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SIGNATURE CECILIA GONDOR-MORALES
TITLE SECRETARY/TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
The Herzfeld Caribbean Basin Fund, Inc.
Financial Data Schedule
</LEGEND>
<CIK> 0000880406
<NAME> THE HERZFELD CARIBBEAN BASIN FUND, INC.
<S> <C> <C>
<PERIOD-TYPE> YEAR YEAR
<FISCAL-YEAR-END> JUN-30-1998 JUN-30-1997
<PERIOD-END> JUN-30-1998 JUN-30-1997
<INVESTMENTS-AT-COST> 8,319,879 7,185,233
<INVESTMENTS-AT-VALUE> 9,636,191 9,494,147
<RECEIVABLES> 16,628 38,307
<ASSETS-OTHER> 383,231 90,771
<OTHER-ITEMS-ASSETS> 833,060 1,064,615
<TOTAL-ASSETS> 10,869,110 10,687,840
<PAYABLE-FOR-SECURITIES> 0 0
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 84,613 59,752
<TOTAL-LIABILITIES> 84,613 59,752
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 8,364,180 8,364,180
<SHARES-COMMON-STOCK> 1,677,636 1,677,636
<SHARES-COMMON-PRIOR> 1,677,636 1,677,636
<ACCUMULATED-NII-CURRENT> (144,572) (128,248)
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 1,248,577 83,242
<OVERDISTRIBUTION-GAINS> 0 0
<ACCUM-APPREC-OR-DEPREC> 1,316,312 2,308,914
<NET-ASSETS> 10,784,497 10,628,088
<DIVIDEND-INCOME> 212,056 88,700
<INTEREST-INCOME> 112,886 119,028
<OTHER-INCOME> 0 0
<EXPENSES-NET> 351,266 280,001
<NET-INVESTMENT-INCOME> (16,324) (72,273)
<REALIZED-GAINS-CURRENT> 1,902,656 30,631
<APPREC-INCREASE-CURRENT> (992,602) 1,880,758
<NET-CHANGE-FROM-OPS> 893,730 1,839,116
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 4118
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<SHARES-REINVESTED> 0 0
<NET-CHANGE-IN-ASSETS> 156,409 1,700,879
<ACCUMULATED-NII-PRIOR> (128,248) (52,083)
<ACCUMULATED-GAINS-PRIOR> 83,242 186,730
<OVERDISTRIB-NII-PRIOR> 0 0
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<GROSS-ADVISORY-FEES> 159,161 135,150
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<AVERAGE-NET-ASSETS> 10,912,725 9,304,820
<PER-SHARE-NAV-BEGIN> 6.34 5.32
<PER-SHARE-NII> (0.01) (0.04)
<PER-SHARE-GAIN-APPREC> 0.54 1.14
<PER-SHARE-DIVIDEND> 0.44 0.08
<PER-SHARE-DISTRIBUTIONS> 0 0
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<PER-SHARE-NAV-END> 6.43 6.34
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<FN>
<F1>All short-term
</FN>
</TABLE>
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
To the Board of Directors
The Herzfeld Caribbean Basin Fund, Inc.
In planning and performing our audit of the financial statements of The
Herzfeld Caribbean Basin Fund, Inc. for the year ended June 30, 1998, we
considered its internal control, including controls over
safeguarding securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial statements
and to comply with the requirements of Form N-SAR, not to provide
assurance on internal control.
The management of The Herzfeld Caribbean Basin Fund, Inc. is responsible
for establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's objective
of preparing financial statements for external purposes that are fairly
presented in conformnity with generally accepted accounting principles.
Those controls include the safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitaions in internal controls, errors or
irregularities may occur and may not be detected. Also, projection of any
evaluation of internal control to future periods is subject to the risk
that it may become inadequate because of changes in conditions or that
the effectiveness of the design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of any internal control component does not reduce to a relatively
low level the risk that errors or irregularities in amounts that would be
material in relation to the financial statements being audited may occur
and not be detected within a timely period by employees in the normal course
of performing their assigned functions. However, we noted no matters
involving internal control, including controls over safeguarding
securities, that we consider to be material weaknesses as defined above
as of June 30, 1998.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
Kaufman, Rossin & Co.
Miami, Florida
