<PAGE> PAGE 1
000 B000000 12/31/98
000 C000000 0000854580
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 THE PORTUGAL FUND, INC.
001 B000000 811-5891
001 C000000 2122722107
002 A000000 ONE CITICORP CENTER,153 EAST 53RD STREET
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10022
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
008 A000001 BEA ASSOCIATES
008 B000001 A
008 C000001 801-5083
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10022
010 A000001 BEAR STEARNS FUNDS MANAGEMENT INC.
010 B000001 801-29862
010 C010001 NEW YORK
<PAGE> PAGE 2
010 C020001 NY
010 C030001 10167
010 A000002 BEA ASSOCIATES
010 B000002 801-5083
010 C010002 NEW YORK
010 C020002 NY
010 C030002 10022
011 A000001 DONALDSON LUFKIN & JENRETTE SECURITIES CORP.
011 B000001 8-00000
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10005
011 A000002 JAMES CAPEL & CO. LTD.
011 B000002 8-00000
011 C010002 NEW YORK
011 C020002 NY
011 C030002 10004
011 A000003 BETA CAPITAL, S.V., S.A.
011 B000003 8-00000
011 C010003 LISBON
011 C050003 PORTUGAL
012 A000001 BANKBOSTON N.A.
012 B000001 85-10813
012 C010001 BOSTON
012 C020001 MA
012 C030001 02102
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 PHILADELPHIA
013 B020001 PA
013 B030001 19103
015 A000001 BROWN BROTHERS HARRIMAN & CO.
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02109
015 E040001 X
018 000000 Y
019 A000000 N
019 B000000 0
020 A000001 BANCO SANTANDER MADRID
020 C000001 169
020 A000002 LEWCO SECURITIES CORP.
020 C000002 64
020 A000003 BEAR STEARNS & CO.
020 B000003 13-3299429
020 C000003 52
020 A000004 S.G. WARBURG & CO., INC.
020 B000004 13-3340045
020 C000004 44
020 A000005 BANCO FINANTIA
020 C000005 41
<PAGE> PAGE 3
020 A000006 GOLDMAN SACHS
020 C000006 40
020 A000007 MORGAN STANLEY & CO., INC.
020 B000007 13-2655998
020 C000007 28
020 A000008 ING BARING
020 C000008 18
020 A000009 MORGAN GUARANTY
020 C000009 16
020 A000010 UBS SECURITIES
020 C000010 16
021 000000 494
022 A000001 DEUTSCHE BANK
022 C000001 1689
022 D000001 0
022 A000002 BROWN BROTHERS
022 C000002 0
022 D000002 1286
022 A000003 BEAR STEARNS & CO.
022 B000003 13-3299429
022 C000003 1141
022 D000003 0
022 C000004 0
022 D000004 0
022 C000005 0
022 D000005 0
022 C000006 0
022 D000006 0
022 C000007 0
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 2831
023 D000000 1286
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
<PAGE> PAGE 4
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 0
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 0
028 H000000 0
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
035 000000 0
036 B000000 0
038 000000 0
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
<PAGE> PAGE 5
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 50000
048 A020000 1.200
048 B010000 50000
048 B020000 1.150
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 100000
048 K020000 1.100
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
054 A000000 Y
054 B000000 Y
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
<PAGE> PAGE 6
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 N
060 B000000 N
061 000000 1500
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 Y
067 000000 N
068 A000000 N
068 B000000 Y
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
<PAGE> PAGE 7
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 Y
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 56818
071 B000000 97559
071 C000000 117108
071 D000000 49
072 A000000 12
072 B000000 559
072 C000000 2058
072 D000000 0
072 E000000 0
072 F000000 1512
072 G000000 128
072 H000000 0
072 I000000 30
072 J000000 199
072 K000000 0
072 L000000 75
072 M000000 30
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 78
072 R000000 42
072 S000000 25
072 T000000 0
072 U000000 0
072 V000000 0
<PAGE> PAGE 8
072 W000000 46
072 X000000 2165
072 Y000000 206
072 Z000000 658
072AA000000 30503
072BB000000 0
072CC010000 0
072CC020000 6671
072DD010000 394
072DD020000 0
072EE000000 30071
073 A010000 0.0700
073 A020000 0.0000
073 B000000 5.6200
073 C000000 0.0000
074 A000000 26706
074 B000000 0
074 C000000 0
074 D000000 0
074 E000000 0
074 F000000 97866
074 G000000 0
074 H000000 0
074 I000000 174
074 J000000 0
074 K000000 0
074 L000000 0
074 M000000 1
074 N000000 124748
074 O000000 0
074 P000000 303
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 26361
074 S000000 0
074 T000000 98084
074 U010000 5355
074 U020000 0
074 V010000 18.31
074 V020000 0.00
074 W000000 0.0000
074 X000000 587
074 Y000000 0
075 A000000 0
075 B000000 130294
076 000000 15.63
077 A000000 Y
077 B000000 Y
077 Q010000 Y
<PAGE> PAGE 9
080 A000000 GULF INSURANCE COMPANY, INC.
080 C000000 6500
081 A000000 Y
081 B000000 10
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 36
086 A020000 614
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
087 A010000 THE PORTUGAL FUND, INC.
087 A020000 737265108
087 A030000 PGF
088 A000000 N
088 B000000 N
088 C000000 N
088 D000000 N
SIGNATURE MICHAEL A. PIGNATARO
TITLE CFO
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000854580
<NAME> THE PORTUGAL FUND, INC.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 78833480
<INVESTMENTS-AT-VALUE> 98040624
<RECEIVABLES> 0
<ASSETS-OTHER> 26706258
<OTHER-ITEMS-ASSETS> 1420
<TOTAL-ASSETS> 124748302
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 26664738
<TOTAL-LIABILITIES> 26664738
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 73966577
<SHARES-COMMON-STOCK> 5355416
<SHARES-COMMON-PRIOR> 5319276
<ACCUMULATED-NII-CURRENT> 126437
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4783552
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19206998
<NET-ASSETS> 98083564
<DIVIDEND-INCOME> 2058113
<INTEREST-INCOME> 559516
<OTHER-INCOME> 0
<EXPENSES-NET> 1959152
<NET-INVESTMENT-INCOME> 658477
<REALIZED-GAINS-CURRENT> 30502891
<APPREC-INCREASE-CURRENT> (6670819)
<NET-CHANGE-FROM-OPS> 24490549
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 394077
<DISTRIBUTIONS-OF-GAINS> 30071072
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 36140
<NET-CHANGE-IN-ASSETS> (5360206)
<ACCUMULATED-NII-PRIOR> 126306
<ACCUMULATED-GAINS-PRIOR> 4087464
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1512033
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2164791
<AVERAGE-NET-ASSETS> 130293942
<PER-SHARE-NAV-BEGIN> 19.45
<PER-SHARE-NII> .12
<PER-SHARE-GAIN-APPREC> 4.43
<PER-SHARE-DIVIDEND> .07
<PER-SHARE-DISTRIBUTIONS> 5.62
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 18.31
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
To the Board of Directors of
The Portugal Fund, Inc.:
In planning and performing our audit of the financial statements and
financial highlights of The Portugal Fund, Inc. (the "Fund") for
the year ended December 31,1998, we considered the Fund's 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 financial
highlights and to comply with the requirements of Form N-SAR, not to
provide assurance on internal control. The management of The Portugal
Fund, Inc. 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 and financial
highlights 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 it may
become inadequate because of changes in conditions or that the effectiveness
of the 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 and financial
highlights 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 over safeguarding securities, that we
consider to be material weaknesses as defined above as of December 31, 1998.
This report is intended solely for the information and use of management,
the Board of Directors of The Portugal Fund, Inc. and the Securities and
Exchange Commission.
PriceWaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
February 19, 1999
