

10.03	 Amended and Restated Customer Agreement dated as of December
 1, 1997, between the Partnership and Dean Witter Reynolds
 Inc. is incorporated by reference to Exhibit 10.03 of the
 Partnership's quarterly report on Form 10-Q for the quarter
 ended March 31, 2000, (File No. 0-17446).

10.04	 Customer Agreement dated as of December 1, 1997, between the
 Partnership, Carr Futures, Inc., and Dean Witter Reynolds
 Inc. is incorporated by reference to Exhibit 10.04 of the
 Partnership's quarterly report on Form 10-Q for the quarter
 ended March 31, 2000, (File No. 0-17446).

10.05	 International Foreign Exchange Master Agreement dated as of
 August 1, 1997, between the Partnership and Carr Futures,
 Inc. is incorporated by reference to Exhibit 10.05 of the
 Partnership's quarterly report on Form 10-Q for the quarter
 ended March 31, 2000, (File No. 0-17446).

<page>

10.06	 Customer Agreement, dated as of May 1, 2000 between Morgan
 Stanley & Co. Incorporated, the Partnership and Dean Witter
 Reynolds Inc. is incorporated by reference to Exhibit 10.06
 of the Partnership's quarterly Report on Form 10-Q for the
 quarter ended June 30, 2000, (File No. 0-17446).

(B)		Reports on Form 8-K. - None.












































<page>









SIGNATURE



Pursuant to the requirements 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.




                            Dean Witter Diversified Futures
                             Fund II L.P. (Registrant)

                            By: Demeter Management Corporation
	(General Partner)

August 14, 2001             By:/s/Raymond E. Koch
                                  Raymond E. Koch
                                  Chief Financial Officer




The General Partner which signed the above is the only party
authorized to act for the Registrant.  The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.