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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000912057-01-531460.txt : 20010907
<SEC-HEADER>0000912057-01-531460.hdr.sgml : 20010907
ACCESSION NUMBER:		0000912057-01-531460
CONFORMED SUBMISSION TYPE:	N-30D
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20010630
FILED AS OF DATE:		20010906

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHILE FUND INC
		CENTRAL INDEX KEY:			0000846676
		STANDARD INDUSTRIAL CLASSIFICATION:	 []
		IRS NUMBER:				222990009
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-30D
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-05770
		FILM NUMBER:		1731942

	BUSINESS ADDRESS:	
		STREET 1:		C/O CREDIT SUISSE ASSET MGMT, LLC
		STREET 2:		466 LEXINGTON AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		2128753500

	MAIL ADDRESS:	
		STREET 1:		CREDIT SUISSE ASSET MGMT, LLC
		STREET 2:		466 LEXINGTON AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>a2056451zn-30d.txt
<DESCRIPTION>N-30D
<TEXT>
<Page>

THE CHILE FUND, INC.
SEMI-ANNUAL REPORT
JUNE 30, 2001

[CH LISTED NYSE LOGO]

<Page>

CONTENTS

<Table>
<S>                                                                           <C>
Letter to Shareholders                                                         1
Portfolio Summary                                                              5
Schedule of Investments                                                        6
Statement of Assets and Liabilities                                            8
Statement of Operations                                                        9
Statement of Changes in Net Assets                                            10
Financial Highlights                                                          12
Notes to Financial Statements                                                 14
Results of Annual Meeting of Shareholders                                     18
Description of InvestLink(SM) Program                                         19
Privacy Policy Notice                                                         22
</Table>

<Page>

LETTER TO SHAREHOLDERS

                                                                  August 8, 2001

DEAR SHAREHOLDER:

We are writing to report on the activities of The Chile Fund, Inc. (the "Fund")
for the six months ended June 30, 2001.

At June 30, 2001, the Fund's net assets were $158.2 million. The Fund's net
asset value ("NAV") was $11.70 per share, as compared to $11.43 at December 31,
2000.

PERFORMANCE: HURT BY SECTOR EXPOSURES

For the six months ended June 30, 2001, the Fund's total return, based on NAV,
was 2.4%. By comparison, the Morgan Stanley Capital International Chile Index
(the "Index")* returned 4.1% during the same period.

The Fund underperformed its Index benchmark primarily as a result of our
approach in several industry sectors, particularly banks, utilities and
pharmaceuticals.

In the case of banks, we significantly underweighted the sector relative to the
Index out of caution over the state of the Chilean economy. Unfortunately for
the Fund, banks were one of the Chilean market's best-performing sectors during
the fiscal half-year. Although our stock selection among banks was good, it was
not good enough to counteract the impact of our underweight.

Utilities detracted from overall results because of our position in the
electricity giant Enersis S.A. (i.e., the Fund's fourth-largest holding at June
30), which underperformed the broad Chilean market. The culprit in
pharmaceuticals was our decision to underweight the sector, which turned out to
be the strongest sector in the entire Chilean market due to a takeover bid for
the nation's top pharmaceuticals manufacturer.

The most positive contributions to the portfolio's return came from food &
beverages. Our stock selection among bottling companies was particularly
effective, and we also owned shares in a couple of small-capitalization food
retailers that outperformed.

THE BIG PICTURE: A PERIOD OF CHALLENGES

Chile spent much of the first half of 2001 battling the depressive effects of a
decelerating global economy, domestic political uncertainty and persistently
negative local business sentiment. Nevertheless, the Chilean market's 4.1% gain
made it one of the few markets--emerging or developed--to enjoy a positive
return during the period.

In our view, the top challenges to Chile's economic recovery program included:

- - SLOW GROWTH. Projected growth in Chilean GDP was negatively impacted by
  relatively weak global demand for this export-driven country's principal
  exports (i.e., copper and paper & pulp). In response to estimates that GDP
  would grow at a below-normal pace, the central bank cut its benchmark
  short-term interest rate to an historical low of 3.5% on June 12.

                                        1
<Page>

- - PROBLEMS WITH NEIGHBORS. Investor anxiety about major political and economic
  problems in neighboring Argentina, Brazil and Peru continued to spill over
  into Chile. Along with the environment of lower interest rates, this helped to
  push the Chilean peso down some 4% versus the U.S. dollar. It should be noted
  in this context that the currencies of Chile's main trading partners also
  suffered significant depreciation.

- - BUSINESS DISCONTENT. As was the case late in 2000, the Chilean business
  community stubbornly refused to work with the government to create new jobs.
  This was due to the slowing domestic and global economy, as well as to concern
  about the administration's stance on a proposed labor reform bill that
  business leaders considered unacceptable. Such concern partially dissipated
  late in the period, when the Senate approved a version of the bill that was
  more along the lines desired by business, and business-friendly candidates
  were appointed to the Ministry of Economy and the central bank's board of
  directors.

Faced with these difficulties, Chile's government aggressively fought back by
sending to Congress capital-markets reform legislation that was arguably the
country's most important free-market initiative since the creation of private
pension funds. Among the important changes proposed by this legislation were tax
cuts and savings incentives similar to the U.S.'s 401(k) plans; the elimination
of capital gains taxes on domestic and foreign investors; new tools facilitating
the creation and use of derivative products; and inducements to promote equity
listings by corporations.

The government also proposed new tax legislation that could help to stimulate
the economy by cutting the maximum personal tax rate to 40% from 45%; increasing
the maximum non-taxable income level; and, for the first time, allowing for the
deduction of mortgage interest from personal income taxes.

PORTFOLIO STRUCTURE AND STRATEGY: BETTING ON THE MARKET'S RECOVERY
TOP 10 HOLDINGS, BY ISSUER *

<Table>
<Caption>
                                              % OF
     HOLDING            SECTOR             NET ASSETS
     -------           --------            ----------
<S>               <C>                         <C>
 1.  CPC               Forestry               12.0
 2.  CTC          Telecommunications          11.4
 3.  Endesa       Electric-Integrated          9.3
 4.  Enersis      Electric-Integrated          8.4
 5.  Entel        Telecommunications           6.6
 6.  Andina        Food & Beverages            5.9
 7.  Falabella          Retail                 5.8
 8.  Cartones          Forestry                5.8
 9.  D&S           Food & Beverages            3.7
10.  CCU           Food & Beverages            3.5
                                              ----
     Total                                    72.4
                                              ====
</Table>

- ----------
* Company names are abbreviations of those found in the chart on page 5.

[CHART OF SECTOR ALLOCATION]
 (% of net assets)

<Table>
<S>                      <C>
Banking                   8.25
Electric-Integrated      17.71
Retail                    6.55
Food & Beverages         16.61
Forestry                 18.34
Mining                    3.27
Telecommunications       17.97
Other*                   11.30
</Table>

- ----------
* Includes airlines, basic metals, engineering & construction, fertilizer,
  fishery, financial services, health care, infrastructure, insurance, machinery
  & electric, pharmaceuticals, real estate investment & management, steel,
  textiles, utilities, short-term investment and cash & other assets.

                                        2
<Page>

We intend to keep the Fund fully invested in anticipation of what may be a
broad recovery in Chilean stocks later this year or early next year.

Given our view that the economy should revive over the remainder of 2001, we
also plan to gradually increase our exposure to industry sectors whose operating
results tend to track the health of the overall economy. We are therefore
overweighting (i.e., relative to the Index benchmark) the food & beverages, and
multi-line retail sectors, with emphasis on companies that derive almost all of
their revenue from domestic sources.

An exception within the beverage sector is our preference for wine exporters,
whose dollar-denominated revenue stream serves the portfolio as a hedge against
potential weakness in the peso. We continue to overweight the copper mining
sector for similar reasons.

Beyond this, we like certain names in the building products, steel and chemical
sectors that should benefit as the domestic economy recovers; we are maintaining
our defensive overweight in telecommunications (especially the high-growth
wireless business); and we are looking to selectively invest in
small-capitalization growth opportunities across the board.

Notable underweights include banks and paper/forest products. We like banks,
given their solid performance this year, but feel that their profit margins may
be squeezed by low interest rates and greater competition in the months ahead.
We also like the prospects for paper/forest products companies, but our ability
to allocate more assets to them is somewhat limited by the Fund's strict
diversification parameters.

Finally--as we have done throughout the portfolio--we have attempted to mitigate
the potential impact on the Fund of developments in Argentina by reducing or
eliminating exposure to electric utilities that operate there. Although we like
Chilean utilities due to their favorable regulatory environment and visible,
growing earnings, the largest companies have strong ties to Argentina, and thus
could be badly hurt if Argentina's macroeconomic conditions deteriorate further.

OUTLOOK: GUARDEDLY OPTIMISTIC

Our near term outlook for Chilean equities is one of guarded optimism, based on
valuations that we consider attractive and the nation's efforts to enact
meaningful capital-markets reform. We believe that, when investors fully digest
the reform legislation's benefits, foreigners may come back to the market in a
big way. Relatively strong foreign buying of Chilean equities during the second
quarter suggests that this process may already have begun.

An additional positive going forward, in our opinion, is that corporate profit
margins are improving after significantly declining during the 1995-1999 period,
a time in which the real (i.e., inflation-adjusted) exchange rate appreciated;
we are seeing the opposite effect today, when the real exchange rate is falling.
Margins may, in fact, improve even more when GDP growth picks up, as many expect
might happen in 2001's second half. Equity valuations are beginning to look
quite attractive against this backdrop.

                                        3
<Page>

As for risks, the primary one appears to be Argentina, whose ongoing problems
may turn off investors to all Latin American markets, regardless of their degree
of vulnerability. Chile's Argentine exposure is slim, but its markets and
currency would most likely experience pain (at least in the near term) if
Argentina's problems were to worsen.

Sincerely yours,

/s/ Yaroslaw Aranowicz
- ----------------------
Yaroslaw Aranowicz
Chief Investment Officer **

FROM CREDIT SUISSE ASSET MANAGEMENT, LLC:

We wish to remind shareholders whose shares are registered in their own name
that they automatically participate in the Fund's dividend reinvestment program
which is known as the Investlink(SM) Program (the "Program"). The Program 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 the Fund's Transfer Agent
for details about participating in the Program. The Program also provides for
additional share purchases. The Program is described on pages 19 through 21 of
this report.

* The Morgan Stanley Capital International Chile Index is an unmanaged index
(with no defined investment objective) of Chilean equities that includes
reinvestment of dividends, and is the exclusive property of Morgan Stanley
Capital International Inc.

** Yaroslaw Aranowicz, who is a Vice President of Credit Suisse Asset
Management, LLC ("CSAM"), is primarily responsible for management of the Fund's
assets. He has served in such capacity since November 17, 2000. Mr. Aranowicz
joined CSAM in 1998 from Trans-National Research Corporation, a proprietary
securities research firm, where he was Director of Research for Europe and the
Middle East. Previously, he was an analyst for Latin American equities and fixed
income at John Hancock Financial Services in New York. He holds an M.A. in
International Business Relations from Central School of Commerce in Warsaw, as
well as an M.B.A. in Finance and International Business from New York
University's Stern School of Business. Mr. Aranowicz is Chief Investment Officer
of the Fund, and also serves as an Investment Officer of The Brazilian Equity
Fund, Inc.; The Emerging Markets Telecommunications Fund, Inc. and The Latin
America Equity Fund, Inc.

                                        4
<Page>

THE CHILE FUND, INC.

PORTFOLIO SUMMARY - AS OF JUNE 30, 2001 (UNAUDITED)

SECTOR ALLOCATION

[CHART OF SECTOR ALLOCATION]

<Table>
<Caption>
                              As a % of Net Assets
                           --------------------------
                           June 30,      December 31,
   Sector                    2001            2000
   ------                  --------      ------------
<S>                         <C>              <C>
Banking                      8.25             5.30
Electric-Integrated         17.71            18.14
Fertilizer                   2.35             2.31
Financial Services           2.16             2.58
Food & Beverages            16.61            15.94
Forestry                    18.34            19.74
Infrastructure               2.76             2.83
Mining                       3.27             3.76
Real Estate Investment
& Management                 1.72             2.83
Retail                       6.55             5.23
Telecommunications          17.97            17.08
Other                        2.31             4.26
</Table>

TOP 10 HOLDINGS, BY ISSUER

<Table>
<Caption>
                                                                                Percent of
     Holding                                                  Sector           Net Assets
- -----------------------------------------------------------------------------------------
 <S>                                                    <C>                       <C>

  1. Compania de Petroleos de Chile S.A.                     Forestry             12.0

  2. Compania de Telecomunicaciones de Chile S.A.       Telecommunications        11.4

  3. Empresa Nacional de Electricidad S.A.              Electric-Integrated        9.3

  4. Enersis S.A.                                       Electric-Integrated        8.4

  5. Empresa Nacional de Telecomunicaciones S.A.        Telecommunications         6.6

  6. Embotelladora Andina S.A.                           Food & Beverages          5.9

  7. S.A.C.I. Falabella, S.A.                                 Retail               5.8

  8. Empresas CMPC S.A.                                      Forestry              5.8

  9. Distribucion y Servicio D&S S.A.                    Food & Beverages          3.7

 10. Compania Cervecerias Unidas S.A.                    Food & Beverages          3.5

</Table>

                                        5
<Page>

THE CHILE FUND, INC.

SCHEDULE OF INVESTMENTS - JUNE 30, 2001 (UNAUDITED)

<Table>
<Caption>
                                     No.of               Value
Description                       Shares/Units          (Note A)
- -----------------------------------------------------------------
<S>                               <C>                <C>
EQUITY OR EQUITY-LINKED SECURITIES-103.35%
AIRLINES-0.64%
Lan Chile S.A.                       534,561         $  1,003,551
                                                     ------------

BANKING-8.25%
Banco de A. Edwards               15,040,786            1,531,478
Banco de Credito e
 Inversiones                         577,900            4,615,477
Banco de Credito e Inversiones,
 Rights (expiring 7/19/01)+           15,496               17,084
Banco Santander Chile,
 Class A                          49,863,372            4,045,871
Banco Santiago S.A.               79,810,947            1,752,273
SM-Chile, Class B                 18,157,166            1,097,432
                                                     ------------
                                                       13,059,615
                                                     ------------

BASIC METALS-1.02%
Ceramicas Cordillera S.A.            316,681            1,612,249
                                                     ------------

ELECTRIC-INTEGRATED-17.71%
Empresa Nacional de Electricidad
 S.A.                             39,274,236           14,683,709
Empresa Nacional de Electricidad
 S.A. ADR                              9,400              105,750
Enersis S.A.                      38,810,068           11,546,389
Enersis S.A. ADR                     112,300            1,682,254
                                                     ------------
                                                       28,018,102
                                                     ------------

ENGINEERING & CONSTRUCTION-1.28%
Besalco S.A.                         568,103            1,074,655
MASISA S.A.                        1,933,027              950,291
                                                     ------------
                                                        2,024,946
                                                     ------------

FERTILIZER-2.35%
Sociedad Quimica y Minera de
 Chile S.A., Class A               1,463,126            3,724,448
                                                     ------------

FINANCIAL SERVICES-2.16%
Antarchile S.A.                      125,158              461,963
Invercap S.A.                      7,418,597            2,950,679
                                                     ------------
                                                        3,412,642
                                                     ------------

FISHERY-0.34%
Pesquera Itata S.A.                7,936,619              530,329
                                                     ------------

<Caption>
                                     No.of               Value
Description                         Shares              (Note A)
- -----------------------------------------------------------------
<S>                               <C>                <C>
FOOD & BEVERAGES-16.61%
Coca-Cola Embonor S.A.,
 Class A+                          4,738,442         $  2,261,606
Compania Cervecerias
 Unidas S.A.                       1,258,500            5,565,992
Distribucion y Servicio
 D&S S.A.                          6,014,910            5,885,243
Embotelladora Andina
 S.A. PNA                          2,807,200            6,386,598
Embotelladora Andina
 S.A. PNB                          1,607,489            2,915,500
Vina Concha Y Toro S.A.            2,689,433            2,396,122
Vina San Pedro S.A.               93,820,572              865,737
                                                     ------------
                                                       26,276,798
                                                     ------------

FORESTRY-18.34%
Compania Chilena de Fosforos
 S.A.                                781,383              994,521
Compania de Petroleos de Chile
 S.A.                              5,606,206           18,908,848
Empresas CMPC S.A.                 1,102,399            9,120,157
                                                     ------------
                                                       29,023,526
                                                     ------------

HEALTH CARE-0.59%
Banmedica S.A.                     4,600,000              936,759
                                                     ------------

INFRASTRUCTURE-2.76%
 Infraestructura 2000+*           19,568,922            4,364,868
                                                     ------------

INSURANCE-0.24%
Compania de Seguros
 La Prevision Vida S.A.              818,209              377,505
                                                     ------------

MACHINERY & ELECTRIC-0.49%
Madeco S.A.+                       1,580,137              774,042
                                                     ------------

MINING-3.27%
Antofagasta plc                      789,100            5,168,230
                                                     ------------

PHARMACEUTICALS-0.34%
Laboratorio Chile S.A.               444,589              544,640
                                                     ------------

REAL ESTATE INVESTMENT &
  MANAGEMENT-1.72%
Parque Arauco S.A.+                7,133,287            2,723,711
                                                     ------------

                                        6
<Page>
<Caption>
                                     No.of               Value
Description                       Shares/Units          (Note A)
- -----------------------------------------------------------------
<S>                               <C>                <C>
RETAIL-6.55%
S.A.C.I. Falabella, S.A.          10,239,423         $  9,212,304
Santa Isabel S.A.+                 3,079,241            1,151,255
Santa Isabel S.A. Rights
 (expiring 07/06/01)+                879,783                1,400
                                                     ------------
                                                       10,364,959
                                                     ------------

STEEL-0.44%
Compania Acero del Pacifico S.A.     529,556              699,278
                                                     ------------

TELECOMMUNICATIONS-17.97%
Compania de Telecomunicaciones
 de Chile S.A., Class A+           5,143,828           18,004,012
Empresa Nacional
 de Telecomunicaciones S.A.        1,271,060           10,434,603
                                                     ------------
                                                       28,438,615
                                                     ------------

TEXTILES-0.06%
Zalaquett S.A.                     1,496,767               95,252
                                                     ------------

UTILITIES-0.22%
Compania de Consumidores
 de Gas de Santiago S.A.              72,930              348,087
                                                     ------------

TOTAL EQUITY OR EQUITY-LINKED
 SECURITIES (Cost $130,138,591)                       163,522,152
                                                     ------------
<Caption>
                                       No.of             Value
Description                           Shares            (Note A)
- -----------------------------------------------------------------
<S>                                   <C>            <C>
SHORT-TERM INVESTMENT-0.04%

CHILEAN MUTUAL FUND-0.04%
Santiago de Check Fund
 (Cost $65,469)                       15,162         $     65,244
                                                     ------------

TOTAL INVESTMENTS-103.39%
 (Cost $130,204,060) (Notes A,D)                      163,587,396

LIABILITIES IN EXCESS OF CASH AND
 OTHER ASSETS-(3.39)%                                  (5,357,302)
                                                     ------------

NET ASSETS-100.00%                                   $158,230,094
                                                     ============
</Table>

- -----------------------------------------------------------------
*    Not readily marketable security.
+    Security is non-income producing.
ADR  American Depositary Receipts.
PNA  Preferred Shares, Class A.
PNB  Preferred Shares, Class B.

                See accompanying notes to financial statements.

                                        7
<Page>

THE CHILE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES - JUNE 30, 2001 (UNAUDITED)

<Table>
<Caption>
ASSETS
<S>                                                                                                     <C>
Investments, at value (Cost $130,204,060) (Note A)                                                      $163,587,396
Cash (including $327,519 of foreign currencies with a cost of $328,722) (Note A)                             562,491
Dividends receivable                                                                                           1,285
Prepaid expenses                                                                                              23,994
                                                                                                        ------------
Total Assets                                                                                             164,175,166
                                                                                                        ------------
LIABILITIES
Payables:
    Investments purchased                                                                                    369,242
    Investment advisory fee (Note B)                                                                         346,436
    Administration fees (Note B)                                                                              48,444
    Other accrued expenses                                                                                   186,179
    Chilean repatriation taxes (Note A)                                                                    4,994,771
                                                                                                        ------------
Total Liabilities                                                                                          5,945,072
                                                                                                        ------------
NET ASSETS (applicable to 13,519,902 shares of common stock outstanding) (Note C)                       $158,230,094
                                                                                                        ============
NET ASSET VALUE PER SHARE ($158,230,094 DIVIDED BY 13,519,902)                                          $      11.70
                                                                                                        ============
NET ASSETS CONSIST OF
Capital stock, $0.001 par value; 13,519,902 shares issued and outstanding
  (100,000,000 shares authorized)                                                                       $     13,520
Paid-in capital                                                                                          111,523,346
Undistributed net investment income                                                                        2,839,051
Accumulated net realized gain on investments and foreign currency related transactions                    13,683,823
Net unrealized appreciation in value of investments and translation of other assets and liabilities
  denominated in foreign currencies                                                                       30,170,354
                                                                                                        ------------
Net assets applicable to shares outstanding                                                             $158,230,094
                                                                                                        ============
</Table>

                 See accompanying notes to financial statements.

                                       8
<Page>

THE CHILE FUND, INC.
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED JUNE 30, 2001 (UNAUDITED)

<Table>
<Caption>
INVESTMENT INCOME
<S>                                                                                                     <C>
Income (Note A):
    Dividends                                                                                           $  4,899,671
    Interest                                                                                                   3,825
    Less: Foreign taxes withheld                                                                                (298)
                                                                                                         -----------
    Total Investment Income                                                                                4,903,198
                                                                                                         -----------
Expenses:
    Investment advisory fees (Note B)                                                                        671,790
    Custodian fees                                                                                           152,194
    Administration fees (Note B)                                                                             124,793
    Audit and legal fees                                                                                      58,354
    Printing                                                                                                  50,987
    Accounting fees                                                                                           41,101
    Transfer agent fees                                                                                       21,030
    NYSE listing fees                                                                                         16,460
    Directors' fees                                                                                           10,448
    Insurance                                                                                                  2,406
    Other                                                                                                     11,310
    Chilean repatriation taxes (Note A)                                                                      903,274
                                                                                                         -----------
    Total Expenses                                                                                         2,064,147
                                                                                                         -----------
    Net Investment Income                                                                                  2,839,051
                                                                                                         -----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY RELATED TRANSACTIONS
Net realized gain/(loss) from:
    Investments                                                                                            3,131,753
    Foreign currency related transactions                                                                    (72,053)
Net change in unrealized appreciation in value of investments and translation of other assets and
  liabilities denominated in foreign currencies (net of Chilean tax on unrealized gains of $3,213,123)
  (Note A)                                                                                                (2,141,600)
                                                                                                         -----------
Net realized and unrealized gain on investments and foreign currency related
  transactions                                                                                               918,100
                                                                                                         -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS                                                    $  3,757,151
                                                                                                         ===========
</Table>

                 See accompanying notes to financial statements.

                                        9
<Page>

THE CHILE FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS

<Table>
<Caption>
                                                                                  For the Six         For the Year
                                                                                 Months Ended             Ended
                                                                                 June 30, 2001        December 31,
                                                                                  (unaudited)             2000
                                                                                 -------------        ------------
INCREASE/(DECREASE) IN NET ASSETS
<S>                                                                              <C>                  <C>
Operations:
  Net investment income/(loss)                                                   $   2,839,051        $   (894,928)
  Net realized gain on investments and foreign currency related transactions         3,059,700          20,144,953
  Net change in unrealized appreciation in value of investments and
    translation of other assets and liabilities denominated in foreign currencies   (2,141,600)        (67,430,111)
                                                                                 -------------        ------------
      Net increase/(decrease) in net assets resulting from operations                3,757,151         (48,180,086)
                                                                                 -------------        ------------
Dividends and distributions to shareholders (Note A):
  Net investment income                                                                      -            (137,369)
  Net realized gain on investments                                                           -          (7,848,053)
                                                                                 -------------        ------------
      Total dividends and distributions to shareholders                                      -          (7,985,422)
                                                                                 -------------        ------------
Capital share transactions :
  Cost of 808,000 shares repurchased (Note F)                                                -          (7,388,434)
                                                                                 -------------        ------------
      Total increase/(decrease) in net assets                                        3,757,151         (63,553,942)
                                                                                 -------------        ------------
NET ASSETS
Beginning of period                                                                154,472,943         218,026,885
                                                                                 -------------        ------------
End of period                                                                    $ 158,230,094*       $154,472,943
                                                                                 =============        ============
</Table>

- ---------
* Includes undistributed net investment income of $2,839,051.

                 See accompanying notes to financial statements.

                                       10
<Page>

                      This page left intentionally blank.

                                       11
<Page>

THE CHILE FUND, INC.

FINANCIAL HIGHLIGHTS SECTION

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
                                                                  Months Ended
                                                                    June 30,
                                                                      2001         ----------------------
                                                                   (unaudited)        2000        1999
                                                                  ------------     ----------  ----------
PER SHARE OPERATING PERFORMANCE
<S>                                                               <C>              <C>         <C>
Net asset value, beginning of period                              $     11.43      $   15.22   $    12.59
                                                                  -----------      ---------   ----------
Net investment income/(loss)                                             0.21          (0.66)+       0.09
Net realized and unrealized gain/(loss) on investments and
  foreign currency related transactions++                                0.06          (3.14)*       3.19
                                                                  -----------      ---------   ----------
Net increase/(decrease) in net assets resulting from operations          0.27          (3.20)        3.28
                                                                  -----------      ---------   ----------
Dividends and distributions to shareholders:
  Net investment income                                                     -          (0.01)       (0.07)
  Net realized gain on investments and foreign currency related
    transactions                                                            -          (0.58)       (0.58)
  In excess of net investment income                                        -              -            -
  In excess of net realized gains on investments and foreign
    currency related transactions                                           -              -            -
                                                                  -----------      ---------    ---------
Total dividends and distributions to shareholders                           -         (0.59)        (0.65)
                                                                  -----------      ---------   ----------
Dilution due to capital share rights offering                               -              -            -
                                                                  -----------      ---------   ----------
Net asset value, end of period                                    $     11.70      $   11.43   $    15.22
                                                                  ===========      =========   ==========
Market value, end of period                                       $      9.60      $   8.438   $   11.250
                                                                  ===========      =========   ==========
Total investment return (a)                                             13.78%       (20.04)%       31.45%
                                                                  ===========      =========   ==========

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000 omitted)                           $  1,58,230      $ 154,473   $  218,027
Ratio of expenses to average net assets, including taxes (b)             2.62%(c)       2.98%        2.16%
Ratio of expenses to average net assets, excluding taxes                 1.48%(c)       1.73%        1.64%
Ratio of net investment income/(loss) to average net assets (b)          3.61%(c)     (0.45)%        0.61%
Portfolio turnover rate                                                  9.12%         24.25%       12.01%
</Table>

- --------------------------------------------------------------------------------
Section  Per share amounts prior to July 17, 1995 have been restated to
         reflect a two-for-one stock split on July 17, 1995.
+        Based on average shares outstanding.
++       Includes a $0.08 and $0.01 per share decrease to the Fund's net
         asset value per share resulting from the dilutive impact of shares
         issued pursuant to the Fund's automatic Dividend Reinvestment Plan in
         1998 and 1995, respectively.
*        Includes a $0.22 per share increase to the Fund's NAV due to the
         impact of capital shares repurchased.
(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 program. Total investment return does not
         reflect brokerage commissions.
(b)      Ratios include effect of repatriation taxes.
(c)      Annualized.

                 See accompanying notes to financial statements.

                                       12
<Page>

THE CHILE FUND, INC.
FINANCIAL HIGHLIGHTS

<Table>
<Caption>
For the Years Ended December 31
- ------------------------------------------------------------------------------------------------------
     1998         1997         1996         1995         1994         1993         1992         1991
   --------     --------     --------     --------     --------     --------     --------     --------
   <S>          <C>          <C>          <C>          <C>          <C>          <C>          <C>
   $  21.61     $  22.59     $  26.45     $  26.26     $  20.13     $  15.55     $  14.84     $   8.72
   --------     --------     --------     --------     --------     --------     --------     --------
       0.38         0.10         0.47         0.65         0.42+        0.35         0.39         0.49

      (6.88)        2.32        (3.44)        0.41         6.24         5.96         1.93         7.21
   --------     --------     --------     --------     --------     --------     --------     --------
      (6.50)        2.42        (2.97)        1.06         6.66         6.31         2.32         7.70

      (0.32)           -        (0.47)       (0.65)       (0.47)       (0.31)       (0.39)       (0.49)
      (2.20)       (3.40)       (0.26)       (0.22)       (0.06)       (0.26)       (1.22)       (1.09)
          -            -        (0.16)           -            -            -            -            -

          -            -            -            -            -        (0.16)           -            -
   --------     --------     --------     --------     --------     --------     --------     --------
      (2.52)       (3.40)       (0.89)       (0.87)       (0.53)       (0.73)       (1.61)       (1.58)
   --------     --------     --------     --------     --------     --------     --------     --------
          -            -            -            -            -        (1.00)           -            -
   --------     --------     --------     --------     --------     --------     --------     --------
   $  12.59     $  21.61     $  22.59      $ 26.45      $ 26.26      $ 20.13      $ 15.55      $ 14.84
   ========     ========     ========     ========     ========     ========     ========     ========
   $  9.063     $ 17.813     $ 20.875      $26.000      $23.063      $22.250      $16.563      $11.938
   ========     ========     ========     ========     ========     ========     ========     ========
    (33.00)%        3.56%     (16.43)%      16.66%        6.05%       38.82%       53.80%       71.05%
   ========     ========     ========     ========     ========     ========     ========     ========

   $180,357     $303,944     $317,012     $370,275     $367,047     $281,031     $168,580     $160,360
          -         3.34%        1.96%           -            -            -         2.15%        2.13%
       1.62%        1.50%        1.48%        1.46%        1.39%        1.72%        1.71%        1.75%
       2.29%        0.38%        1.79%        2.39%        1.74%        2.47%        2.17%        3.41%
       5.39%       35.59%        4.82%        2.38%        0.86%       11.29%        6.29%       19.32%
</Table>

                                       13
<Page>

THE CHILE FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NOTE A. SIGNIFICANT ACCOUNTING POLICIES
The Chile Fund, Inc. (the "Fund") was incorporated in Maryland on January 30,
1989 and commenced investment operations on September 27, 1989. 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:

MANAGEMENT ESTIMATES: The preparation of financial statements in accordance with
accounting principles generally accepted in the United States of America
requires management to make certain estimates and assumptions that may affect
the reported amounts and disclosures in the financial statements. Actual results
could differ from those estimates.

PORTFOLIO VALUATION: Investments are stated at value in the accompanying
financial statements. All securities shall be valued at the closing price on the
exchange or market on which the security is primarily traded ("Primary Market").
If the security did not trade on the Primary Market, it shall be valued at the
closing price on another exchange where it trades. If there are no such sale
prices available on these exchanges, the value shall be the most recent bid, and
if there is no bid, the security shall be valued at the most recent asked. If no
price is available on these exchanges and there are more than two dealers, the
value shall be the mean of the highest bid and the lowest ask. If there is only
one dealer, then the value shall be the mean if bid and ask are available,
otherwise the value shall be the bid. All other securities and assets are valued
at 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 Board of Directors has established general guidelines for
calculating fair value of not readily marketable securities. At June 30, 2001,
the Fund held 2.76% of its net assets in securities valued in good faith by the
Board of Directors with an aggregate cost of $4,384,163 and fair value of
$4,364,868. The net asset value per share of the Fund is calculated on each
business day, with the exception of those days on which the New York Stock
Exchange is closed.

CASH: Deposits held at Brown Brothers Harriman & Co., the Fund's custodian,
in a variable rate account are classified as cash. At June 30, 2001, the
interest rate was 2.96%, 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.

The Fund is subject to and accrues a 10% Chilean repatriation tax with respect
to all known and estimated remittances from Chile and on net unrealized gains on
securities held in Chilean pesos. Known and estimated remittances represent the
Fund's obligations to pay distributions to shareholders and U.S. dollar
denominated expenses of the Fund.

On June 19, 2001, the Chilean government promulgated a new capital gains law
which will likely significantly reduce repatriation taxes payable by the Fund.
The amendment to the law maintains the remittance tax at 10%, but realized
capital gains on the most liquid stocks will not be subject to the tax. Realized
capital gains on illiquid shares, interest and dividends received will continue
to be subject to the remittance tax. At June 30, 2001, the Fund has accrued
$4,994,771 in Chilean taxes on realized and unrealized gains.

                                       14
<Page>

Management of the Fund, in conjunction with the Fund's tax advisors, is
currently evaluating the effects of this new legislation on the Fund's tax
liability. However, due to the complexity of interpreting and applying the
provisions of the new law, management has determined not to adjust the Fund's
tax liability until all pertinent facts have been gathered and a reasonable
estimate can be developed.

FOREIGN CURRENCY TRANSLATIONS: 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 changes 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.

The Fund reports certain foreign currency related 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.

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) in the value of investments and
translation of other assets and liabilities denominated in foreign currencies.

Net realized foreign exchange losses represent foreign exchange gains and losses
from 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.

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 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: Securities denominated in currencies other than U.S. dollars are subject
to changes in value due to fluctuations in exchange rates.

The Chilean securities markets are substantially smaller, less liquid and more
volatile than the major securities markets in the United States. Consequently,
acquisition and disposition of securities by the Fund may be inhibited. A
significant proportion of the aggregate market value of equity securities listed
on the Santiago Exchange are held by a small number of investors and are not
publicly traded. This may limit the number of shares available for acquisition
or disposition by the Fund. The Fund, subject to local investment limitations,
may invest up to 20% of its assets in non-publicly traded equity

                                       15
<Page>

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 prices
realized on such sales could be less than those originally paid by the Fund or
the current carrying values. 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.

Investments in Chile may involve certain considerations and risks not typically
associated with investments in the United States including the possibility of
future political and economic developments and the level of Chilean governmental
supervision and regulation of its securities markets.

The Fund may enter into repurchase agreements on U.S. Government securities with
primary government securities dealers recognized by the Federal Reserve Bank of
New York and member banks of the Federal Reserve System and on securities issued
by the governments of foreign countries, their instrumentalities and with
creditworthy parties in accordance with established procedures. Repurchase
agreements are contracts under which the buyer of a security simultaneously buys
and commits to resell the security to the seller at an agreed upon price and
date. Repurchase agreements are deposited with the Fund's custodian and,
pursuant to the terms of the repurchase agreement, the collateral must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. If the value of the underlying securities fall
below the value of the repurchase price plus accrued interest, the Fund will
require the seller to deposit additional collateral by the next business day. If
the request for additional collateral is not met, or the seller defaults on its
repurchase obligation, the Fund maintains the right to sell the underlying
securities at market value and may claim any resulting loss against the seller;
collectibility of such claims may be limited. At June 30, 2001, the Fund had no
such agreements.

NOTE B. AGREEMENTS
Credit Suisse Asset Management, LLC ("CSAM") serves as the Fund's investment
adviser with respect to all investments. As compensation for its advisory
services, CSAM receives from the Fund an annual fee, calculated weekly and paid
quarterly, equal to 1.20% of the first $50 million of the Fund's average weekly
market value or net assets (whichever is lower), 1.15% of the next $50 million,
and 1.10% of amounts over $100 million. For the six months ended June 30, 2001,
CSAM earned $671,790 for advisory services. CSAM 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 June 30, 2001, CSAM was reimbursed $9,917 for administrative services
rendered to the Fund.

Celfin Servicios Financieros Limitada ("Celfin") serves as the Fund's Chilean
sub-adviser. As compensation for its services, Celfin is paid a fee, out of the
advisory fee payable to CSAM, computed weekly and paid quarterly at an annual
rate of 0.15% of the first $50 million of the Fund's average weekly market value
or net assets (whichever is lower), 0.10% of the next $50 million and 0.05% of
amounts over $100 million. For the six months ended June 30, 2001, these
sub-advisory fees amounted to $63,551.

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 0.08% of the first $100 million of the Fund's average weekly net
assets, 0.06% of the next $50 million of the Fund's average weekly net assets
and 0.04% of amounts in excess of $150 million. For the six months ended June
30, 2001, BSFM earned $56,086 for administrative services.

BEA Administration, Administradora de Fondos de Inversion de Capital Extranjero
S.A. ("AFICE") serves as the Fund's Chilean administrator. For its services,
AFICE is paid a fee, out of the advisory fee payable to CSAM, that is calculated
weekly and paid quarterly at an annual rate of 0.05% of the Fund's average
weekly market value or net assets (whichever is lower) and an annual

                                       16
<Page>

reimbursement of out-of-pocket expenses. In addition, AFICE receives a
supplemental administration fee and an accounting fee. Such fees are paid by
AFICE to Celfin for certain administrative services. For the six months ended
June 30, 2001, the administration fees, supplemental administration fees and
accounting fees amounted to $25,146, $33,644 and $3,372, respectively.

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 13,519,902 shares outstanding at June 30, 2001, CSAM
owned 14,615 shares.

NOTE D. INVESTMENT IN SECURITIES
For U.S. federal income tax purposes, the cost of securities owned at June 30,
2001 was $131,252,466. Accordingly, the net unrealized appreciation of
investments (including investments denominated in foreign currencies) of
$32,334,930, was composed of gross appreciation of $65,294,896 for those
investments having an excess of value over cost and gross depreciation of
$32,959,966 for those investments having an excess of cost over value.

For the six months ended June 30, 2001, purchases and sales of securities, other
than short-term investments, were $18,588,735 and $14,954,866, respectively.

NOTE E. CREDIT FACILITY
Through June 19, 2001, the Fund, together with other funds advised by CSAM
(collectively, the "Participating Funds"), participated in a $350 million
committed, unsecured, line of credit facility (the "Prior Credit Facility") with
Deutsche Bank, A.G. as administrative agent, State Street Bank and Trust Company
as operations agent, Bank of Nova Scotia as syndication agent and certain other
lenders, for temporary or emergency purposes. Under the terms of the Prior
Credit Facility, the Participating Funds paid an aggregate commitment fee at a
rate of 0.075% per annum on the entire amount of the Prior Credit Facility,
which was allocated among the Participating Funds in such manner as was
determined by the governing Boards of the Participating Funds. In addition, the
Participating Funds paid interest on borrowings at the Federal funds rate plus
0.50%.

Effective June 20, 2001, the Fund, together with additional funds advised by
CSAM (collectively with the Participating Funds, the "New Participating Funds"),
established a new $200 million committed, unsecured, line of credit facility
(the "New Credit Facility") with Deutsche Bank, A.G. as administrative agent,
State Street Bank and Trust Company as operations agent, BNP Paribas as
syndication agent and certain other lenders, for the same purposes as the Prior
Credit Facility. Under the terms of the New Credit Facility, the New
Participating Funds pay an aggregate commitment fee at a rate of 0.10% per annum
on the average unused amount of the New Credit Facility, which is allocated
among the New Participating Funds in such manner as is determined by the
governing Boards of the New Participating Funds. The interest rate paid under
the New Credit Facility is unchanged fron the rate paid under the Prior Credit
Facility. At June 30, 2001 and during the six months ended June 30, 2001, the
Fund had no borrowings under either credit facility.

NOTE F. SHARE REPURCHASE PROGRAM
On June 30, 2000, the Board of Directors authorized the repurchase by the Fund
of up to 15% of the Fund's outstanding common stock, for the purposes of
enhancing shareholder value. The Fund's Board has authorized management of the
Fund to repurchase such shares in open market transactions at prevailing market
prices from time to time and in a manner consistent with the Fund continuing to
seek to achieve its investment objectives. The Board's actions were taken in
light of the significant discounts at which the Fund's shares were trading. It
is intended both to provide additional liquidity to those shareholders that
elect to sell their shares and to enhance the net asset value of the shares held
by those shareholders that maintain their investment. The repurchase program is
subject to review by the Directors of the Fund. For the six months ended June
30, 2001, the Fund had no share repurchases. From June 30, 2000 to December 31,
2000, the Fund repurchased 808,000 of its shares for a total cost of $7,388,434
at a weighted average discount of 29.26%. Through December 31, 2000, the
discount of individual repurchases ranged from 26.84% - 30.39%. Since inception
of the repurchase program, the Fund has repurchased 5.64% of its shares.

                                       17
<Page>

RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)

On April 25, 2001, the annual meeting of shareholders of The Chile Fund, Inc.
(the "Fund") was held and the following matters were voted upon:

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

<Table>
<Caption>

NAME OF DIRECTORS                 FOR        WITHHELD
- -----------------              ---------    ---------
<S>                            <C>          <C>
George W. Landau               5,759,567    3,367,722
William W. Priest, Jr.         5,762,403    3,364,886
</Table>

In addition to the directors re-elected at the meeting, Dr. Enrique R. Arzac,
James J. Cattano and Richard W. Watt continue to serve as directors of the
Fund.

                                       18
<Page>

DESCRIPTION OF INVESTLINK(SM) PROGRAM (UNAUDITED)

The InvestLink(SM) Program is sponsored and administered by EquiServe, L.P., not
by The Chile Fund, Inc. (the "Fund"). EquiServe, L.P. will act as program
administrator (the "Program Administrator") of the InvestLink(SM) Program (the
"Program"). The purpose of the Program is to provide interested investors with a
simple and convenient way to invest funds and reinvest dividends in shares of
the Fund's common stock ("Shares") at prevailing prices, with reduced brokerage
commissions and fees.

An interested investor may join the Program at any time. Purchases of Shares
with funds from a participant's cash payment or automatic account deduction will
begin on the next day on which funds are invested. If a participant selects the
dividend reinvestment option, automatic investment of dividends generally will
begin with the next dividend payable after the Program Administrator receives
his enrollment form. Once in the Program, a person will remain a participant
until he terminates his participation or sells all Shares held in his Program
account, or his account is terminated by the Program Administrator. A
participant may change his investment options at any time by requesting a new
enrollment form and returning it to the Program Administrator.

A participant will be assessed certain charges in connection with his
participation in the Program. First-time investors will be subject to an initial
service charge which will be deducted from their initial cash deposit. All
optional cash deposit investments will be subject to a service charge. Sales
processed through the Program will have a service fee deducted from the net
proceeds, after brokerage commissions. In addition to the transaction charges
outlined above, participants will be assessed per share processing fees (which
include brokerage commissions.) Participants will not be charged any fee for
reinvesting dividends.

The number of Shares to be purchased for a participant depends on the amount of
his dividends, cash payments or bank account or payroll deductions, less
applicable fees and commissions, and the purchase price of the Shares. The
Program Administrator uses dividends and funds of participants to purchase
Shares of the Fund's common stock in the open market. Such purchases will be
made by participating brokers as agent for the participants using normal cash
settlement practices. All Shares purchased through the Program will be allocated
to participants as of the settlement date, which is usually three business days
from the purchase date. In all cases, transaction processing will occur within
30 days of the receipt of funds, except where temporary curtailment or
suspension of purchases is necessary to comply with applicable provisions of the
Federal Securities laws or when unusual market conditions make prudent
investment impracticable. In the event the Program Administrator is unable to
purchase Shares within 30 days of the receipt of funds, such funds will be
returned to the participants.

The average price of all Shares purchased by the Program Administrator with all
funds received during the time period from two business days preceding any
investment date up to the second business day preceding the next investment date
shall be the price per share allocable to a participant in connection with the
Shares purchased for his account with his funds or dividends received by the
Program Administrator during such time period. The average price of all Shares
sold by the Program Administrator pursuant to sell orders received during such
time period shall be the price per share allocable to a participant in
connection with the Shares sold for his account pursuant to his sell orders
received by the Program Administrator during such time period.

EquiServe, L.P., as Program Administrator, administers the Program for
participants, keeps records, sends statements of account to participants and
performs other duties relating to the Program. Each participant

                                       19
<Page>

in the Program will receive a statement of his account following each purchase
of Shares. The statements will also show the amount of dividends credited to
such participant's account (if applicable), as well as the fees paid by the
participant. In addition, each participant will receive copies of the Fund's
annual and semi-annual reports to shareholders, proxy statements and, if
applicable, dividend income information for tax reporting purposes.

If the Fund is paying dividends on the Shares, a participant will receive
dividends through the Program for all Shares held on the dividend record date on
the basis of full and fractional Shares held in his account, and for all other
Shares of the Fund registered in his name. The Program Administrator will send
checks to the participants for the amounts of their dividends that are not to be
automatically reinvested at no cost to the participants.

Shares of the Fund purchased under the Program will be registered in the name of
the accounts of the respective participants. Unless requested, the Fund will not
issue to participants certificates for Shares of the Fund purchased under the
Program. The Program Administrator will hold the Shares in book-entry form until
a Program participant chooses to withdraw his Shares or terminate his
participation in the Program. The number of Shares purchased for a participant's
account under the Program will be shown on his statement of account. This
feature protects against loss, theft or destruction of stock certificates.

A participant may withdraw all or a portion of the Shares from his Program
account by notifying the Program Administrator. After receipt of a participant's
request, the Program Administrator will issue to such participant certificates
for the whole Shares of the Fund so withdrawn or, if requested by the
participant, sell the Shares for him and send him the proceeds, less applicable
brokerage commissions, fees, and transfer taxes, if any. If a participant
withdraws all full and fractional Shares in his Program account, his
participation in the Program will be terminated by the Program Administrator. In
no case will certificates for fractional Shares be issued. The Program
Administrator will convert any fractional Shares held by a participant at the
time of his withdrawal to cash.

Participation in any rights offering, dividend distribution or stock split will
be based upon both the Shares of the Fund registered in participants' names and
the Shares (including fractional Shares) credited to participants' Program
accounts. Any stock dividend or Shares resulting from stock splits with respect
to Shares of the Fund, both full and fractional, which participants hold in
their Program accounts and with respect to all Shares registered in their names
will be automatically credited to their accounts.

All Shares of the Fund (including any fractional share) credited to his account
under the Program will be voted as the participant directs. The participants
will be sent the proxy materials for the annual meetings of shareholders. When a
participant returns an executed proxy, all of such Shares will be voted as
indicated. A participant may also elect to vote his Shares in person at the
Shareholders' meeting.

A participant will receive tax information annually for his personal records and
to help him prepare his U.S. federal income tax return. The automatic
reinvestment of dividends does not relieve him of any income tax which may be
payable on dividends. For further information as to tax consequences of
participation in the Program, participants should consult with their own tax
advisors.

The Program Administrator in administering the Program will not be liable for
any act done in good faith or for any good faith omission to act. However, the
Program Administrator will be liable for loss or damage due to error caused by
its negligence, bad faith or willful misconduct. Shares held in custody by the
Program

                                       20
<Page>

Administrator are not subject to protection under the Securities Investors
Protection Act of 1970.

The participant should recognize that neither the Fund nor the Program
Administrator can provide any assurance of a profit or protection against loss
on any Shares purchased under the Program. A participant's investment in Shares
held in his Program account is no different than his investment in directly held
Shares in this regard. The participant bears the risk of loss and the benefits
of gain from market price changes with respect to all of his Shares. Neither the
Fund nor the Program Administrator can guarantee that Shares purchased under the
Program will, at any particular time, be worth more or less than their purchase
price. Each participant must make an independent investment decision based on
his own judgment and research.

While the Program Administrator hopes to continue the Program indefinitely, the
Program Administrator reserves the right to suspend or terminate the Program at
any time. It also reserves the right to make modifications to the Program.
Participants will be notified of any such suspension, termination or
modification in accordance with the terms and conditions of the Program. The
Program Administrator also reserves the right to terminate any participant's
participation in the Program at any time. Any question of interpretation arising
under the Program will be determined in good faith by the Program Administrator
and any such good faith determination will be final.

Any interested investor may participate in the Program. To participate in the
Program, an investor who is not already a registered owner of the Shares must
make an initial investment of at least $250.00. All other cash payments or bank
account deductions must be at least $100.00, up to a maximum of $100,000.00
annually. An interested investor may join the Program by reading the Program
description, completing and signing the enrollment form and returning it to the
Program Administrator. The enrollment form and information relating to the
Program (including the terms and conditions) may be obtained by calling the
Program Administrator at one of the following telephone numbers: First Time
Investors--(800) 337-1944; Current Shareholders--(800) 730-6001. All
correspondence regarding the Program should be directed to: Fleet National Bank,
InvestLink(SM) Program, P.O. Box 43010, Providence, RI 02940.

                InvestLink is a service mark of EquiServe, L.P.

                                       21
<Page>

PRIVACY POLICY NOTICE (AS OF MAY 4, 2001)

We are committed to maintaining the privacy of every current and prospective
customer. We recognize that you entrust important personal information to us,
and we wish to assure you that we take seriously our responsibilities in
protecting and safeguarding this information.

In connection with making available investment products and services to current
and potential customers, we may obtain nonpublic personal information about you.
This information may include your name, address, e-mail address, social security
number, account number, assets, income, financial situation, transaction history
and other personal information.

We may collect nonpublic information about you from the following sources:

- - Information we receive on applications, forms, questionnaires, web sites,
  agreements or in the course of establishing or maintaining a customer
  relationship; and

- - Information about your transactions with us, our affiliates, or others.

We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except as permitted by law. In cases where we
believe that additional products and services may be of interest to you, we may
share the information described above with our affiliates. We may also disclose
this information to firms that perform services on our behalf. These agents and
service providers are required to treat the information confidentially and use
it only for the purpose for which it is provided.

We restrict access to nonpublic personal information about you to those
employees, agents or other parties who need to know that information to provide
products or services to you or in connection with your investments with or
through us. We maintain physical, electronic and procedural safeguards that
comply with federal standards to guard your nonpublic personal information.

NOTE: THIS NOTICE IS PROVIDED TO CLIENTS AND PROSPECTIVE CLIENTS OF CREDIT
SUISSE ASSET MANAGEMENT, LLC ("CSAM"), CSAM CAPITAL INC., AND CREDIT SUISSE
ASSET MANAGEMENT SECURITIES, INC., AND SHAREHOLDERS AND PROSPECTIVE SHAREHOLDERS
IN CSAM SPONSORED AND ADVISED INVESTMENT COMPANIES, INCLUDING CREDIT SUISSE
WARBURG PINCUS FUNDS, AND OTHER CONSUMERS AND CUSTOMERS, AS APPLICABLE. THIS
NOTICE IS NOT INTENDED TO BE INCORPORATED IN ANY OFFERING MATERIALS BUT IS
MERELY A STATEMENT OF OUR CURRENT PRIVACY POLICY, AND MAY BE AMENDED FROM TIME
TO TIME UPON NOTICE TO YOU.

                                       22
<Page>

OTHER FUNDS MANAGED BY CREDIT SUISSE ASSET MANAGEMENT, LLC

Credit Suisse Warburg Pincus Blue Chip Fund
Credit Suisse Warburg Pincus High Income Fund
Credit Suisse Warburg Pincus
  International Equity II Fund
Credit Suisse Warburg Pincus Municipal Money Fund
Credit Suisse Warburg Pincus Small Company Value Fund
Credit Suisse Warburg Pincus Technology Fund
Credit Suisse Warburg Pincus
  U.S. Government Money Fund
Credit Suisse Warburg Pincus Value Fund
Credit Suisse Warburg Pincus Balanced Fund
Credit Suisse Warburg Pincus Capital Appreciation Fund
Credit Suisse Warburg Pincus Cash Reserve Fund
Credit Suisse Warburg Pincus Emerging Growth Fund
Credit Suisse Warburg Pincus Emerging Markets Fund
Credit Suisse Warburg Pincus Fixed Income Fund
Credit Suisse Warburg Pincus Focus Fund
Credit Suisse Warburg Pincus
  Global Financial Services Fund
Credit Suisse Warburg Pincus Global Fixed Income Fund
Credit Suisse Warburg Pincus Global
  Health Sciences Fund
Credit Suisse Warburg Pincus Global New
  Technologies Fund

Credit Suisse Warburg Pincus
  Global Post-Venture Capital Fund
Credit Suisse Warburg Pincus
  Global Telecommunications Fund
Credit Suisse Warburg Pincus
  Intermediate Maturity Government Fund
Credit Suisse Warburg Pincus International Equity Fund
Credit Suisse Warburg Pincus
  International Small Company Fund
Credit Suisse Warburg Pincus Japan Growth Fund
Credit Suisse Warburg Pincus Japan Small Company Fund
Credit Suisse Warburg Pincus European Equity Fund
Credit Suisse Warburg Pincus Major Foreign Markets Fund
Credit Suisse Warburg Pincus Municipal Bond Fund
Credit Suisse Warburg Pincus
  New York Intermediate Municipal Fund
Credit Suisse Warburg Pincus New York Tax Exempt Fund
Credit Suisse Warburg Pincus
  Small Company Growth Fund
Credit Suisse Warburg Pincus Value II Fund
Credit Suisse Warburg Pincus
  WorldPerks(R) Money Market Fund
Credit Suisse Warburg Pincus
  WorldPerks(R) Tax Free Money Market Fund

For more complete information--or to receive Prospectuses, which include charges
and expenses--call 1-800-WARBURG (1-800-927-2874). For certain funds, the
Prospectuses also disclose the special risk considerations associated with
international investing, small company investing, high yield bond investing,
aggressive investment strategies, single-industry funds, single-country funds,
or other special and concentrated investment strategies. Please read the
applicable Prospectuses carefully before you invest or send money.

                                       23
<Page>

SUMMARY OF GENERAL INFORMATION

The Fund--The Chile Fund, Inc.--is a closed-end, non-diversified management
investment company whose shares trade on the New York Stock Exchange. Its
investment objective is to seek total return, consisting of capital appreciation
and current income through investments primarily in Chilean equity and debt
securities. The Fund is managed and advised by Credit Suisse Asset Management,
LLC ("CSAM"). CSAM 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. CSAM manages money for
corporate pension and profit-sharing funds, public pension funds, union funds,
endowments and other charitable institutions and private individuals. CSAM and
its affiliates manage approximately $94 billion in the United States and $298
billion globally.

SHAREHOLDER INFORMATION

The market price is published in: THE NEW YORK TIMES (daily), THE WALL STREET
JOURNAL (daily) and BARRON'S (each Monday) under the designation "Chile". The
Fund's New York Stock Exchange trading symbol is CH. Weekly comparative net
asset value (NAV) and market price information about The Chile 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 CSAM GROUP OF FUNDS

LITERATURE REQUEST--Call today for free descriptive information on the
closed-end funds listed below at 1-800-293-1232 or visit our website on the
Internet: http://www.cefsource.com.

CLOSED-END FUNDS

SINGLE COUNTRY
The Brazilian Equity Fund, Inc. (BZL)
The First Israel Fund, Inc. (ISL)
The Indonesia Fund, Inc. (IF)

MULTIPLE COUNTRY
The Emerging Markets Telecommunications Fund, Inc. (ETF)
The Latin America Equity Fund, Inc. (LAQ)

FIXED INCOME
Credit Suisse Asset Management Income Fund, Inc. (CIK)
Credit Suisse High Yield Bond Fund (DHY)

Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that The Chile Fund, Inc. may from time to time
purchase shares of its capital stock in the open market.

<Page>

DIRECTORS AND CORPORATE OFFICERS

Dr. Enrique R. Arzac       Director
James J. Cattano           Director
George W. Landau           Director
William W. Priest, Jr.     Director
James P. McCaughan         Chairman of the Board of Directors
Richard W. Watt            President and Director
Yaroslaw Aranowicz         Chief Investment Officer
Emily Alejos               Investment Officer
Hal Liebes                 Senior Vice President
Michael A. Pignataro       Chief Financial Officer and Secretary
Rocco A. Del Guercio       Vice President
Robert M. Rizza            Treasurer

INVESTMENT ADVISER

Credit Suisse Asset Management, LLC
466 Lexington Avenue
New York, NY 10017

ADMINISTRATOR

Bear Stearns Funds Management Inc.
575 Lexington Avenue
New York, NY 10022

CUSTODIAN

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

SHAREHOLDER SERVICING AGENT

Fleet National Bank
(c/o EquiServe, L.P.)
P.O. Box 43010
Providence, RI 02940

INDEPENDENT ACCOUNTANTS

PricewaterhouseCoopers LLP
Two Commerce Square
Philadelphia, PA 19103

LEGAL COUNSEL

Willkie Farr & Gallagher
787 Seventh Avenue
New York, NY 10019

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 by
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.

[CH LISTED NYSE LOGO]

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