<DOCUMENT>
<TYPE>EX-99.77Q1 OTHR EXHB
<SEQUENCE>2
<FILENAME>mgmtresp.txt
<DESCRIPTION>MANAGEMENT RESPONSE TO AUDITOR'S OPINION
<TEXT>
Managements Response to the Report of Independent Registered Public
Accounting FirmRequired by Form N-SAR sub-item 77B

The Board of Directors and
Shareholders of
The Taiwan Fund, Inc.

As stated in the Report of Independent Registered Public Accounting Firm,
during the audit of The Taiwan Fund, Inc. (the Fund), its auditors, and
administrator became aware of errors in the calculation of the Funds
management fee performance adjustments dating back to the period when the
Fund first began recording management fee performance adjustments.  The
incorrect performance adjustments were calculated based on average net assets
of the Fund over a period different from that stipulated in the management
contract and resulted in a net overpayment to the Funds investment adviser over
the period that the incorrect calculations occurred.  The system of internal
control did not function as designed due to the failure of the administrator,
investment advisor, and management, including their predecessors, to perform a
critical review of the methodology of the calculations and compare it to that
required in the management contract.  The errors resulted in a restatement of
the prior period financial statements and financial highlights presented in the
current year annual report, including the recording of a receivable from the
Funds investment advisor in the current year financial statements.

The Funds administrator, investment advisor, and management, will undertake the
following corrective actions:

1.)  Effective immediately, the administrator will calculate the monthly
performance fee adjustments based on the average net assets of the Fund over
the period stipulated in the management contract.  Should the calculation of
management or performance fees change, management will inform the administrator
of the changes and the new calculation will be reviewed by the administrator,
investment advisor, and management.

2.)  Effective immediately, the Funds investment advisor will independently
calculate the Funds management and performance fees for comparison with the
administrators records.  The investment advisor will work with the
administrator to resolve any discrepancies and will approve, in writing
on a monthly basis, the calculated investment management fee, including
performance adjustment, if any, for payment.

3.)  The Funds management will review the administrators monthly
calculation of  performance fees to ensure adherence to the management
contract.

Additionally, the Funds Audit Committee has requested that the Funds
independent auditors review the effectiveness of these corrective actions as
part of their annual and semi-annual procedures.

This report is intended solely for the information and use of the Board of
Directors of The Taiwan Fund, Inc. and the Securities and Exchange Commission
and is not intended to be and should not be used by anyone other than these
specified parties.




Adelina Louie
Treasurer




</TEXT>
</DOCUMENT>
