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SIGNATURE BARRY FINK
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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MORGAN STANLEY DEAN WITTER NATURAL RESOURCE DEVELOPMENT SECURITIES INC. - CLASS
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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MORGAN STANLEY DEAN WITTER NATURAL RESOURCE DEVELOPMENT SECURITIES INC. - CLASS
C
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D
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To the Shareholders and Board of Directors of
XYZ Fund
(2)
Report of Independent Accountants
To the Shareholders and Board of Directors of
Morgan Stanley Dean Witter Natural Resources Development
Securities Inc.
In planning and performing our audit of the financial statements
of Morgan Stanley Dean Witter Natural Resources Development
Securities Inc. (the "Fund") for the year ended February 29,
2000, we considered its internal control, including control
activities for safeguarding securities, in order to determine
our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on internal
control.
The management of the Fund is responsible for establishing and
maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles. Those
controls include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal control, errors or
fraud may occur and not be detected. Also, projection of any
evaluation of internal control to future periods is subject to
the risk that controls may become inadequate because of changes
in conditions or that the effectiveness of their design and
operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control 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 one or more of the
internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud 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 internal control and its operation, including controls
for safeguarding securities, that we consider to be material
weaknesses as defined above as of February 29, 2000.
This report is intended solely for the information and use of
the Board of Directors, management and the Securities and
Exchange Commission and is not intended to be and should not be
used by anyone other than these specified parties.
April 14, 2000
ITEM 77M: Mergers
Morgan Stanley Dean Witter
Natural Resource Development Securities Inc.
On December 21, 1999, at a Special Meeting of
Shareholders of Morgan Stanley Dean Witter Precious Metals
and Minerals Trust ("Precious Metals"), Shareholders of
Precious Metals approved an Agreement and Plan of
Reorganization (the "Reorganization Agreement") between
Precious Metals and Morgan Stanley Dean Witter Natural
Resource Development Securities Inc. ("Natural Resource"),
pursuant to which substantially all of the assets of
Precious Metals would be combined with those of Natural
Resource and shareholders of Precious Metals would become
shareholders of Natural Resource receiving shares of Natural
Resource with a value equal to the value of their holdings
in Precious Metals (the "Reorganization"). The
Reorganization Agreement was unanimously approved by the
Board of Trustees on July 29, 1999.
On January 31, 2000, the Reorganization Plan
between Precious Metals and Natural Resource was completed
according to the terms set forth in the Reorganization
Agreement. An application with the Commission on Form N8-F
for an Order declaring that Precious Metals has ceased to be
an investment company, is expected to be filed on or about
April 28, 2000.
