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<TYPE>EX-99.77B ACCT LTTR
<SEQUENCE>4
<FILENAME>faf77b.txt
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Report of Independent Auditors


To the Shareholders and Board of Directors of
Aberdeen Australia Equity Fund, Inc.

In planning and performing our audit of the financial statements of
Aberdeen Australia Equity Fund, Inc. (the "Fund") for the year ended
October 31, 2003, 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 principles.  Those
controls include the safeguarding of assets against unauthorized
acquisition, use or disposition.

Because of inherent limitations in 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 controls may
become  inadequate because of changes in conditions or that the
effectiveness of their 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 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 for safeguarding securities, that we
consider to be material weaknesses as defined above as of October 31, 2003.

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
December 18, 2003



	(1)

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