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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-17f-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17F-2]
1. Investment Company Act File Number: Date examination completed:
811-5994 March 26, 1998
2. State identification Number:
AL AK AZ AR CA CO
CT DE DC FL GA HI
ID IL IN IA KS KY
LA ME MD MA MI MN
MS MO MT NE NV NH
NJ NM NY NC ND OH
OK OR PA RI SC SD
TN TX UT VT VA WA
WV WI WY PUERTO RICO
Other (specify):
3. Exact name of investment company as specified in registration statement:
The France Growth Fund, Inc.
4. Name under which business is conducted, if different from above:
5. Address of principal executive office
(number, street, city, state, zip code):
1285 Avenue of the Americas, New York, New York 10019
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
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March 26, 1998
Report of Independent Accountants
To the Board of Directors of
The France Growth Fund, Inc.
We have examined management's assertion about The France Growth Fund, Inc.'s
(the "Fund") compliance with the requirements of subsections (b) and (c) of Rule
17f-2 under the Investment Company Act of 1940 ("the Act") as of December 31,
1997 included in the accompanying Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940. Management is
responsible for the Fund's compliance with those requirements. Our
responsibility is to express an opinion on management's assertion about the
Fund's compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and accordingly included
examining, on a test basis, evidence about the Fund's compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of December 31, 1997, and the period from September 1, 1997 through
December 31, 1997, with respect to agreement of purchases and sales of
securities and similar investments:
o Confirmation of all securities and similar investments owned by the Fund and
in the control of Credit Agricole Indosuez in Paris, France ("CAI"), the
Fund's sub-custodian, with SICOVAM, France, the central depository in France.
It was not possible to physically inspect or perform other procedures directed
to the Fund's securities because they are maintained by CAI and SICOVAM under
an omnibus nominee account for all of CAI's custodial customers;
o Reconciliation of confirmation results as to all such securities and similar
investments to the books and records of the Fund and the Custodian;
o Agreement of three security and/or investment purchases and three security
and/or investment sales or maturities since our last examination from the
books and records of the Fund to broker confirmations.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Fund's compliance with
specified requirements.
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To the Board of Directors of
The France Growth Fund, Inc.
Page 2
March 26, 1998
In our opinion, management's assertion that The France Growth Fund, Inc. was in
compliance with the above mentioned provisions of Rule 17f-2 of the Investment
Company Act of 1940 as of December 31, 1997 is fairly stated, in all material
respects.
This report is intended solely for the information and use of management of The
France Growth Fund, Inc. and Securities and Exchange Commission and should not
be used for any other purpose.
/s/ Price Waterhouse LLP
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Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
We, as members of management of The France Growth Fund, Inc. (the "Fund"), are
responsible for complying with the requirements of subsections (b) and (c) of
Rule 17f-2, "Custody of Investments by Registered Management Investment
Companies," of the Investment Company Act of 1940. We are also responsible for
establishing and maintaining an effective internal control structure over
compliance with those requirements. We have performed an evaluation of the
Fund's compliance with the requirements of subsections (b) and (c) of Rule 17f-2
as of December 31, 1997.
Based on this evaluation, we assert that the Fund was in compliance with those
provisions of Rule 17f-2 of the Investment Company Act of 1940 as of December
31, 1997 with respect to securities and similar investments reflected in the
investment account of the Fund.
The France Growth Fund, Inc.
By:
/s/ Frederick J. Schmidt
Frederick J. Schmidt, Vice President and Treasurer
/s/ Steven M. Cancro,
Steven M. Cancro, Vice President and Secretary
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March 31, 1998
Securities and Exchange Commission
Office of Applications and Report Services
450 5th Street N.W.
Washington, D.C. 20549
Dear Sir/Madam:
The France Growth Fund, Inc. (File #811-5994)
At the request of the Board of Directors of the France Growth Fund, Inc.
("Fund"), we have performed an examination of securities owned by the Fund at
December 31, 1997, pursuant to Rule 17f-2 of the Investment Company Act of 1940
(the "Rule"). Enclosed please find two copies each of Form N-17f-2 accompanied
by our letter report for the Fund stating that we have performed the examination
specified in the Rule.
Yours very truly,
/s/ Martin J. Jennings
Price Waterhouse LLP
Enclosure
cc (with enclosure):
Mr. Frederick Schmidt (Treasurer, The France Growth Fund, Inc.)
Mr. C. William Maher (Mitchell Hutchins Asset Management Inc.)
