WITTER DEAN EUROPEAN GROWTH FUND INC, N-30D, 1994-06-27

WITTER DEAN EUROPEAN GROWTH FUND INC
N-30D, 1994-06-27

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<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.
Two World Trade Center
New York, New York 10048

DEAR SHAREHOLDER:
- - - --------------------------------------------------------------------------------

In a tumultuous period for most of the world's financial markets, Dean
Witter European Growth Fund produced an impressive total return of 9.95 percent
for the six months ended April 30, 1994, versus -2.30 percent for the Standard &
Poor's 500 Index (S&P 500) and 1.73 percent for the Morgan Stanley Capital
International World Index. For the trailing twelve months, the Fund returned an
attractive 31.26 percent, again substantially outperforming the S&P 500 (5.31
percent) and the World Index (10.01 percent). For the twelve-month period ended
April 30, 1994, the Fund was ranked #3 out of 29 (top 10 percent) European
region funds by Lipper Analytical Services, Inc.

FACTORS IN BOTH EUROPE AND THE U.S. AFFECT THE MARKETS

The second half of 1993 saw a dramatic rise in European equities that
continued through year end. The driving forces were:

(1) CONTINUING INTEREST-RATE DECLINES ACROSS THE CONTINENT

(2) VERY STRONG FLOW OF FUNDS INTO EQUITIES FROM BOTH DOMESTIC AND
INTERNATIONAL SOURCES

(3) AN EARNINGS RECOVERY, MOST NOTABLY IN SCANDINAVIA AND THE UK

These factors, especially falling interest rates and the strong flow of
money into equities, characterized the last two months of 1993 and have
continued to direct the European markets in early 1994.

In the U.S., as the economy improved, the financial markets indicated that
fears of inflationary pressure were growing. The Federal Reserve Board
demonstrated its resolve to quell inflation with a series of tightening
measures. Three times, between February and April, the central bank raised the
federal-funds rate -- the interest rate that banks charge each other for
overnight loans -- moving the target for this key interest rate from 3.00
percent to 3.75 percent. (Subsequent to the period under review, the Federal
Reserve Board initiated another round of tightening with a 50 basis point
increase in both the federal-funds rate and the discount rate -- the interest
rate the Federal Reserve charges member banks for loans.) These increases
represented the first time in several years the central bank had acted on
short-term interest rates. Although these moves were presented as "preemptive"
strikes in a war against potential inflationary pressure, the markets
interpreted the moves as the beginning of a trend toward higher interest rates
and both stock and bond prices tumbled. The global bond market correction that
followed this series of tightening moves was particularly sharp in Europe and
inevitably impacted the region's equity markets. Consequently, overall gains in
the European markets during the six-month period under review were relatively
modest, with the notable exceptions of Italy (41 percent in U.S. dollars) and
Scandinavia (Finland, 26 percent; Sweden, 10 percent; and Norway, 8 percent).

Economic recovery will be gradual in the core economies of Germany, France
and the Benelux countries (Belgium, the Netherlands and Luxembourg). Given the
proximity of elections in both France and Germany, it is expected that the
current policies of moderate fiscal tightening, coupled with monetary easing,
will be maintained. And with the continental European economies still operating
at well below capacity levels, inflation remaining subdued, and unemployment
rising, the Bundesbank will most likely continue to ease monetary policy and
gradually reduce short-term
<PAGE>
interest rates. Conversely, economic recovery is anticipated to be more robust
in Scandinavia and the UK, which is approximately 12 to 18 months ahead of
continental Europe in the economic cycle.

THE PORTFOLIO

The portfolio remained fully invested throughout the six-month period, and
should remain so for the foreseeable future. A sizable percentage of the Fund's
assets are directed toward the equity issues of small-and medium capitalization
companies, the valuations of which are more attractive than those of the stocks
of larger-capitalized companies. At the end of the period, the major regional
weightings, which are driven by individual stock decisions, were as follows:

<TABLE>
<S> <C>
UNITED KINGDOM 36.9%
CORE EUROPE (FRANCE, GERMANY AND BENELUX) 23.7%
SOUTHERN EUROPE (SPAIN AND ITALY) 9.9%
SCANDINAVIA (NORWAY, FINLAND AND SWEDEN) 17.4%
</TABLE>

The remaining assets were held in Denmark, Switzerland and Austria. An
amount equivalent to 15 percent of the portfolio is hedged, reflecting our view
that a renewed dollar rally against certain European currencies is possible.

LOOKING AHEAD

We remain optimistic that further advances in European equities will take
place during 1994. For the balance of the year, the European equity markets will
focus on the extent and strength of the corporate earnings recovery. Many
companies' first quarter reports have been quite positive, and a large number of
annual statements have been upbeat, indicating that the effects of
rationalization and cost cutting are leading to increased profitability.
Investor perception of the European markets is shifting from interest rates
toward an earnings recovery that could continue until peak profitability is
achieved in 1996/1997. Present valuations for such an earnings recovery remain
reasonably attractive from a historical standpoint.

We appreciate your ongoing support of Dean Witter European Growth Fund and
look forward to continuing to serve your investment objectives.

Very truly yours,

Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1994 (UNAUDITED)
- - - --------------------------------------------------------------------------------

COMMON AND PREFERRED STOCKS, WARRANTS, RIGHTS AND BONDS (95.8%)
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- - - ---------------- -------------
<C> <S> <C>
AUSTRIA (0.6%)
BANKING
75,000 Oester Elex (A Shares)..... $ 4,008,721
-------------
BELGIUM (3.1%)
BANKING
4,000 Banque General du
Luxembourg............... 3,416,075
-------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
41,100 Colruyt SA................. 9,837,765
342,920 Quilmes.................... 6,978,422
-------------
16,816,187
-------------
TOTAL BELGIUM.............. 20,232,262
-------------
FINLAND (5.5%)
ELECTRONICS
292,500 Nokia AB (Pref.)........... 24,895,950
136,500 Nokia AB................... 11,694,881
-------------
36,590,831
-------------
FRANCE (4.6%)
FINANCIAL SERVICES
67,335 Credit Local de France..... 4,951,980
-------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
59,500 LVMH Moet Hennessey
Louis.................... 9,890,306
-------------
INSURANCE
55,000 Scor SA.................... 5,009,746
-------------
MERCHANDISING
8,000 Agache (Societe
Financiere).............. 1,205,032
-------------
MULTI-INDUSTRY
15,100 Au Bon Marche.............. 2,151,408
-------------
TEXTILES
28,000 Christian Dior............. 2,044,302
59,452 Hermes International....... 5,267,765
-------------
7,312,067
-------------
TOTAL FRANCE............... 30,520,539
-------------
GERMANY (10.4%)
AUTOMOTIVE
13,500 Bayerische Motoren Werke... 7,387,488
-------------
BANKING
10,205 Dt. Pfandbrief U.
Hypothekenbank........... 4,710,476
-------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- - - ---------------- -------------
<C> <S> <C>
BUILDING & CONSTRUCTION
1,147 Baywa-Bayerische Waren --
Liq (Rights)............. $ 375,204
5,736 Baywa-Bayerische Waren --
Liq...................... 1,741,876
-------------
2,117,080
-------------
BUSINESS SERVICES
14,100 Sap AG (Pref.)............. 27,061,038
-------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
16,000 Holsten Brauerei AG........ 5,539,022
-------------
HEALTH & PERSONAL CARE
2,883 Rhoen Klinikum (Pref.)..... 1,540,868
6,550 Schering AG................ 4,403,795
-------------
5,944,663
-------------
INSURANCE
4,260 Koelnische Rueckvers AG
(Pref.).................. 1,901,670
1,500 Koelnische Rueckvers AG.... 911,023
-------------
2,812,693
-------------
PHARMACEUTICAL
9,300 Gehe A.G................... 3,309,930
2,440 Gehe AG (Ord. Shares)*..... 858,038
-------------
4,167,968
-------------
RETAIL
11,313 Hornbach Baumarkt HLDG*.... 6,733,519
2,310 Hornbach Holding AG
(Pref.).................. 2,314,910
-------------
9,048,429
-------------
TOTAL GERMANY.............. 68,788,857
-------------
ITALY (6.8%)
ELECTRICAL EQUIPMENT
1,860,000 Ansaldo Trans.............. 8,879,619
-------------
FOREIGN GOVERNMENT
OBLIGATION
ITL 6,910,000M BTPS 12.00% due 5/01/02.... 4,911,634
-------------
MANUFACTURING
75,000 Fila Holdings SPA
(ADR)*+.................. 1,031,250
-------------
</TABLE>

<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.

PORTFOLIO OF INVESTMENTS APRIL 30, 1994 (UNAUDITED) (CONTINUED)
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- - - ---------------- -------------
<C> <S> <C>
TELECOMMUNICATIONS
2,476,790 MedioBanca International
(Warrants 3/30/98)*...... $ 5,098,926
275,000 Sip Di Risp................ 688,612
4,866,850 Sip Itl 1000............... 14,700,125
ITL 8,375,000M Softe SA 4 1/4% due
7/30/98.................. 6,827,517
1,980,000 Softe SA (Warrants
3/24/97)*................ 2,933,100
760 Stet SPA................... 2,967
-------------
30,251,247
-------------
TOTAL ITALY................ 45,073,750
-------------
NETHERLANDS (5.6%)
BUSINESS SERVICES
141,050 Randstad Holdings.......... 5,838,920
-------------
INSURANCE
112,800 Aegon NV................... 5,853,636
120,000 International
Nederlanden.............. 5,038,961
-------------
10,892,597
-------------
PHARMACEUTICAL
204,000 OPG (Apoth. Coop.)UA....... 5,409,090
-------------
PUBLISHING
135,000 VNU -- Ver Ned Uitgev...... 6,784,090
70,000 Wegener NV................. 8,218,344
-------------
15,002,434
-------------
TOTAL NETHERLANDS.......... 37,143,041
-------------
NORWAY (4.4%)
BANKING
547,390 Sparebanken More........... 10,349,955
-------------
BUILDING &
CONSTRUCTION
150,000 Rieber & Son............... 5,357,217
-------------
FOREST PRODUCTS, PAPER &
PACKAGING
4,490 Tybring -- Gjedde.......... 113,194
-------------
INSURANCE
387,900 Vital Forsikring........... 3,911,651
-------------
OIL & RELATED
467,000 Smedvig Tankships*......... 4,316,867
-------------
TRANSPORTATION
418,750 Helikopter Service......... 5,278,435
-------------
TOTAL NORWAY............... 29,327,319
-------------
SPAIN (3.1%)
ELECTRIC UTILITIES
577,300 Fuerzas Electricas De
Catoluna, Sec A.......... 4,299,088
-------------
FINANCIAL SERVICES
25,468 Corparision Financiera..... 1,120,098
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- - - ---------------- -------------
<C> <S> <C>
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
ESP 90M El Aguila 10.00% due
12/02/97 (Conv.)......... $ 670
-------------
OIL & RELATED
43,750 Gas Natural SDG............ 3,554,789
350,000 Repsol SA.................. 11,688,408
-------------
15,243,197
-------------
TOTAL SPAIN................ 20,663,053
-------------
SWEDEN (7.5%)
AEROSPACE & DEFENSE
311,550 Securitas (B Shares)....... 10,636,177
-------------
BUILDING & CONSTRUCTION
257,400 Celsius Industries......... 6,861,025
-------------
FOREST PRODUCTS, PAPER &
PACKAGING
100,000 Mo Och Domsjoe*............ 3,939,179
-------------
HEALTH & PERSONAL CARE
274,830 Astra AB (A Shares)........ 5,665,630
-------------
INTERNATIONAL TRADE
511,700 Kinnevik
Industriforvatnings (B
Shares).................. 11,690,932
-------------
RETAIL
229,000 Hennes & Mauritz........... 11,305,969
-------------
TOTAL SWEDEN............... 50,098,912
-------------
SWITZERLAND (7.3%)
BANKING
2,715 Baer Holdings.............. 2,816,994
60,000 Safra Republic Holdings
S.A. .................... 5,581,395
-------------
8,398,389
-------------
BUSINESS SERVICES
4,030 Soc Gen Surveillance*...... 6,084,651
-------------
ELECTRICAL EQUIPMENT
10,550 Sprecher & Schuh Hldg AG... 2,981,932
-------------
FINANCIAL SERVICES
6,000 Bil GT Gruppe.............. 3,168,515
2,900 SBSI Holding SA --
Bearer*.................. 4,461,538
-------------
7,630,053
-------------
INDUSTRIALS
16,000 Hilti AG PTG Certs......... 11,563,506
-------------
LEISURE
92 Reiseburo Kuoni (Bearer)... 2,633,273
1,145 Reiseburo Kuoni............ 1,720,572
-------------
4,353,845
-------------
</TABLE>

<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.

PORTFOLIO OF INVESTMENTS APRIL 30, 1994 (UNAUDITED) (CONTINUED)
- - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- - - ---------------- -------------
<C> <S> <C>
MACHINERY
5,730 Schinder Holdings.......... $ 7,339,320
-------------
TOTAL SWITZERLAND.......... 48,351,696
-------------
UNITED KINGDOM (36.9%)
AEROSPACE & DEFENSE
515,000 British Aerospace.......... 3,759,912
658,000 Smiths Industries, PLC..... 5,024,106
-------------
8,784,018
-------------
BANKING
1,125,000 Royal Bank of Scotland
Group, PLC............... 6,861,611
1,335,000 TSB Group, PLC............. 4,264,123
-------------
11,125,734
-------------
BUILDING & CONSTRUCTION
658,200 John Mowlem & Co.
(Rights)................. 60,067
1,097,000 John Mowlem & Co., PLC..... 1,751,963
-------------
1,812,030
-------------
BUSINESS SERVICES
648,000 Reuters Holdings, PLC...... 5,223,722
-------------
CONGLOMERATES
2,201,757 BTR, PLC................... 13,261,534
1,800,000 Harrison & Crosfield....... 5,256,576
-------------
18,518,110
-------------
CONSTRUCTION PLANT &
EQUIPMENT
1,320,000 CRH, PLC................... 7,669,490
-------------
ELECTRIC UTILITIES
475,000 Powergen, PLC.............. 3,431,756
760,000 Scottish Power, PLC........ 4,080,538
-------------
7,512,294
-------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS
575,000 Allied Lyons, PLC.......... 5,125,009
88,461 Allied Lyons, PLC -- PP
Units.................... 430,557
1,115,000 Argyll Group, PLC.......... 3,883,645
711,153 BAT Industries, PLC........ 5,040,552
680,000 Dalgety, PLC............... 4,705,974
780,000 Grand Metropolitan, PLC.... 5,599,713
1,250,000 Rothmans International
Units*................... 7,757,100
820,000 Tate & Lyle, PLC........... 5,550,129
783,000 Vendome Luxury Group
Units*................... 5,180,602
-------------
43,273,281
-------------
FOREST PRODUCTS, PAPER &
PACKAGING
300,000 De La Rue Co............... 4,211,649
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- - - ---------------- -------------
<C> <S> <C>
HEALTH & PERSONAL CARE
1,129,000 Glaxo Holdings............. $ 9,856,779
1,125,000 Smithkline Beecham......... 6,057,382
-------------
15,914,161
-------------
INSURANCE
460,000 Britannic Assurance, PLC... 3,022,531
428,342 Commercial Union Assurance
Co., PLC................. 3,570,264
1,450,000 Prudential Corp., PLC...... 6,792,786
535,000 Refuge Group............... 2,563,265
1,121,666 Royal Insurance, PLC....... 4,486,921
1,400,000 Willis Corroon............. 4,833,738
-------------
25,269,505
-------------
LEISURE
660,000 Granada Group, PLC......... 5,571,423
-------------
METALS & MINING
750,000 English China Clays........ 5,452,785
-------------
OIL & GAS PRODUCTS
35,000,000 Dragon Oil*................ 931,612
-------------
OIL & RELATED
2,603,250 British Petroleum Co,
PLC...................... 15,244,291
714,000 Enterprise Oil............. 4,485,155
305,714 Lasmo, PLC................. 204,596
-------------
19,934,042
-------------
PUBLISHING
325,000 Daily Mail & General....... 5,907,183
625,000 Pearson, PLC............... 6,141,037
-------------
12,048,220
-------------
REAL ESTATE
645,000 Hammerson Prop. Inv. &
Dev., PLC................ 3,875,127
600,000 MEPC, PLC.................. 4,407,858
-------------
8,282,985
-------------
RETAIL STORES
668,000 Great Universal Stores..... 6,075,846
735,000 Kingfisher, PLC............ 6,428,126
2,140,000 Morrison Supermarkets...... 3,840,830
1,525,000 Next, PLC.................. 5,172,540
-------------
21,517,342
-------------
TELECOMMUNICATIONS
1,960,000 British Telecomm, PLC...... 10,940,857
-------------
TRANSPORTATION
995,000 British Airways, PLC....... 6,431,928
-------------
</TABLE>

<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.

PURCHASED PUT OPTIONS ON FOREIGN CURRENCY (0.1%)

<TABLE>
<CAPTION>
CURRENCY AMOUNT EXPIRATION MONTH/
(IN THOUSANDS) EXERCISE PRICE VALUE
--------------- ----------------------------------- -------------
<C> <S> <C>
SFr 64,620 May 94/SFr 1.436 $ 243,000
NKR 14,500 June 94/NKR 7.25 27,400
NKR 167,785 June 94/NKR 7.295 257,600
BFr 206,940 July 94/BFr 34.49 133,200
-------------
</TABLE>

<TABLE>
<S> <C> <C> <C>
TOTAL PURCHASED PUT OPTIONS ON FOREIGN CURRENCY
(IDENTIFIED COST $1,547,700)...................... 661,200
-------------
TOTAL INVESTMENTS
(IDENTIFIED COST $588,032,583)(B)....... 99.8% 663,024,326
CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES................... 0.2 1,186,719
-------- -------------
NET ASSETS ............................... 100.0% $ 664,211,045
--------
-------- -------------
-------------
<FN>
- - - ------------------------------
* Non-income producing security.
+ American Depository Receipt.
(a) US Government Agency was purchased on a discount basis. The interest rate
shown has been adjusted to reflect a bond equivalent yield.
(b) The aggregate cost for federal income tax purposes is $588,032,583; the
aggregate gross unrealized appreciation is $96,079,898 and the aggregate
gross unrealized depreciation is $21,088,155, resulting in net unrealized
appreciation of $74,991,143.
</TABLE>

FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT APRIL 30, 1994:

<TABLE>
<CAPTION>
IN UNREALIZED
CONTRACTS EXCHANGE DELIVERY APPRECIATION/
TO RECEIVE FOR DATE (DEPRECIATION)
-------------- -------------- ---------- ----------------
<S> <C> <C> <C>
US$ 1,455,383 GBP 2,458,390 5/03/94 $ (20,658)
GBP 310,916 US$ 458,975 5/03/94 13,929
1,773,213 2,640,580 5/03/94 56,477
1,542,229 2,306,712 5/03/94 39,018
658,200 992,599 5/03/94 8,524
321,000 484,052 5/06/94 4,189
117,135 176,417 5/23/94 1,745
----------------
Net Unrealized Appreciation....... $ 103,224
----------------
----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS

<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATIONS APRIL 30, 1994
- - - --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- - - ---------------------------------------------------------------------------------- -------------- ------------
<S> <C> <C>
Aerospace & Defense............................................................... $ 19,420,195 2.9%
Automotive........................................................................ 7,387,488 1.1
Banking........................................................................... 42,009,350 6.3
Building & Construction........................................................... 16,147,352 2.4
Business Services................................................................. 44,208,331 6.7
Conglomerates..................................................................... 18,518,110 2.8
Construction Plant & Equipment.................................................... 7,669,490 1.2
Electric Utilities................................................................ 11,811,382 1.8
Electrical Equipment.............................................................. 11,861,551 1.8
Electronics....................................................................... 36,590,831 5.5
Financial Services................................................................ 13,702,131 2.1
Food, Beverage, Tobacco & Household Products...................................... 75,519,466 11.4
Foreign Government Obligations.................................................... 4,911,634 0.7
Foreign Government Obligations (Put Options)...................................... 661,200 0.1
Forest Products, Paper, & Packing................................................. 8,264,022 1.2
Health & Personal Care............................................................ 27,524,454 4.1
Industrials....................................................................... 11,563,506 1.7
Insurance......................................................................... 47,896,192 7.2
International Trade............................................................... 11,690,932 1.8
Leisure........................................................................... 9,925,268 1.5
Machinery......................................................................... 7,339,320 1.1
Manufacturing..................................................................... 1,889,288 0.3
Merchandising..................................................................... 1,205,032 0.2
Metals & Mining................................................................... 5,452,785 0.8
Multi-Industry.................................................................... 2,151,408 0.3
Oil & Gas Products................................................................ 931,612 0.1
Oil & Related..................................................................... 39,494,106 5.9
Pharmaceuticals................................................................... 8,719,020 1.3
Publishing........................................................................ 27,050,654 4.1
Real Estate....................................................................... 8,282,985 1.2
Retail............................................................................ 20,354,398 3.1
Retail Stores..................................................................... 21,517,342 3.2
Telecommunications................................................................ 41,192,104 6.2
Textiles.......................................................................... 7,312,067 1.1
Transportation.................................................................... 11,710,363 1.8
U.S. Government Agency............................................................ 26,177,455 4.0
Utilities......................................................................... 4,961,502 0.8
-------------- -----
$ 663,024,326 99.8%
-------------- -----
-------------- -----
</TABLE>

SUMMARY OF INVESTMENTS BY TYPE APRIL 30, 1994
- - - --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
TYPE OF INVESTMENT
- - - ----------------------------------------------------------------------------------
<S> <C> <C>
Bonds............................................................................. $ 11,739,151 1.8%
Common Stocks..................................................................... 584,839,824 88.0
Preferred Stocks.................................................................. 30,504,246 4.6
Put Options....................................................................... 661,200 0.1
Rights............................................................................ 1,070,424 0.2
U.S. Government Agency............................................................ 26,177,455 3.9
Warrants.......................................................................... 8,032,026 1.2
-------------- -----
$ 663,024,326 99.8%
-------------- -----
-------------- -----
</TABLE>
<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.
FINANCIAL STATEMENTS
- - - --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1994 (UNAUDITED)

<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments in securities, at value
(identified cost $588,032,583) (Note 1)........ $ 663,024,326
Receivable for:
Investments sold............................... 6,566,042
Capital stock sold............................. 3,913,156
Dividends...................................... 1,253,553
Foreign withholding tax reclaimed.............. 778,605
Interest....................................... 413,364
Deferred organizational expenses (Note 1)........ 32,531
Prepaid expenses................................. 65,815
---------------
TOTAL ASSETS............................... 676,047,392
---------------

LIABILITIES:
Payable for:
Investments purchased.......................... 7,396,173
Capital stock repurchased...................... 188,246
Bank overdraft................................... 3,111,026
Investment management fees payable (Note 2)...... 457,299
Plan of distribution fee payable (Note 3)........ 505,777
Accrued expenses (Note 4)........................ 177,826
---------------
TOTAL LIABILITIES.......................... 11,836,347
---------------

NET ASSETS:
Paid-in-capital.................................. 558,751,670
Accumulated undistributed net realized gain...... 34,212,818
Net unrealized appreciation...................... 72,415,421
Accumulated net investment loss.................. (1,168,864)
---------------
NET ASSETS............................... $ 664,211,045
---------------
---------------

NET ASSET VALUE PER SHARE, 51,774,105 shares
outstanding (200,000,000 shares authorized of
$.01 par value)................................ $12.83
---------------
---------------
</TABLE>

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1994 (UNAUDITED)

<TABLE>
<S> <C>
INVESTMENT INCOME:
INCOME
Dividends (net of $552,204 foreign
withholding tax)........................... $ 4,249,929
Interest (net of $84,617 foreign withholding
tax)....................................... 937,931
---------------
TOTAL INCOME.............................. 5,187,860
---------------
EXPENSES
Investment management fees (Note 2)......... 2,818,744
Plan of distribution fee (Note 3)........... 2,659,461
Transfer agent fees and expenses............ 431,609
Custodian fees.............................. 240,313
Registration fees........................... 66,036
Professional fees........................... 41,505
Shareholder reports and notices............. 31,232
Organizational expenses (Note 1)............ 14,869
Directors' fees and expenses (Note 4)....... 12,433
Other expenses.............................. 3,265
---------------
TOTAL EXPENSES............................ 6,319,467
---------------
NET INVESTMENT LOSS..................... (1,131,607)
---------------

NET REALIZED AND UNREALIZED GAIN (LOSS) (Note 1):
Net realized gain (loss) on:
Investments................................. 39,173,611
Foreign exchange transactions............... (4,587,105)
---------------
34,586,506
---------------
Net change in unrealized appreciation or
depreciation on:
Investments................................. 19,481,843
Translation of other assets and liabilities
denominated in foreign currencies.......... (154,365)
---------------
19,327,478
---------------
NET GAIN.................................. 53,913,984
---------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.............. $ 52,782,377
---------------
---------------
</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
- - - --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED
APRIL 30, 1994 FOR THE YEAR ENDED
(UNAUDITED) OCTOBER 31, 1993
------------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment loss................. $ (1,131,607) $ (305,766)
Net realized gain................... 34,586,506 33,990,114
Net change in unrealized
appreciation or depreciation....... 19,327,478 76,682,042
------------------- -------------------
Net increase in net assets
resulting from operations......... 52,782,377 110,366,390
Dividends to shareholders from net
investment income.................... (9,695,849) -0-
Capital stock transactions increase
(Note 5)............................. 161,923,931 52,286,155
------------------- -------------------
Total increase.................... 205,010,459 162,652,545

NET ASSETS:
Beginning of period................... 459,200,586 296,548,041
------------------- -------------------
END OF PERIOD (including accumulated
net investment loss of $1,168,864 and
accumulated undistributed net
investment income of $9,658,592,
respectively)........................ $ 664,211,045 $ 459,200,586
------------------- -------------------
------------------- -------------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- - - --------------------------------------------------------------------------------

1. ORGANIZATION AND ACCOUNTING POLICIES -- Dean Witter European Growth Fund Inc.
(the "Fund") is registered under the Investment Company Act of 1940, as amended
(the "Act"), as a diversified, open-end management investment company. It was
incorporated in Maryland on February 13, 1990 and commenced operations on May
31, 1990.

The following is a summary of significant accounting policies:

A. VALUATION OF INVESTMENTS -- (1) an equity portfolio security listed or
traded on the New York or American Stock Exchange or other domestic or
foreign stock exchange is valued at its latest sale price on that exchange
prior to the time when assets are valued; if there were no sales that day,
the security is valued at the latest bid price (in cases where securities
are traded on more than one exchange, the securities are valued on the
exchange designated as the primary market by the Board of Directors); (2)
all other portfolio securities for which over-the-counter market quotations
are readily available are valued at the latest available bid price prior to
the time of valuation; (3) when market quotations are not readily available,
portfolio securities are valued at their fair value as determined in good
faith under procedures established by and under the general supervision of
the Board of Directors (valuation of debt securities for which market
quotations are not readily available may be based upon current market prices
of securities which are comparable in coupon, rating and maturity or an
appropriate matrix utilizing similar factors); and (4) the fair value of
short-term debt securities which mature at a date less than sixty days
subsequent to the valuation date is determined on an amortized cost or
amortized value basis.

B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on
the trade date. Realized gains and losses on security transactions are
determined on the identified cost method. Dividend income and other
distributions are recorded on the ex-dividend date, except for certain
dividends from foreign securities which are recorded as soon as the Fund is
informed after the ex-dividend date. Interest income is accrued daily.

C. OPTION ACCOUNTING PRINCIPLES -- When the Fund writes a call option, an
amount equal to the premium received by the Fund is included in the Fund's
Statement of Assets and Liabilities as an asset and as an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the current market value of the option written. Listed options are
valued at the last sale price on the exchange on which they are listed (if
there were no sales that day, the option is valued at the mean between the
closing bid and asked prices). If an option which the Fund has written
either expires on its stipulated expiration date, or if the Fund enters into
a closing purchase transaction, the Fund realizes a gain (or loss if the
cost of a closing purchase transaction exceeds the premium received when the
option was written) without regard to any unrealized gain or loss on the
underlying security or currency, and the liability related to such option is
extinguished. If a call option which the Fund has written is exercised, the
Fund realizes a capital gain or loss from the sale of the underlying
security or currency and the proceeds from such sale are increased by the
premium originally received. If a put option which the Fund has written is
exercised, the amount of the premium originally received reduces the cost of
the security or currency which the Fund purchases upon exercise of the
option.

The premium paid by the Fund for the purchase of a call or a put option
is included in the Fund's Statement of Assets and Liabilities as an
investment and is subsequently marked-to-market to reflect the current
market value of the option.
<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- - - --------------------------------------------------------------------------------

D. FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market
values of investment securities, other assets and liabilities and forward
contracts stated in foreign currencies are translated at the exchange rates
at the end of the period; and (2) purchases, sales, income and expenses are
translated at the rate of exchange prevailing on the respective dates of
such transactions. The resultant exchange gains and losses are included in
the Statement of Operations. Pursuant to U.S. Federal income tax
regulations, certain net foreign exchange gains/losses included in realized
and unrealized gain/loss in the Statement of Operations are included in or
are a reduction of ordinary income for federal income tax purposes. The Fund
does not isolate that portion of the results of operations arising as a
result of changes in the foreign exchange rates from the changes in the
market prices of the securities.

E. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The Fund may enter into
forward foreign currency contracts as a hedge against fluctuations in future
foreign exchange rates. All forward contracts are valued daily at the
appropriate exchange rates and any resulting unrealized currency gains or
losses are reflected in the Fund's accounts. The Fund records realized gains
or losses on delivery of the currency.

F. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.

G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends
and distributions to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassifications.
Dividends and distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent they
exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in capital.

H. ORGANIZATIONAL EXPENSES -- The Fund's Investment Manager paid the
organizational expenses of the Fund in the amount of approximately $150,000.
The Fund has reimbursed the Investment Manager for these costs. These
reimbursed expenses have been deferred and are being amortized by the Fund
on the straight-line method over a period not to exceed five years from the
commencement of operations.

2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS -- Pursuant to an
Investment Management Agreement (the "Agreement") with Dean Witter InterCapital
Inc., (the "Investment Manager"), the Fund pays its Investment Manager a
management fee, accrued daily and payable monthly, by applying the annual rate
of 1.0% to the net assets of the Fund determined as of the close of each
business day.

Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records; furnishes office space and
<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- - - --------------------------------------------------------------------------------
facilities, equipment, clerical, bookkeeping and certain legal services; and
pays the salaries of all personnel, including officers of the Fund who are
employees of the Investment Manager. The Investment Manager also bears the cost
of telephone services, heat, light, power and other utilities provided to the
Fund.

Under a Sub-Advisory Agreement between Morgan Grenfell Investment Services
Limited (the "Sub-Advisor") and the Investment Manager, the Sub-Advisor provides
the Fund with investment advice and portfolio management relating to the Fund's
investments in securities, subject to the overall supervision of the Investment
Manager. As compensation for its services provided pursuant to the Sub-Advisory
Agreement, the Investment Manager pays the Sub-Advisor monthly compensation
equal to 40% of its monthly compensation.

3. PLAN OF DISTRIBUTION -- Shares of the Fund are distributed by Dean Witter
Distributors Inc. (the "Distributor"), an affiliate of the Investment Manager.
The Fund has adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1
under the Act pursuant to which the Fund pays the Distributor compensation
accrued daily and payable monthly at the annual rate of 1.0% of the lesser of:
(a) the average daily aggregate gross sales of the Fund's shares since the
inception of the Fund (not including reinvestments of dividends or capital gains
distributions), less the average daily aggregate net asset value of the Fund's
shares redeemed since the Fund's inception upon which a contingent deferred
sales charge has been imposed or upon which such charge has been waived; or (b)
the Fund's average daily net assets. Amounts paid under the Plan are paid to the
Distributor to compensate it for the services provided and the expenses borne by
it and others in the distribution of the Fund's shares, including the payment of
commissions for sales of the Fund's shares and incentive compensation to and
expenses of Dean Witter Reynolds Inc.'s account executives and others who engage
in or support distribution of the Fund's shares or who service shareholders'
accounts, including overhead and telephone expenses, printing and distribution
of prospectuses and reports used in connection with the offering of the Fund's
shares, and preparation, printing and distribution of sales literature and
advertising materials. In addition, the Distributor may be compensated under the
Plan for its opportunity costs in advancing such amounts, which compensation
would be in the form of a carrying charge on any unreimbursed expenses incurred
by the Distributor.

Provided that the Plan continues in effect, any cumulative expenses incurred
by the Distributor, but not yet recovered, may be recovered through future
distribution fees from the Fund and contingent deferred sales charges from the
Fund's shareholders.

The Distributor has informed the Fund that for the six months ended April
30, 1994, it received approximately $377,000 in deferred sales charges from
certain redemptions of the Fund's shares. The Fund's shareholders pay such
charges which are not an expense of the Fund.

4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES -- The cost of
purchases and the proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended April 30, 1994 were as follows:

<TABLE>
<CAPTION>
PURCHASES SALES
----------------- -----------------
<S> <C> <C>
Common and Preferred Stocks, Warrants, Rights and Bonds.................... $ 372,577,578 $ 226,426,468
Currency Put Options....................................................... 12,642,050 10,757,980
</TABLE>

On April 1, 1991, the Fund established an unfunded noncontributory defined
benefit pension plan covering all independent Directors of the Fund who will
have served as an independent Director
<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- - - --------------------------------------------------------------------------------
for at least five years at the time of retirement. Benefits under this plan are
based on years of service and compensation during the last five years of
service. Aggregate pension cost for the six months ended April 30, 1994 included
in Directors' fees and expenses in the Statement of Operations, amounted to
$4,384. At April 30, 1994 the Fund had an accrued pension liability of $41,645
which is included in accrued expenses in the Statement of Assets and
Liabilities.

Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At April 30, 1994, the Fund had
transfer agent fees and expenses payable of approximately $118,000.

5. CAPITAL STOCK -- Transactions in capital stock were as follows:

<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 1994 OCTOBER 31, 1993
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------ -------------- ------------ --------------
<S> <C> <C> <C> <C>
Sold......................................................... 19,315,035 $ 239,617,148 13,094,625 $ 138,741,550
Reinvestment of dividends.................................... 746,489 9,137,026 -0- -0-
------------ -------------- ------------ --------------
20,061,524 248,754,174 13,094,625 138,741,550
Repurchased.................................................. (7,002,260) (86,830,243) (8,986,819) (86,455,395)
------------ -------------- ------------ --------------
Net increase................................................. 13,059,264 $ 161,923,931 4,107,806 $ 52,286,155
------------ -------------- ------------ --------------
------------ -------------- ------------ --------------
</TABLE>

6. FEDERAL INCOME TAX STATUS -- At October 31, 1993, the Fund had a net capital
loss carryover of approximately $207,000 which will be available through October
31, 1999 to offset future capital gains, to the extent provided by regulations.
To the extent that these capital loss carryovers are used to offset future
capital gains, it is probable that the gains so offset will not be distributed
to shareholders. As of October 31, 1993, the Fund had permanent book/tax
differences primarily attributable to mark-to-market of passive foreign
investment companies, foreign currency gains, dividend redesignations and a net
operating loss. To reflect reclassifications arising from permanent book/tax
differences as of October 31, 1993, accumulated undistributed net realized gain
was charged $3,698,638, paid-in-capital was charged $3,363,184, net unrealized
appreciation was charged $2,570,542 and accumulated undistributed net investment
income was credited $9,632,364.

7. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK -- As of April 30, 1994,
the Fund had outstanding forward foreign currency exchange contracts ("forward
contracts") as a hedge against changes in future foreign exchange rates. Forward
contracts involve elements of market risk in excess of the amount reflected in
the Statement of Assets and Liabilities. The Fund bears the risk of an
unfavorable change in the foreign exchange rate underlying the forward contract.
<PAGE>
DEAN WITTER EUROPEAN GROWTH FUND INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
- - - --------------------------------------------------------------------------------
Selected ratios and per share data for a share of capital stock outstanding
throughout each period:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED
MONTHS ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------
1994 1993 1992 1991
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period......... $ 11.86 $ 8.57 $ 9.22 $ 9.23
------------ ------------ ------------ ------------
Net investment income (loss)............... (0.02) (0.01) 0.01 0.05
Net realized and unrealized gain (loss).... 1.22 3.30 (0.23) 0.07
------------ ------------ ------------ ------------
Total from investment operations............. 1.20 3.29 (0.22) 0.12
------------ ------------ ------------ ------------
Less dividends and distributions:
Dividends from net investment income....... (0.23) -0- (0.03) (0.07)
Distributions from net realized gains...... -0- -0- (0.40) (0.06)
------------ ------------ ------------ ------------
Total dividends and distributions............ (0.23) -0- (0.43) (0.13)
------------ ------------ ------------ ------------
Net asset value, end of period............... $ 12.83 $ 11.86 $ 8.57 $ 9.22
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
TOTAL INVESTMENT RETURN +.................... 9.95%(1) 38.74% (2.39)% 1.33%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)..... $ 664,211 $ 459,201 $ 296,548 $ 315,944
Ratio of expenses to average net assets...... 2.24%(2) 2.38% 2.40% 2.44%
Ratio of net investment income (loss) to
average net assets.......................... (0.40)%(2) (0.09)% 0.11% 0.51%
Portfolio turnover rate...................... 42% 120% 116% 111%

<CAPTION>
FOR THE PERIOD
MAY 31, 1990*
THROUGH
OCTOBER 31, 1990
---------------------
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period......... $ 10.00
---------------------
Net investment income (loss)............... 0.05
Net realized and unrealized gain (loss).... (0.82)
---------------------
Total from investment operations............. (0.77)
---------------------
Less dividends and distributions:
Dividends from net investment income....... -0-
Distributions from net realized gains...... -0-
---------------------
Total dividends and distributions............ -0-
---------------------
Net asset value, end of period............... $ 9.23
---------------------
---------------------
TOTAL INVESTMENT RETURN +.................... (7.70)%(1)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)..... $ 303,872
Ratio of expenses to average net assets...... 2.45%(2)
Ratio of net investment income (loss) to
average net assets.......................... 1.52%(2)
Portfolio turnover rate...................... 36%
<FN>
- - - --------------------------
* DATE OF COMMENCEMENT OF OPERATIONS.
+ DOES NOT REFLECT THE DEDUCTION OF SALES LOAD.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
BOARD OF DIRECTORS
- - - ---------------------------------------
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Dr. John E. Jeuck
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
Edward R. Telling

OFFICERS
- - - ---------------------------------------

Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Thomas H. Connelly
Vice President
Thomas F. Caloia
Treasurer

TRANSFER AGENT
- - - ---------------------------------------

Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311

LEGAL COUNSEL
- - - ---------------------------------------

Sheldon Curtis
Two World Trade Center
New York, New York 10048

INDEPENDENT ACCOUNTANTS
- - - ---------------------------------------

Price Waterhouse
1177 Avenue of the Americas
New York, New York 10036

INVESTMENT MANAGER
- - - ---------------------------------------

Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048

SUB-ADVISOR
- - - -----------------------------------------

Morgan Grenfell Investment Secrvices Limited

The financial statements included herein have been taken from the
records of the Fund without examination by the independent accountants
and accordingly they do not express an opinion thereon.

This report is submitted for the general information of shareholders of
the Fund. For more detailed information about the Fund, its officers and
trustee, fees, expenses and other pertinent information, please see the
prospectus of the Fund.

This report is not authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an effective prospectus.

DEAN WITTER
EUROPEAN
GROWTH FUND

SEMIANNUAL REPORT
APRIL 30, 1994