U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM N-17f-2
Certificate of Accounting of Securities and Similar Investments
in the Custody of Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
_____________________________________________________1.
Investment Company Act File Number: Date examination
completed:
811-5736 March 31, 1998
2. State Identification Number:
AL AK AZ AR CA CO
CT DE DC FL GA HI
ID IL IN IA KS KY
LA ME MD MA MI MN
MS MO MT NE NV NH
NJ NM NY NC ND OH
OK OR PA RI SC SD
TN TX UT VT VA WA
WV WI WY PUERTO RICO
Other (specify):
3. Exact name of investment company as specified in
registration statement:
The Austria Fund, Inc.
4. Address of principal executive office: (number, street,
city, state, zip code)
1345 Avenue of the Americas, New York, New York 10105
Report of Independent Accountants
June 20, 1998
To the Board of Directors of
The Austria Fund, Inc.
Chg. Code: 23600-010-1
We have examined management's assertions about the compliance of
The Austria Fund, Inc. (the "Company") with the requirements of
subsections (b) and (c) of Rule 17f-2 under the Investment
Company Act of 1940 (the "Act") as of March 31, 1998 included in
the accompanying Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940.
Management is responsible for the Company's compliance with
those requirements. Our responsibility is to express an opinion
on management's assertions about the Company's compliance based
on our examination.
Our examination was made in accordance with standards
established by the American Institute of Certified Public
Accountants and accordingly included examining, on a test basis,
evidence about the Company's compliance with those requirements
and performing such other procedures as we considered necessary
in the circumstances. Such procedures were performed by us with
respect to securities denoted by the Company's custody records
as being under the control of Erste Bank (the "subcustodian"),
an affiliate of the Fund's subadvisor. Management has asserted
that there were no securities physically held by the
subcustodian and that all securities under the control of the
subcustodian were held at the central depository. Included
among the procedures performed were the following tests
performed as of March 31, 1998, and for the period from January
1, 1998 through March 31, 1998 with respect to agreement of
purchases and sales of securities without prior notice to
management:
Confirmation of securities with the Company's custodian, Brown
Brothers Harriman & Co., including the location of such
securities.
Confirmation of securities held at the Central depository
Oesterreichische Kontrollbank Aktiengesellschaft ("OEKB") on
behalf of the subcustodian.
Reconciliation of all securities owned by the Fund and
indicated as held by Erste Bank to those securities held by OEKB.
Reconciliation of confirmation results to the books and
records of the Company.
Agreement of two security purchases and two security sales or
maturities since our last examination, from the books and
records of the Company to broker confirmations or subsequent
bank statements.
We believe that our examination provides a reasonable basis for
our opinion. Our examination does not provide legal
determination on the Company's compliance with specified
requirements.
In our opinion, management's assertion that The Austria Fund,
Inc. was in compliance with the above mentioned provisions of
Rule 17f-2 of the Investments Company Act of 1940 as of March
31, 1998 is fairly stated, in all material aspects.
This report is intended solely for the information and use of
management of The Austria Fund, Inc. and The Securities and
Exchange Commission and should not be used for any other purpose.
PRICE WATERHOUSE LLP
