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SIGNATURE JOHN F. KERNAN
TITLE ASSISTANT VICE PRES.
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[DESCRIPTION] Auditors Report of Internal Control
February 20, 1997
The Shareholders and Board of Trustees of
BlackRock MQE Investors:
In planning and performing our audit of the financial statements of
BlackRock MQE Investors for the year ended December 31, 1996, we
considered its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial statements to
comply with the requirements of Form N-SAR, not to provide
assurance on the internal control structure.
The management of BlackRock MQE Investors is responsible for
establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgements by management
are required to assess the expected benefits and related costs of
internal control structure policies and procedures. Two
of the objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with managements authorization
and recorded properly to permit preparation of financial statements in
conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control structure,
errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure to future periods is
subject to the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure that
might be material weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness is a
condition in which the design or operation of the specific internal
control structure elements does not reduce to a relatively low level the
risk that errors or irregularities in amounts that would be material in
relation to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for
safeguarding securities, that we consider to be material weaknesses as
defined above as of December 31, 1996.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
Deloitte & Touche LLP
New York, New York
