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SIGNATURE JOHN MILLETTE
TITLE SECRETARY
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<LEGEND>
This schedule contains summary financial information extracted from the Kemper
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qualified in its entirety by reference to such financial statements.
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<LEGEND>
This schedule contains summary financial information extracted from the Kemper
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<LEGEND>
This schedule contains summary financial information extracted from the Kemper
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REPORT OF INDEPENDENT AUDITORS
Board of Trustees
Kemper Funds
In planning and performing our audits of the financial statements of each of the
Kemper Funds listed in Exhibit A attached hereto (the "Funds") for the period
ended as of the date listed in Exhibit A attached hereto ("Report Date"), we
considered their 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 Funds 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, error 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 misstatements, 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 at Report Date.
This report is intended solely for the information and use of the board of
trustees and 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.
/s/ERNST & YOUNG LLP
ERNST & YOUNG LLP
Chicago, Illinois
December 23, 1999
<PAGE>
Kemper Funds
- ------------
Exhibit A
---------
October 31, 1999
- ----------------
Kemper Technology Fund
Kemper Strategic Income Fund
Kemper New Europe Fund, Inc.
Kemper Total Return Fund
Kemper Income and Capital Preservation Fund
Kemper U.S. Government Securities Fund
Kemper International Fund
Kemper Blue Chip Fund
Kemper Global/International Series, Inc.
Kemper Emerging Markets Growth Fund
Kemper Emerging Markets Income Fund
Kemper Global Blue Chip Fund
Kemper International Growth and Income Fund
Kemper Latin America Fund
The Growth Fund of Spain, Inc.
In April, 1999, based on the recommendation of the Audit Committee of Scudder
New Europe Fund, Inc., its Board of Directors determined not to retain
PricewaterhouseCoopers LLP as the Fund's independent auditor for periods after
it became an open-end fund and completed its merger with Kemper Europe Fund and
voted to appoint Ernst & Young LLP for such periods. These actions, except for
the merger, became effective on July 20, 1999 upon shareholder approvals. For
the fiscal years ended October 31, 1998 and 1997 and for the six month period
ended April 30, 1999, PricewaterhouseCoopers LLP's audit reports on the
financial statements contained no adverse opinion or disclaimer of opinion; nor
were their reports qualified as to uncertainty, audit scope, or accounting
principles. Further, for the period through July 20, 1999 and the aforementioned
periods, there were no disagreements between the Fund and PricewaterhouseCoopers
LLP on accounting principles, financial statement disclosure or audit scope,
which if not resolved to the satisfaction of PricewaterhouseCoopers LLP would
have caused them to make reference to the disagreement in their reports.
January 12, 2000
Securities and Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549
Gentlemen:
We have read the statements made by Kemper New Europe Fund, Inc. (formerly
Scudder New Europe Fund, Inc.) (copy attached), which we understand will be
filed with the Commission, pursuant to Item 77K, as part of the Fund's Form
N-SAR report for the year ended October 31, 1999. We agree with the statements
concerning our Firm in such Form N-SAR.
Very truly yours,
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
