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<PAGE> PAGE 9
SIGNATURE EDWARD J. VEILLEUX
TITLE VICE PRESIDENT
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</TABLE>
The Audit Committee of the Board of Directors,
The Flag Investors Maryland Intermediate
Tax-Free Income Fund, Inc.
In planning and performing our audit of the financial statements of Flag
Investors Maryland Intermediate Tax-Free Income Fund, Inc. (the Fund) for the
year ended March 31, 1998 (on which we have issued our report dated April 17,
1998), we considered its internal control, including control activities for
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, and not to provide assurance on the Fund's
internal control.
The management of the Fund 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 conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.
Because of inherent limitations in any internal control, errors or fraud may
occur and 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 the Fund's 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 one or
more of the internal control components does not reduce to a relatively low
level the risk that errors or fraud 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 the Fund's internal
control and its operation, including controls for safeguarding securities, that
we consider to be material weaknesses as defined above as of March 31, 1998.
This report is intended solely for the information and use of management, the
Audit Committee of the Board of Directors and the Securities and Exchange
Commission.
Deloitte & Touche LLP
Princeton, New Jersey
April 17, 1998
