<PAGE>
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 September
17, 1999 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 September 17, 1999 and the period from June 18, 1999 through
September 17, 1999, 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.
<PAGE>
To the Board of Directors of
The France Growth Fund, Inc.
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.
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 September 17, 1999 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.
PricewaterhouseCoopers LLP
New York, New York
December 5, 1999
(2)
<PAGE>
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 September 17, 1999.
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 September
17, 1999 with respect to securities and similar investments reflected in the
investment account of the Fund.
The France Growth Fund, Inc.
By:
- --------------------------------------------------
Frederick J. Schmidt, Vice President and Treasurer
- --------------------------------------------------
Steven M. Cancro, Vice President and Secretary
<PAGE>
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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]
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------- ----------------------------------------------
1. Investment Company Act File Number: Date examination completed:
811-5994 December 5, 1999
- ---------------------------------------------------------------------------------------------------------------------
2. State identification Number:
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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):
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
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
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
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
(SEC 2198 (11-91)
