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REPORT ON EXAMINATION OF SECURITIES PURSUANT TO RULE 17F-2
To the Board of Directors of The Emerging Germany Fund Inc.:
We have examined the securities represented by the investment accounts included
on the books and records of The Emerging Germany Fund Inc. ("The Fund") for the
period from the date of our last similar examination on February 28, 1997 to
December 31, 1997. Our examination was performed without prior notice to the
Fund and in accordance with Rule 17f-2 of the Investment Company Act of 1940,
as amended. It is understood that this report is solely for the use of
management of The Emerging Germany Fund and the Securities and Exchange
Commission and should not be used for any other purpose.
We performed the following procedures with respect to securities owned by
The Fund as of the close of business on December 31, 1997:
All securities owned by the Funds are custodied with State Street
Bank and Trust Company ("State Street"). All Deutschemark
denominated securities held by the Funds will be custodied with
Dresdner Bank AG as Sub Custodian for State Street. All securities
custodied with Dresdner Bank AG are custodied in book entry method.
All securities owned by The Emerging Germany Fund Inc. are held by
Dresdner AG in commingled omnibus accounts.
We reviewed State Street's daily exception reports which compare the
safekeeping reports of securities held by the Fund to those held by
Dresdner Bank AG, on omnibus account basis, from February 28, 1997
(the date of our last security count) to December 31, 1997 noting
that the exceptions on the report, if any, for the Fund had been
resolved during the period. On a test basis, we agreed securities
shown on the State Street safekeeping reports to share positions
from Dresdner Bank AG.
Securities designated as securities of the Fund on State Street's
safekeeping reports were traced to the books and records of the
Fund, noting agreement except for securities purchased/sold but
not received/delivered on that date, as to which we requested
confirmation from the brokers and for securities on loan, for which
we obtained confirmation from State Street.
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We are relying on the Dresdner Bank AG Safe Audit performed on the
internal controls of Dresdner Bank AG over the reconciliation process
between Dresdner and the central depository, Deutscher Kassenverein
AG, ("the DKV"). We reviewed the daily reconciliation between
Dresdner Bank's records and the DKV's records and noted that the
exceptions or unmatched items on the report, if any, had been
resolved in a timely manner during the period.
Because the above procedures do not constitute an audit in accordance with
generally accepted auditing standards, we do not express an opinion on the
specified investment accounts referred to above. In connection with the
procedures referred to above, no matters came to our attention that caused us
to believe that the specified accounts should be adjusted. Had we performed
additional procedures or had we audited the financial statements in accordance
with generally accepted auditing standards, matters might have come to our
attention that would have been reported to you. This report related only to
the investments specified above and does not extend to any financial statements
of The Emerging Germany Fund, Inc. taken as a whole.
/s/ PricewaterhouseCoopers LLP
LLP Boston, Massachusetts PricewaterhouseCoopers
September 21, 1998
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UNITED STATES ------------------------------
SECURITIES AND EXCHANGE COMMISSION OMB APPROVAL
WASHINGTON, D.C. 20549 ------------------------------
OMB Number: 3235-0360
FORM N-17f-2 Expires:
Certificate of Accounting of Securities and Similar Estimated average burden
Investments in the Custody of hours per response..... 0.05
Management Investment Companies ------------------------------
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
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1. Investment Company Act File Number: Date examination completed:
811- 6038 December 31, 1997
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2. State identification Number:
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AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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Other (specify):
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3. Exact name of investment company as specified in registration statement:
The Emerging Germany Fund
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4. Address of principal executive office (number, street, city, state, zip code):
4 Embarcadero Center, San Francisco, CA 94111
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INSTRUCTIONS
This Form must be completed by investment companies that have custody of
securities or similar investments.
INVESTMENT COMPANY
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance
with Rule 17f-2 under the Act and applicable state law, examines securities
and similar investments in the custody of the investment company.
ACCOUNTANT
3. Submit this Form to the Securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable state law. File the
original and one copy with the Securities and Exchange Commission's principal
office in Washington, D.C., one copy with the regional office for the region
in which the investment company's principal business operations are
conducted, and one copy with the appropriate state administrator(s), if
applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
