Report of Independent Accountants
To the Shareholders and Board of Directors of
The Foreign & Colonial Emerging Middle East Fund,
Inc. (In Liquidation)
In planning and performing our audit of the
financial statements of The Foreign & Colonial
Emerging Middle East Fund, Inc. (In Liquidation)
(the "Fund") for the
year ended October 31, 2000, 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, not to provide
assurance on 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 rinciples.
Those controls include the safeguarding of
assets against unauthorized acquisition, use or
disposition.
Because of inherent limitations in internal control,
error 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 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 misstatements caused by error
or fraud in amounts that would be material in
relation to the financial statements and
financial highlights 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 and its operation,
including controls over safeguarding securities,
that we consider to be material weaknesses as
defined above as of October 31, 2000.
To the Shareholders and Board of Directors of
The Foreign & Colonial Emerging Middle East Fund,
Inc. (In Liquidation)
This report is intended solely for the information
and use of the Board of Directors, management,
and the Securities and Exchange Commission and is
not intended to be and should not be used by anyone
other than these specified parties.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
December 22, 2000
