<PAGE>
- --------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to present to you the Third Quarter Report of The Europe Fund,
Inc. On September 30, 1997, the end of the period under review, the Fund's net
assets totalled $216.5 million. This represents a net asset value per share of
$21.51, a rise of 151.82% from its initial value on May 3, 1990, after taking
into account underwriting discounts, commissions, offering expenses and assuming
reinvestment of dividends and distributions. This compares with a 157.08%
increase in the MSCI Europe Index over the same time period. At the end of the
period under review, The Europe Fund, Inc. was quoted at $17.8125 per share on
the New York Stock Exchange, which represents a 17.19% discount to the Fund's
net asset value per share and a rise of 93.38% from its initial value, assuming
reinvestment of dividends and distributions.
We also enclose an investment review and European market outlook together with
a summary of the major portfolio investments.
Yours sincerely,
/s/ Anthony M. Solomon /s/ J. Loughlin Callahan
Anthony M. Solomon J. Loughlin Callahan
Chairman of the Board President and Treasurer
<PAGE>
INVESTMENT REVIEW
During the third quarter of 1997, your Fund experienced a rise in net asset
value of 6.38%, which compares with an increase of 8.28% in the value of the
MSCI Europe Index. For 1997 year to date, the Fund's net asset value has
increased by 18.32%, which compares with a 23.71% increase in the MSCI Europe
Index. These results are recorded in total return and dollar based terms, with
net dividends and distributions reinvested.
European stocks were strong performers over the quarter. Against an economic
backdrop of increasing industrial activity, inflation remained subdued. As a
result of the weaker DM bloc, this recovery was driven by industrial export
activity with domestic consumption remaining depressed in countries such as
Germany and France, where unemployment remains high.
A key market influence during the period was corporate activity, particularly
in the financial sector. A notable example was the merger of two Bavarian banks,
Hypobank and Vereinsbank. This activity fueled speculation about further
consolidation ahead of the introduction of EMU.
From the month of August, small capitalization stocks began to recover from a
period of protracted underperformance.
ECONOMIC AND MARKET OUTLOOK
Expectations for European growth have been revised upwards as the effect of
low interest rates and more competitive currencies feed through to industrial
activity. The likelihood of EMU taking place on time has increased. While a weak
euro or a delay to the whole project pose the greatest threats to European
markets, the present optimism should result in further convergence of European
interest rates, giving equities some support. With sustained emphasis on
under-researched and emerging companies, the Fund will continue to focus on
stock selection and exploit medium-term investment opportunities.
The Fund's and the MSCI Europe Index's country weightings expressed as a
percentage of total market value as of September 30, 1997 are outlined below:
<TABLE>
<CAPTION>
MSCI
FUND EUROPE INDEX
------ -----------------
<S> <C> <C>
Austria........................................... 0.0% 0.6%
Belgium........................................... 0.0 1.8
Czech Republic.................................... 0.6 0.0
Denmark........................................... 1.2 1.6
Finland........................................... 2.5 1.4
France............................................ 14.5 11.4
Germany........................................... 7.5 14.8
Ireland........................................... 2.1 0.6
Italy............................................. 12.9 5.8
<CAPTION>
MSCI
FUND EUROPE INDEX
------ -----------------
<S> <C> <C>
Netherlands....................................... 14.0% 8.7%
Norway............................................ 2.4 1.0
Portugal.......................................... 0.6 0.0
Spain............................................. 0.8 4.2
Sweden............................................ 8.2 4.4
Switzerland....................................... 11.1 10.7
United Kingdom.................................... 21.6 33.0
------ -----
100.0% 100.0%
------ -----
------ -----
</TABLE>
PORTFOLIO SUMMARY
During the period, notable performers included Banco Ambroveneto, Credito
Italiano, Hays, La Rinascente and Mediolanum. Over the quarter, the Fund
established a position in Forth Ports.
The Fund's ten largest equity holdings at September 30, 1997 were:
TOTAL
Total is one of the leading French oil companies. It has the highest reserve
replacement ratio among its European peer group at over 200% and the second
lowest finding cost ratio. Total has a strong balance sheet and we expect its
production profile to increase by 70% by the year 2000 as a result of
discoveries made in the Far East and Latin America. In view of the earnings
outlook, we believe that the stock is attractively valued relative to its
European peer group.
2
<PAGE>
ROYAL DUTCH PETROLEUM
The Royal Dutch/Shell Group is the largest oil company in the world and among
the ten biggest chemical companies. Because of its diversity, the Group's
earnings are less sensitive to oil prices than is the case with other oil
companies. We believe that the restructuring now being implemented by management
should yield positive results in the medium term. Merger discussions with Texaco
are ongoing in relation to the U.S. downstream operations of Shell. News on the
rationalization of the European refining and marketing business is expected in
the near future, while the chemicals business is also being reorganized.
Management is strongly committed to improving the Group's return on capital,
while the Group's financial flexibility (cash and cash equivalents in excess of
$12 billion) is expected to be used in a more rewarding manner to shareholders.
LA RINASCENTE
La Rinascente is the leading Italian food and non-food retailer. Auchan, the
French retailer, has taken a stake and is injecting its strong management into
the Italian operations. L'heureux, the Chief Executive of Auchan, has targeted a
30% increase in sales per square meter in La Rinascente's hyper-markets, which
would lead to margin expansion.
HAYS
The Hays Group operates in the business services and distribution market. It
has a strong position in its U.K. domestic market as well as enticing expansion
opportunities abroad. A string of successful acquisitions has trebled the
company's market value over the last seven years. We believe recent results
indicate that above average growth may be expected in the medium term.
ABB
Asea Brown Boveri Group (ABB), which is primarily involved in the provision of
infrastructure services, divides its activities between more than 1,000
companies and is present in over 130 countries worldwide. The bulk of its
business is related to the generation and subsequent distribution of power,
while the remainder of its activities is spread among such diverse areas as
transportation, robotics and financial services. Geographically, while
predominately involved in Europe, ABB has, in recent years, sought to expand its
activities in the Far East. ABB has been proactive in switching its
manufacturing facilities from high cost countries towards lower cost countries
and, in our opinion, is well placed to benefit from a recovery in infrastructure
expenditure both in Europe and in lesser developed countries.
ELF AQUITAINE
Elf Aquitaine is an integrated oil company with chemicals, pharmaceuticals and
beauty products interests. The company aims to break through a 12% return on
equity target within the medium term (extending its current objective of
reaching 10% by 1998), while accelerating growth in upstream production and
specialty chemicals. Further cost cutting, disciplined capital allocation and
management focus on shareholder value creation are central tenets of this
strategy. The company continues to trade at a discount to the European oil
sector average, but with a gross yield of 40% above that of the sector.
ROCHE HOLDINGS
Roche is Switzerland's second largest pharmaceuticals group and is
attractively valued, especially in relation to its U.S. peers. It has a very
strong financial position, which should allow it to take part in the continuing
consolidation of the pharmaceutical sector. There are a number of promising
drugs in development (particularly in the cardiovascular, virology and obesity
areas) which should allow for sustainable high single-digit sales growth as new
products take over from current drugs. In addition, diagnostics sales are
expected to grow strongly over the next few years, with new opportunities in
disease management. Roche has also recently acquired Tastemaster (a U.S. based
manufacturer of flavors), which strengthens its fragrances and flavors division.
3
<PAGE>
UNILEVER
Unilever is one of the world's largest producers of consumer goods involved in
the production of foods, drinks, detergents, and personal products. While
trading conditions continue to remain difficult, the company is in the midst of
a restructuring process under the leadership of a dynamic new management group.
As part of the restructuring process, the company has recently decided to sell
its specialty division, which may result in increasing shareholder value.
GKN
GKN operates in the automotive components and defense engineering markets.
Recent interim results were well above expectations, driven mainly by the
automotive division. Demand rose strongly in continental Europe and Britain. We
believe that the company remains financially sound and is one of the leading
organizations in its sector.
BAYER
Bayer is a diversified company, with businesses in chemicals, healthcare and
imaging technology and remains a core holding within the pan-European chemicals
sector. Management is very eager to embrace the concept of shareholder value and
has continued its restructuring efforts and extended incentive programs.
4
<PAGE>
- -----------------------------------------------
THE EUROPE FUND, INC.
SCHEDULE OF INVESTMENTS
AS OF SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS & WARRANTS -- 92.0%
CZECH REPUBLIC--0.6%
50,000 +Central European Media Enterprises (Series
A)....................................... $ 1,337,500
--Consumer Goods
-------------
1,337,500
-------------
DENMARK--1.1%
37,516 Unidanmark (Series A)...................... 2,424,162
--Banking
-------------
2,424,162
-------------
FINLAND--1.9%
55,000 Hackman Oy (Series A)...................... 1,902,627
--Consumer Goods
46,332 Metra (Series B)........................... 1,348,413
--Machinery & Engineering
50,000 Outokumpu Oy............................... 909,950
--Metals--Non-Ferrous
-------------
4,160,990
-------------
FRANCE--14.0%
14,240 +Axime..................................... 1,539,797
--Electrical & Electronics
46,000 BIC........................................ 3,401,267
--Recreation & Other Consumer Goods
28,600 But........................................ 1,406,589
--Services
45,000 Cipe France................................ 2,031,261
--Business & Public Services
36,008 Compagnie Generale des Eaux................ 4,233,239
--Business & Public Services
32,808 +Compagnie Generale des Eaux Warrants
(a)...................................... 17,683
--Business & Public Services
40,000 Elf Aquitaine.............................. 5,335,849
--Energy Sources
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
8,000 Pinault Printemps Redoute.................. $ 3,749,916
--Merchandising
67,745 Total (Class B)............................ 7,747,567
--Energy Sources
11,446 Valeo...................................... 751,088
--Machinery & Engineering
-------------
30,214,256
-------------
GERMANY--3.6%
89,841 BASF....................................... 3,241,450
--Chemicals
112,000 Bayer...................................... 4,455,805
--Chemicals
-------------
7,697,255
-------------
IRELAND--2.0%
259,970 Bank of Ireland............................ 3,242,094
--Banking
195,075 +Ryanair Holdings.......................... 1,119,989
--Transportation
-------------
4,362,083
-------------
ITALY--12.4%
326,679 Banca Popolare di Brescia.................. 2,410,873
--Banking
209,674 Banco Ambrosiano Veneto.................... 1,473,900
--Banking
895,999 Credito Italiano (Ordinary)................ 2,423,863
--Banking
674,289 +Credito Italiano Call Warrants (b)........ 1,140,546
--Banking
560,000 Ente Nazionale Idrocarburi................. 3,526,154
--Oil Refining & Marketing
133,533 Industrie Natuzzi (ADR).................... 3,163,063
--Appliances & Household Durables
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
919,307 La Rinascente.............................. $ 7,050,701
--Merchandising
50,000 Luxottica Group (ADR)...................... 2,846,875
--Health & Personal Care
172,444 Mediolanum................................. 2,796,983
--Insurance
-------------
26,832,958
-------------
NETHERLANDS--13.5%
34,600 Aalberts Industries........................ 1,042,797
--Capital Equipment
150,000 Elsevier................................... 2,177,517
--Broadcasting & Publishing
27,650 Gucci Group (NY Registered)................ 1,296,094
--Consumer Goods
93,377 ING Groep.................................. 4,287,049
--Financial Services
82,000 N.V. Koninklijke KNP....................... 2,236,588
--Forest Products & Paper Materials
75,335 Nutricia Ver Bedrj......................... 2,262,926
--Food & Household Products
128,000 Royal Dutch Petroleum Company.............. 7,162,548
--Oil Refining & Marketing
21,300 Unilever................................... 4,545,027
--Consumer Goods
180,000 Ver Ned Uitgevers Bezit.................... 4,177,215
--Broadcasting & Publishing
-------------
29,187,761
-------------
NORWAY--2.3%
810,000 Christiania Bank Kreditkasse............... 2,796,331
--Banking
39,500 Fokus Bank................................. 342,302
--Finance
100,000 Schibsted.................................. 1,747,266
--Broadcasting & Publishing
-------------
4,885,899
-------------
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
PORTUGAL--0.6%
76,499 +Electricidade de Portugal................. $ 1,314,494
--Utilities--Electric & Gas
-------------
1,314,494
-------------
SPAIN--0.8%
17 +A.B. Capital Fund*........................ 352,038
--Business & Public Services
7,100 Acerinox................................... 1,341,058
--Materials
-------------
1,693,096
-------------
SWEDEN--7.8%
410,000 ABB (Series B)............................. 5,781,345
--Electrical & Electronics
100,000 Avesta Sheffield........................... 955,431
--Metals--Steel
32,400 Hennes & Mauritz........................... 1,415,434
--Merchandising
85,580 Hoganas (Series B)......................... 3,061,987
--Machinery & Engineering
58,082 Securitas (Series B)....................... 1,381,593
--Health & Personal Care
120,000 Svedala Industri........................... 2,799,083
--Machinery & Engineering
80,000 Svenska Stal (Series B).................... 1,655,201
--Metals--Non-Ferrous
-------------
17,050,074
-------------
SWITZERLAND--10.6%
3,376 Adecco..................................... 1,358,388
--Services
2,620 Baloise Holding Ltd. (Registered).......... 4,054,612
--Insurance
560 Bobst (Bearer)............................. 885,893
--Machinery & Engineering
7,391 Hero (Bearer).............................. 4,092,272
--Food & Household Products
2,688 Novartis (Registered)...................... 4,122,869
--Health & Personal Care
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
600 Roche Holdings............................. $ 5,323,612
--Health & Personal Care
3,000 SMH (Bearer)............................... 1,786,918
--Consumer Goods
1,043 Stratec Holding (Series B)
(Registered)............................. 1,445,522
--Medical Supplies
-------------
23,070,086
-------------
UNITED KINGDOM--20.8%
512,000 Amvescap (Ordinary)........................ 3,426,569
--Financial Services
265,000 Bemrose (Ordinary)......................... 1,841,976
--Forest Products & Paper Materials
415,809 Birkby (Ordinary).......................... 1,067,471
--Real Estate
250,000 British Airport Authority (Ordinary)....... 2,427,955
--Business & Public Services
320,620 +British Biotechnology Group (Ordinary).... 815,335
--Health & Personal Care
166,228 Devro (Ordinary)........................... 1,037,334
--Food & Household Products
10,000 Forth Ports................................ 100,912
--Transportation
200,000 GKN (Ordinary)............................. 4,520,880
--Machinery & Engineering
179,303 Grand Metropolitan (Ordinary).............. 1,713,855
--Food & Household Products
250,000 Great Universal Store (Ordinary)........... 2,787,203
--Merchandising
1,551,910 Halma (Ordinary)........................... 3,432,828
--Machinery & Engineering
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
550,000 Hays (Ordinary)............................ $ 6,233,971
--Business & Public Services
380,000 Marks & Spencer (Ordinary)................. 3,886,827
--Merchandising
100,000 Reuters Holdings (Ordinary)................ 1,186,731
--Business & Public Services
65,843 Schroders (Ordinary)....................... 2,054,443
--Finance
195,000 Serco Group (Ordinary)..................... 2,628,972
--Business & Public Services
200,000 United News & Media (Ordinary)............. 2,513,932
--Broadcasting & Publishing
200,000 Vendome Luxury Group (Units)............... 1,443,452
--Merchandising
220,000 Wolseley (Ordinary)........................ 1,824,014
--Building Materials & Components
-------------
44,944,660
-------------
Total Common Stocks & Warrants
(cost--$140,199,125)..................... 199,175,274
-------------
PREFERRED STOCKS -- 3.7%
GERMANY--3.7%
17,363 Marschollek, Lautenschlaeger Und Partner
(Non-Voting)............................. 4,182,909
--Financial Services
35,412 Rhoen Klinikum (Non-Voting)................ 3,784,917
--Health & Personal Care
-------------
7,967,826
-------------
Total Preferred Stocks
(cost--$3,335,797)....................... 7,967,826
-------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
FACE AMOUNT DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
CONVERTIBLE BONDS -- 0.4%
FINLAND--0.4%
FIM 4,550,000 Lansivoima, 7.425% due 3/29/01............. $ 928,659
--Utilities--Electric & Gas
-------------
928,659
-------------
Total Convertible Bonds
(cost--$822,250)......................... 928,659
-------------
Total Investments--96.1%
(cost--$144,357,172) (c) $ 208,071,759
Unrealized Depreciation on Foreign Currency
Exchange Contracts-- 0.0% (d)............ (26,638)
Other Assets in Excess of
Liabilities--3.9%........................ 8,457,924
-------------
Net Assets--100.0%......................... $ 216,503,045
-------------
-------------
</TABLE>
- ------------------------------
+ Non-income producing security.
ADR American Depository Receipt
* Investment in restricted security with an aggregate value of $352,038,
representing 0.16% of net assets at September 30, 1997. The investment was
acquired on October 22, 1990 and September 5, 1991 for $759,153.
(a) The warrants enable the holder to subscribe to one ordinary share for
every 40 warrants held at FF 900 per share until May 2, 2001.
(b) The warrants enable the holder to subscribe to one ordinary share for
every one warrant held at ITL 1705 per share until November 30, 1997.
(c) The United States Federal income tax basis of the Fund's investments
at September 30, 1997 was $144,357,172 and, accordingly, net unrealized
appreciation for United States Federal income tax purposes was $63,714,587
(gross unrealized appreciation--$66,063,807; gross unrealized
depreciation--$2,349,220).
(d) Foreign Currency Exchange Contracts as of September 30, 1997 are as
follows:
<TABLE>
<CAPTION>
Net
In Unrealized
Contracts to Exchange Settlement Appreciation
Sales Deliver For Date Value (Depreciation)
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ESP 19,215,800 $ 129,880 10/01/97 $ 128,706 $ 1,174
ITL 1,966,859,480 1,129,730 10/01/97 1,139,350 (9,620)
ITL 388,199,230 223,746 10/01/97 224,874 (1,128)
ITL 1,903,444,000 1,104,663 10/03/97 1,102,615 2,048
----------- ---------- ----------
$2,588,019 $2,595,545 $ (7,526)
----------- ---------- ----------
----------- ---------- ----------
<CAPTION>
Net
In Unrealized
Contracts to Exchange Settlement Appreciation
Purchases Receive For Date Value (Depreciation)
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GBP 49,051 $ 79,266 10/01/97 $ 79,198 $ (68)
NLG 4,202,300 2,129,904 10/01/97 2,110,860 (19,044)
----------- ---------- ----------
$2,209,170 $2,190,058 $ (19,112)
----------- ---------- ----------
----------- ---------- ----------
$ (26,638)
----------
----------
</TABLE>
8
<PAGE>
- -------------------------------------------------------------
DIRECTORS AND OFFICERS
ANTHONY M. SOLOMON, Chairman of the Board and Director
GEORGE F. BENNETT, Director
* SIR ARTHUR BRYAN, Director
PETER STORMONTH DARLING, Director
LEON N. LEVY, Director
* J. MURRAY LOGAN, Director
* JAMES S. MARTIN, Director
FRANCOIS-XAVIER ORTOLI, Director
J. LOUGHLIN CALLAHAN, President and Treasurer
STEVEN W. GOLANN, Vice President
RITA J. KLEINMAN, Secretary
THADDEA M. FELDMAN, Assistant Secretary
AMANDA J. MARSH, Assistant Secretary
* Member of the Audit Committee
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may purchase at market prices from time to
time shares of its Common Stock in the open market.
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of Fund shares.
Comparisons between changes in the Fund's net asset value per share and changes
in the MSCI Europe Index should be considered in light of the Fund's investment
policy and objectives, the characteristics and quality of the Fund's investments
and the size of the Fund.
- ------------------------------------------------
EXECUTIVE OFFICES--
780 Third Avenue
New York, New York 10017
(For latest net asset value and requests for Fund Reports, please call 1 (800)
543-6217 or (609) 282-4600.)
INVESTMENT MANAGER--
Mercury Asset Management International Channel Islands Ltd.
Forum House
Grenville Street
St. Helier, Jersey
Channel Islands
INVESTMENT ADVISER--
Mercury Asset Management International Ltd.
33 King William Street
London EC4R 9AS
England
ADMINISTRATOR--
Princeton Administrators, L.P.
P.O. Box 9095
Princeton, New Jersey 08543-9095
CUSTODIAN--
The Bank of New York
Avenue des Arts 35
1040 Brussels
Belgium
TRANSFER AGENT AND REGISTRAR--
The Bank of New York
101 Barclay Street
New York, New York 10286
LEGAL COUNSEL--
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
INDEPENDENT AUDITORS--
Ernst & Young LLP
787 Seventh Avenue
New York, New York 10019
<PAGE>
------------------------------------------------
SUMMARY OF GENERAL INFORMATION
-------------------------------------------
THE FUND
The Europe Fund, Inc. (the "Fund") is a closed-end investment company whose
shares trade on the New York Stock Exchange. The Fund seeks long-term capital
appreciation through investment primarily in European equity securities. The
Fund is managed by Mercury Asset Management International Channel Islands Ltd.
(Regulated by IMRO), relying on investment advice from Mercury Asset Management
International Ltd. (Regulated by IMRO.)
SHAREHOLDER INFORMATION
Daily market prices for the Fund's shares are published in the New York Stock
Exchange Composite Transactions section of newspapers under the designation
"Europe Fd." The Fund's New York Stock Exchange trading symbol is EF. Weekly
comparative net asset value (NAV) and market price information about the Fund's
shares are published each Monday in THE WALL STREET JOURNAL and THE NEW YORK
TIMES and other newspapers in a table called "Closed End Funds," and are also
available on Reuters under "MAMINDEX."
Shareholders interested in receiving the quarterly newsletter entitled "Closed
End Fund Focus" should call 1-800-543-6217 or 1-212-888-6941 and request to be
placed on the mailing list or send a request by mail to the Fund's address.
DISTRIBUTION REINVESTMENT AND CASH PURCHASE PLAN-SUMMARY
An automatic Distribution Reinvestment and Cash Purchase Plan (the "Plan") is
available to provide shareholders with automatic reinvestment of their dividend
income and capital gains distributions in additional shares of the Fund's common
stock. A brochure describing the Plan is available from the Plan Agent, The Bank
of New York, by calling (800) 524-4458.
All shareholders are automatically enrolled in the Plan unless they have
elected to receive distributions in cash. Therefore, if you wish to participate
and your shares are held in your own name, no action is required on your part.
If you have previously elected to receive distributions in cash and now wish to
participate in the Plan, please call the Plan Agent at the number above. If your
shares are held in the name of a brokerage firm, bank or other nominee, your
nominee may have elected to receive distributions in cash on your behalf, and if
you wish to participate, you should instruct your nominee to participate in the
Plan on your behalf. If your nominee is unable to participate on your behalf,
you should request it to register your shares in your own name, which will
enable you to participate in the Plan.
TRANSFER AGENT:
The Bank of New York
Telephone Inquiries: 1-800-432-8224
Address Shareholder Inquiries To:
Shareholder Relations Department - 11 E
P.O. Box 11258
Church Street Station
New York, NY 10286
Send Certificates for Transfer and Address Changes to:
Receive and Deliver Department - 11 W
P.O. Box 11002
Church Street Station
New York, NY 10286
[LOGO]
THE EUROPE FUND, INC.
QUARTERLY REPORT
SEPTEMBER 30, 1997
