EMERGING MARKETS TELECOMMUNICATIONS FUND INC, N-30D, 1997-01-30

EMERGING MARKETS TELECOMMUNICATIONS FUND INC
N-30D, 1997-01-30

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<PAGE>

[PHOTO]

The Emerging Markets
Telecommunications
Fund, Inc.
- - -----------------------------------------------------
SEMI-ANNUAL REPORT
NOVEMBER 30, 1996

<PAGE>
CONTENTS

<TABLE>
<S> <C>
Letter to Shareholders....................................................................... 1

Portfolio Summary............................................................................ 7

Schedule of Investments...................................................................... 9

Statement of Assets and Liabilities.......................................................... 13

Statement of Operations...................................................................... 14

Statement of Changes in Net Assets........................................................... 15

Financial Highlights......................................................................... 16

Notes to Financial Statements................................................................ 17

Results of Annual Meeting of Shareholders.................................................... 21

Description of Dividend Reinvestment and Cash Purchase Plan.................................. 22
</TABLE>

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<PAGE>
LETTER TO SHAREHOLDERS

January 13, 1997

DEAR SHAREHOLDER:

We are pleased to report on the activities of The Emerging Markets
Telecommunications Fund, Inc. (the "Fund") for the six months ended November 30,
1996.

PERFORMANCE

At November 30, 1996, the Fund's net asset value ("NAV") was $20.35 per share,
as compared to $20.94 on May 31, 1996.

For the period June 1, 1996 through November 30, 1996, the Fund's total return,
based on NAV was down 2.8%. By comparison, the Morgan Stanley Capital
International Emerging Markets Free Index (the "Index") was down 4.0% in the
same period. From the commencement of investment operations on June 25, 1992
through November 30, 1996, the Fund's total return, based on NAV and assuming
the reinvestment of dividends and distributions, was 77.5%. The Index gained
68.6% during the same period.

At November 30, 1996, the Fund's investments were concentrated in three primary
sectors: $111.9 million was in basic telephone or cellular services of emerging
economies in over 16 developing countries; $5.1 million was in
telecommunications companies in the developed markets of Italy and the United
Kingdom; and $40.8 million was in electric/gas utilities or infrastructure
companies in six emerging countries and one developed country.

INVESTMENT PHILOSOPHY

We believe that deregulation and privatization around the world will continue to
offer the Fund many new opportunities in the future. We plan to pursue these
opportunities as governments privatize entities involved in telecommunications,
electricity and gas distribution, ports and roads. Equities of numerous
private-sector companies within these and related areas also are available for
investment.

Our theme is simple: for developing economies to grow, basic services must be
provided. Implementation of basic services on a level sufficient for growth
means that these sorts of companies are likely to generate high internal rates
of return. Thus, as emerging market economies sustain their rapid growth, we
expect telecommunications and other infrastructure companies within those
markets to grow at above-average rates, particularly in comparison with similar
companies in developed economies.

THE RAPIDLY CHANGING TELECOMMUNICATIONS BUSINESS: HOW DOES IT AFFECT EMERGING
MARKET EQUITIES?

The worldwide telecommunications industry is experiencing a period of tremendous
change that is being felt in developed and emerging nations alike. Powerful
trends are forcing companies to increase competitiveness and profitability more
rapidly than ever before.

Foremost among these trends are globalization, market liberalization, the needs
of large multinational corporations and advancements in technology.

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1
<PAGE>
LETTER TO SHAREHOLDERS

GLOBALIZATION. As competition within their own markets reduces domestic
profitability, many developed-nation large telecom providers are looking
elsewhere for new revenue sources. Corporate customers, moreover, are
increasingly demanding global telecom services from a single carrier (see
below). The leading providers must have global capability to survive this
evolution in the telecom business.

LIBERALIZATION. The telecom industry model is moving from regulation-based
domestic monopoly to market-based global competition. Analysts forecast that 80%
of the world's telecom market will be in a state of complete or substantial
deregulation by 1999, versus just 20% today. The open competition fostered by
such liberalization will force changes in ownership of telecom assets.

Strong drivers of worldwide liberalization include: the U.S. Telecommunications
Act of 1996; directives to European nations from the European Union; World Trade
Organization efforts to devise a standardized framework for regulation and
tariffs (i.e., rates); and privatization by emerging nations.

MULTINATIONAL CORPORATIONS. Anecdotal evidence suggests that the world's top
5,000 multinationals account for an estimated 15-20% of global telecom revenues
and an even higher share of profits. Accordingly, major providers regard them as
the most desirable customers and fiercely vie for their business.

In order to meet the multinationals' growing need for single-source telecom
service, providers must have the ability to control message transmission from
point of origination to point of destination. This "end-to-end" level of control
delivers convenience and cost-savings to the customer as well as potentially
higher profit margins to the provider.

TECHNOLOGY. Technology is a double-edged sword. As it advances, providers can
offer their customers increasingly sophisticated and cheaper services. These
same characteristics, however, enable smaller competitors to seize market share
and more efficiently deploy relatively scarcer capital.

These trends are accelerating the industry's consolidation. In 1996 alone, four
major mergers were announced. Three were between U.S. companies: SBC
Communications with Pacific Telesis, Bell Atlantic with NYNEX and MFS
Communications with WorldCom. The fourth, British Telecom with MCI, is the first
combination of companies from different nations and will create the world's
first global super-carrier. As such, it is regarded as an early salvo in the
battle of global telecom competition.

As they build out their networks more fully and reach higher levels of
teledensity (i.e., the level of telephone penetration within the population),
emerging market telecom companies represent a much purer equity play on the
growth of basic telephony. Many are linked to leading U.S., European and
Japanese telecom companies via strategic alliances.

Such alliances offer significant benefits, including access both to management
skills and, most notably, otherwise-unavailable technology. The latter typically
allows development to proceed at a much more rapid pace, particularly as the
industry grows into other telecom-related areas such as mobile,
wireless/cellular and services; and can result in higher relative rates of
operating efficiency (e.g., by greatly raising digitalization levels).

A December 1996 transaction involving a small Brazilian phone company
exemplifies how emerging market telecom companies can be appealing for their
consolidation-related value. The deal consisted of the sale by the state of Rio
Grande do Sul of a 35% voting stake in and operational control of its
local-service provider ("CRT") to Telefonica de

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2
<PAGE>
LETTER TO SHAREHOLDERS

Espana ("TdE"), the Spanish telecom giant. TdE gained both an extension of its
existing network of Latin American telecom providers and a relatively cheap way
of learning the Brazilian phone system in order to participate in the system's
upcoming privatization.

The CRT transaction makes much strategic sense for TdE. We are encouraged,
furthermore, by TdE's willingness to pay a relatively high price, since it
suggests that emerging market telecom companies may be trading at valuation
levels considered compellingly low by their developed-nation peers. This is
auspicious for the Fund's future appreciation potential.

FEATURED COMPANIES

To best illustrate how we have positioned the Fund to benefit as the industry
changes, we'd like to discuss a few of our specific holdings.

TELECOMUNICACOES DE SAO PAULO S.A.

One of the Fund's original holdings is a prominent Brazilian regional telephone
company, Telecomunicacoes de Sao Paulo S.A. ("Telesp"). Telesp services the
state of Sao Paulo. In terms of phone lines in service, it is the largest of the
27 regional subsidiaries of Telecomunicacoes Brasileiras S.A. ("Telebras")
(Brazil's government-controlled telecommunications holding company) and the
second-largest phone company in Latin America. A key aspect of Telesp's appeal
is its service area. By far, Sao Paulo is the wealthiest and most industrialized
state in Brazil. Although it comprises only about 3% of the nation's territory,
it accounted for about 20% of the nation's population and about 35% of gross
domestic product ("GDP") in 1995, and its per capita GDP was nearly double that
of Brazil as a whole. There also is a heavy concentration of multinational
corporations with operations in the state. Hence, it is not surprising both that
Sao Paulo is regarded as Brazil's most telecom-intensive state and that Telesp's
franchise is considered the country's strongest.

A variety of factors makes Telesp stock a highly attractive growth vehicle:

-Privatization. Brazil has announced its intention to privatize the Telebras
system within the next two-three years. Telesp, moreover, has been
designated by the government as one of the first Telebras units to be sold
in this process. Privatization should provide Telesp with higher visibility
within the investment community, much greater access to capital and
potentially lower borrowing costs.

-Unmet demand. Even with Brazil's highest teledensity, Sao Paulo's potential
market for phone service is largely untapped. Telesp is rapidly expanding
its base of operational phone lines to reach more of the market.

-Cellular exposure. Telesp operates Latin America's second-largest cellular
phone network. In addition, unmet demand for cellular service in Sao Paulo
is estimated at approximately one million lines, over 60% higher than
Telesp's current network of about 609,000 lines.

-Decline of regulatory uncertainty. Brazil does not have a single regulatory
body charged with oversight of its telecommunications industry. This
creates an atmosphere of uncertainty that tends to cloud the industry's
competitive environment. As part of the General Telecommunications Law (the
"Law") currently being fashioned by Congress, however, a dedicated
regulatory body will be created. The Law is expected to be finalized and
passed within the next few months.

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3
<PAGE>
LETTER TO SHAREHOLDERS

-Valuation. The purchase of a controlling interest in CRT, which we
described earlier, priced CRT at a dollar/ phone line value (a standard
measure of telecom valuation) much higher than that accorded Telesp shares
in the open market. We consider this quite positive, as it indicates that
assets like Telesp's are undervalued and, thus, ought to be trading at
substantially higher prices.

-Implied government support. By virtue of its size, Sao Paulo is one of
Brazil's most important states. Thus, it is likely that the federal
government considers Telesp's development a matter of priority and will
help to maintain the company's attractiveness for its eventual
privatization.

We regard Telesp as the blue chip of Telebras subsidiaries and are confident
that it will continue to serve the Fund well as a core, long-term holding.

TADIRAN TELECOMMUNICATIONS LTD.

In our last report, we highlighted several mainstream national phone service
providers. Our investment universe, however, also includes companies whose
products or services help to raise the productivity of existing equipment. One
such company, Tadiran Telecommunications Ltd. ("TT"), is an exciting recent
addition to the Fund.

TT develops, manufactures, sells and supports advanced equipment and systems
that greatly increase the efficiency of telecommunications operations. Its March
1996 initial public offering ("IPO") raised approximately $70 million. At
November 30, 1996, the stock had appreciated about 43% since the IPO.

Based on the following, we believe that TT's bright future will help its shares
to achieve attractive capital appreciation:

-80%-owned by the Israeli communications and electronics company Tadiran
Ltd., TT has a long history of technological innovation and has achieved
wide recognition in global telecommunications markets. Certain of its
products (most specifically, wireless local loop and digital access
products) should experience rapid revenue growth over the next few years.

-With a strong base of domestic revenues, TT is raising its exports, whose
proportion of total sales is projected to rise to about 50% in 1998 from
about 30% in 1995. In particular, TT is targeting less-developed nations,
which are heavily investing in the establishment of telecommunications
infrastructure.

-Global deregulation of the telecommunications industry will help TT, which
is already highly competitive, to expand its overseas operations.

-TT's balance sheet is strong: it used about $25 million of its IPO proceeds
to reduce its debt-to-equity ratio to 11.2% as of September 30 from 40.1%
at year-end 1995.

-TT's expertise and products are enhanced by numerous strategic alliances
and marketing partnerships with companies such as Hewlett-Packard,
Newbridge Networks, Siemens, Novell and Alcatel.

TELEKOM MALAYSIA

Telekom Malaysia ("Telekom") is the government-controlled telecommunications
monopoly in Malaysia. Unlike many other emerging markets phone companies, its
appeal is not primarily based on its relatively unfettered access to a rapidly
growing market.

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4
<PAGE>
LETTER TO SHAREHOLDERS

To be sure, the Malaysian telecom market is growing, but Telekom's monopoly
status is scheduled to end in 1999. This will expose the company to unaccustomed
competition and result in deterioration of its market share. Some analysts
predict that competition will prove to be unmanageable for Telekom and,
therefore, negative for its stock's prospects. Our view is more positive, based
on the following:

-Even if Telekom loses meaningful market share, its dominant position is
likely to remain very much intact.

-Market forces should work to Telekom's benefit: it should be a strong
survivor of an anticipated industry shakeout.

-Although the Malaysian government is encouraging telecom competition, its
interests are best served by maintaining Telekom as a successful, thriving
company. In addition, Telekom is regarded as a symbol of national pride
among Malaysians, meaning that the populace would regard any inability to
compete as unacceptable.

-Telekom is already preparing for competition by cutting some prices,
focusing on cost-reduction and diversifying its operations into several
promising new areas.

-A recently enacted rebalancing of phone tariffs has strengthened Telekom's
long-term competitiveness and has positive implications for gains in
revenues and earnings.

-Many observers forecast Telekom's annualized earnings growth rate to fall
(to about 12-16% in the 1995-98 period from about 19% in 1992-95). We
believe, nevertheless, that the reasonable predictability of its earnings
growth relative to that of the region's many other more volatile earners
should help to keep the stock in favor.

OUTLOOK

Looking ahead, we feel confident that the Fund is focused on an essential and
expanding industry sector within the world's fastest-growing
economic/geographical areas. Although many emerging markets telecommunications-
related companies are attractive on their own merits, our view is that even more
will accrue additional value over time as potential participants in the march of
global industry consolidation.

Recent comments by Federal Reserve chairman Alan Greenspan were widely
interpreted as negative for U.S. equities. By contrast, they may have a more
positive effect on international equity markets generally. In a clear reference
to U.S. stocks and bonds, Mr. Greenspan stated that he considered financial
assets unduly overvalued. This could draw much capital to overseas markets,
where better values are more plentiful.

Overall, we regard the worldwide backdrop for equities as quite favorable. Good
prospects for corporate earnings growth are supported by a confluence of
positive conditions: steady-to-declining interest rates; a weakened threat of
inflation; responsible government fiscal and monetary policies; and ample
liquidity available for investment.

The Fund is well-positioned to take advantage of opportunities that may arise in
this environment.

In an important organizational development, we are pleased to report that
Richard Watt of BEA Associates has been named as the Fund's Chief Investment
Officer as of January 1, 1997. Richard has contributed his expertise in emerging
equity markets to the Fund and several other closed-end registered investment
companies since joining BEA in 1995. He succeeds Emilio Bassini, who had
successfully guided the Fund from its 1992 inception through the

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5
<PAGE>
LETTER TO SHAREHOLDERS

end of 1996. Emilio resigned his position in order to focus his efforts
exclusively on private equity investments through his recently organized firm,
Bassini, Playfair + Associates LLC, and will continue to serve BEA as a
consultant.

We wish to remind shareholders whose shares are registered in their own name
that they automatically participate in the Fund's dividend reinvestment program.
The automatic Dividend Reinvestment Plan (the "Plan") can be of value to
shareholders in maintaining their proportional ownership interest in the Fund in
an easy and convenient way. A shareholder whose shares are held in the name of a
broker/dealer or nominee should contact that party for details about
participating in the Plan. The Fund also offers shareholders a voluntary Cash
Purchase Plan. The Plan and the Cash Purchase Plan are described on pages 22
through 24 of this report.

We appreciate your continued confidence in the Fund and would be pleased to
respond to your questions and comments.

Sincerely yours,

[SIG]
Richard Watt
Chief Investment Officer*

- - --------------------------------------------------------------------------------
* Richard Watt, who is a Managing Director of BEA Associates, is primarily
responsible for management of the Fund's assets. Mr. Watt has served the Fund in
such capacity since January 1, 1997. He joined BEA Associates on August 2, 1995.
Mr. Watt was formerly associated with Gartmore Investment Limited in London,
where he was head of emerging markets investments and research. In this
capacity, he led a team of four portfolio managers and was manager of a
closed-end Latin American fund focusing on smaller companies. Before joining
Gartmore in 1992, Mr. Watt was a director of Kleinwort Benson International
investments in London, where he was responsible for research, analysis and
trading of equities in Latin America and other regions. Mr. Watt is a Director,
Senior Vice President and Chief Investment Officer of the Fund and is also a
Director, Senior Vice President and Chief Investment Officer of The Brazilian
Equity Fund, Inc., The Emerging Markets Infrastructure Fund, Inc. and The Latin
America Equity Fund, Inc. Mr. Watt is also Senior Vice President and Chief
Investment Officer of The Chile Fund, Inc., The First Israel Fund, Inc., The
Latin America Investment Fund, Inc. and The Portugal Fund, Inc.

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6
<PAGE>
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THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

PORTFOLIO SUMMARY - AS OF NOVEMBER 30, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------
SECTOR ALLOCATION

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
AS A PERCENT OF NET ASSETS
<S> <C> <C>
November 30, 1996 May 31, 1996
Cellular Communications 15.3% 18.5%
Electric Distribution 10.9% 11.0%
Electric Generation 4.4% 4.9%
Gas & Oil 3.6% 3.4%
Local and/or Long Distance Telephone
Service 46.0% 50.3%
Telecommunications Equipment 6.8% 4.6%
Other 4.8% 2.9%
Cash & Cash Equivalents 8.2% 4.4%
</TABLE>

GEOGRAPHIC ASSET BREAKDOWN

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
AS A PERCENT OF NET ASSETS
<S> <C> <C>
November 30, 1996 May 31,1996
Asia 16.2% 14.1%
Caribbean 2.2% 3.2%
Eastern Europe 6.6% 2.1%
Europe 8.9% 7.7%
Latin America 46.5% 54.5%
Middle East 7.9% 8.8%
Global 5.3% 6.2%
Cash & Cash Equivalents 6.4% 3.5%
</TABLE>

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7
<PAGE>
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THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

PORTFOLIO SUMMARY - AS OF NOVEMBER 30, 1996 (UNAUDITED) (CONTINUED)
- - --------------------------------------------------------------------------------
SUMMARY OF EQUITY OR EQUITY-LINKED SECURITIES BY COUNTRY/REGION

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
AS A PERCENT OF NET ASSETS
<S> <C> <C>
November 30, 1996 May 31,1996
Argentina 3.13% 3.83%
Brazil 9.74% 19.20%
Chile 17.62% 17.50%
Denmark 0.00% 2.59%
Eastern Europe 6.63% 2.08%
Hong Kong 3.41% 2.55%
Indonesia 3.33% 2.16%
Israel 7.89% 8.79%
Italy 3.75% 2.38%
Malaysia 2.43% 2.06%
Mexico 4.15% 7.43%
Peru 9.23% 5.07%
Philippines 5.10% 5.01%
Portugal 4.66% 2.18%
Puerto Rico 2.23% 3.16%
Thailand 1.93% 2.30%
Global 5.31% 6.22%
Other 1.39% 1.12%
</TABLE>

TOP 10 HOLDINGS, BY ISSUER

<TABLE>
<CAPTION>
Percent of Net
Holding Sector Country/Region Assets
<C> <S> <C> <C> <C>
- - --------------------------------------------------------------------------------------------------------------------------------
1. Telefonica del Peru S.A. Local and/or Long Distance
Telephone Service Peru 7.1
- - --------------------------------------------------------------------------------------------------------------------------------
2. Compania de Telecomunicaciones de Chile S.A. Local and/or Long Distance
Telephone Service Chile 6.9
- - --------------------------------------------------------------------------------------------------------------------------------
3. Portugal Telecom, S.A. Local and/or Long Distance
Telephone Service Portugal 4.7
- - --------------------------------------------------------------------------------------------------------------------------------
4. Millicom International Cellular S.A. Cellular Communications Global 4.0
- - --------------------------------------------------------------------------------------------------------------------------------
5. Philippine Long Distance Telephone Co. Local and/or Long Distance
Telephone Service Philippines 3.9
- - --------------------------------------------------------------------------------------------------------------------------------
6. Telecomunicacoes Brasileiras S.A. Local and/or Long Distance
Telephone Service Brazil 3.2
- - --------------------------------------------------------------------------------------------------------------------------------
7. Cementos Mexicanos, S.A. de C.V. Other Infrastructure Mexico 3.1
- - --------------------------------------------------------------------------------------------------------------------------------
8. Hong Kong Telecommunications Ltd. Local and/or Long Distance
Telephone Service Hong Kong 2.5
- - --------------------------------------------------------------------------------------------------------------------------------
9. PT Telekomunikasi Indonesia Local and/or Long Distance
Telephone Service Indonesia 2.4
- - --------------------------------------------------------------------------------------------------------------------------------
10. ECI Telecom Ltd. Telecommunications
Equipment Israel 2.4
- - --------------------------------------------------------------------------------------------------------------------------------
</TABLE>

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8
<PAGE>
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THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

SCHEDULE OF INVESTMENTS - NOVEMBER 30, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
<S> <C> <C>
- - -----------------------------------------------------
EQUITY OR EQUITY-LINKED SECURITIES-91.93%
EQUITY OR EQUITY-LINKED SECURITIES OF
TELECOMMUNICATION COMPANIES IN EMERGING
COUNTRIES-65.20%
ARGENTINA-0.62%
Argentine Cellular
Communications Holdings
Ltd.*+.................. 304,094 $ 338,694
Citicorp Equity
Investments S.A., Class
B....................... 217,332 728,364
-----------
TOTAL ARGENTINA (Cost $3,573,881)....... 1,067,058
-----------
BRAZIL-5.52%
Telecomunicacoes
Brasileiras S.A. ON..... 84,288,200 5,426,104
Telecomunicacoes de Sao
Paulo S.A. PN........... 18,153,755 3,233,583
Telecomunicacoes do Rio
de Janeiro S.A. PN+..... 7,900,000 818,296
-----------
TOTAL BRAZIL (Cost $4,118,010).......... 9,477,983
-----------
CHILE-8.04%
Compania de
Telecomunicaciones de
Chile S.A. ADS##........ 117,400 11,167,675
Compania de
Telecomunicaciones de
Chile S.A., Class B..... 117,000 606,059
Compania Nacional de
Telefonos S.A........... 184,719 131,676
Empresa Nacional de
Telecomunicaciones
S.A..................... 221,018 1,890,614
-----------
TOTAL CHILE (Cost $9,356,047)........... 13,796,024
-----------
EASTERN EUROPE-5.15%
Deutsche Telekom AG
ADR+.................... 68,000 1,453,500
Global Telesystems
Group*+................. 189,345 3,786,900
Northern Elektrik
Telekomunikasyon A.S.... 7,166,000 1,522,819
Petersburg Long Distance
Inc.*=/ =+(a)........... 200,000 1,282,500

<CAPTION>
No. of Value
Description Shares (Note A)
- - -----------------------------------------------------
<S> <C> <C>
EASTERN EUROPE (CONTINUED)
Vimpel-Communications
ADR+.................... 28,600 $ 786,500
-----------
TOTAL EASTERN EUROPE
(Cost $6,746,864)...................... 8,832,219
-----------
GREECE-0.17%
Alcatel Hellas S.A. (Cost
$586,831)............... 39,600 289,716
-----------
HONG KONG-3.41%
Asia Satellite
Telecommunications
ADR..................... 60,000 1,522,500
Hong Kong
Telecommunications
Ltd..................... 2,000,677 3,467,288
Hong Kong
Telecommunications Ltd.
ADR..................... 49,308 862,890
-----------
TOTAL HONG KONG (Cost $4,857,957)....... 5,852,678
-----------
INDONESIA-3.33%
PT Indonesia Satellite... 580,000 1,601,492
PT Telekomunikasi
Indonesia............... 1,500,000 2,478,678
PT Telekomunikasi
Indonesia ADR........... 50,000 1,643,750
-----------
TOTAL INDONESIA (Cost $4,499,079)....... 5,723,920
-----------
ISRAEL-7.89%
Bezeq, Israeli
Telecommunication Corp.,
Ltd..................... 481,530 1,168,949
DSP Group Inc.+.......... 114,509 1,059,208
ECI Telecom Ltd.......... 204,700 4,094,000
Geotek Communications,
Inc.+................... 133,000 931,000
Geotek Communications,
Inc., Convertible
Preferred Series M,
8.50%*.................. 100 791,684
Koor Industries Ltd...... 9,300 803,795
Koor Industries Ltd.
ADR..................... 20,500 356,187
M-Systems Flash Disk
Pioneers Ltd.+.......... 91,548 457,740
M-Systems Flash Disk
Pioneers Ltd., Warrants
(expiring 6/30/98)+..... 61,524 103,177
Nexus Telecommunication
Systems Ltd.,
(units)+(b)............. 170,784 709,821
</TABLE>

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9
<PAGE>
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THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
- - -----------------------------------------------------
<S> <C> <C>
ISRAEL (CONTINUED)
Tadiran Ltd. ADR......... 67,100 $ 1,786,537
Tadiran
Telecommunications
Ltd.+................... 14,500 311,750
Teledata Communication
Ltd.+................... 43,400 965,650
-----------
TOTAL ISRAEL (Cost $13,188,375)......... 13,539,498
-----------
MALAYSIA-2.43%
Technology Resources
Industries+............. 400,000 815,196
Telekom Malaysia......... 368,000 3,349,426
-----------
TOTAL MALAYSIA (Cost $4,580,059)........ 4,164,622
-----------
MEXICO-0.80%
Grupo Iusacell, S.A. de
C.V., Series L ADR+##
(Cost $1,505,957)....... 147,400 1,381,875
-----------
PERU-7.71%
Telefonica del Peru S.A.
ADR..................... 357,600 6,928,500
Telefonica del Peru S.A.,
Class B................. 2,661,092 5,209,954
<CAPTION>
Par (000)
-------------
<S> <C> <C>
Tele 2000 S.A.,
Convertible Note, 9.75%,
04/14/97++.............. USD 1,120 1,097,600
-----------
TOTAL PERU (Cost $10,942,525)........... 13,236,054
-----------
PHILIPPINES-5.10%
<CAPTION>
No. of
Shares
-------------
<S> <C> <C>
Philippine Long Distance
Telephone Co. ADR##..... 115,800 6,658,500
Pilipino Telephone
Corporation+,++......... 2,402,500 2,102,165
-----------
TOTAL PHILIPPINES (Cost $7,276,825)..... 8,760,665
-----------
PORTUGAL-4.66%
Portugal Telecom, S.A.... 158,928 4,218,885
Portugal Telecom, S.A.
ADR..................... 142,720 3,782,080
-----------
TOTAL PORTUGAL (Cost $6,825,540)........ 8,000,965
-----------
<CAPTION>
No. of Value
Description Shares (Note A)
- - -----------------------------------------------------
<S> <C> <C>
PUERTO RICO-2.23%
Cellular Communications
of Puerto Rico, Inc.+
(Cost $2,825,253)....... 181,991 $ 3,821,811
-----------
THAILAND-1.93%
Advanced Information
Services Public Co. Ltd.
Foreign Registered...... 185,100 2,195,936
Total Access
Communication........... 173,000 1,115,850
-----------
TOTAL THAILAND (Cost $3,605,818)........ 3,311,786
-----------
VENEZUELA-0.90%
Venworld
Telecommunications*=/ =+
(Cost $2,531,383)....... 125,947 1,539,072
-----------
GLOBAL-5.31%
International Wireless
Communications, Inc.,
Series D*+.............. 5,503 2,063,625
International Wireless
Communications, Inc.,
Series F*+.............. 386 144,750
International Wireless
Communications, Inc.,
Warrants (expiring
12/31/98)*+............. 31 581
Millicom International
Cellular S.A.+##........ 182,454 6,910,445
-----------
TOTAL GLOBAL (Cost $4,756,091).......... 9,119,401
-----------
TOTAL EMERGING COUNTRIES (Cost
$91,776,495)........................... 111,915,347
-----------
EQUITY SECURITIES OF TELECOMMUNICATION COMPANIES IN
DEVELOPED COUNTRIES-2.94%
ITALY-2.62%
Telecom Italia Mobile
S.p.A................... 346,840 815,947
Telecom Italia Mobile
S.p.A., Non Convertible
Savings Shares.......... 902,100 1,202,484
Telecom Italia S.p.A..... 346,840 817,091
</TABLE>

- - --------------------------------------------------------------------------------
10
<PAGE>
- - --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

No. of Value
Description Shares (Note A)
- - -----------------------------------------------------
<S> <C> <C>
CHILE-9.58%
Chilgener S.A............ 372,332 $ 1,955,218
Chilquinta Energia
S.A..................... 7,327 85,309
Compania Electrica del
Rio Maipo S.A........... 2,459,567 1,127,947
Compania General de
Electricidad S.A........ 586,445 2,563,999
Empresa Electrica de
Antofagasta S.A......... 546,165 251,118
Empresa Electrica de
Arica S.A............... 1,761,580 364,162
Empresa Electrica de
Iquique S.A............. 1,514,182 431,390
Empresa Electrica
Pehuenche S.A........... 1,394,156 1,550,350
Empresa Nacional de
Electricidad S.A........ 2,637,691 1,435,265
Empresas Emel S.A........ 148,394 2,979,516
Enersis S.A.............. 3,981,651 2,204,407
Sociedad Austral de
Electricidad S.A........ 57,500 1,502,911
-----------
TOTAL CHILE (Cost $9,122,152)........... 16,451,592
-----------
EASTERN EUROPE-1.48%
Elektrim Spolka Akcyjna
S.A..................... 69,947 637,721
Eregli Demir Ve Celik
Fabrikalari T.A.S....... 13,478,700 1,909,537
-----------
TOTAL EASTERN EUROPE
(Cost $2,052,832)...................... 2,547,258
-----------
MEXICO-3.35%
Cementos Mexicanos, S.A.
de C.V., Class B........ 730,000 2,651,433
Cementos Mexicanos, S.A.
de C.V. CPO............. 800,000 2,657,201
Hylsamex, S.A. de C.V.,
Class B................. 117,000 449,429
-----------
TOTAL MEXICO (Cost $6,154,494).......... 5,758,063
-----------
</TABLE>

- - --------------------------------------------------------------------------------
11
<PAGE>
- - --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

No. of Value
Description Shares (Note A)
- - -----------------------------------------------------
<S> <C> <C>
CHILEAN MUTUAL FUNDS-0.35%
Fondo Bancredito
Rendimiento............. 1,001 $ 38,048
Fondo Mutuo Banco
Santander............... 53,142 213,564
Fondo Mutuo Bonosorno
Rentamas................ 3,834 14,435
Fondo Mutuo Operacional
BanChile................ 29,973 329,278
-----------
TOTAL CHILEAN MUTUAL FUNDS
(Cost $577,796)........................ 595,325
-----------
TOTAL SHORT-TERM INVESTMENTS (Cost
$2,980,716)............................ 2,956,821
-----------

TOTAL INVESTMENTS-93.65%
(Cost $126,653,858) (Notes A,D)........ 160,769,581
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES-6.35%...................... 10,893,513
-----------
NET ASSETS-100.00%...................... $171,663,094
-----------
-----------
- - ---------------------------------------------------------
* Not readily marketable security.
** Effective yield on the date of purchase.
+ Security is non-income producing.
++ SEC Rule 144A security. Such securities are traded
only among "qualified institutional buyers."
=/= Restricted security (See Note F).
## Security or a portion thereof is out on loan.
(a) With an additional 40,000 warrants attached, expiring
12/31/96, with no market value.
(b) Includes 170,784 warrants, expiring 11/28/97, with a
market value of $149,436.
ADR American Depositary Receipts.
ADS American Depositary Shares.
BRL Brazilian Real.
CLP Chilean Pesos.
CPO Ordinary Participation Certificates.
ON Ordinary Shares.
PN Preferred Shares.
USD United States Dollars.
</TABLE>

- - --------------------------------------------------------------------------------
See accompanying notes to financial statements.
12
<PAGE>
- - --------------------------------------------------------------------------------

THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

STATEMENT OF ASSETS AND LIABILITIES - NOVEMBER 30, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS
Investments, at value (Cost
$126,653,858) (Note A)................. $160,769,581
Cash (including $432,501 of foreign
currencies with a cost of $433,053)
(Note A)............................... 10,086,778
Receivables:
Note.................................. 673,173
Dividends............................. 368,448
Investments sold...................... 249,578
Interest.............................. 84,203
Prepaid expenses and other assets....... 3,043
------------
Total Assets............................ 172,234,804
------------

LIABILITIES
Payables:
Advisory fee (Note B)................. 350,818
Administration fees (Note B).......... 52,184
Other accrued expenses................ 168,708
------------
Total Liabilities....................... 571,710
------------
NET ASSETS (applicable to 8,434,919
shares of common stock outstanding)
(Note C)............................... $171,663,094
------------
------------

NET ASSET VALUE PER SHARE ($171,663,094
DIVIDED BY 8,434,919)................. $20.35
------------
------------

NET ASSETS CONSIST OF
Capital stock, $0.001 par value;
8,434,919 shares issued and outstanding
(100,000,000 shares authorized)........ $ 8,435
Paid-in capital......................... 117,290,151
Undistributed net investment income..... 1,682,020
Accumulated net realized gain on
investments and foreign currency
related transactions................... 18,569,182
Net unrealized appreciation in value of
investments and translation of other
assets and liabilities denominated in
foreign currencies..................... 34,113,306
------------
Net assets applicable to shares
outstanding............................ $171,663,094
------------
------------
</TABLE>

- - --------------------------------------------------------------------------------
See accompanying notes to financial statements.
13
<PAGE>
- - --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED NOVEMBER 30, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME
Income (Note A):
Dividends............................. $ 1,491,180
Interest.............................. 473,253
Less: Foreign taxes withheld.......... (142,654)
------------
Total Investment Income............... 1,821,779
------------
Expenses:
Investment advisory fees (Note B)..... 1,057,045
Administration fees (Note B).......... 158,736
Custodian fees........................ 131,353
Accounting fees....................... 74,103
Audit and legal fees.................. 42,615
Printing.............................. 38,392
Insurance............................. 21,653
Directors' fees....................... 18,342
Transfer agent fees................... 9,928
NYSE listing fees..................... 8,266
Amortization of organizational
costs................................ 4,011
Other................................. 6,962
------------
Total Expenses........................ 1,571,406
------------
Net Investment Income................. 250,373
------------

NET REALIZED AND UNREALIZED LOSS ON
INVESTMENTS AND FOREIGN CURRENCY
RELATED TRANSACTIONS
Net realized gain/(loss) from:
Investments (net of Israeli capital
gains taxes of $2,100,460) (Note
A)................................... 16,836,175
Foreign currency related
transactions......................... (84,386)
Net change in unrealized appreciation in
value of investments and translation of
other assets and liabilities
denominated in foreign currencies...... (21,966,746)
------------
Net realized and unrealized loss on
investments and foreign currency
related transactions................... (5,214,957)
------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................ $ (4,964,584)
------------
------------
</TABLE>

- - --------------------------------------------------------------------------------
See accompanying notes to financial statements.
14
<PAGE>
- - --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

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

<TABLE>
<CAPTION>
For the
Six Months Ended For the
November 30, 1996 Fiscal Year Ended
(unaudited) May 31, 1996
<S> <C> <C>
----------------------------------------

INCREASE/(DECREASE) IN NET ASSETS
Operations:
Net investment income................. $ 250,373 $ 2,257,954
Net realized gain on investments and
foreign currency related
transactions......................... 16,751,789 2,352,444
Net change in unrealized appreciation
in value of investments and
translation of other assets and
liabilities denominated in foreign
currencies........................... (21,966,746) 13,804,009
----------------- -----------------
Net increase/(decrease) in net
assets resulting from operations... (4,964,584) 18,414,407
----------------- -----------------
Dividends and distributions to
shareholders:
Net investment income................. -- (321,938)
Net realized gain on investments and
foreign currency related
transactions......................... -- (3,389,426)
----------------- -----------------
Total dividends and distributions to
shareholders....................... -- (3,711,364)
----------------- -----------------
Total increase/(decrease) in net
assets............................. (4,964,584) 14,703,043
----------------- -----------------

NET ASSETS
Beginning of period..................... 176,627,678 161,924,635
----------------- -----------------
End of period (including undistributed
net investment income of $1,682,020 and
$1,431,647, respectively).............. $171,663,094 $176,627,678
----------------- -----------------
----------------- -----------------
</TABLE>

- - --------------------------------------------------------------------------------
See accompanying notes to financial statements.
15
<PAGE>
- - --------------------------------------------------------------------------------

THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

FINANCIAL HIGHLIGHTS
- - --------------------------------------------------------------------------------

Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from information provided in the financial statements and market price
data for the Fund's shares.
- - --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
For the Six For the Fiscal Years Ended For the Period
Months Ended May 31, June 25, 1992*
November 30, 1996 ---------------------------------- through
(unaudited) 1996 1995 1994 May 31, 1993
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period... $20.94 $19.20 $20.90 $14.95 $13.84**
----------------- --------- ---------- --------- ----------------
Net investment income.................. 0.03 0.27 0.11 0.13 0.16
Net realized and unrealized gain/(loss)
on investments and foreign currency
related transactions.................. (0.62) 1.91 0.01 7.03+ 1.20
----------------- --------- ---------- --------- ----------------
Net increase/(decrease) in net assets
resulting from operations............. (0.59) 2.18 0.12 7.16 1.36
----------------- --------- ---------- --------- ----------------
Dividends and distributions to
shareholders:
Net investment income................ -- (0.04) (0.04) (0.15) (0.14)
Net realized gain on investments and
foreign currency related
transactions........................ -- (0.40) (1.78) (1.06) (0.11)
----------------- --------- ---------- --------- ----------------
Total dividends and distributions to
shareholders.......................... -- (0.44) (1.82) (1.21) (0.25)
----------------- --------- ---------- --------- ----------------
Net asset value, end of period......... $20.35 $20.94 $19.20 $20.90 $14.95
----------------- --------- ---------- --------- ----------------
----------------- --------- ---------- --------- ----------------
Market value, end of period............ $16.75 $17.375 $17.75 $22.75 $14.50
----------------- --------- ---------- --------- ----------------
----------------- --------- ---------- --------- ----------------
Total investment return(a)............. (3.60)% 0.21% (13.94)% 64.74% 5.85%
----------------- --------- ---------- --------- ----------------
----------------- --------- ---------- --------- ----------------

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000
omitted).............................. $171,663 $176,628 $161,925 $176,253 $125,338
Ratio of expenses to average net
assets................................ 1.78%(b) 1.77% 1.89% 1.81% 1.99%(b)
Ratio of net investment income to
average net assets.................... 0.28%(b) 1.40% 0.53% 0.63% 2.02%(b)
Portfolio turnover rate................ 27.58%(c) 27.71% 14.29% 43.98% 22.55%(c)
Average commission rate per share(d)... $0.0011 -- -- -- --
</TABLE>

- - ---------------------------------------------------------------------------
* Commencement of investment operations.
** Initial public offering price of $15.00 per share less underwriting
discount of $1.05 per share and offering expenses of $0.11 per share.
+ Includes a $0.03 per share increase to the Fund's net asset value per
share resulting from the antidilutive impact of shares issued pursuant
to the Fund's automatic Dividend Reinvestment Plan in January 1994.
(a) Total investment return at market value is based on the changes in
market price of a share during the period and assumes reinvestment of
dividends and distributions, if any, at actual prices pursuant to the
Fund's Dividend Reinvestment Plan. Total investment return does not
reflect brokerage commissions or initial underwriting discounts and
has not been annualized.
(b) Annualized.
(c) Not annualized.
(d) Disclosure is required for fiscal years beginning on or after
September 1, 1995. Represents average commission rate per share
charged to the Fund on purchases and sales of investments during the
period.

- - --------------------------------------------------------------------------------
See accompanying notes to financial statements.
16
<PAGE>
- - --------------------------------------------------------------------------------

THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- - --------------------------------------------------------------------------------

NOTE A. SIGNIFICANT ACCOUNTING POLICIES

The Emerging Markets Telecommunications Fund, Inc. (the "Fund") was incorporated
in Maryland on February 11, 1992 and commenced investment operations on June 25,
1992. The Fund is registered under the Investment Company Act of 1940, as
amended, as a closed-end, non-diversified management investment company.
Significant accounting policies are as follows:

PORTFOLIO VALUATION: Investments are stated at value in the accompanying
financial statements. All securities for which market quotations are readily
available are valued at the closing price quoted for the securities prior to the
time of determination (but if bid and asked quotations are available, at the
mean between the last current bid and asked prices). Securities that are traded
over-the-counter are valued at the mean between the current bid and the asked
prices, if available. All other securities and assets are valued at the fair
value as determined in good faith by the Board of Directors. Short-term
investments having a maturity of 60 days or less are valued on the basis of
amortized cost. The preparation of financial statements requires the use of
estimates by management, principally the valuation of non-publicly traded
securities. Accordingly, the Board of Directors has established general
guidelines for calculating fair value of non-publicly traded securities. At
November 30, 1996, the Fund held 9.8% of its net assets in securities valued in
good faith by the Board of Directors with an aggregate cost of $16,116,941 and
fair value of $16,852,128. The net asset value per share of the Fund is
calculated weekly, at the end of each month and at any other times determined by
the Board of Directors.

CASH: Deposits held at Brown Brothers Harriman & Co., the Fund's custodian, in a
variable rate account are classified as cash. At November 30, 1996, the
account's interest rate was 5.00%, which resets on a daily basis. Amounts on
deposit are generally available on the same business day.

INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
income tax purposes. Interest income is recorded on an accrual basis; dividend
income is recorded on the ex-dividend date.

TAXES: No provision is made for U.S. federal income or excise taxes as it is the
Fund's intention to continue to qualify as a regulated investment company and to
make the requisite distributions to its shareholders which will be sufficient to
relieve it from all or substantially all U.S. federal income and excise taxes.

Income received by the Fund from sources within emerging countries and other
foreign countries may be subject to withholding and other taxes imposed by such
countries.

Under certain circumstances the Fund may be subject to a maximum of 36% Israeli
capital gains tax on gains derived from the sale of certain Israeli investments.

The Fund is subject to a 10% Chilean repatriation tax with respect to all
remittances from Chile in excess of original invested capital. For the six
months ended November 30, 1996, the Fund incurred no such expense.

- - --------------------------------------------------------------------------------
17
<PAGE>
- - --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- - --------------------------------------------------------------------------------

FOREIGN CURRENCY TRANSACTIONS: The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:

(I) market value of investment securities, assets and liabilities at the
current rate of exchange; and

(II) purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.

The Fund does not isolate that portion of gains and losses in investments in
equity securities which is due to changes in the foreign exchange rates from
that which is due to change in market prices of equity securities. Accordingly,
realized and unrealized foreign currency gains and losses with respect to such
securities are included in the reported net realized and unrealized gains and
losses on investment transactions balances. However, the Fund does isolate the
effect of fluctuations in foreign exchange rates when determining the gain or
loss upon the sale or maturity of foreign currency denominated debt obligations
pursuant to U.S. federal income tax regulations, with such amount categorized as
foreign exchange gain or loss for both financial reporting and income tax
reporting purposes.

Net currency gains from valuing foreign currency denominated assets and
liabilities at period end exchange rates are reflected as a component of net
unrealized appreciation/depreciation on investments, foreign currency holdings,
and other assets and liabilities denominated in foreign currencies.

Net realized foreign exchange losses represent foreign exchange gains and losses
from sales and maturities of debt securities, transactions in foreign currencies
and forward foreign currency contracts, exchange gains or losses realized
between the trade date and settlement dates on security transactions, and the
difference between the amounts of interest and dividends recorded on the Fund's
books and the U.S. dollar equivalent of the amounts actually received.

The Fund reports certain foreign currency related transactions and foreign taxes
withheld on security transactions as components of realized gains for financial
reporting purposes, whereas such components are treated as ordinary income for
U.S. federal income tax purposes.

SECURITIES LENDING: The market value of securities out on loan to brokers at
November 30, 1996, was $16,662,603, for which the Fund has received cash as
collateral of $17,383,354. Such cash collateral was reinvested into a repurchase
agreement which is in turn collateralized by U.S. Treasury Strips (interest-
only). Security loans are required at all times to have collateral at least
equal to 102% of the market value of the securities on loan; however, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.

During the six months ended November 30, 1996, the Fund earned $16,883 in
securities lending income which is included in interest income in the Statement
of Operations.

DISTRIBUTIONS OF INCOME AND GAINS: The Fund distributes at least annually to
shareholders substantially all of its net investment income and net realized
short-term capital gains, if any. The Fund determines annually whether to
distribute any net realized long-term capital gains in excess of net realized
short-term capital losses, including capital loss carryovers, if any. An
additional distribution may be made to the extent necessary to avoid the payment
of a

- - --------------------------------------------------------------------------------
18
<PAGE>
- - --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- - --------------------------------------------------------------------------------
4% U.S. federal excise tax. Dividends and distributions to shareholders are
recorded by the Fund on the ex-dividend date.

The character of distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for U.S.
federal income tax purposes due to U.S. generally accepted accounting
principles/tax differences in the character of income and expense recognition.

OTHER: Some countries require governmental approval for the repatriation of
investment income, capital or the proceeds of sales of securities by foreign
investors. In addition, if there is a deterioration in a country's balance of
payments or for other reasons, a country may impose temporary restrictions on
foreign capital remittances abroad. Amounts repatriated prior to the end of
specified periods may be subject to taxes as imposed by a foreign country.

The emerging countries' securities markets are substantially smaller, less
liquid and more volatile than the major securities markets in the United States.
A high proportion of the securities of many companies in emerging countries may
be held by a limited number of persons, which may limit the number of securities
available for investment by the Fund. The limited liquidity of emerging country
securities markets may also affect the Fund's ability to acquire or dispose of
securities at the price and time it wishes to do so.

The Fund, subject to local investment limitations, may invest up to 25% of its
assets in non-publicly traded equity securities which may involve a high degree
of business and financial risk and may result in substantial losses. Because of
the current absence of any liquid trading market for these investments, the Fund
may take longer to liquidate these positions than would be the case for publicly
traded securities. Although these securities may be resold in privately
negotiated transactions, the proceeds realized on such sales could be less than
those originally paid by the Fund. Further, companies whose securities are not
publicly traded may not be subject to the disclosure and other investor
protection requirements applicable to companies whose securities are publicly
traded.
NOTE B. AGREEMENTS

BEA Associates ("BEA") serves as the Fund's investment adviser with respect to
all investments. As compensation for its advisory services, BEA receives from
the Fund an annual fee, calculated weekly and paid quarterly, equal to 1.25% of
the first $100 million of the Fund's average weekly net assets, 1.125% of the
next $100 million and 1.00% of amounts in excess of $200 million. For the six
months ended November 30, 1996, BEA earned $1,057,045 for advisory services. BEA
also provides certain administrative services to the Fund and is reimbursed by
the Fund for costs incurred on behalf of the Fund (up to $20,000 per annum). For
the six months ended November 30, 1996, BEA was reimbursed $7,019 for
administrative services rendered to the Fund.

Bear Stearns Funds Management Inc. ("BSFM") serves as the Fund's U.S.
administrator. The Fund pays BSFM a monthly fee that is computed weekly at an
annual rate of 0.12% of the Fund's average weekly net assets. For the six months
ended November 30, 1996, BSFM earned $105,599 for administrative services.

The First National Bank of Boston, Sao Paulo ("Banco de Boston") and CELFIN
Administradora de Fondos de Inversion de Capital Extranjero S.A. ("Chilean
administrator") serve as the Fund's administrators with respect to Brazilian and
Chilean investments, respectively. Banco de Boston is paid for its services a
quarterly fee based on an annual rate of 0.10% of average month end Brazilian
net assets of the Fund. In return for services rendered, the Chilean
administrator receives a fee computed monthly and paid quarterly at

- - --------------------------------------------------------------------------------
19
<PAGE>
- - --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- - --------------------------------------------------------------------------------
an annual rate of 0.10% of the Fund's average weekly net assets in Chile,
subject to certain minimum annual fees and reimbursements for a predefined limit
of their expenses.
NOTE C. CAPITAL STOCK

The authorized capital stock of the Fund is 100,000,000 shares of common stock,
$0.001 par value. Of the 8,434,919 shares outstanding at November 30, 1996, BEA
owned 7,169 shares.
NOTE D. INVESTMENT IN SECURITIES

For U.S. federal income tax purposes, the cost of securities owned at November
30, 1996 was $127,469,765. Accordingly, the net unrealized appreciation of
investments (including investments denominated in foreign currencies) of
$33,299,816, was composed of gross appreciation of $38,508,563 for those
investments having an excess of value over cost and gross depreciation of
$5,208,747 for those investments having an excess of cost over value.

For the six months ended November 30, 1996, total purchases and sales of
securities, other than short-term investments, were $45,224,436 and $53,315,081,
respectively.
NOTE E. CREDIT AGREEMENT

The Fund, along with 17 other U.S. regulated investment companies for which BEA
serves as investment adviser, has a credit agreement with The First National
Bank of Boston. The agreement provides that each fund is permitted to borrow an
amount equal to the lesser of $50,000,000 or 25% of the net assets of the fund.
However, at no time shall the aggregate outstanding principal amount of all
loans to any of the 18 funds exceed $50,000,000. The line of credit will bear
interest at (i) the greater of the bank's prime rate or the Federal Funds
Effective Rate plus 0.50% or (ii) the Adjusted Eurodollar Rate plus 1.50%.
During the six months ended November 30, 1996, the Fund had no amounts
outstanding under the credit agreement.

NOTE F. RESTRICTED SECURITIES

Certain of the Fund's investments are restricted as to resale and are valued at
the direction of the Fund's Board of Directors in good faith, at fair value,
after taking into consideration available indications of value. The table below
shows the number of shares held, the acquisition date, aggregate cost, fair
value as of November 30, 1996, share value of such securities and percent of net
assets which the securities comprise.

<TABLE>
<CAPTION>
FAIR VALUE
NUMBER OF ACQUISITION AT NOVEMBER 30, VALUE PERCENT OF
SECURITY SHARES DATE COST 1996 PER SHARE NET ASSETS
- - ----------------------------------------- ----------- ----------- ------------ --------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Petersburg Long Distance Inc. 200,000 11/18/92 $ 1,000,005 $ 1,282,500 $ 6.41 0.7
Venworld Telecommunications 125,947 5/18/95 2,531,383 1,539,072 12.22 0.9
</TABLE>

The Fund may incur certain costs in connection with the disposition of the above
securities.

- - --------------------------------------------------------------------------------
20
<PAGE>
RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)

On September 24, 1996, the annual meeting of shareholders of The Emerging
Markets Telecommunications Fund, Inc. (the "Fund") was held and the following
matters were voted upon:

(1) To re-elect four directors to the Board of Directors of the Fund.

<TABLE>
<CAPTION>
NAME OF DIRECTOR FOR WITHHELD NON-VOTES
- - ----------------------------------------------------------------------------------- ---------- --------- ----------
<S> <C> <C> <C>
Dr. Enrique R. Arzac* 6,820,673 113,636 1,500,610
Emilio Bassini** 6,829,640 104,669 1,500,610
George W. Landau 6,824,983 109,326 1,500,610
Richard Watt 6,794,166 140,143 1,500,610
</TABLE>

- - --------------
* On February 13, 1996, the Board of Directors increased the size of the Fund's
Board of Directors to eight and Dr. Enrique R. Arzac was elected to fill the
newly created vacancy. The election of Dr. Arzac was submitted to the Fund's
shareholders for their ratification at the annual meeting of shareholders.
** Resigned effective January 1, 1997.

In addition to the directors re-elected at the meeting, James J. Cattano, Peter
A. Gordon, Daniel Sigg and Martin M. Torino, continue to serve as directors of
the Fund.

(2) To ratify the selection of Coopers & Lybrand L.L.P. as independent public
accountants for the fiscal year ending May 31, 1997.

<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN NON-VOTES
---------- --------- --------- ----------
<S> <C> <C> <C> <C>
6,745,118 143,405 45,786 1,500,610
</TABLE>

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21
<PAGE>
DESCRIPTION OF DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN

Pursuant to The Emerging Markets Telecommunications Fund, Inc.'s (the "Fund")
Dividend Reinvestment and Cash Purchase Plan (the "Plan"), each shareholder will
be deemed to have elected, unless the Fund's transfer agent, as the Plan Agent
(the "Plan Agent"), is otherwise instructed by the shareholder in writing, to
have all distributions, net of any applicable U.S. withholding tax,
automatically reinvested in additional shares of the Fund. Shareholders who do
not participate in the Plan will receive all dividends and distributions in
cash, net of any applicable U.S. withholding tax, paid in dollars by check
mailed directly to the shareholder by the Plan Agent, as dividend-paying agent.
Shareholders who do not wish to have dividends and distributions automatically
reinvested should notify the Plan Agent for the Fund at the address set forth
below. Dividends and distributions with respect to shares registered in the name
of a broker-dealer or other nominee (i.e. in "street name") will be reinvested
under the Plan unless such service is not provided by the broker or nominee or
the shareholder elects to receive dividends and distributions in cash. A
shareholder whose shares are held by a broker or nominee that does not provide a
dividend reinvestment program may be required to have his shares registered in
his own name to participate in the Plan. Investors who own shares of the Fund's
common stock registered in street name should contact the broker or nominee for
details concerning participation in the Plan.

Certain distributions of cash attributable to (a) some of the dividends and
interest amounts paid to the Fund and (b) certain capital gains earned by the
Fund that are derived from securities of certain emerging country issuers are
subject to taxes payable by the Fund at the time amounts are remitted. Such
taxes, if any, will be borne by the Fund and allocated to all shareholders in
proportion to their interests in the Fund.

The Plan Agent serves as agent for the shareholders in administering the Plan.
If the Board of Directors of the Fund declares an income dividend or a capital
gains distribution payable either in the Fund's common stock or in cash, as
shareholders may have elected, non-participants in the Plan will receive cash
and participants in the Plan will receive common stock to be issued by the Fund.
If the market price per share on the valuation date equals or exceeds net asset
value per share on that date, the Fund will issue new shares to participants
valued at net asset value or, if the net asset value is less than 95% of the
market price on the valuation date, then valued at 95% of the market price. If
net asset value per share on the valuation date exceeds the market price per
share on that date the Plan Agent, as agent for the participants, will purchase
shares of common stock on the open market, on the New York Stock Exchange or
elsewhere, for the participants' accounts. If, before the Plan Agent has
completed its purchases, the market price exceeds the net asset value per share,
the average per share purchase price paid by the Plan Agent may exceed the net
asset value per share, resulting in the acquisition of fewer shares than if the
dividend or distribution had been paid in shares issued by the Fund at net asset
value. If the market price exceeds the net asset value per share before the Plan
Agent has completed its purchases, the Plan Agent is permitted to cease
purchasing shares and the Fund may issue the remaining shares at a price equal
to the greater of (a) net asset value or (b) 95% of the then current market
price. In a case where the Plan Agent has terminated open market purchases and
the Fund has issued the remaining shares, the number of shares received by the
participant in respect of the cash dividend or distribution will be based on the
weighted average of prices paid for shares purchased in the open market and the
price at which the Fund issues remaining shares.

The valuation date is the dividend or distribution payment date or, if that date
is not a New York Stock Exchange trading day, the next preceding trading day. If
the Fund should declare an income dividend or capital gains distribution payable
only in cash, the Plan Agent will, as agent for the participants, buy Fund
shares in

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22
<PAGE>
DESCRIPTION OF DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN (CONTINUED)

the open market, on the New York Stock Exchange or elsewhere, for the
participants' accounts on, or shortly after, the payment date.

Participants in the Plan have the option of making additional cash payments to
the Plan Agent, semi-annually, in any amount from $100 to $3,000, for investment
in the Fund's common stock. The Plan Agent will use all funds received from
participants to purchase Fund shares in the open market on or about February 15
and August 15 of each year. Any voluntary cash payments received more than 30
days prior to these dates will be returned by the Plan Agent and interest will
not be paid on any uninvested cash payments. To avoid unnecessary cash
accumulations, and also to allow ample time for receipt and processing by the
Plan Agent, it is suggested that participants send in voluntary cash payments to
be received by the Plan Agent approximately 10 days before February 15 or August
15, as the case may be. A participant may withdraw a voluntary cash payment by
written notice, if the notice is received by the Plan Agent not less than 48
hours before the payment is to be invested. A participant's tax basis in his
shares acquired through this optional investment right will equal his cash
payments to the Plan, including any cash payments used to pay brokerage
commissions allocable to his acquired shares.

The Plan Agent maintains all shareholder accounts in the Plan and furnishes
written confirmations of all transactions in the account, including information
needed by shareholders for personal and tax records. Shares in the account of
each Plan participant will be held by the Plan Agent in the name of the
participant and each shareholder's proxy will include those shares purchased
pursuant to the Plan.

In the case of a shareholder, such as a bank, broker or nominee, that holds
shares for others who are the beneficial owners, the Plan Agent will administer
the Plan on the basis of the number of shares certified from time to time by the
shareholder as representing the total amount registered in the shareholder's
name and held for the account of beneficial owners who are to participate in the
Plan.

There is no charge to participants for reinvesting dividends or capital gains
distributions payable in either shares or cash. The Plan Agent's fees for the
handling of reinvestment of such dividends and capital gains distributions will
be paid by the Fund. There will be no brokerage charges with respect to shares
issued directly by the Fund as a result of dividends or capital gains
distributions payable either in stock or in cash. However, each participant will
be charged by the Plan Agent a pro rata share of brokerage commissions incurred
with respect to the Plan Agent's open market purchases in connection with
voluntary cash payments made by the participant or the reinvestment of dividends
or capital gains distributions payable only in cash. Brokerage charges for
purchasing small amounts of stock for individual accounts through the Plan are
expected to be less than the usual brokerage charges for such transactions
because the Plan Agent will be purchasing stock for all participants in blocks
and prorating the lower commission thus obtainable. Brokerage commissions will
vary based on, among other things, the broker selected to effect a particular
purchase and the number of participants on whose behalf such purchase is being
made. The Fund cannot predict, therefore, whether the cost to a participant who
makes a voluntary cash payment will be less than if a participant were to make
an open market purchase of the Fund's common stock on his own behalf.

The receipt of dividends and distributions in the stock under the Plan will not
relieve participants of any income tax (including withholding tax) that may be
payable on such dividends or distributions.

Experience under the Plan may indicate that changes in the Plan are desirable.

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23
<PAGE>
DESCRIPTION OF DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN (CONTINUED)

Accordingly, the Fund and the Plan Agent reserve the right to terminate the Plan
as applied to any voluntary cash payments made and any dividend or distribution
paid subsequent to notice of the termination sent to the members of the Plan at
least 30 days before the semi-annual contribution date, in the case of voluntary
cash payments, or the record date for dividends or distributions. The Plan also
may be amended by the Fund or the Plan Agent, but (except when necessary or
appropriate to comply with applicable law, rules or policies of a regulatory
authority) only by at least 30 days' written notice to members of the Plan. All
correspondence concerning the Plan should be directed to The First National Bank
of Boston, Investor Relations Department, P.O. Box 644, Mail Stop 45-02-09,
Boston, Massachusetts 02102-0644 or by telephone at 1-800-730-6001.

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24
<PAGE>
SUMMARY OF GENERAL INFORMATION

The Fund--The Emerging Markets Telecommunications Fund, Inc.--is a closed-end,
non-diversified management investment company whose shares trade on the New York
Stock Exchange. Its investment objective is long-term capital appreciation
through investments primarily in equity securities of telecommunications
companies in emerging countries. The Fund is managed and advised by BEA
Associates ("BEA"). BEA is a diversified asset manager, handling equity,
balanced, fixed income, international and derivative based accounts. Portfolios
include international and emerging market investments, common stocks, taxable
and non-taxable bonds, options, futures and venture capital. BEA manages money
for corporate pension and profit-sharing funds, public pension funds, union
funds, endowments and other charitable institutions and private individuals. As
of September 30, 1996, BEA managed approximately $31.3 billion in assets.

SHAREHOLDER INFORMATION

The market price is published in: THE NEW YORK TIMES (daily) under the
designation "EMTel" and THE WALL STREET JOURNAL (daily), and BARRON'S (each
Monday) under the designation "EmergMktTele". The Fund's New York Stock Exchange
trading symbol is ETF. Weekly comparative net asset value (NAV) and market price
information about The Emerging Markets Telecommunications Fund, Inc.'s shares
are published each Sunday in THE NEW YORK TIMES and each Monday in THE WALL
STREET JOURNAL and BARRON'S, as well as other newspapers, in a table called
"Closed End Funds."

THE BEA GROUP OF FUNDS

LITERATURE REQUEST--Call today for free descriptive information on the
closed-end funds or a prospectus on any of the open-end mutual funds listed
below. The prospectus contains more complete information, including fees,
charges and expenses, and should be read carefully before investing or sending
money.

<TABLE>
<S> <C> <C>
CLOSED-END FUNDS NYSE SYMBOL BEA ADVISOR FUNDS
SINGLE COUNTRY OPEN-END MUTUAL FUNDS
The Brazilian Equity Fund, Inc. BZL BEA Emerging Markets Equity Fund
The Chile Fund, Inc. CH BEA Global Telecommunications
Fund
The First Israel Fund, Inc. ISL BEA High Yield Fund
The Indonesia Fund, Inc. IF BEA International Equity Fund
The Portugal Fund, Inc. PGF
MULTIPLE COUNTRY
The Emerging Markets Infrastructure Fund, Inc. EMG
The Latin America Equity Fund, Inc. LAQ
The Latin America Investment Fund, Inc. LAM
For shareholder information or a
copy
FIXED INCOME of a prospectus for any of the
BEA Income Fund, Inc. FBF open-end mutual funds please
call,
BEA Strategic Income Fund, Inc. FBI 1-800-401-2230.
For closed-end fund information Visit our website on the
Internet:
please call, 1-800-293-1232. http://www.beafunds.com
</TABLE>

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<PAGE>
DIRECTORS AND CORPORATE OFFICERS

Richard Watt Director,
Senior Vice President
and Chief Investment Officer

Dr. Enrique R. Arzac Director

James J. Cattano Director

Peter A. Gordon Director

George W. Landau Director

Daniel Sigg Director and
Senior Vice President

Martin M. Torino Director

Stephen M. Swift Senior Vice President and
Investment Officer

Paul P. Stamler Senior Vice President

Michael A. Pignataro Chief Financial Officer and
Secretary

Rachel D. Manney Vice President and Treasurer

Wendy S. Setnicka Assistant Treasurer

INVESTMENT ADVISER

BEA Associates
One Citicorp Center
153 East 53rd Street
New York, NY 10022

ADMINISTRATOR

Bear Stearns Funds Management Inc.
245 Park Avenue
New York, NY 10167

CUSTODIAN

Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109

SHAREHOLDER SERVICING AGENT

The First National Bank of Boston
P.O. Box 1865
Mail Stop 45-02-62
Boston, MA 02105-1865

INDEPENDENT ACCOUNTANTS

Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, PA 19103

LEGAL COUNSEL

Willkie Farr & Gallagher
One Citicorp Center
153 East 53rd Street
New York, NY 10022

This report, including the financial statements herein, is sent to the
shareholders of the Fund for their information. The financial
information included herein is taken from the records of the Fund
without examination from independent accountants who do not express an
opinion thereon. It is not a prospectus, circular or representation
intended for use in the purchase or sale of shares of the Fund or of
any securities mentioned in this report. [LOGO]

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