Report of Independent Auditors
To the Shareholders and
Board of Directors of
Alliance New Europe Fund, Inc.
In planning and performing our audit of the financial statements of
Alliance New Europe Fund, Inc. for the year ended July 31, 2000, we
considered its internal control, including control activities for
safeguarding securities, 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, and not to provide assurance
on internal control.
The management of Alliance New Europe 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 internal control.
Generally, internal 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 internal controls include the safeguarding
of assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, misstatements due
to errors or fraud may occur and not be detected. Also, projections of
any evaluation of internal control to future periods are subject to the
risk that internal control may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures 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 specific internal control components
does not reduce to a relatively low level the risk that errors 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, including
control activities for safeguarding securities, and its operation that
we consider to be material weaknesses as defined above at July 31, 2000.
This report is intended solely for the information and use of the Board
of Directors and management of Alliance New Europe Fund, Inc., and the
Securities and Exchange Commission and is not intended to be and should
not be used by anyone other than these specified parties.
ERNST & YOUNG LLP
September 7, 2000
