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<PAGE> PAGE 2
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<PAGE> PAGE 3
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SIGNATURE GRACE TORRES
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000779336
<NAME> THE FIRST AUSTRALIA FUND, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> Oct-31-1998
<PERIOD-END> Oct-31-1998
<INVESTMENTS-AT-COST> 149,241,751
<INVESTMENTS-AT-VALUE> 142,870,748
<RECEIVABLES> 3,792,945
<ASSETS-OTHER> 751,928
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 147,415,621
<PAYABLE-FOR-SECURITIES> 5,034,267
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 587,078
<TOTAL-LIABILITIES> 5,621,345
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 153,097,239
<SHARES-COMMON-STOCK> 17,189,998
<SHARES-COMMON-PRIOR> 17,189,998
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (33,796)
<ACCUMULATED-NET-GAINS> (15,316,718)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,047,551
<NET-ASSETS> 141,794,276
<DIVIDEND-INCOME> 5,284,641
<INTEREST-INCOME> 693,602
<OTHER-INCOME> 9,188
<EXPENSES-NET> 2,417,712
<NET-INVESTMENT-INCOME> 3,569,719
<REALIZED-GAINS-CURRENT> 11,758,233
<APPREC-INCREASE-CURRENT> (18,745,223)
<NET-CHANGE-FROM-OPS> (3,417,271)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,991,702)
<DISTRIBUTIONS-OF-GAINS> (11,207,892)
<DISTRIBUTIONS-OTHER> 988,653
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (17,628,212)
<ACCUMULATED-NII-PRIOR> 1,700,007
<ACCUMULATED-GAINS-PRIOR> (2,715,281)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,355,832
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,417,712
<AVERAGE-NET-ASSETS> 149,827,000
<PER-SHARE-NAV-BEGIN> 9.35
<PER-SHARE-NII> 0.21
<PER-SHARE-GAIN-APPREC> (0.41)
<PER-SHARE-DIVIDEND> (0.23)
<PER-SHARE-DISTRIBUTIONS> (0.66)
<RETURNS-OF-CAPITAL> (0.01)
<PER-SHARE-NAV-END> 8.25
<EXPENSE-RATIO> 1.61
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
EXHIBIT 77J
Reclassification of Capital Accounts: The First
Australia Fund, Inc. accounts for and reports
distributions to shareholders in accordance with
the American Institute of Certified Public
Accountant's
Statement of Position 93-2: Determination,
Disclosure,
and Financial Statement Presentation of Income,
Capital
Gain, and Return of Capital Distributions by
Investment
Companies. During the year ended October 31,
1998, the
Fund decreased undistributed net investment income
by
$698,530, decreased accumulated net realized gains
on
investments by $821,968, increased accumulated
realized
and unrealized foreign exchange gains by
$1,657,433,
and decreased paid-in capital in excess of par by
$136,935. Net investment income, net realized
gains
and net assets were not affected by this change.
THE FIRST AUSTRALIA FUND, INC.
December 29, 1998
SEC Operations Center (OFCIS)
6432 General Green Way
Mail Stop 0-7
Alexandria, VA 22312
Attention: File Support Unit
Re: The First
Australi
a Fund,
Inc.
File No.
811-4438
Ladies and Gentlemen:
Enclosed is one (1) copy of the of the
Annual Report on Form N-SAR for The First
Australia Fund, Inc. for the period ended
October 31, 1998. The Form N-SAR was filed
using the Edgar system.
Very truly yours,
/s/Kenneth
Kozlowski
Kenneth Kozlowski
Assistant
Treasurer
This report is signed on behalf of the Registrant
in the City of Newark and State of New Jersey on
the 29th day of December, 1998.
The First Australia Fund, Inc.
Witness:/s/ Eugene S. Stark
By:/s/Kenneth Kozlowski Eugene S. Stark
Kenneth Kozlowski
Assistant Treasurer Assistant
Treasurer
