<DOCUMENT>
<TYPE>EX-99.77B ACCT LTTR
<SEQUENCE>3
<FILENAME>audit.txt
<DESCRIPTION>AUDIT OPINION
<TEXT>
The Board of Directors and Shareholders
The Taiwan Fund, Inc.:

We have audited the accompanying statement of assets and liabilities of
The Taiwan Fund, Inc., including the Fund's investments, as of August
31, 2002, and the related statements of operations for the year then
ended, and changes in net assets and financial highlights for each of
the years in the two-year period then ended.  These financial statements
and financial highlights are the responsibility of the Fund's
management.  Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.  The
financial highlights for each of the years in the three-year period
ended August 31, 2000 were audited by other auditors whose report, dated
October 12, 2000, expressed an unqualified opinion on those financial
highlights.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America.  Those standards require that
we plan and perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are free of
material misstatement.  An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements.  Our procedures included confirmation of securities owned as
of August 31, 2002 by correspondence with the custodian.  An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation.  We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of The Taiwan Fund, Inc. as of August 31, 2002, the
results of its operations for the year then ended, and the changes in
its net assets and financial highlights for each of the years in the
two-year period then ended, in conformity with accounting principles
generally accepted in the United States of America.




Boston, Massachusetts
October 4, 2002


INDEPENDENT AUDITORS' REPORT


</TEXT>
</DOCUMENT>
