FORM N-SAR
                                  ANNUAL REPORT
                       FOR REGISTERED INVESTMENT COMPANIES

Report for six month period ending:
           or calendar year ending:12/31/2007
Is this a transition report?:(Y/N)  N

Is this an amendment to a previous filing? (Y/N)  N


Those items or sub-items with a box "[/]" after the item number should be
completed only if the answer has changed from the previous filing form.

1. A. Registrant Name:    Diamonds Trust, Series 1
   B. File Number:        811-09170
   C. Telephone Number:   (212)306-1000

2. A. Street: 86 Trinity Place
   B. City:   New York
   C. State:  New York
   D. Zip Code: 10006              Zip Ext:
   E. Foreign Country:             Foreign Postal Code:

3. Is this the first filing on this form by the Registrant? (Y/N)   N
                                                                   ----

4. Is this the last filing on this form by Registrant? (Y/N)        N
                                                                   ----

5. Is Registrant a small business investment company (SBIC)? (Y/N)
   [If answer is "Y" (Yes) complete only items 89 through 110.]	    N
                                                                   ----

6. Is Registrant a unit investment trust (UIT)? (Y/N)               Y
   [If answer is "Y" (Yes) complete only items 111 through 132.]   ----


7. A. Is Registrant a series or multiple portfolio company? (Y/N)
      [If answer is "N" (No), go to item 8.]
                                                                   ----


   B. How many separate series or portfolios did Registrant have at
      the end of the period?
                                                                   ----

UNIT INVESTMENT TRUSTS

111. A. [/] Depositor Name:
                           -----------------------------------------------------

     B. [/] File Number (If any):
                                 -----------------------------------------------

     C. [/] City:               State:          Zip Code:        Zip Ext.:
                 --------------       ---------          --------          -----
        [/] Foreign Country:                     Foreign Postal Code:
                            --------------------                     -----------

111. A. [/] Depositor Name:
                           -----------------------------------------------------

     B. [/] File Number (If any):
                                 -----------------------------------------------

     C. [/] City:               State:          Zip Code:        Zip Ext.:
                 --------------       ---------          --------          -----
        [/] Foreign Country:                     Foreign Postal Code:
                            --------------------                     -----------

112. A. [/] Sponsor Name:
                         -------------------------------------------------------

     B. [/] File Number (If any):
                                 -----------------------------------------------

     C. [/] City:               State:          Zip Code:       Zip Ext.:
                 --------------       ---------          -------          -----

        [/] Foreign Country:                    Foreign Postal Code:
                            -------------------                     ----------

112. A. [/] Sponsor Name:
                         -------------------------------------------------------

     B. [/] File Number (If any):
                                 -----------------------------------------------

     C. [/] City:               State:          Zip Code:       Zip Ext.:
                 --------------       ---------          -------          -----

        [/] Foreign Country:                    Foreign Postal Code:
                            -------------------                     ----------

113. A. [/] Trustee Name:
                         -------------------------------------------------------

     B. [/] City:               State:          Zip Code:       Zip Ext.:
                 --------------       ---------          -------          -----

        [/] Foreign Country:                    Foreign Postal Code:
                            -------------------                     ----------


113. A. [/] Trustee Name:
                         -------------------------------------------------------

     B. [/] City:               State:          Zip Code:       Zip Ext.:
                 --------------       ---------          -------          -----

        [/] Foreign Country:                    Foreign Postal Code:
                            -------------------                     ----------


114. A. [/] Principal Underwriter Name:
                                       -----------------------------------------

     B. [/] File Number: 8-
                            ---------------

     C. [/] City:               State:          Zip Code:       Zip Ext.:
                 --------------       ---------          -------          -----

        [/] Foreign Country:                    Foreign Postal Code:
                            -------------------                     ----------

114. A. [/] Principal Underwriter Name:
                                       -----------------------------------------

     B. [/] File Number: 8-
                            ---------------

     C. [/] City:               State:          Zip Code:       Zip Ext.:
                 --------------       ---------          -------          -----

        [/] Foreign Country:                    Foreign Postal Code:
                            -------------------                     ----------

115. A. [/] Independent Public Accountant Name:
                                               ---------------------------------

     B. [/] City:               State:          Zip Code:       Zip Ext.:
                 --------------       ---------          -------          -----

        [/] Foreign Country:                    Foreign Postal Code:
                            -------------------                     ----------


115. A. [/] Independent Public Accountant Name:
                                               ---------------------------------

     B. [/] City:               State:          Zip Code:       Zip Ext.:
                 --------------       ---------          -------          -----

        [/] Foreign Country:                    Foreign Postal Code:
                            -------------------                     ----------

116. Family of investment companies information:

     A. [/] Is Registrant part of a family of investment companies? (Y/N)
                                                                         ------

     B. [/] Identify the family in 10 letters: __ __ __ __ __ __ __ __ __ __

           (NOTE: In filing this form, use this identification consistently for
           all investment companies in family. This designation is for purposes
           of this form only.)

117. A. [/] Is Registrant a separate account of an insurance company? (Y/N) ___

     If answer is "Y" (Yes), are any of the following types of contracts funded
     by the Registrant?:

     B. [/] Variable annuity contracts? (Y/N)
                                             -----------------------------------

     C. [/] Scheduled premium variable life contracts? (Y/N)
                                                            --------------------

     D. [/] Flexible premium variable life contracts? (Y/N)
                                                           ---------------------

     E. [/] Other types of insurance products registered under the
            Securities Act of 1933? (Y/N)
                                         ---------------------------------------

118. [/] State the number of series existing at the end of the period that had
securities registered under the Securities Act of 1933

119. [/] State the number of new series for which registration
         statements under the Securities Act of 1933 became
         effective during the period
                                    --------------------------------------------

120. [/] State the total value of the portfolio securities on the date
         of deposit for the new series included in item 119
         ($000's omitted)
                         --------------------------------------------

121. [/] State the number of series for which a current prospectus was in
existence at the end of the period
                                   --------------------------------

122. [/] State the number of existing series for which additional units
         were registered under the Securities Act of 1933 during the
         current period
                        --------------------------------------------------------

123. [/] State the total value of the additional units considered in
         answering item 122 ($000's omitted)
                                            ----------------

124. [/] State the total value of units of prior series that were placed in
         the portfolios of subsequent series during the current period (the
         value of these units is to be measured on the date they were placed in
         the subsequent series) ($000's
         omitted)
                 ---------------------------------------------

125. [/] State the total dollar amount of sales loads collected (before
         reallowances to other brokers or dealers) by Registrant's principal
         underwriter and any underwriter which is an affiliated person of the
         principal underwriter during the current period solely from the sale of
         units of all series of Registrant ($000's omitted)

         -------------------------------------

126. Of the amount shown in item 125, state the total dollar amount sales loads
     collected from secondary market operations in Registrant's units (include
     the sales loads, if any, collected on units of a prior series placed in the
     portfolio of a subsequent series.) ($000's omitted)
                                                        ---------------------

127. List opposite the appropriate description below the number of series whose
     portfolios are invested primarily (based upon a percentage of NAV) in each
     type of security shown, the aggregate total assets at market value as of a
     date at or near the end of the current period of each such group of series
     and the total income distributions made by each such group of series during
     the current period (excluding distributions of realized gains, if any):












                                          Number of    Total Assets   Total Income
                                            Series      ($000's       Distribution
                                          Investing     omitted)       ($000's
                                                                        omitted)

                                                                
A.       U.S. Treasury direct issue
- --------------------------------------------------------------------------------------------
B.       U.S. Government agency
C.       State and municipal tax-free
- --------------------------------------------------------------------------------------------
D.       Public utility debt
- --------------------------------------------------------------------------------------------
E.       Brokers or dealers debt or
         debt of brokers' or dealers'
         parent
- --------------------------------------------------------------------------------------------

F.       All other corporate intermed.
         & long-term debt
- --------------------------------------------------------------------------------------------

G.       All other corporate short-
         Term debt
- --------------------------------------------------------------------------------------------

H.       Equity security of brokers
         Or dealers or parents of
         Brokers or dealers
- --------------------------------------------------------------------------------------------

I.       Investment company equity
         Securities
- --------------------------------------------------------------------------------------------

J.       All other equity securities        1      $8,521,994           $154,721
K.
L.       Other securities
- --------------------------------------------------------------------------------------------

M.       Total assets of all series
         Of registrant
- --------------------------------------------------------------------------------------------


128. [/] Is the timely payment of principal and interest on any of the
         portfolio securities held by any of Registrant's series at the
         end of the current period insured or guaranteed by an entity
         other than the issuer? (Y/N)
                                     --------------------------------

         [If answer is "N" (No), go to item 131.]                         Y/N

129. [/] Is the issuer of any instrument covered in item 128 delinquent
         or in default as to payment of principal or interest at the
         end of the current period? (Y/N)
                                         ------------------------------

         [If answer is "N" (No), go to item 131.]                         Y/N

130. [/] In computations of NAV or offering price per unit, is any part
         of the value attributed to instruments identified in item 129
         derived from insurance or guarantees? (Y/N)
                                                    -------------------
                                                                          Y/N

131. Total expenses incurred by all series of Registrant during the
     current reporting period ($000's omitted)      $11,268
                                               -------------------

132.List the 11811" (Investment Company Act of 1940) registration number for all
Series of Registrant that are being included in this filing:

            811-       811-       811-       811-       811-
            811-       811-       811-       811-       811-
            811-       811-       811-       811-       811-
            811-       811-       811-       811-       811-
            811-       811-       811-       811-       811-
            811-       811-       811-       811-       811-
            811-       811-       811-       811-       811-
            811-       811-       811-       811-       811-
            811-       811-       811-       811-       811-