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<SEC-DOCUMENT>0000935069-04-000483.txt : 20040310
<SEC-HEADER>0000935069-04-000483.hdr.sgml : 20040310
<ACCEPTANCE-DATETIME>20040310163220
ACCESSION NUMBER:		0000935069-04-000483
CONFORMED SUBMISSION TYPE:	N-CSR
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20031231
FILED AS OF DATE:		20040310
EFFECTIVENESS DATE:		20040310

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GERMANY FUND INC
		CENTRAL INDEX KEY:			0000791718
		IRS NUMBER:				133354384
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-CSR
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-04632
		FILM NUMBER:		04660564

	BUSINESS ADDRESS:	
		STREET 1:		280 PARK AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		2124541694

	MAIL ADDRESS:	
		STREET 1:		280 PARK AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSR
<SEQUENCE>1
<FILENAME>germany.txt
<TEXT>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM N-CSR

   CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

                   Investment Company Act file number 811-4632
                                                      --------------
                             The Germany Fund, Inc.
- --------------------------------------------------------------------------------
               (Exact name of registrant as specified in charter)



                 Two International Place, Boston, MA 02110-41-3
- --------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip code)

       Registrant's telephone number, including area code: (617) 295-1000
                                                           ---------------


                                  John Millette
                  Deutsche Investment Management Americas Inc.


                 Two International Place, Boston, MA 02110-41-3
- --------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip code)



                         Date of fiscal year end: 12/31
                                                  ---------

                       Date of reporting period: 12/31/03
                                                 ----------

Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the  transmission to stockholders of
any report that is required to be transmitted to  stockholders  under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.

A registrant  is required to disclose the  information  specified by Form N-CSR,
and the  Commission  will make this  information  public.  A  registrant  is not
required to respond to the  collection  of  information  contained in Form N-CSR
unless the Form  displays a  currently  valid  Office of  Management  and Budget
("OMB")  control number.  Please direct comments  concerning the accuracy of the
information  collection  burden  estimate and any  suggestions  for reducing the
burden to Secretary,  Securities and Exchange Commission,  450 Fifth Street, NW,
Washington,  DC 20549-0609.  The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.



<PAGE>


ITEM 1. REPORTS TO STOCKHOLDERS.

                                   THE GERMANY
                                    FUND, INC.
                                  ANNUAL REPORT
                                DECEMBER 31, 2003

                                [GRAPHIC OMITTED]

<PAGE>

                                   THE GERMANY
                                    FUND, INC.

                                [GRAPHIC OMITTED]

LETTER TO THE SHAREHOLDERS
- --------------------------------------------------------------------------------

                                                               February 12, 2004
Dear Shareholder
   We are pleased to report that in 2003,  the Germany Fund's total return based
on net asset value rose 59.6% and its total return based on its share price rose
68.8%. The Fund's  benchmark,  the DAX Index, rose 65.2% during the same period.
The strong market  performance  came on the back of an improving  global economy
and a recovery in business sentiment in Germany.
   Germany's second recession in three years came to an end last summer. Current
economic  data confirm the rise in leading  indicators  since  spring 2003.  The
compromise  on tax  reform  should  lead to an  overall  relief  of some Euro 14
billion for German households, stimulating consumption going forward. While 2003
ended with half-hearted tax cuts, large parts of Chancellor  Schroeder's  Agenda
2010  proposals  found  acceptance  and  passed.   Further  reforms  could  lend
fundamental support to the German equity market.  Moreover, the stabilization of
the labor market should strengthen  consumer  confidence.  The pick-up in export
demand,  particularly  from Eastern  Europe and Asia,  should  benefit  economic
growth in Germany. With inventory at low levels worldwide and demand holding up,
the improvement in GDP growth from an imminent  inventory rebuild could reach 2%
in 2004.  It should take several  quarters of strong  growth to close the output
gap,  which means that demand  pressures on prices are likely to remain  subdued
for some time to come.  The European  Central Bank does not seem to be under any
pressure to hike rates in the foreseeable future.
   The Fund's  performance in 2003 has been influenced by several factors,  some
of which have been  somewhat  unexpected.  In the first  quarter the mood in the
equity market was still downbeat as the German economic  performance  lagged the
recovery in other markets such as the United States and Asia. Only in the second
quarter it became  clear that the  economy  would be close to its trough and the
equity  market  started to rally sharply after more than three years of negative
returns. This inflection point was difficult to anticipate,  as defensive equity
holdings suddenly became the  underperformers  at the time the market recovered.
For example,  financial and telecom  stocks,  which suffered the most during the
de-leveraging phase of the bear market,  started to rally strongly in the market
upturn that  followed.  Another  factor that came somewhat as a surprise was the
pronounced  strength of the Euro against the US dollar.  Several of the cyclical
stocks, such as automobile manufacturers and engineering companies are sensitive
to exchange rate movements and therefore did not perform as expected.
   A  large  part  of  the  Germany  Fund's  under-performance  relative  to its
benchmark occurred in the fourth quarter, due to its  consumer-related  exposure
to Deutsche Lufthansa and Metro. Both companies should have benefited,  not only
from their improving  operating  performance  but also from a positive  consumer
sentiment.  However the share price of Deutsche  Lufthansa suffered from renewed
terrorist threats and Metro, a multi-market retailer,  from a less than expected
tax cut by the government. Also, the Fund maintained its limited exposure to the
defensive utilities sector, which against market expectations, performed well in
the fourth quarter.
   We are  continuing  to position  the Germany  Fund to take  advantage  of the
expected  economic  recovery,  partially helped by the ongoing reform process in
Germany as well as our  expectation  that the global  economy will  continue its
current growth path well into the year 2004. Recently the Germany Fund has added
to its  cyclical  sector  exposure  by  adding  to  holdings  such  as  Infineon
Technologies,  Deutsche Lufthansa and Bayer. Also recent news flow suggests that
a recovery in telecom  infrastructure  spending may be  underway,  which led the
manager to add to the equity exposure in Alcatel.
   The Fund continued its  open-market  purchases of its shares,  buying 570,200
shares during the fiscal year.  The Germany  Fund's  discount to net asset value
averaged 11.4% during the year ended December 31, 2003.
                           Sincerely,



/S/Christian Strenger          /S/Richard T. Hale
Christian Strenger             Richard T. Hale
Chairman                       President

   FOR ADDITIONAL INFORMATION ABOUT THE FUND INCLUDING PERFORMANCE, DIVIDENDS,
 PRESENTATIONS, PRESS RELEASES, DAILY NAV AND SHAREHOLDER REPORTS, PLEASE VISIT
                              WWW.GERMANYFUND.COM

                                        1
<PAGE>

FUND HISTORY AS OF DECEMBER 31, 2003
- --------------------------------------------------------------------------------

Past results are not necessarily  indicative of future  performance of the fund.
Investment return and principal value will fluctuate. Current performance may be
lower or higher than the performance data quoted.

TOTAL RETURNS:
                                       FOR THE YEARS ENDED DECEMBER 31,
                             ---------------------------------------------------
                               2003     2002       2001       2000         1999
                             -------   --------   --------   --------     ------
Net Asset Value (a) ........  59.62%   (34.43)%   (25.57)%   (20.66)%     18.08%
Market Value ...............  68.81%   (35.76)%   (24.95)%   (21.09)%     23.83%
DAX* .......................  65.16%   (34.14)%   (23.20)%   (14.67)%     19.98%

(a) Total investment returns reflect changes in net asset value per share during
each period and assume that  dividend and capital gains  distributions,  if any,
were reinvested. These percentages are not an indication of the performance of a
shareholder's investment in the Fund based on market price.

- ----------
* DAX IS A TOTAL RATE OF RETURN  INDEX OF 30  SELECTED  GERMAN  BLUE CHIP STOCKS
TRADED  ON  THE  FRANKFURT  STOCK  EXCHANGE.  INDEX  RETURNS  ASSUME  REINVESTED
DIVIDENDS AND, UNLIKE FUND RETURNS,  DO NOT REFLECT ANY FEES OR EXPENSES.  IT IS
NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX.
FUND PERFORMANCE ASSUMES REINVESTMENT OF ALL DIVIDENDS AND CAPITAL GAINS.

Investments  in mutual  funds  involve  risk.  Yields  and  market  values  will
fluctuate.

This fund is not diversified  and primarily  focuses its investments in Germany,
thereby increasing its vulnerability to developments in that country.  Investing
in foreign securities presents certain unique risks not associated with domestic
investments, such as currency fluctuation and political and economic changes and
market  risks.  This may result in greater  share  price  volatility.

Shares of closed-end  funds  frequently  trade at a discount to net asset value.
The price of the fund's shares is determined by a number of factors,  several of
which are beyond the control of the fund.  Therefore,  the fund  cannot  predict
whether its shares will trade at, below or above net asset value.


                                        2
<PAGE>

FUND HISTORY AS OF DECEMBER 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

STATISTICS:
<S>                                                                                                 <C>
Net Assets .......................................................................................  $130,442,069
Shares Outstanding ...............................................................................    15,573,281
NAV Per Share ....................................................................................         $8.38
</TABLE>

DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS:
<TABLE>
<CAPTION>

RECORD                                                             ORDINARY           LT CAPITAL
  DATE                                                              INCOME               GAINS             TOTAL
- ------                                                             --------           ----------          -------
<S>                                                                  <C>                 <C>               <C>
11/19/02 ........................................................    $0.01               $  --             $0.01
11/19/01 ........................................................    $0.06               $  --             $0.06
9/3/01 ..........................................................       --               $0.02             $0.02
11/20/00 ........................................................       --               $2.18             $2.18
9/1/00 ..........................................................    $0.19               $0.12             $0.31
11/19/99 ........................................................    $0.29               $0.90             $1.19
9/1/99 ..........................................................       --               $0.56             $0.56
11/16/98 ........................................................    $1.47               $1.75             $3.22
9/1/98 ..........................................................    $0.17               $0.45             $0.62

OTHER INFORMATION:

NYSE Ticker Symbol ...............................................................................           GER
NASDAQ Symbol ....................................................................................         XGERX
Dividend Reinvestment Plan .......................................................................           Yes
Voluntary Cash Purchase Program ..................................................................           Yes
Annual Expense Ratio .............................................................................         1.77%

</TABLE>

                                        3
<PAGE>

PORTFOLIO BY MARKET SECTOR AS OF DECEMBER 31, 2003 (AS % OF PORTFOLIO)
- --------------------------------------------------------------------------------

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Tour Operators                                                          (2.0%)
National Commercial Banks                                               (7.4%)
Telephone & Telegraph Apparatus                                        (12.1%)
Plastic Materials, Synthetic Resins & NonVulcan Elastomers              (4.0%)
Air Transportation, Scheduled                                           (4.1%)
Security and Commodity Exchanges                                        (2.2%)
Courier Services Except by Air                                          (3.0%)
Semiconductors & Related Devices                                        (4.1%)
Motor  Vehicles & Car Bodies                                           (13.6%)
Electric & Other Services Combined                                      (5.2%)
Telephone Communications (No Radiotelephone)                          (2.6%)
Plastics Products                                                       (5.3%)
Others                                                                 (11.1%)
Services - Prepackaged Software                                        (9.4%)
Wholesale - Groceries and Related  Products                             (1.8%)
Accident & Health Insurance                                            (12.1%)



10 LARGEST EQUITY HOLDINGS AS OF DECEMBER 31, 2003
- --------------------------------------------------------------------------------

                                                    % of
                                                  Portfolio
                                                  ---------
 1.    Siemens                                      12.1
 2.    Allianz                                      12.1
 3.    SAP                                           9.4
 4.    DaimlerChrysler                               7.8
 5.    Bayer                                         5.3

                                                    % of
                                                  Portfolio
                                                  ---------
 6.    E.ON                                          5.2
 7.    Deutsche Lufthansa                            4.1
 8.    Infineon Technologies                         4.1
 9.    BASF                                          4.0
10.    Deutsche Post                                 3.0

Portfolio by Market Sector and 10 Largest Equity Holdings are subject to change.

                                        4
<PAGE>

INTERVIEW WITH THE CHIEF INVESTMENT OFFICER
- --------------------------------------------------------------------------------

   QUESTION: In 2003 the Euro/US$ exchange rate has appreciated by 20%. How much
of an issue is the  strong  Euro for the  German  economy?  Do you think that it
could stall the still fragile economic recovery?

   ANSWER: Despite the strains a strong Euro imposed on German exports, we would
neither  expect an abrupt end to the recovery  nor a return to a recession.  One
reason is the fact that many of the large  companies  have hedged their currency
risk exposure well into 2004 and some even into 2005. Also a significant  number
of German companies have outsourced production to low-cost countries,  including
those that keep their currency pegged to the US Dollar,  a move that allows them
to partially  offset the currency  effect.  Also the current rates near $1.25 to
the Euro are near  "normal"  historic  levels (using a fifteen years time period
and by adopting the Deutsche Mark/Euro conversion rate) and even a fall to $1.35
could still be viewed within the historic  range.  However the  challenge  could
grow if the US Dollar falls to record low levels  within a  comparatively  short
period of time.  At this point it would seem  likely that the  European  Central
Bank will step in with currency interventions.

   QUESTION:  The German  equity  market has had a  surprisingly  strong year in
terms of performance. Do you see a repeat of that in 2004?

   ANSWER:  Despite  the 37% rise in the DAX  Index in 2003,  price to  earnings
ratios are still moderate by historic and  international  comparisons.  Interest
rates are still near their  lowest  nominal  levels for over two decades  making
high dividend yields of equities more  attractive.  Another measure of this, the
yield gap of government bond yields minus equity dividend yields,  is also close
to a 20 year low. Last year the German stock market (DAX Index) outperformed all
other major European equity market indices after having been the worst performer
the year  before.  Current  equity  market  valuations,  the low  interest  rate
environment  and the expected  pickup in corporate  earnings  suggest  favorable
equity market performance in 2004.

   QUESTION:  What does the EU enlargement mean in terms of size and how does it
impact Germany?

   ANSWER: On May 1st 2004, the European Union will see its biggest  enlargement
ever in  terms  of scope  and  diversity  with  the  addition  of 10 new  member
countries.  The accession  countries ("AC-10") are: Poland,  Hungary,  the Czech
Republic,  Estonia, Latvia, Lithuania, Malta, Slovakia, Slovenia and Cyprus. The
biggest  three,  Poland Hungary and the Czech  Republic,  account for 80% of the
population and 80% of the GDP of the AC-10. The enlargement will increase the EU
territory by 23% or 739 million  square  kilometers and the EU population by 22%
or 74 million.
   The  Western  country  impacted  most by the EU  enlargement  is likely to be
Germany, as it borders with the two biggest accession countries:  Poland and the
Czech  Republic.  Germany  has also by far the  strongest  trade  links with the
AC-10,  as 40% of the AC-10's trade with EU countries is conducted with Germany.
Also,  7.6% of  German  exports  (worth  Euro 50  billion)  go to the  accession
countries and 9.6% of German  imports come from there.  The growing trade volume
is mainly  driven by big German  corporations,  such as Siemens and  Volkswagen,
which began taking over  production  facilities in the early 1990s.  Lower labor
costs for a  well-educated  workforce have been the main trigger for investments
in the  accession  countries.  The  gap in  hourly  labor  costs  has  caused  a
significant shift of labor-intensive  production into the East and has triggered
growth in trade.  In other areas,  such as the services  sector,  this shift has
been less  pronounced so far.  Overall the accession is expected to give a boost
to German economic growth.

                                        5
<PAGE>

REPORT FROM THE INVESTMENT ADVISER AND MANAGER
- --------------------------------------------------------------------------------

OUTLOOK FOR THE GERMAN ECONOMY
   Since the middle of  January,  it has been  official  that in 2003 the German
economy stagnated for the second consecutive year.  According to the preliminary
estimate by the Federal Statistics  Office,  real Gross Domestic Product ("GDP")
in the past year even showed a slight  contraction  of .1% relative to 2002.  In
the final quarter of 2003 GDP will  probably have risen only by .25%,  despite a
strong surge in  industrial  output.  However,  there is evidence  that domestic
demand  is slowly  recovering,  benefiting  manufacturers  of  intermediate  and
capital goods. Indicators,  such as the purchasing manager index, as well as the
Ifo  Business-Climate  Index for trade and  industry,  continue  to rise and are
signaling  an  expansion  of economic  activity.  Wolfgang  Clement,  the German
economy and labor  minister,  believes  that the economic  recovery in 2004 will
outstrip the 1.5% average growth figure recorded in the 1990s and is set to grow
by up to 2%.  Presenting his ministry's  annual economic  report in Berlin,  Mr.
Clement predicted that average unemployment should fall by 100,000 to a total of
4.3 million in 2004. He stressed that the government's immediate policy priority
was to implement the labor market and social welfare reforms adopted in December
2003.
   Inflationary  pressures  also remain  subdued for now. In 2003,  the consumer
price index ("CPI")  increased by only 1.1% on average,  down from 1.4% in 2002.
Also these figures tend to overstate the underlying  inflation pressure,  as the
rise in CPI is partly due to the increase in tobacco and energy taxes. This year
again,  the inflation rate is influenced by government  measures.  For instance,
the reform of the statutory  health insurance system and the renewed hike in the
tobacco tax will drive inflation upwards.  Furthermore,  gradually  accelerating
consumer demand is expected to be reflected in rising prices, though this effect
should  be more  than  mitigated  by the  appreciation  of the  Euro,  which  is
deflationary by nature.
   The  appreciation  of the Euro has neither had a strong  effect on the German
economy,  nor has it impaired price  competitiveness of German companies so far.
Despite a decline in exports in the final quarter of 2003,  there is no evidence
of a  sustained  fall as orders from abroad  continue  to rise.  Also,  focusing
solely  on the  strength  of the Euro  versus  the US Dollar  seems a  one-sided
argument,  as large parts of  Germany's  exports are sold into the  Euro-zone or
other areas of the world with similar currency strength.
   In May 2004,  the  European  Union  ("EU") is  expected to expand from the 15
current member countries to 25, which offers  opportunities but also challenges.
The EU  estimates  additional  GDP growth of .5% to .7% for the  current  member
states resulting from this EU enlargement. The overall effect results from three
different sources: trade integration, migration (access to an enlarged supply of
labor) and mark-up  effects  (increased  competition  that depresses  prices and
boosts demand).  The German economy is expected to derive even greater  benefits
than  the  rest  of the  EU,  mainly  due to its  existing  business  links  and
proximity.


                                        6
<PAGE>

DIRECTORS OF THE FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                        PRINCIPAL OCCUPATION(S)
NAME, ADDRESS & AGE                     DURING PAST FIVE YEARS                          OTHER DIRECTORSHIPS HELD BY DIRECTOR
- ------------------------------          -----------------------                         ------------------------------------

<S>                                     <C>                                             <C>
Detlef Bierbaum, 61(2)                  Partner of Sal. Oppenheim Jr. & Cie KGaA        Director, The Central Europe and Russia
    Class I                             (investment management).                        Fund, Inc. (since 1990). Member,
                                                                                        Supervisory Board, Tertia
                                                                                        Handelsbeteiligungsgesellschaft mbH
                                                                                        (electronic retailor). Member,
                                                                                        Supervisory Board, Douglas AG
                                                                                        (retailer). Member, Supervisory Board,
                                                                                        LVM Landwirtschaftlicher
                                                                                        Versicherungsverein (insurance). Member,
                                                                                        Supervisory Board, Monega KAG. Member of
                                                                                        Supervisory Board, AXA Investment
                                                                                        Managers.

John Bult, 67(1)(2)                     Chairman, PaineWebber International             Director, The Central Europe and Russia
    Class II                            (since 1985)                                    Fund, Inc. (since 1990) and The New
                                                                                        Germany Fund, Inc. (since 1990).
                                                                                        Director, The France Growth Fund, Inc.
                                                                                        (closed end fund). Director, The Greater
                                                                                        China Fund, Inc. (closed end fund).

Ambassador                              Chairman, Diligence LLC, formerly IEP           Director, The Central Europe and Russia
    Richard R. Burt, 56(3)              Advisors, Inc. (information collection,         Fund, Inc., as well as other funds in
    Class II                            analysis, consulting and intelligence)          the Fund Complex as indicated. Board
                                        (since 1998). Chairman of the Board,            Member, IGT, Inc. (gaming technology)
                                        Weirton Steel Corp. (since 1996).               (since 1995). Board Member, Hollinger
                                        Partner, McKinsey & Company (1991-1994).        International (printing and publishing)
                                        U.S. Ambassador to the Federal Republic         (since 1995). Board Member, HCL
                                        of Germany (1985-1989). Chairman, IEP           Technologies, Inc. (information
                                        Advisor, LLP (international consulting).        technology and product engineering)
                                                                                        (since 1999). Member, Textron
                                                                                        Corporation International Advisory
                                                                                        Council (aviation, automotive,
                                                                                        industrial operations and finance)
                                                                                        (since 1996). Director, UBS-Paine Webber
                                                                                        family of Mutual Funds.

Fred H. Langhammer, 59                  Chief Executive Officer, The Estee              Director, The Central Europe and Russia
    Class III                           Lauder Companies Inc. (manufacturer and         Fund, Inc. (since 2003). Director,
                                        marketer of cosmetics) (since 2000),            Gillette Company, Inditex, S.A (apparel
                                        President (since 1995), Chief Operating         manufacturer and retailer). Director,
                                        Officer (1985-1999), Managing Director,         Cosmetics, Toiletries and Fragrance
                                        operations in Germany (1982-1985),              Association. Director, German-American
                                        President, operations in Japan                  Chamber of Commerce, Inc. Co-Chairman,
                                        (1975-1982).                                    American Institute for Contemporary
                                                                                        German Studies at Johns Hopkins
                                                                                        University. Senior Fellow, Foreign
                                                                                        Policy Association. Director, Japan
                                                                                        Society.

</TABLE>


                                        7
<PAGE>

DIRECTORS OF THE FUND (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>


                                        PRINCIPAL OCCUPATION(S)
NAME, ADDRESS & AGE                     DURING PAST FIVE YEARS                          OTHER DIRECTORSHIPS HELD BY DIRECTOR
- ------------------------------          -----------------------                         ------------------------------------



<S>                                     <C>                                             <C>
Christian H. Strenger, 60(1)(2)         Director (since 1999) and Managing              Director, The Central Europe and Russia
    Class III                           Director (1991-1999) of DWS Investment          Fund, Inc. (since 1990) and The New
                                        GmbH (investment management).                   Germany Fund, Inc. (since 1990). Member,
                                                                                        Supervisory Board, Fraport AG
                                                                                        (international airport business). Board
                                                                                        member, Incepta PLC (media and
                                                                                        advertising).

Eggert Voscherau, 60                    Vice Chairman, BASF Aktiengesellschaft          Director The Central Europe and Russia
    Class I                             (chemicals) (since 2002). Deputy                Fund Inc. (since 2003). Member,
                                        Chairman, Ressort II (Europe Region)            Supervisory Boards of: Dresdner Bank
                                        (Industrials) (1998-2002). Chairman and         Lateinamerika AG, Haftpflichtverband der
                                        Chief Executive Officer and Executive           Deutschen Industrie V.a.G., Basell N.V.,
                                        Director, BASF Corporation (chemicals)          BASF Espanola S.A., BASF Schwarzheide
                                        (United States) (1997-1998). Executive          GmbH. President, Cefic (European
                                        Director, BASF Aktiengesellschaft               Chemical Industry Council). President,
                                        (1996-1997), Executive Vice President,          International Council of Chemical
                                        BASF Corporation (United States) and            Associations. Board Member, BASF
                                        President, North American Consumer              Aktiengesellschaft.
                                        Products division (1991-1994).
                                        President, BASF Aktiengesellschaft
                                        (Germany) (1986-1991).

</TABLE>


















                                        8
<PAGE>

DIRECTORS OF THE FUND (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>


                                        PRINCIPAL OCCUPATION(S)
NAME, ADDRESS & AGE                     DURING PAST FIVE YEARS                          OTHER DIRECTORSHIPS HELD BY DIRECTOR
- ------------------------------          -----------------------                         ------------------------------------

<S>                                     <C>                                             <C>
Robert H. Wadsworth, 64(1) (3)          President, Robert H. Wadsworth                  Director, The New Germany Fund, Inc.
    Class II                            Associates, Inc. (consulting firm) (May         (since 1992) and The Central Europe and
                                        1983 to present). Formerly, President           Russia Fund, Inc. (since 1990) as well
                                        and Trustee, Trust for Investment               as other funds in the Fund Complex as
                                        Managers (registered investment                 indicated.
                                        companies) (April 1999-June 2002).
                                        President, Investment Company
                                        Administration, L.L.C. (January
                                        1992*-July 2001). President, Treasurer
                                        and Director, First Fund Distributors,
                                        Inc. (mutual fund distribution) (June
                                        1990-January 2002). Vice President,
                                        Professionally Managed Portfolios (May
                                        1991-January 2002) and Advisors Series
                                        Trust (October 1996-January 2002)
                                        (registered investment companies).

</TABLE>

- ----------
*Inception date of the corporation which was the predecessor to the L.L.C.

                                        9
<PAGE>

DIRECTORS OF THE FUND (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>


                                        PRINCIPAL OCCUPATION(S)
NAME, ADDRESS & AGE                     DURING PAST FIVE YEARS                          OTHER DIRECTORSHIPS HELD BY DIRECTOR
- ------------------------------          -----------------------                         ------------------------------------

<S>                                     <C>                                             <C>
Werner Walbrol, 66                      President and Chief Executive Officer,          Director, The Central Europe and Russia
    Class III                           The European American Chamber of                Fund, Inc. (since 1990). Director, TUV
                                        Commerce, Inc; Senior Adviser, Coudert          Rheinland of North America, Inc.
                                        Brothers LLP. Formerly, President and           (independent testing and assessment
                                        Chief Executive Officer, The German             services). President and Director,
                                        American Chamber of Commerce, Inc.              German-American Partnership Program
                                                                                        (student exchange programs). Director,
                                                                                        AXA Nordstern Art Insurance Corporation
                                                                                        (fine art and collectible insurer).
</TABLE>

- ----------
Each has served as a Director of the Fund since the Fund's inception in 1986
except for Ambassador Burt, Messrs. Langhammer and Voscherau. Ambassador Burt
was elected to the Board on June 30, 2000; Messrs. Langhammer and Voscherau were
elected to the Board on June 24, 2003. The term of office for Directors in Class
I expires at the 2006 Annual Meeting, Class II at the 2004 Annual Meeting and
Class III at the 2005 Annual Meeting. Each Director also serves as a Director of
The Central Europe and Russia Fund, Inc., one of the two other closed-end
registered investment companies for which Deutsche Bank Securities Inc. acts as
manager.

(1) Indicates that Messrs. Bult, Strenger and Wadsworth each also serve as a
    Director of The New Germany Fund, Inc., and The Central Europe and Russia
    Fund, Inc., two of the two other closed-end registered investment companies
    for which Deutsche Bank Securities Inc. acts as manager.
(2) Indicates "interested" Director, as defined in the Investment Company Act of
    1940, as amended (the "1940 Act"). Mr. Bierbaum is an "interested" Director
    because of his affiliation with Sal. Oppenheim Jr. & Cie KGaA, which engages
    in brokerage with the Fund and other accounts managed by the Investment
    Adviser and Investment Manager and their affiliates; Mr. Bult is an
    "interested" Director because of his affiliation with PaineWebber
    International, an affiliate of UBS Securities LLC, a registered
    broker-dealer; and Mr. Strenger is an "interested" Director because of his
    affiliation with DWS-Deutsche Gesellschaft fur Wertpapiersparen mbH ("DWS"),
    a majority-owned subsidiary of Deutsche Bank AG, and because of his
    ownership of Deutsche Bank AG shares.
(3) Indicates that Messrs. Burt and Wadsworth also serve as Directors/Trustees
    of the following open-end investment companies: Scudder Advisor Funds,
    Scudder Advisor Funds II, Scudder Advisor Funds III, Scudder Institutional
    Funds, Scudder Investment Portfolios, Scudder Cash Management Portfolio,
    Scudder Treasury Money Portfolio, Scudder International Equity Portfolio,
    Scudder Equity 500 Index Portfolio, Scudder Asset Management Portfolio,
    Scudder Investments VIT Funds, Scudder MG Investments Trust, Scudder
    Investors Portfolios Trust, Scudder Investors Funds, Inc., Scudder Flag
    Investors Value Builder Fund, Inc., Scudder Flag Investors Equity Partners
    Fund, Inc., Scudder Flag Investors Communications Fund, Inc., Cash Reserves
    Fund, Inc. and Scudder RREEF Securities Trust. They also serve as Directors
    of Scudder RREEF Real Estate Fund, Inc. and Scudder RREEF Real Estate Fund
    II, Inc., closed-end investment companies. These Funds are advised by either
    Deutsche Asset Management, Inc., Deutsche Asset Management Investment
    Services Limited, or Investment Company Capital Corp, each an indirect,
    wholly-owned subsidiary of Deutsche Bank AG.


                                       10
<PAGE>

OFFICERS OF THE FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

NAME, AGE                           PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS
- ----------                          --------------------------------------------

<S>                                 <C>
Richard T. Hale, 58                 Managing Director, Deutsche Investment
   President and Chief              Management Americas Inc. (2003-present);
   Executive Officer                Managing Director, Deutsche Bank Securities
                                    Inc. (formerly Deutsche Banc Alex. Brown
                                    Inc.) and Deutsche Asset Management (1999 to
                                    present); Director and President, Investment
                                    Company Capital Corp. (registered investment
                                    advisor) (1996 to present); Director,
                                    Deutsche Global Funds, Ltd. (2000 to
                                    present), CABEI Fund (2000 to present),
                                    North American Income Fund (2000 to present)
                                    (registered investment companies);
                                    Director, Scudder Global Opportunities Fund
                                    (since 2003); Director/Officer,
                                    Deutsche/Scudder Mutual Funds (various
                                    dates); President, Montgomery Street Income
                                    Securities, Inc. (2002 to present)
                                    (registered investment companies); Vice
                                    President, Deutsche Asset Management, Inc.
                                    (2000 to present); Formerly, Director, ISI
                                    Family of Funds (registered investment
                                    companies; 4 funds overseen) (1992-1999).

Hanspeter Ackermann, 46             President of Deutsche Bank Investment
   Chief Investment Officer         Management Inc., Managing Director of
                                    DeutscheBank Securities Inc., Managing
                                    Director and Senior International Equity
                                    Portfolio Manager of Bankers Trust Co.,
                                    President and Managing Partner of Eiger
                                    Asset Management (1993-1996), Managing
                                    Director and CIO of SBC Portfolio Management
                                    International (1983-1993).

Vincent J. Esposito, 47             Managing Director, Deutsche Asset Management
   Vice President                   (2003 to present). Formerly, Managing
                                    Director and Head of Relationship
                                    Management, Putnam Investments (March
                                    1999-2003) and Managing Director and
                                    National Sales Manager, Putnam Investments
                                    (March 1997-March 1999).

Bruce A. Rosenblum,  43             Director, Deutsche Asset Management (2002 to
Secretary                           present); prior thereto, Vice President of
                                    Deutsche Asset Management (2000-2002); and
                                    partner with the law firm of Freedman, Levy,
                                    Kroll & Simonds (1997-2000).

Charles A. Rizzo, 46                Director, Deutsche Asset Management (April
   Chief Financial Officer          2000 to present). Formerly, Vice President
   and Treasurer                    and Department Head, BT Alex. Brown
                                    Incorporated (now Deutsche Bank Securities
                                    Inc.) (1998-1999); Senior Manager, Coopers &
                                    Lybrand L.L.P. (now PricewaterhouseCoopers
                                    LLP) (1993-1998).

Kathleen Sullivan D'Eramo, 46       Director, Deutsche Asset Management (2003 to
   Assistant Treasurer              present).
</TABLE>

- ----------
Each also serves as an Officer of The Central Europe and Russia Fund, Inc. and
The New Germany Fund, Inc., two other closed-end registered investment companies
for which Deutsche Bank Securities Inc. acts as manager.

                                       11
<PAGE>

THE GERMANY FUND, INC.
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2003
- --------------------------------------------------------------------------------

   SHARES               DESCRIPTION                                   VALUE
  -------------         -------------                            -------------


INVESTMENTS IN GERMAN SECURITIES--86.0%
              COMMON STOCKS--85.5%
              ACCIDENT & HEALTH INSURANCE--11.6%
   120,000    Allianz ......................................... $     15,148,309
                                                                ----------------
              AIR TRANSPORTATION, SCHEDULED--4.0%
   310,000    Deutsche Lufthansa+ .............................        5,180,995
                                                                ----------------
              COURIER SERVICES EXCEPT BY AIR--2.8%
   180,000    Deutsche Post ...................................        3,712,153
                                                                ----------------
              ELECTRIC & OTHER SERVICES COMBINED--5.0%
   100,000    E.ON ............................................        6,526,225
                                                                ----------------
              FIRE, MARINE & CASUALTY INSURANCE--1.4%
    15,000    Munchener Ruckversicherungs .....................        1,818,615
                                                                ----------------
              INDUSTRIAL GASES--2.1%
    50,000    Linde ...........................................        2,692,982
                                                                ----------------
              MOTOR VEHICLES & CAR BODIES--12.6%
    30,000    Bayerische Motoren Werke ........................        1,390,638
   210,000    DaimlerChrysler .................................        9,800,690
    80,000    MAN .............................................        2,426,837
    50,000    Volkswagen ......................................        2,784,430
                                                                ----------------
                                                                      16,402,595
                                                                ----------------
              NATIONAL COMMERCIAL BANKS--2.9%
    20,000    Bayerische Hypothekenbank
                Und Vereinsbank* ..............................          462,663
   170,000    Commerzbank .....................................        3,334,379
                                                                ----------------
                                                                       3,797,042
                                                                ----------------
              PLASTIC MATERIALS, SYNTHETIC RESINS &
                NONVULCAN ELASTOMERS--3.9%
    90,000    BASF+ ...........................................        5,060,788
                                                                ----------------
              PLASTICS PRODUCTS--5.0%
   225,000    Bayer ...........................................        6,589,923
                                                                ----------------
              SECURITY & COMMODITY EXCHANGES--2.1%
    50,000    Deutsche Boerse .................................        2,733,976
                                                                ----------------



   SHARES               DESCRIPTION                                   VALUE
  -------------         -------------                            -------------


              SEMICONDUCTORS & RELATED DEVICES--3.9%
   370,000    Infineon Technologies* .......................... $      5,143,028
                                                                ----------------
              SERVICES-MISC HEALTH & ALLIED SERVICES--0.5%
    10,000    Fresenius Medical Care ..........................          711,401
                                                                ----------------
              SERVICES-PREPACKAGED SOFTWARE--9.0%
    70,000    SAP .............................................       11,756,413
                                                                ----------------
              STEEL WORKS--1.1%
    70,000    Thyssen Krupp ...................................        1,383,575
                                                                ----------------
              TELEPHONE & TELEGRAPH APPARATUS--11.7%
   190,000    Siemens .........................................       15,218,188
                                                                ----------------
              TELEPHONE COMMUNICATIONS
                (NO RADIOTELEPHONE)--1.4%
   100,000    Deutsche Telekom* ...............................        1,830,219
                                                                ----------------
              TIRES & INNER TUBES--0.9%
    30,000    Continental .....................................        1,137,864
                                                                ----------------
              TOUR OPERATORS--1.9%
   120,000    TUI .............................................        2,502,014
                                                                ----------------
              WHOLESALE-GROCERIES AND RELATED PRODUCTS--1.7%
    50,000    Metro ...........................................        2,204,209
                                                                ----------------
              Total Common Stocks
                (cost $78,598,248) ............................      111,550,514
                                                                ----------------
              PREFERRED STOCKS--0.5%
              MOTOR VEHICLES & CAR BODIES--0.5%
    20,000    Bayerische Motoren Werke
                (Cost $469,717) ...............................          620,584
                                                                ----------------
              Total Investments in German
                Securities
                (cost $79,067,965) ............................      112,171,098
                                                                ----------------

INVESTMENTS IN DUTCH
    COMMON STOCKS--1.7%
              RADIO/TV EQUIPMENT--1.1%
    50,000    Philips Electronics .............................        1,460,013
                                                                ----------------

- ----------
*Non-income producing security.
+Portion of the security shares out on loan. See Note 5.

    The accompanying notes are an integral part of the financial statements.

                                       12

<PAGE>
THE GERMANY FUND, INC.
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2003
- --------------------------------------------------------------------------------

   SHARES               DESCRIPTION                                   VALUE
  -------------         -------------                            -------------


              SPECIAL INDUSTRY MACHINERY--0.6%
    35,000    ASML Holding* ................................... $        693,995
                                                                ----------------
              Total Investments in Dutch
                Common Stocks
                (cost $1,907,559) .............................        2,154,008
                                                                ----------------

INVESTMENTS IN FRENCH
    COMMON STOCKS--6.2%
              COMMUNICATIONS EQUIPMENT--1.1%
   110,000    Alcatel* ........................................        1,416,622
                                                                ----------------
              INSURANCE AGENTS, BROKERS & SERVICE--1.0%
    60,000    Axa .............................................        1,284,307
                                                                ----------------
              NATIONAL COMMERCIAL BANKS--3.1%
    23,000    BNP Paribas .....................................        1,448,232
    30,000    Societe Generale ................................        2,648,835
                                                                ----------------
                                                                       4,097,067
                                                                ----------------
              PHARMACEUTICAL PREPARATIONS--1.0%
    20,000    Aventis .........................................        1,321,895
                                                                ----------------
              Total Investments in French
                Common Stocks
                (cost $6,755,697) .............................        8,119,891
                                                                ----------------


   SHARES               DESCRIPTION                                   VALUE
  -------------         -------------                            -------------

INVESTMENTS IN SWISS
    COMMON STOCKS--1.0%
              NATIONAL COMMERCIAL BANKS--1.0%
    20,000    United Bank of Switzerland
                (Cost $1,351,798) ............................. $      1,369,719
                                                                ----------------

INVESTMENTS IN SPANISH
    COMMON STOCKS--1.1%
              TELEPHONE COMMUNICATIONS
                (NO RADIOTELEPHONE)--1.1%
   100,000    Telefonica
                (Cost $1,363,973) .............................        1,468,211
                                                                ----------------
              Total Investments--96.0%
                (cost $90,446,992) ............................    $ 125,282,927
              Cash and other assets in
                excess of liabilities--4.0% ...................        5,159,142
                                                                ----------------

              NET ASSETS--100.0% .............................. $    130,442,069
                                                                ================

- --------------------------------------------------------------------------------
*Non-income producing security.

    The accompanying notes are an integral part of the financial statements.

                                       13
<PAGE>

THE GERMANY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2003
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

ASSETS
<S>                                                                                                        <C>
Investments, at value (cost $90,446,992) ................................................................  $125,282,927
Cash and foreign currency (cost $1,679,351) .............................................................     1,705,229
Foreign withholding tax refund receivable ...............................................................        97,123
Receivable for securities sold ..........................................................................     3,601,047
Interest receivable .....................................................................................         1,211
Other receivables .......................................................................................        11,691
                                                                                                           ------------
   Total assets .........................................................................................   130,699,228
                                                                                                           ------------
LIABILITIES
Payable for shares repurchased ..........................................................................        30,220
Management fee payable ..................................................................................        62,719
Investment advisory fee payable .........................................................................        35,090
Accrued expenses and accounts payable ...................................................................       129,130
                                                                                                           ------------
   Total liabilities ....................................................................................       257,159
                                                                                                           ------------
NET ASSETS ..............................................................................................  $130,442,069
                                                                                                           ============

Net assets consist of:
Paid-in capital, $.001 par (Authorized 80,000,000 shares) ...............................................  $162,230,002
Cost of 1,275,995 shares held in treasury ...............................................................    (7,593,947)
Undistributed net investment income .....................................................................       532,828
Accumulated net realized loss on investments and foreign currency transactions ..........................   (59,635,321)
Net unrealized appreciation of investments and foreign currency related transactions ....................    34,908,507
                                                                                                           ------------
Net assets ..............................................................................................  $130,442,069
                                                                                                           ============
Net asset value per share ($130,442,069 / 15,573,281 shares of common stock
   issued and outstanding) ..............................................................................         $8.38
                                                                                                                  =====
</TABLE>


    The accompanying notes are an integral part of the financial statements.

                                       14
<PAGE>


THE GERMANY FUND, INC.
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                                                            FOR THE
                                                                                                           YEAR ENDED
                                                                                                        DECEMBER 31, 2003
                                                                                                     ---------------------
<S>                                                                                                         <C>
NET INVESTMENT INCOME
Investment income
   Dividends (net of foreign withholding taxes of $332,051) ........................................        $ 1,951,093
   Interest ........................................................................................              9,554
   Securities lending, net .........................................................................             76,713
                                                                                                            -----------
Total investment income ............................................................................          2,037,360
                                                                                                            -----------
Expenses
   Management fee ..................................................................................            594,463
   Investment advisory fee .........................................................................            347,695
   Reports to shareholders .........................................................................            205,893
   Custodian and Transfer Agent's fees and expenses ................................................            162,940
   Directors' fees and expenses ....................................................................            151,864
   Legal fee .......................................................................................            157,102
   Audit fee .......................................................................................             51,606
   NYSE listing fee ................................................................................             33,208
   Miscellaneous ...................................................................................             48,359
                                                                                                            -----------
   Total expenses before custody credits* ..........................................................          1,753,130
   Less: custody credits ...........................................................................             (1,793)
                                                                                                            -----------
   Net expenses ....................................................................................          1,751,337
                                                                                                            -----------
Net investment income ..............................................................................            286,023
                                                                                                            -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
   FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
   Investments .....................................................................................            430,585
   Foreign currency transactions ...................................................................            246,806
Net unrealized appreciation (depreciation) during the year on:
   Investments .....................................................................................         48,001,998
   Translation of other assets and liabilities from foreign currency ...............................             57,846
                                                                                                            -----------
Net gain on investments and foreign currency transactions ..........................................         48,737,235
                                                                                                            -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...............................................        $49,023,258
                                                                                                            ===========
</TABLE>

- --------------------------------------------------------------------------------
* The custody credits are attributable to interest earned on U.S. cash balances.

    The accompanying notes are an integral part of the financial statements.

                                       15
<PAGE>



STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                                        FOR THE              FOR THE
                                                                                      YEAR ENDED           YEAR ENDED
                                                                                   DECEMBER 31, 2003    DECEMBER 31, 2002
                                                                                 --------------------  -------------------
INCREASE (DECREASE) IN NET ASSETS
<S>                                                                                    <C>               <C>
Operations
   Net investment income .......................................................     $    286,023        $     36,867
     Net realized gain (loss) on:
     Investments ...............................................................          430,585         (30,108,314)
     Foreign currency transactions .............................................          246,806              97,482
   Net unrealized appreciation (depreciation) during the year on:
     Investments ...............................................................       48,001,998         (15,979,337)
     Translation of other assets and liabilities from
       foreign currency ........................................................           57,846              37,301
                                                                                     ------------        ------------
   Net increase (decrease) in net assets resulting from
     operations ................................................................       49,023,258         (45,916,001)
                                                                                     ------------        ------------
Distributions to shareholders from:
   Net investment income .......................................................               --             (36,867)
   Net realized foreign currency gains .........................................               --            (125,781)
                                                                                     ------------        ------------
   Total distributions to shareholders (a) .....................................               --            (162,648)
                                                                                     ------------        ------------
Capital share transactions:
   Cost of shares repurchased (570,200 and 536,700 shares,
     respectively) .............................................................       (3,390,652)         (2,904,930)
                                                                                     ------------        ------------
   Net decrease in net assets from capital share transactions ..................       (3,390,652)         (2,904,930)
                                                                                     ------------        ------------
Total increase (decrease) in net assets ........................................       45,632,606         (48,983,579)

NET ASSETS
Beginning of period ............................................................       84,809,463         133,793,042
                                                                                     ------------        ------------
End of period (including undistributed net
   investment income of $532,828 and $0 as of
   December 31, 2003 and December 31, 2002, respectively) ......................     $130,442,069        $ 84,809,463
                                                                                     ============        ============
</TABLE>
- ----------
(a) For U.S. tax purposes, total distributions to shareholders consisted
entirely of ordinary income.



    The accompanying notes are an integral part of the financial statements.

                                       16
<PAGE>

THE GERMANY FUND, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
- --------------------------------------------------------------------------------


NOTE 1. ACCOUNTING POLICIES
The Germany  Fund,  Inc. (the "Fund") was  incorporated  in Delaware on April 8,
1986 as a diversified,  closed-end  management  investment  company.  Investment
operations  commenced on July 23, 1986. The Fund  reincorporated  in Maryland on
August 29, 1990 and on October 16, 1996 the Fund changed from a diversified to a
non-diversified company.

The following is a summary of significant  accounting  policies  followed by the
Fund  in the  preparation  of  its  financial  statements.  The  preparation  of
financial statements in accordance with accounting principles generally accepted
in the United  States of  America  requires  management  to make  estimates  and
assumptions  that affect the reported  amounts and  disclosures in the financial
statements. Actual results could differ from those estimates.

SECURITY  VALUATION:  Investments are stated at value.  All securities for which
market  quotations  are readily  available are valued at the last sales price on
the primary exchange on which they are traded prior to the time of valuation. If
no sales  price is  available  at that  time,  and both bid and ask  prices  are
available,  the  securities  are valued at the mean between the last current bid
and ask prices; if no quoted asked prices are available,  they are valued at the
last  quoted bid price.  All  securities  for which  market  quotations  are not
readily  available  will be valued as  determined  in good faith by the Board of
Directors of the Fund.

SECURITIES  TRANSACTIONS  AND INVESTMENT  INCOME:  Securities  transactions  are
recorded on the trade date.  Cost of  securities  sold is  calculated  using the
identified cost method.  Dividend income is recorded on the ex-dividend date and
interest  income is  recorded  on an  accrual  basis.  Such  dividend  income is
recorded net of unrecoverable foreign withholding tax.

LOANS OF PORTFOLIO  SECURITIES:  The Fund may lend portfolio securities while it
continues  to earn  dividends  on such  securities  loaned.  The market value of
government securities received as collateral is required to be at least equal to
105  percent  of  the  market  value  of  the  securities   loaned,   which  are
marked-to-market daily. Securities lending fees, net of rebates and agency fees,
are  earned  by the Fund  and are  identified  separately  in the  Statement  of
Operations.

FOREIGN CURRENCY  TRANSLATION:  The books and records of the Fund are maintained
in United States dollars.  Assets and liabilities denominated in euros and other
foreign  currency amounts are translated into United States dollars at the 10:00
A.M.  mid-point  of the buying and  selling  spot  rates  quoted by the  Federal
Reserve Bank of New York. Purchases and sales of investment  securities,  income
and expenses are reported at the rate of exchange  prevailing on the  respective
dates of such transactions. The resultant gains and losses arising from exchange
rate  fluctuations  are  identified  separately in the Statement of  Operations,
except for such amounts  attributable  to investments  which are included in net
realized and unrealized gains and losses on investments.

Foreign  investments may involve certain  considerations and risks not typically
associated  with those of  domestic  origin as a result of,  among  others,  the
possibility of political and economic developments and the level of governmental
supervision and regulation of foreign securities markets.

TAXES:  No provision has been made for United States  Federal income tax because
the Fund intends to meet the  requirements of the United States Internal Revenue
Code applicable to regulated  investment  companies and to distribute all of its
taxable income to shareholders.

DIVIDENDS AND  DISTRIBUTIONS  TO  SHAREHOLDERS:  The Fund records  dividends and
distributions  to its shareholders on the ex-dividend  date.  Income and capital
gain  distributions  are  determined  in accordance  with United States  Federal
income tax  regulations  which may differ from accounting  principles  generally
accepted in the United States of America.  These differences primarily relate to
investments  in passive  foreign  investment  companies,  investments in foreign
denominated  securities and certain  securities  sold at a loss.  These could be
temporary  or  permanent  in  nature  and  may  result  in  reclassification  of
distributions; however, net investment income, net realized gains and net assets
are not affected.

At  December  31,  2003,  the  Fund's   components  of  distributable   earnings
(accumulated  losses) on a  tax-basis  were as follows:

Undistributed  ordinary income* ........... $    532,828
Capital  loss  carryforward ............... $(53,510,000)
Net  unrealized appreciation .............. $ 28,711,087

*For tax purposes short-term capital gains are considered ordinary income.

During the year ended  December 31, 2003, the Fund  reclassified  permanent book
and tax differences as follows:

                                                  INCREASE
                                                 (DECREASE)
                                                 ----------
Undistributed net realized gain on investments
  and foreign currency transactions ............ $(249,291)




                                       17
<PAGE>

THE GERMANY FUND, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003 (CONTINUED)
- --------------------------------------------------------------------------------

Undistributed net investment income ........... $ 246,805
Paid-in capital ............................... $   2,486

NOTE 2. MANAGEMENT AND INVESTMENT
        ADVISORY AGREEMENTS
The Fund has a Management  Agreement  with  Deutsche Bank  Securities  Inc. (the
"Manager"),  and an Investment Advisory Agreement with Deutsche Asset Management
International  GmbH (the "Investment  Adviser").  The Manager and the Investment
Adviser are affiliated companies.

The Management  Agreement  provides the Manager with a fee,  computed weekly and
payable  monthly,  at the annual rates of .65% of the Fund's  average weekly net
assets up to $50 million,  and .55% of such assets in excess of $50 million. The
Investment  Advisory  Agreement  provides  the  Investment  Adviser  with a fee,
computed weekly and payable  monthly,  at the annual rates of .35% of the Fund's
average  weekly net assets up to $100  million and .25% of such assets in excess
of $100  million.  Accordingly,  for the year ended  December 31, 2003,  the fee
pursuant to the Management and Investment  Advisory Agreements was equivalent to
an annual effective rate of .95% of the Fund's average net assets.
Pursuant to the Management  Agreement,  the Manager is the corporate manager and
administrator  of the Fund  and,  subject  to the  supervision  of the  Board of
Directors and pursuant to recommendations made by the Fund's Investment Adviser,
determines the suitable  securities for investment by the Fund. The Manager also
provides office facilities and certain administrative,  clerical and bookkeeping
services  for the Fund.  Pursuant  to the  Investment  Advisory  Agreement,  the
Investment Adviser, in accordance with the Fund's stated investment  objectives,
policies and restrictions,  makes recommendations to the Manager with respect to
the  Fund's  investments  and,  upon  instructions  given by the  Manager  as to
suitable  securities  for  investment by the Fund,  transmits  purchase and sale
orders,  and selects  brokers and dealers to execute  portfolio  transactions on
behalf of the Fund.

NOTE 3. TRANSACTIONS WITH AFFILIATES
For the year ended December 31, 2003, Deutsche Bank AG, the German parent of the
Manager  and  Investment  Adviser,  and  its  affiliates  received  $121,809  in
brokerage  commissions as a result of executing agency transactions in portfolio
securities  on behalf of the Fund,  that the Board  determined  were effected in
compliance with the Fund's Rule 17e-1 procedures.

Certain officers of the Fund are also officers of either the Manager or Deutsche
Bank AG.

The Fund pays each Director not affiliated  with the Manager  retainer fees plus
specified amounts for attended board and committee meetings.

NOTE 4. PORTFOLIO SECURITIES
Purchases and sales of investment securities, other than short-term investments,
for the year  ended  December  31,  2003  were  $278,629,725  and  $285,939,984,
respectively.

The cost of investments at December 31, 2003 was  $96,571,840  for United States
Federal  income  tax  purposes.  Accordingly,  as  of  December  31,  2003,  net
unrealized  appreciation  of  investments  aggregated   $28,711,087,   of  which
$28,745,954 and $34,867  related to unrealized  appreciation  and  depreciation,
respectively.

For United States Federal income tax purposes, the Fund had a capital loss carry
forward at December 31, 2003 of approximately $53,510,000,  of which $21,809,000
and  $31,701,000  will expire in 2009 and 2010,  respectively.  No capital gains
distribution is expected to be paid to shareholders  until future net gains have
been realized in excess of such carry forward.

NOTE 5. PORTFOLIO SECURITIES LOANED
At December 31, 2003, the market value of the  securities  loaned and government
securities received as collateral for such loans were $6,460,179 and $6,799,456,
respectively.  For the year ended  December 31, 2003, the Fund earned $76,713 as
securities lending fees, net of rebates and agency fees.

NOTE 6. CAPITAL
During the year ended  December  31, 2003 and the year ended  December 31, 2002,
the Fund purchased 570,200 and 536,700 of its shares of common stock on the open
market at a total cost of $3,390,652 and $2,904,930,  respectively. The weighted
average  discount of these  purchases  comparing  the purchase  price to the net
asset  value at the time of  purchase  was  10.3% and 9.6%  respectively.  These
shares are held in treasury.

NOTE 7. SUBSEQUENT EVENT
Effective  February 17, 2004, the Fund changed the time of  calculating  its net
asset value per share (NAV) to 11:30am,  New York time, from the current 5:00pm,
New York time.



                                       18
<PAGE>


THE GERMANY FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

Selected data for a share of common stock outstanding throughout each of the
periods indicated:
<TABLE>
<CAPTION>

                                                                FOR THE YEARS ENDED DECEMBER 31,
                                   -----------------------------------------------------------------------------------------
                                                   2003     2002             2001            2000            1999
                                                 -------   -------         --------        --------        --------
Per share operating performance:
Net asset value:
<S>                                               <C>       <C>             <C>             <C>             <C>
Beginning of period .........................     $ 5.25    $ 8.02          $ 10.89         $ 16.93         $ 16.07
                                                --------   -------         --------        --------        --------
Net investment income (loss) ................        .02        --              .05            (.02)            .06
Net realized and unrealized gain
   (loss) on investments and
   foreign currency transactions ............       3.09     (2.78)           (2.84)          (3.48)           2.57
                                                --------   -------         --------        --------        --------
Increase (decrease) from
investment operations .......................       3.11     (2.78)           (2.79)          (3.50)           2.63
                                                --------   -------         --------        --------        --------
Increase resulting from
share repurchases ...........................        .02       .02              .01             .05             .12
                                                --------   -------         --------        --------        --------
Distributions from net
investment income ...........................         --        --             (.05)             --            (.04)
Distributions from net realized
foreign currency gains ......................         --      (.01)            (.01)             --              --
Distributions from net realized
   short-term capital gains .................         --        --               --            (.19)           (.25)
Distributions from net realized
   long-term capital gains ..................         --        --             (.02)          (2.30)          (1.46)
                                                --------   -------         --------        --------        --------
Total distributions+ ........................         --      (.01)            (.08)          (2.49)          (1.75)
                                                --------   -------         --------        --------        --------
Dilution in NAV from dividend
   reinvestment .............................         --        --             (.01)           (.10)           (.14)
                                                --------   -------         --------        --------        --------
Net asset value:
End of period ...............................     $ 8.38    $ 5.25           $ 8.02         $ 10.89         $ 16.93
                                                ========   =======         ========        ========        ========
Market value:
End of period ...............................     $ 7.63    $ 4.52           $ 7.05          $ 9.50        $ 15.125
Total investment return for the period:++
Based upon market value .....................      68.81%   (35.76)%         (24.95)%        (21.09)%         23.83%
Based upon net asset value ..................      59.62%   (34.43)%         (25.57)%        (20.66)%         18.08%
Ratio to average net assets:
Total expenses before custody credits* ......       1.77%     1.63%            1.47%           1.29%           1.26%
Net investment income (loss) ................        .29%      .03%             .53%           (.17)%           .40%
Portfolio turnover ..........................     286.91%   111.67%          121.37%         137.70%          71.52%
Net assets at end of period
(000's omitted) .............................   $130,442   $84,809         $133,793        $183,541        $249,596
                                                --------   -------         --------        --------        --------

- -------
 +For U.S. tax purposes, total distributions consisted of:
       Ordinary income                                --     $(.01)           $(.06)         $ (.19)         $( .29)
       Long term capital gains                        --        --             (.02)          (2.30)          (1.46)
                                                    ----     -----            -----          ------         -------
                                                      --     $(.01)           $(.08)         $(2.49)         $(1.75)
                                                    ----     -----            -----          ------         -------
</TABLE>

++Total investment return based on market value is calculated assuming that
  shares of the Fund's common stock were purchased at the closing market price
  as of the beginning of the year, dividends, capital gains and other
  distributions were reinvested as provided for in the Fund's dividend
  reinvestment plan and then sold at the closing market price per share on the
  last day of the year. The computation does not reflect any sales commission
  investors may incur in purchasing or selling shares of the Fund. The total
  investment return based on the net asset value is similarly computed except
  that the Fund's net asset value is substituted for the closing market price.
*The custody credits are attributable to interest earned on U.S. cash balances.
 The ratio of total expenses after custody credits to average net assets are
 1.77%, 1.63%, 1.46%, 1.27% and 1.25% for 2003, 2002, 2001, 2000 and 1999,
 respectively.

                                       19
<PAGE>



REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------

To the Board of Directors and Shareholders of
The Germany Fund, Inc.
   In our  opinion,  the  accompanying  statement  of  assets  and  liabilities,
including the schedule of investments,  and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Germany Fund, Inc. (the "Fund")
at December 31, 2003, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended and
the financial highlights for each of the five years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial  statements") are the  responsibility of the Fund's management;
our responsibility is to express an opinion on these financial  statements based
on our  audits.  We  conducted  our  audits  of these  financial  statements  in
accordance with auditing  standards  generally  accepted in the United States of
America,  which require that we plan and perform the audit to obtain  reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the  amounts  and  disclosures  in  the  financial  statements,   assessing  the
accounting  principles  used and significant  estimates made by management,  and
evaluating the overall  financial  statement  presentation.  We believe that our
audits,  which  included  confirmation  of  securities  at December  31, 2003 by
correspondence  with the custodian and brokers,  provide a reasonable  basis for
our opinion.



PricewaterhouseCoopers LLP
1177 Avenue of Americas
New York, NY
February 17, 2004


                                       20
<PAGE>


VOLUNTARY CASH PURCHASE PROGRAM AND DIVIDEND REINVESTMENT PLAN
(UNAUDITED)
- --------------------------------------------------------------------------------

   The Fund offers  shareholders a Voluntary Cash Purchase  Program and Dividend
Reinvestment  Plan ("Plan")  which  provides for optional cash purchases and for
the automatic reinvestment of dividends and distributions payable by the Fund in
additional Fund shares.  A more complete  description of the Plan is provided in
the Plan brochure available from Investors Bank & Trust Company,  the plan agent
(the "Plan Agent"),  Shareholder Services, P.O. Box 9130, Boston,  Massachusetts
02117 (telephone  1-800-437-6269).  A shareholder  should read the Plan brochure
carefully before enrolling in the Plan.
   Under the Plan, participating  shareholders ("Plan Participants") appoint the
Plan Agent to receive or invest  Fund  distributions  as  described  below under
"Reinvestment of Fund Shares." In addition,  Plan Participants may make optional
cash  purchases  through  the Plan  Agent as often as once a month as  described
below under "Voluntary Cash Purchases."  There is no charge to Plan Participants
for participating in the Plan, although when shares are purchased under the Plan
by the Plan  Agent on the New  York  Stock  Exchange  or  otherwise  on the open
market, each Plan Participant will pay a pro rata share of brokerage commissions
incurred  in  connection   with  such   purchases,   as  described  below  under
"Reinvestment  of Fund Shares" and "Voluntary Cash  Purchases."

REINVESTMENT  OF FUND  SHARES.  Whenever  the  Fund  declares  a  capital  gains
distribution, an income dividend or a return of capital distribution payable, at
the election of shareholders,  either in cash or in Fund shares, or payable only
in cash, the Plan Agent shall automatically elect to receive Fund shares for the
account of each Plan Participant.

   Whenever the Fund declares a capital gains  distribution,  an income dividend
or a return of capital distribution payable only in cash and the net asset value
per share of the Fund's common stock equals or is less than the market price per
share on the valuation  date (the "Market  Parity or  Premium"),  the Plan Agent
shall  apply the  amount of such  dividend  or  distribution  payable  to a Plan
Participant   to  the  purchase  from  the  Fund  of  Fund  Shares  for  a  Plan
Participant's  account,  except that if the Fund does not offer  shares for such
purpose because it concludes  Securities Act registration  would be required and
such registration cannot be timely effected or is not otherwise a cost-effective
alternative  for the  Fund,  then the Plan  Agent  shall  follow  the  procedure
described in the next paragraph.  The number of additional shares to be credited
to a Plan  Participant's  account  shall be  determined  by dividing  the dollar
amount of the distribution  payable to a Plan Participant by the net asset value
per share of the Fund's common stock on the valuation  date, or if the net asset
value  per share is less than 95% of the  market  price per share on such  date,
then by 95% of the  market  price  per  share.  The  valuation  date will be the
payable date for such dividend or distribution.
   Whenever the Fund declares a capital gains  distribution,  an income dividend
or a return of capital distribution payable only in cash and the net asset value
per share of the Fund's  common stock  exceeds the market price per share on the
valuation date (the "Market Discount"), the Plan Agent shall apply the amount of
such  dividend  or  distribution  payable  to a Plan  Participant  (less  a Plan
Participant's pro rata share of brokerage  commissions  incurred with respect to
open-market  purchases in connection  with the  reinvestment of such dividend or
distribution)  to the  purchase  on the open  market of Fund  shares  for a Plan
Participant's  account.  The  valuation  date will be the payable  date for such
dividend or  distribution.  Such  purchases will be made on or shortly after the
valuation  date and in no event more than 30 days after such date  except  where
temporary  curtailment  or  suspension  of purchase is  necessary to comply with
applicable provisions of federal securities laws.
   The  Plan  Agent  may  aggregate  a Plan  Participant's  purchases  with  the
purchases of other Plan Participants, and the average price (including brokerage
commissions)  of all shares  purchased  by the Plan Agent shall be the price per
share allocable to each Plan Participant.
   For all purposes of the Plan,  the market price of the Fund's common stock on
a payable  date shall be the last sales price on the New York Stock  Exchange on
that date,  or, if there is no sale on such  Exchange  (or,  if  different,  the
principal  exchange  for Fund  shares) on that date,  then the mean  between the
closing bid and asked  quotations  for such stock on such Exchange on such date.
The net asset value per share of the Fund's  common  stock on a  valuation  date
shall be as determined by or on behalf of the Fund.


                                       21
<PAGE>


VOLUNTARY CASH PURCHASE PROGRAM AND DIVIDEND REINVESTMENT PLAN
(UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------

   The Plan Agent may hold a Plan Participant's  shares acquired pursuant to the
Plan,  together with the shares of other Plan Participants  acquired pursuant to
this Plan, in  non-certificated  form in the name of the Plan Agent or that of a
nominee.  The Plan  Agent  will  forward  to each  Plan  Participant  any  proxy
solicitation  material  and will vote any shares so held for a Plan  Participant
only in accordance  with the proxy  returned by a Plan  Participant to the Fund.
Upon a Plan Participant's written request, the Plan Agent will deliver to a Plan
Participant,  without charge,  a certificate or certificates for the full shares
held by the Plan Agent.

VOLUNTARY  CASH  PURCHASES.   Plan   Participants  have  the  option  of  making
investments in Fund shares through the Plan Agent as often as once a month. Plan
Participants  may  invest as  little  as $100 in any month and may  invest up to
$36,000 annually through the voluntary cash purchase feature of the Plan.
   The Plan Agent  shall apply such funds  (less a Plan  Participant's  pro rata
share of brokerage  commissions  or other costs,  if any) to the purchase on the
New York Stock  Exchange (or, if different,  on the principal  exchange for Fund
shares)  or  otherwise  on  the  open  market  of  Fund  shares  for  such  Plan
Participant's account, regardless of whether there is a Market Parity or Premium
or a Market Discount.  The Plan Agent will purchase shares for Plan Participants
on or about the 15th of each  month.  Cash  payments  received by the Plan Agent
less than five business days prior to a cash  purchase  investment  date will be
held by the Plan Agent until the next month's investment date.  Uninvested funds
will not bear  interest.  Plan  Participants  may  withdraw any  voluntary  cash
payment  by  written  notice  received  by the Plan Agent not less than 48 hours
before such payment is to be invested.

ENROLLMENT AND WITHDRAWAL. Both current shareholders and first-time investors in
the Fund are eligible to participate in the Plan.  Current  shareholders my join
the Plan by either  enrolling  their  shares with the Plan Agent or by making an
initial cash deposit of at least $250 with the Plan Agent.  First-time investors
in the Fund may join the Plan by making an initial cash deposit of at least $250
with the Plan Agent. In order to become a Plan  Participant,  shareholders  must
complete and sign the  enrollment  form included in the Plan brochure and return
it, and, if applicable, an initial cash deposit of at least $250 directly to the
Plan Agent if shares are  registered in their name.  Shareholders  who hold Fund
shares in the name of a brokerage  firm,  bank or other nominee  should  contact
such nominee to arrange for it to participate in the Plan on such  shareholder's
behalf.
   If the Plan  Participant  elects  to  participate  in the  Plan by  enrolling
current shares owned by the Plan Participant with the Plan Agent,  participation
in the dividend  reinvestment  feature of the Plan begins with the next dividend
or capital gains  distribution  payable  after the Plan Agent  receives the Plan
Participant's written authorization,  provided such authorization is received by
the Plan Agent prior to the record date for such  dividend or  distribution.  If
such  authorization  is received after such record date, the Plan  Participant's
participation in the dividend  reinvestment  feature of the Plan begins with the
following dividend or distribution.
   If the Plan  Participant  elects  to  participate  in the Plan by  making  an
initial cash deposit of at least $250 with the Plan Agent,  participation in the
dividend  reinvestment  feature of the Plan  begins  with the next  dividend  or
capital  gains  distribution  payable  after the Plan  Agent  receives  the Plan
Participant's  authorization  and  deposit,  and after the Plan Agent  purchases
shares  for the  Plan  Participant  on the  New  York  Stock  Exchange  (or,  if
different,  on the principal  exchange for Fund shares) or otherwise on the open
market,  provided  that the  authorization  and  deposit are  received,  and the
purchases  are  made  by the  Plan  Agent  prior  to the  record  date.  If such
authorization  and deposit are received  after the record  date,  or if the Plan
Agent purchases shares for the Plan Participant  after the record date, the Plan
Participant's  participation  in the dividend  reinvestment  feature of the Plan
begins with the following dividend or distribution.
   A shareholder's  written  authorization  and cash payment must be received by
the Plan Agent at least five  business days in advance of the next cash purchase
investment  date  (normally  the 15th of  every  month)  in  order  for the Plan
Participant to participate in the voluntary cash purchase feature of the Plan in
that month.


                                       22
<PAGE>


VOLUNTARY CASH PURCHASE PROGRAM AND DIVIDEND REINVESTMENT PLAN
(UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------

   Plan Participants may withdraw from the Plan without charge by written notice
to the Plan Agent. Plan Participants who choose to withdraw may elect to receive
stock certificates representing all of the full shares held by the Plan Agent on
their  behalf,  or to  instruct  the Plan  Agent to sell  such full  shares  and
distribute the proceeds, net of brokerage commissions,  to such withdrawing Plan
Participant.  Withdrawing Plan  Participants  will receive a cash adjustment for
the market  value of any  fractional  shares held on their behalf at the time of
termination.   Withdrawal  will  be  effective   immediately   with  respect  to
distributions  with a record  date not less than 10 days later  than  receipt of
such written notice by the Plan Agent.

AMENDMENT AND  TERMINATION OF PLAN. The Plan may only be amended or supplemented
by the Fund or by the Plan Agent by giving each Plan Participant  written notice
at least 90 days prior to the effective  date of such  amendment or  supplement,
except that such notice period may be shortened when necessary or appropriate in
order to comply with  applicable  law or the rules or policies of the Securities
and Exchange Commission or any other regulatory body.

   The Plan may be terminated by the Fund or by the Plan Agent by written notice
mailed to each Plan Participant. Such termination will be effective with respect
to  all distributions  with  a record date at least 90 days after the mailing of
such written notice to the Plan Participants.

FEDERAL INCOME TAX IMPLICATIONS OF REINVESTMENT OF FUND SHARES.  Reinvestment of
Fund shares does not relieve Plan  Participants from any income tax which may be
payable on dividends or  distributions.  For U.S.  federal  income tax purposes,
when the Fund issues shares  representing  an income dividend or a capital gains
dividend,  a  Participant  will  include in income the fair market  value of the
shares received as of the payment date,  which will be ordinary  dividend income
or capital gains,  as the case may be. The shares will have a tax basis equal to
such fair market value,  and the holding period for the shares will begin on the
day after the date of  distribution.  If shares are purchased on the open market
by the Plan Agent, a Plan  Participant  will include in income the amount of the
cash payment  made.  The basis of such shares will be the purchase  price of the
shares,  and the holding  period for the shares will begin on the day  following
the date of purchase. State, local and foreign taxes may also be applicable.






                                       23
<PAGE>


2003 U.S. TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------

   The Fund paid foreign taxes of $332,051 and earned $754,711 of foreign source
income year during the year ended December 31, 2003.  Pursuant to section 853 of
the Internal  Revenue Code, the Fund designates $0.03 per share as foreign taxes
paid and $0.05 per share as income  earned  from  foreign  sources  for the year
ended December 31, 2003.

   For Federal  income tax  purposes,  the Fund  designates  $2,283,000,  or the
maximum amount allowable under tax law, as qualified dividend income.


PRIVACY POLICY AND PRACTICES
- --------------------------------------------------------------------------------
   We  never  sell  customer  lists  or  information  about  individual  clients
(stockholders).  We consider privacy fundamental to our client relationships and
adhere to the  policies and  practices  described  below to protect  current and
former  clients'  information.   Internal  policies  are  in  place  to  protect
confidentiality,  while allowing client needs to be served. Only individuals who
need to do so in  carrying  out their job  responsibilities  may  access  client
information.  We maintain  physical,  electronic and procedural  safeguards that
comply with  federal  standards  to protect  confidentiality.  These  safeguards
extend to all forms of interaction with us, including the Internet.

   In  the  normal  course  of  business,   we  may  obtain   information  about
stockholders  whose shares are registered in their names.  For purposes of these
policies,  "clients" means  stockholders of the Funds. (We generally do not have
knowledge of or collect personal  information  about  stockholders who hold Fund
shares in "street  name,"  such as through  brokers or banks.)  Examples  of the
nonpublic  personal  information  collected are name,  address,  Social Security
number and transaction and balance information. To be able to serve our clients,
certain  of  this  client   information   may  be  shared  with  affiliated  and
nonaffiliated third party service providers such as transfer agents, custodians,
and  broker-dealers  to assist us in processing  transactions  and servicing the
client's account with us. The organizations  described above that receive client
information may only use it for the purpose designated by the Funds.

   We may also disclose  nonpublic  personal  information about clients to other
parties as required or permitted by law. For example,  we are required or we may
provide  information to government  entities or regulatory bodies in response to
requests  for  information  or  subpoenas,   to  private  litigants  in  certain
circumstances,  to law  enforcement  authorities,  or any  time  we  believe  it
necessary to protect the firm from such activity.


PROXY VOTING
- --------------------------------------------------------------------------------

   A description  of the Fund's  policies and  procedures for voting proxies for
portfolio securities can be found on our web site at  www.germanyfund.com  or on
the SEC's web site at www.sec.gov. To obtain a written copy without charge, call
us toll free at 1-800-437-6269.


                                       24
<PAGE>

                      [THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>

                      [THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>

  EXECUTIVE OFFICES
  345 PARK AVENUE, NEW YORK, NY 10154
  (FOR LATEST NET ASSET VALUE, SCHEDULE OF THE FUND'S LARGEST HOLDINGS,
  DIVIDEND DATA AND SHAREHOLDER INQUIRIES, PLEASE CALL 1-800-GERMANY IN THE
  U.S. OR 617-443-6918 OUTSIDE OF THE U.S.)

  MANAGER
  DEUTSCHE BANK SECURITIES INC.

  INVESTMENT ADVISER
  DEUTSCHE ASSET MANAGEMENT INTERNATIONAL GMBH

  CUSTODIAN AND TRANSFER AGENT
  INVESTORS BANK & TRUST COMPANY

  LEGAL COUNSEL
  SULLIVAN & CROMWELL LLP

  INDEPENDENT AUDITORS
  PRICEWATERHOUSECOOPERS LLP

  DIRECTORS AND OFFICERS
  CHRISTIAN H. STRENGER
  CHAIRMAN AND DIRECTOR

  DETLEF BIERBAUM
  DIRECTOR

  JOHN A. BULT
  DIRECTOR

  RICHARDR. BURT
  DIRECTOR

  FRED H. LANGHAMMER
  DIRECTOR

  EGGERT VOSCHERAU
  DIRECTOR

  ROBERT H. WADSWORTH
  DIRECTOR

  WERNER WALBROL
  DIRECTOR

  RICHARD T. HALE
  PRESIDENT AND CHIEF EXECUTIVE OFFICER

  HANSPETER ACKERMANN
  CHIEF INVESTMENT OFFICER

  VINCENT J. ESPOSITO
  VICE PRESIDENT

  BRUCE A. ROSENBLUM
  SECRETARY

  CHARLES A. RIZZO
  CHIEF FINANCIAL OFFICER AND TREASURER

  KATHLEEN SULLIVAN D'ERAMO
  ASSISTANT TREASURER

  HONORARY DIRECTOR
  OTTOWOLFF von AMERONGEN

28270 (2/04)
<PAGE>

- --------------------------------------------------------------------------------
                         VOLUNTARY CASH PURCHASE PROGRAM
                         AND DIVIDEND REINVESTMENT PLAN

 The Fund offers  stockholders  a Voluntary  Cash Purchase  Program and Dividend
 Reinvestment  Plan ("Plan")  which provides for optional cash purchases and for
 the automatic  reinvestment of dividends and distributions  payable by the Fund
 in additional Fund shares.  Plan  participants  may invest as little as $100 in
 any month and may invest up to $36,000  annually.  The Plan has been amended to
 allow current  shareholders,  who are not already participants in the Plan, and
 first time investors to enroll in the Plan by making an initial cash deposit of
 at least $250 with the plan agent.  Share  purchases  are combined to receive a
 beneficial brokerage fee. A brochure is available by writing or telephoning the
 plan agent:

                         Investors Bank & Trust Company
                              Shareholder Services
                               P.O. Box 642 OPS22
                              Boston, MA 02117-0642
                               Tel. 1-800-437-6269
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
 This report,  including the financial  statements herein, is transmitted to the
 shareholders  of The Germany Fund,  Inc. for their  information.  This is not a
 prospectus,  circular or  representation  intended  for use in the  purchase of
 shares of the Fund or any securities  mentioned in this report. The information
 contained  in  the  letter  to  shareholders,  the  interview  with  the  chief
 investment  officer and the report from the  investment  adviser and manager in
 this report is derived from carefully selected sources believed reasonable.  We
 do not guarantee its accuracy or completeness, and nothing in this report shall
 be construed to be a representation of such guarantee.  Any opinions  expressed
 reflect the current judgment of the author, and do not necessarily  reflect the
 opinion of Deutsche Bank AG or any of its subsidiaries and affiliates.

 Notice is hereby  given in  accordance  with  Section  23(c) of the  Investment
 Company Act of 1940 that the Fund may  purchase  at market  prices from time to
 time shares of its common stock in the open market.

 Comparisons between changes in the Fund's net asset value per share and changes
 in the DAX index should be considered in light of the Fund's  investment policy
 and objectives, the characteristics and quality of the Fund's investments,  the
 size of the Fund and variations in the foreign currency/dollar exchange rate.

 Fund Shares are not FDIC - insured and are not deposits or other obligations of
 or guaranteed  by any bank.  Fund Shares  involve  investment  risk,  including
 possible loss of principal.
- --------------------------------------------------------------------------------

                                [GRAPHIC OMITTED]
                                       GER
                                     LISTED
                                     NYSE(R)

                 Copies of this report, monthly fact sheets and
                      other information are available at:
                              www.germanyfund.com

                                       27

<PAGE>
SUMMARY OF GENERAL INFORMATION
- --------------------------------------------------------------------------------

THE FUND

The Germany Fund, Inc. is a  non-diversified,  actively-managed  Closed-End Fund
listed on the New York  Stock  Exchange  with the symbol  "GER".  The Fund seeks
long-term capital appreciation  primarily through investment in German equities.
It is managed and advised by  wholly-owned  subsidiaries  of the  Deutsche  Bank
Group.

SHAREHOLDER INFORMATION

Prices for the Fund's shares are published  daily in the New York Stock Exchange
Composite  Transactions section of newspapers.  Net asset value and market price
information  are  published  each Monday in THE WALL STREET  JOURNAL and THE NEW
YORK TIMES, and each Saturday in BARRON'S and other newspapers in a table called
"Closed End Funds". Daily information on the Fund's net asset value is available
from NASDAQ (symbol XGERX).  It is also available by calling:  1-800-GERMANY (in
the U.S.) or 617-443-6918  (outside of the U.S.). In addition, a schedule of the
Fund's largest holdings,  dividend data and general shareholder  information may
be obtained by calling these numbers.

The foregoing information is also available on our Web site:
www.germanyfund.com.


- --------------------------------------------------------------------------------
THERE ARE THREE  CLOSED-END  FUNDS  INVESTING  IN EUROPEAN  EQUITIES  MANAGED BY
WHOLLY-OWNED  SUBSIDIARIES OF THE DEUTSCHEBANK GROUP:

o Germany  Fund--investing primarily in equities of major German corporations.
     It may also invest up to 20% in equities of other Western European
     companies (with no more than 15% in any single country).

o New Germany Fund--investing primarily in  the  middle-market  German companies
     and up to 20%  elsewhere  in Western  Europe  (with no more than 10% in any
     single country).
o Central Europe  and  Russia Fund--investing primarily in Central European  and
     Russian companies.

Please consult your broker for advice on any of the above or call  1-800-GERMANY
(in the U.S.) or  617-443-6918  (outside of the U.S.) for shareholder reports.
- --------------------------------------------------------------------------------

10689

ITEM 2. CODE OF ETHICS.

As of the end of the period,  December  31,  2003,  The Germany  Fund,  Inc. has
adopted a code of ethics,  as defined in Item 2 of Form N-CSR,  that  applies to
its President and Treasurer and its Chief Financial  Officer. A copy of the code
of ethics is filed as an exhibit to this Form N-CSR.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Fund's Board of Directors/Trustees has determined that the Fund has at least
one "audit  committee  financial  expert"  serving on its audit  committee:  Mr.
Robert H. Wadsworth.  This audit committee member is "independent," meaning that
he is not an "interested person" of the Fund (as that term is defined in Section
2(a)(19)  of the  Investment  Company  Act of 1940) and he does not  accept  any
consulting,  advisory,  or other  compensatory  fee from the Fund (except in the
capacity as a Board or committee member).

An "audit  committee  financial  expert"  is not an  "expert"  for any  purpose,
including for purposes of Section 11 of the  Securities Act of 1933, as a result
of being  designated as an "audit  committee  financial  expert."  Further,  the
designation of a person as an "audit committee  financial  expert" does not mean
that the person has any greater  duties,  obligations,  or liability  than those
imposed  on  the  person  without  the  "audit   committee   financial   expert"
designation.  Similarly,  the  designation  of a person as an  "audit  committee
financial expert" does not affect the duties,  obligations,  or liability of any
other member of the audit committee or board of directors.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.


                             THE GERMANY FUND, INC.
                      FORM N-CSR DISCLOSURE RE: AUDIT FEES

The following  table shows the amount of fees that  PricewaterhouseCoopers,  LLP
("PWC"),  the Fund's  auditor,  billed to the Fund  during  the Fund's  last two
fiscal years. For engagements with PWC entered into on or after May 6, 2003, the
Audit  Committee  approved in advance all audit services and non-audit  services
that PWC provided to the Fund.

The Audit Committee has delegated certain  pre-approval  responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).

               SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
<TABLE>
<CAPTION>

- ------------------------------- --------------------- --------------------- ---------------------- -------------------
         Fiscal Year                                                                                      All
            Ended                Audit Fees Billed       Audit-Related       Tax Fees Billed to    Other Fees Billed
         December 31                  to Fund         Fees Billed to Fund           Fund                to Fund
- ------------------------------- --------------------- --------------------- ---------------------- -------------------
<C>                                   <C>                      <C>                 <C>                   <C>
2003                                  $51,164                  $0                  $9,267                $6,715
- ------------------------------- --------------------- --------------------- ---------------------- -------------------
2002                                  $45,500                  $0                  $12,034                 $0
- ------------------------------- --------------------- --------------------- ---------------------- -------------------
</TABLE>

The above "Tax Fees" were  billed for  professional  services  rendered  for tax
compliance.

           SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND
                        AFFILIATED FUND SERVICE PROVIDERS

The  following  table  shows  the  amount  of  fees  billed  by PWC to  Deutsche
Investment Management Americas,  Inc. ("DeIM" or the "Adviser"),  and any entity
controlling,   controlled  by  or  under  common  control  with  DeIM  ("Control
Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service
Provider"),  for  engagements  directly  related  to the Fund's  operations  and
financial reporting, during the Fund's last two fiscal years.

<TABLE>
<CAPTION>

- ------------------------------- --------------------- ---------------------- -------------------
         Fiscal Year               Audit-Related       Tax Fees Billed to           All
                                   Fees Billed to                            Other Fees Billed
                                    Adviser and            Adviser and         to Adviser and
            Ended                 Affiliated Fund        Affiliated Fund      Affiliated Fund
         December 31             Service Providers      Service Providers    Service Providers
- ------------------------------- --------------------- ---------------------- -------------------
<S>                                   <C>                      <C>                   <C>
2003                                  $538,457                 $0                    $0
- ------------------------------- --------------------- ---------------------- -------------------
2002                                  $399,300               $69,500              $92,400
- ------------------------------- --------------------- ---------------------- -------------------
</TABLE>

The  "Audit-Related  Fees"  were  billed for  services  in  connection  with the
assessment of internal controls,  agreed-upon  procedures and additional related
procedures.


                                       1
<PAGE>


                               NON-AUDIT SERVICES

The  following  table shows the amount of fees that PWC billed during the Fund's
last two fiscal years for non-audit services. For engagements entered into on or
after May 6, 2003, the Audit Committee  pre-approved all non-audit services that
PWC  provided to the Adviser  and any  Affiliated  Fund  Service  Provider  that
related  directly to the Fund's  operations and financial  reporting.  The Audit
Committee  requested  and  received  information  from PWC about  any  non-audit
services that PWC rendered during the Fund's last fiscal year to the Adviser and
any Affiliated Fund Service Provider.  The Committee considered this information
in evaluating PWC's independence.

<TABLE>
<CAPTION>

- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
                                                 Total Non-Audit Fees   Total Non-Audit Fees
                                                 billed to Adviser and     billed to Adviser
                                                    Affiliated Fund      and Affiliated Fund
                                                   Service Providers      Service Providers
                                                  (engagements related       (all other
                                                    directly to the         engagements)
                               Total                operations and
                             Non-Audit Fees       financial reporting
       Fiscal Year          Billed to Fund           of the Fund)                                 Total of (A), (B)
         Ended
      December 31                  (A)                    (B)                     (C)                  and (C)
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
<S>                              <C>                       <C>                <C>                    <C>
2003                             $15,982                   $0                 $3,967,000             $3,982,982
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
2002                             $12,034                $161,900              $17,092,950            $17,266,884
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
</TABLE>


All other  engagement  fees were  billed for  services in  connection  with risk
management,  tax services and process  improvement/integration  initiatives  for
DeIM and other related  entities that provide  support for the operations of the
fund.



                                       2

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable at this time.

ITEM 6. [RESERVED]

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

PROXY VOTING GUIDELINES

The Fund has delegated proxy voting  responsibilities to its investment advisor,
subject to the Board's general oversight. The Fund has delegated proxy voting to
the advisor with the direction that proxies should be voted  consistent with the
Fund's best  economic  interests.  The advisor has adopted its own Proxy  Voting
Policies and Procedures ("Policies"), and Proxy Voting Guidelines ("Guidelines")
for this  purpose.  The  Policies  address,  among other  things,  conflicts  of
interest that may arise between the interests of the Fund,  and the interests of
the advisor and its affiliates,  including the Fund's principal underwriter. The
Guidelines set forth the advisor's general position on various  proposals,  such
as:

         o  Shareholder  Rights -- The advisor generally votes against proposals
            that restrict shareholder rights.

         o  Corporate Governance -- The advisor generally votes for confidential
            and cumulative voting and against  supermajority voting requirements
            for charter and bylaw amendments.

         o  Anti-Takeover  Matters -- The advisor  generally votes for proposals
            that  require  shareholder  ratification  of  poison  pills  or that
            request  boards to redeem  poison  pills,  and votes  "against"  the
            adoption  of  poison  pills if they are  submitted  for  shareholder
            ratification. The advisor generally votes for fair price proposals.

         o  Routine Matters -- The advisor  generally votes for the ratification
            of auditors,  procedural matters related to the annual meeting,  and
            changes  in  company  name,  and  against   bundled   proposals  and
            adjournment.

The general provisions described above do not apply to investment companies. The
advisor generally votes proxies solicited by investment  companies in accordance
with the  recommendations  of an  independent  third-party,  except for  proxies
solicited by or with respect to investment companies for which the advisor or an
affiliate  serves as investment  advisor or principal  underwriter  ("affiliated
investment companies").  The advisor votes affiliated investment company proxies
in  the  same  proportion  as  the  vote  of  the  investment   company's  other
shareholders  (sometimes called "mirror" or "echo" voting).  Master fund proxies
solicited from feeder funds are voted in accordance with applicable requirements
of the Investment Company Act of 1940.

Although the  Guidelines  set forth the advisor's  general  voting  positions on
various proposals,  the advisor may,  consistent with the Fund's best interests,
determine under some circumstances to vote contrary to those positions.

The  Guidelines  on a  particular  issue  may or may  not  reflect  the  view of
individual members of the board, or of a majority of the board. In addition, the
Guidelines may reflect a voting position that differs from the actual  practices
of  the  public  companies  within  the  Deutsche  Bank  organization  or of the
investment  companies for which the advisor or an affiliate serves as investment
advisor or sponsor.

The  advisor  may  consider  the views of a portfolio  company's  management  in
deciding how to vote a proxy or in establishing general voting positions for the
Guidelines, but management's views are not determinative.

As mentioned above, the Policies  describe the way in which the advisor resolves
conflicts  of  interest.  To  resolve  conflicts,   the  advisor,  under  normal
circumstances,  votes proxies in accordance with its Guidelines.  If the advisor
departs  from  the  Guidelines  with  respect  to a  particular  proxy or if the
Guidelines do not specifically  address a certain proxy proposal, a proxy voting
committee established by the advisor will vote the proxy. Before voting any such
proxy,  however,  the  advisor's  conflicts  review  committee  will  conduct an
investigation to determine whether any potential  conflicts of interest exist in
connection with the particular proxy proposal. If the conflicts review committee
determines  that the advisor has a material


<PAGE>

conflict of  interest,  or certain  individuals  on the proxy  voting  committee
should be recused from  participating in a particular proxy vote, it will inform
the  proxy  voting  committee.  If  notified  that the  advisor  has a  material
conflict,  or fewer than three voting members are eligible to participate in the
proxy vote, typically the advisor will engage an independent third party to vote
the proxy or follow the proxy voting  recommendations  of an  independent  third
party. Under certain circumstances,  the advisor may not be able to vote proxies
or the advisor may find that the expected  economic  costs from voting  outweigh
the  benefits  associated  with voting.  For  example,  the advisor may not vote
proxies on certain foreign securities due to local restrictions or customs.  The
advisor generally does not vote proxies on securities  subject to share blocking
restrictions.



ITEM 8.  [RESERVED]

ITEM 9. CONTROLS AND PROCEDURES.

(a) The Chief Executive and Financial Officers concluded that the Registrant's
Disclosure Controls and Procedures are effective based on the evaluation of the
Disclosure Controls and Procedures as of a date within 90 days of the filing
date of this report.

ITEM 10. EXHIBITS.

(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable at
this time.
<PAGE>

(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act (17
CFR 270.30a-2) in the exact form set forth below: Attached hereto.







                                   SIGNATURES


Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

Registrant:                         The Germany Fund, Inc.
                                    -------------------------

By:                                 /s/ Richard T. Hale
                                    -------------------
                                    Richard T. Hale
                                    Chief Executive Officer

Date:                      February 27, 2004
                           ----------------------------------


Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment  Company  Act of  1940,  this  report  has been  signed  below by the
following  persons on behalf of the  registrant and in the capacities and on the
dates indicated.

Registrant:                The Germany Fund, Inc.
                           ----------------------------------


By:                                 /s/Richard T. Hale
                                    -------------------
                                    Richard T. Hale
                                    Chief Executive Officer

Date:                      February 27, 2004
                           ----------------------------------


By:                                 /s/Charles A. Rizzo
                                    -------------------
                                    Charles A. Rizzo
                                    Chief Financial Officer

Date                       February 27, 2004
                           ----------------------------------











</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>3
<FILENAME>ex99cert.txt
<TEXT>
                                                                  [LOGO OMITTED]
                                                       Deutsche Asset Management
                                             A Member of the Deutsche Bank Group





CHIEF EXECUTIVE OFFICER
FORM N-CSR CERTIFICATION UNDER SARBANES OXLEY ACT






I, Richard T. Hale, certify that:

1. I have  reviewed this report,  filed on behalf of The Germany Fund,  Inc., on
   Form N-CSR;

2. Based on my knowledge, this report does not contain any untrue statement of a
   material  fact  or omit  to  state a  material  fact  necessary  to make  the
   statements  made, in light of the  circumstances  under which such statements
   were made, not misleading with respect to the period covered by this report;

3. Based  on  my  knowledge,  the  financial  statements,  and  other  financial
   information included in this report,  fairly present in all material respects
   the financial  condition,  results of operations,  changes in net assets, and
   cash flows (if the financial  statements  are required to include a statement
   of cash flows) of the  registrant  as of, and for,  the periods  presented in
   this report;

4. The  registrant's  other  certifying  officer(s)  and I are  responsible  for
   establishing and maintaining  disclosure  controls and procedures (as defined
   in Rule  30a-3(c)  under the  Investment  Company  Act of 1940) and  internal
   control  over  financial  reporting  (as defined in Rule  30a-3(d)  under the
   Investment Company Act of 1940) for the registrant and have:

              (a) Designed such disclosure  controls and  procedures,  or caused
                  such  disclosure  controls and procedures to be designed under
                  our supervision,  to ensure that material information relating
                  to the registrant, including its consolidated subsidiaries, is
                  made known to us by others within those entities, particularly
                  during the period in which this report is being prepared;

              (b) Designed such internal  control over financial  reporting,  or
                  caused such internal  control over  financial  reporting to be
                  designed  under  our   supervision,   to  provide   reasonable
                  assurance regarding the reliability of financial reporting

<PAGE>

   and  the  preparation  of  financial  statements  for  external  purposes  in
   accordance with generally accepted accounting principles;

              (c)Evaluated  the  effectiveness  of the  registrant's  disclosure
                  controls  and  procedures  and  presented  in this  report our
                  conclusions about the effectiveness of the disclosure controls
                  and  procedures,  as of a date  within  90 days  prior  to the
                  filing date of this report based on such evaluation; and

              (d) Disclosed  in  this  report  any  change  in the  registrant's
                  internal control over financial reporting that occurred during
                  the   registrant's   most   recent   fiscal   half-year   (the
                  registrant's  second fiscal half-year in the case of an annual
                  report) that has materially affected,  or is reasonably likely
                  to materially affect,  the registrant's  internal control over
                  financial reporting; and

5. The  registrant's  other  certifying  officer(s)  and I have disclosed to the
   registrant's  auditors and the audit committee of the  registrant's  board of
   directors (or persons performing the equivalent functions):

              (a) All significant  deficiencies  and material  weaknesses in the
                  design  or  operation  of  internal   control  over  financial
                  reporting which are reasonably  likely to adversely affect the
                  registrant's ability to record, process, summarize, and report
                  financial information; and

              (b) Any fraud,  whether or not material,  that involves management
                  or  other  employees  who  have  a  significant  role  in  the
                  registrant's internal control over financial reporting.



February 27, 2004                                        /s/ Richard T. Hale
                                                         -------------------
                                                         Richard T. Hale
                                                         Chief Executive Officer
                                                         The Germany Fund, Inc.
<PAGE>

                                             [LOGO OMITTED]
                                             Deutsche Asset Management
                                             A Member of the Deutsche Bank Group



CHIEF FINANCIAL OFFICER
FORM N-CSR CERTIFICATION UNDER SARBANES OXLEY ACT






I, Charles A. Rizzo, certify that:

1. I have  reviewed this report,  filed on behalf of The Germany Fund,  Inc., on
   Form N-CSR;

2. Based on my knowledge, this report does not contain any untrue statement of a
   material  fact  or omit  to  state a  material  fact  necessary  to make  the
   statements  made, in light of the  circumstances  under which such statements
   were made, not misleading with respect to the period covered by this report;

3. Based  on  my  knowledge,  the  financial  statements,  and  other  financial
   information included in this report,  fairly present in all material respects
   the financial  condition,  results of operations,  changes in net assets, and
   cash flows (if the financial  statements  are required to include a statement
   of cash flows) of the  registrant  as of, and for,  the periods  presented in
   this report;

4. The  registrant's  other  certifying  officer(s)  and I are  responsible  for
   establishing and maintaining  disclosure  controls and procedures (as defined
   in Rule  30a-3(c)  under the  Investment  Company  Act of 1940) and  internal
   control  over  financial  reporting  (as defined in Rule  30a-3(d)  under the
   Investment Company Act of 1940) for the registrant and have:

             (a) Designed such  disclosure  controls and  procedures,  or caused
                 such  disclosure  controls and  procedures to be designed under
                 our supervision,  to ensure that material  information relating
                 to the registrant,  including its consolidated subsidiaries, is
                 made known to us by others within those entities,  particularly
                 during the period in which this report is being prepared;

             (b) Designed such internal  control over  financial  reporting,  or
                 caused such  internal  control over  financial  reporting to be
                 designed under our supervision, to provide reasonable assurance
                 regarding  the  reliability  of  financial  reporting
<PAGE>


                 and  the  preparation  of  financial  statements   for external
                 purposes in accordance with generally accepted accounting
                 principles;

             (c) Evaluated  the  effectiveness  of the  registrant's  disclosure
                 controls  and  procedures  and  presented  in this  report  our
                 conclusions about the effectiveness of the disclosure  controls
                 and procedures, as of a date within 90 days prior to the filing
                 date of this report based on such evaluation; and

             (d) Disclosed  in  this  report  any  change  in  the  registrant's
                 internal control over financial  reporting that occurred during
                 the registrant's most recent fiscal half-year (the registrant's
                 second fiscal  half-year in the case of an annual  report) that
                 has materially affected,  or is reasonably likely to materially
                 affect,  the  registrant's   internal  control  over  financial
                 reporting; and

5. The  registrant's  other  certifying  officer(s)  and I have disclosed to the
   registrant's  auditors and the audit committee of the  registrant's  board of
   directors (or persons performing the equivalent functions):

             (a) All  significant  deficiencies  and material  weaknesses in the
                 design  or  operation  of  internal   control  over   financial
                 reporting which are reasonably  likely to adversely  affect the
                 registrant's ability to record, process,  summarize, and report
                 financial information; and

             (b) Any fraud, whether or not material, that involves management or
                 other employees who have a significant role in the registrant's
                 internal control over financial reporting.



February 27, 2004                                        /s/ Charles A. Rizzo
                                                         Charles A. Rizzo
                                                         Chief Financial Officer
                                                         The Germany Fund, Inc.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906
<SEQUENCE>4
<FILENAME>ex906.txt
<TEXT>
                                             [LOGO OMITTED]
                                             Deutsche Asset Management
                                             A Member of the Deutsche Bank Group

CHIEF EXECUTIVE OFFICER
SECTION 906 CERTIFICATION UNDER SARBANES OXLEY ACT






I, Richard T. Hale, certify that:

1. I have reviewed this report, filed on behalf of The Germany Fund, Inc., on
   Form N-CSR;

2. Based on my knowledge and pursuant to 18 U.S.C. ss. 1350, the periodic report
   on Form N-CSR (the "Report") fully complies with the requirements of ss. 13
   (a) or ss. 15 (d), as applicable, of the Securities Exchange Act of 1934 and
   that the information contained in the Report fairly presents, in all material
   respects, the financial condition and results of operations of the Company.




February 27, 2004                                    /s/ Richard T. Hale
                                                     -------------------
                                                     Richard T. Hale
                                                     Chief Executive Officer
                                                     The Germany Fund, Inc.

<PAGE>

                                             [LOGO OMITTED]
                                             Deutsche Asset Management
                                             A Member of the Deutsche Bank Group


CHIEF FINANCIAL OFFICER
SECTION 906 CERTIFICATION UNDER SARBANES OXLEY ACT






I, Charles A. Rizzo, certify that:

1. I have reviewed this report, filed on behalf of The Germany Fund, Inc., on
   Form N-CSR;

2. Based on my knowledge and pursuant to 18 U.S.C. ss. 1350, the periodic report
   on Form N-CSR (the "Report") fully complies with the requirements of ss. 13
   (a) or ss. 15 (d), as applicable, of the Securities Exchange Act of 1934 and
   that the information contained in the Report fairly presents, in all material
   respects, the financial condition and results of operations of the Company.




February 27, 2004                                        /s/ Charles A. Rizzo
                                                         --------------------
                                                         Charles A. Rizzo
                                                         Chief Financial Officer
                                                         The Germany Fund, Inc.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CODE ETH
<SEQUENCE>5
<FILENAME>ex99code.txt
<TEXT>


                               Scudder/DeAM Funds

       PRINCIPAL EXECUTIVE AND PRINCIPAL FINANCIAL OFFICER CODE OF ETHICS

               FOR THE REGISTERED MANAGEMENT INVESTMENT COMPANIES

                              LISTED ON APPENDIX A




                                                                  Effective Date
                                                                 [July 15, 2003]


<PAGE>

TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                               PAGE NUMBER

<S>                                                                                                                     <C>
   I.       OVERVIEW.....................................................................................................3


   II.      PURPOSES OF THE OFFICER CODE.................................................................................3


   III.     RESPONSIBILITIES OF COVERED OFFICERS.........................................................................4

      A.    HONEST AND ETHICAL CONDUCT...................................................................................4
      B.    CONFLICTS OF INTEREST........................................................................................4
      C.    USE OF PERSONAL FUND SHAREHOLDER INFORMATION.................................................................6
      D.    PUBLIC COMMUNICATIONS........................................................................................6
      E.    COMPLIANCE WITH APPLICABLE LAWS, RULES AND REGULATIONS.......................................................6

   IV.      VIOLATION REPORTING..........................................................................................7

      A.    OVERVIEW.....................................................................................................7
      B.    HOW TO REPORT................................................................................................7
      C.    PROCESS FOR VIOLATION REPORTING TO THE FUND BOARD............................................................7
      D.    SANCTIONS FOR CODE VIOLATIONS................................................................................7

   V.       WAIVERS FROM THE OFFICER CODE................................................................................7


   VI.      AMENDMENTS TO THE CODE.......................................................................................8


   VII.     ACKNOWLEDGEMENT AND CERTIFICATION OF ADHERENCE TO THE OFFICER CODE...........................................8


   IX.      RECORDKEEPING................................................................................................8


   X.       CONFIDENTIALITY..............................................................................................9


   APPENDICES...........................................................................................................10

      APPENDIX A:  LIST OF OFFICERS COVERED UNDER THE CODE, BY BOARD....................................................10
      APPENDIX B:  OFFICER CODE ACKNOWLEDGEMENT AND CERTIFICATION FORM..................................................11
      APPENDIX C:  DEFINITIONS..........................................................................................13

</TABLE>

                                                                               2


       I. OVERVIEW

         This Principal  Executive Officer and Principal  Financial Officer Code
         of Ethics  ("Officer  Code") sets forth the  policies,  practices,  and
         values  expected  to be  exhibited  in the  conduct  of  the  Principal
         Executive  Officers and Principal  Financial Officers of the investment
         companies ("Funds") they serve ("Covered Officers").  A list of Covered
         Officers and Funds is included on Appendix A.

         The Boards of the Funds  listed on Appendix A have elected to implement
         the Officer Code,  pursuant to Section 406 of the Sarbanes-Oxley Act of
         2002 and the SEC's rules thereunder,  to promote and demonstrate honest
         and ethical conduct in their Covered Officers.

         Deutsche Asset  Management,  Inc. or its affiliates  ("DeAM") serves as
         the  investment  adviser to each Fund.  All Covered  Officers  are also
         employees of DeAM or an affiliate. Thus, in addition to adhering to the
         Officer  Code,  these  individuals  must comply with DeAM  policies and
         procedures,  such as the DeAM Code of Ethics governing personal trading
         activities,  as adopted  pursuant  to Rule 17j-1  under the  Investment
         Company Act of 1940.1 In addition,  such  individuals  also must comply
         with other applicable Fund policies and procedures.

         The DeAM Compliance Officer, who shall not be a Covered Officer and who
         shall serve as such  subject to the  approval  of the Fund's  Board (or
         committee  thereof),  is primarily  responsible  for  implementing  and
         enforcing  this Code.  The  Compliance  Officer  has the  authority  to
         interpret  this  Officer  Code  and  its  applicability  to  particular
         circumstances.  Any questions about the Officer Code should be directed
         to the DeAM Compliance Officer.

         The DeAM Compliance  Officer and his or her contact  information can be
         found in Appendix A.

      II.  PURPOSES OF THE OFFICER CODE

         The purposes of the Officer Code are to deter wrongdoing and to:

         o  promote honest and ethical conduct among Covered Officers, including
            the ethical  handling of actual or  apparent  conflicts  of interest
            between personal and professional relationships;

         o  promote full, fair, accurate, timely and understandable  disclosures
            in reports and  documents  that the Funds file with or submit to the
            SEC (and in other public communications from the Funds) and that are
            within the Covered Officer's responsibilities;

         o  promote compliance with applicable laws, rules and regulations;

         o  encourage the prompt internal reporting of violations of the Officer
            Code to the DeAM Compliance Officer; and

         o  establish accountability for adherence to the Officer Code.

         Any  questions  about the  Officer  Code  should be  referred to DeAM's
         Compliance Officer.

- --------

1 The obligations imposed by the Officer Code are separate from, and in addition
to, any obligations imposed under codes of ethics adopted pursuant to Rule 17j-1
under  the  Investment  Company  Act of  1940,  and any  other  code of  conduct
applicable to Covered Officers in whatever capacity they serve. The Officer Code
does not  incorporate any of those other codes and,  accordingly,  violations of
those codes will not  necessarily  be considered  violations of the Officer Code
and waivers granted under those codes would not necessarily  require a waiver to
be  granted  under  this  Code.  Sanctions  imposed  under  those  codes  may be
considered in determining appropriate sanctions for any violation of this Code.

                                                                               3
<PAGE>


     III. RESPONSIBILITIES OF COVERED OFFICERS

         A.       HONEST AND ETHICAL CONDUCT

         It is the duty of every Covered  Officer to encourage  and  demonstrate
         honest and ethical conduct,  as well as adhere to and require adherence
         to the Officer Code and any other  applicable  policies and  procedures
         designed to promote this behavior.  Covered  Officers must at all times
         conduct  themselves with integrity and  distinction,  putting first the
         interests of the Fund(s) they serve.  Covered  Officers  must be honest
         and candid  while  maintaining  confidentiality  of  information  where
         required by law, DeAM policy or Fund policy.

         Covered   Officers  also  must,  at  all  times,  act  in  good  faith,
         responsibly  and with  due  care,  competence  and  diligence,  without
         misrepresenting  or being  misleading  about material facts or allowing
         their  independent  judgment to be subordinated.  Covered Officers also
         should maintain skills appropriate and necessary for the performance of
         their duties for the Fund(s).  Covered  Officers also must  responsibly
         use and control all Fund assets and resources entrusted to them.

         Covered  Officers may not  retaliate  against  others for, or otherwise
         discourage  the  reporting  of,  actual or apparent  violations  of the
         Officer Code or applicable laws or regulations. Covered Officers should
         create an  environment  that  encourages  the exchange of  information,
         including concerns of the type that this Code is designed to address.

         B.       CONFLICTS OF INTEREST

         A  "conflict  of  interest"  occurs when a Covered  Officer's  personal
         interests  interfere with the interests of the Fund for which he or she
         serves as an officer.  Covered  Officers may not  improperly  use their
         position with a Fund for personal or private gain to themselves,  their
         family,  or any other person.  Similarly,  Covered Officers may not use
         their  personal  influence  or  personal   relationships  to  influence
         decisions  or other Fund  business or  operational  matters  where they
         would  benefit  personally  at the  Fund's  expense  or to  the  Fund's
         detriment.  Covered Officers may not cause the Fund to take action,  or
         refrain from taking action,  for their  personal  benefit at the Fund's
         expense or to the Fund's  detriment.  Some  examples  of  conflicts  of
         interest  follow  (this  is not an  all-inclusive  list):  being in the
         position of  supervising,  reviewing or having any influence on the job
         evaluation,  pay or benefit of any  immediate  family  member who is an
         employee of a Fund service provider or is otherwise associated with the
         Fund; or having an ownership  interest in, or having any  consulting or
         employment relationship with, any Fund service provider other than DeAM
         or its affiliates.

         Certain  conflicts  of  interest  covered by this Code arise out of the
         relationships  between  Covered  Officers and the Fund that already are
         subject to conflict of interest  provisions in the  Investment  Company
         Act and the Investment Advisers Act. For example,  Covered Officers may
         not individually  engage in certain  transactions (such as the purchase
         or sale of securities or other property) with the Fund because of their
         status as  "affiliated  persons"  of the Fund.  Covered  Officers  must
         comply with applicable laws and regulations.  Therefore, any violations
         of  existing  statutory  and  regulatory   prohibitions  on  individual
         behavior could be considered a violation of this Code.

         As  to  conflicts  arising  from,  or  as  a  result  of  the  advisory
         relationship (or any other relationships) between the Fund and DeAM, of
         which the  Covered  Officers  are also  officers  or  employees,  it is
         recognized by the Board that, subject to DeAM's fiduciary duties to the
         Fund,  the Covered  Officers  will in the normal course of their duties
         (whether formally for the Fund or for DeAM, or for both) be involved in
         establishing  policies  and  implementing  decisions  which  will  have
         different  effects on

                                                                               4
<PAGE>

         DeAM and the Fund. The Board  recognizes that the  participation of the
         Covered  Officers  in  such  activities  is  inherent  in the  contract
         relationship  between  the Fund and DeAM,  and is  consistent  with the
         expectation of the Board of the performance by the Covered  Officers of
         their duties as officers of the Fund.

         Covered  Officers  should  avoid  actual  conflicts  of  interest,  and
         appearances  of conflicts of  interest,  between the Covered  Officer's
         duties  to the  Fund and his or her  personal  interests  beyond  those
         contemplated  or anticipated  by applicable  regulatory  schemes.  If a
         Covered  Officer  suspects or knows of a conflict or an  appearance  of
         one, the Covered Officer must immediately report the matter to the DeAM
         Compliance  Officer.  If a Covered Officer, in lieu of reporting such a
         matter to the DeAM Compliance  Officer,  may report the matter directly
         to the Fund's Board (or committee  thereof),  as appropriate  (e.g., if
         the  conflict  involves  the DeAM  Compliance  Officer  or the  Covered
         Officer reasonably  believes it would be futile to report the matter to
         the DeAM Compliance Officer).

         When  actual,  apparent or  suspected  conflicts  of interest  arise in
         connection with a Covered  Officer,  DeAM personnel aware of the matter
         should promptly contact the DeAM Compliance  Officer.  There will be no
         reprisal or retaliation against the person reporting the matter.

         Upon receipt of a report of a possible  conflict,  the DeAM  Compliance
         Officer will take steps to determine  whether a conflict exists.  In so
         doing,  the DeAM  Compliance  Officer  may take any  actions  he or she
         determines to be appropriate in his or her sole  discretion and may use
         all  reasonable  resources,   including  retaining  or  engaging  legal
         counsel,  accounting firms or other consultants,  subject to applicable
         law.2 The costs  associated with such actions may be borne by the Fund,
         if appropriate,  after consultation with the Fund's Board (or committee
         thereof).  Otherwise,  such  costs  will be  borne  by  DeAM  or  other
         appropriate Fund service provider.

         After full review of a report of a possible  conflict of interest,  the
         DeAM  Compliance  Officer may determine  that no conflict or reasonable
         appearance  of a conflict  exists.  If,  however,  the DeAM  Compliance
         Officer  determines  that an actual  conflict  exists,  the  Compliance
         Officer will resolve the conflict  solely in the interests of the Fund,
         and will report the conflict and its resolution to the Fund's Board (or
         committee thereof).  If the DeAM Compliance Officer determines that the
         appearance of a conflict exists,  the DeAM Compliance Officer will take
         appropriate  steps to remedy such  appearance.  In lieu of  determining
         whether  a  conflict  exists  and/or  resolving  a  conflict,  the DeAM
         Compliance Officer instead may refer the matter to the Fund's Board (or
         committee  thereof),  as  appropriate.  However,  the  DeAM  Compliance
         Officer  must  refer the  matter  to the  Fund's  Board  (or  committee
         thereof) if the DeAM  Compliance  Officer is  directly  involved in the
         conflict or under similar appropriate circumstances.

         After  responding to a report of a possible  conflict of interest,  the
         DeAM  Compliance  Officer  will  discuss  the  matter  with the  person
         reporting it (and with the Covered  Officer at issue, if different) for
         purposes  of  educating   those  involved  on  conflicts  of  interests
         (including how to detect and avoid them, if appropriate).

         Appropriate   resolution   of  conflicts   may  restrict  the  personal
         activities of the Covered  Officer and/or his family,  friends or other
         persons.

         Solely because a conflict is disclosed to the DeAM  Compliance  Officer
         (and/or the Board or  Committee  thereof)  and/or  resolved by the DeAM
         Compliance  Officer does not mean that the  conflict or its  resolution
         constitutes a waiver from the Code's requirements.


- ----------
2 For  example,  retaining  a Fund's  independent  accounting  firm may  require
pre-approval by the Fund's audit  committee.


                                                                               5

<PAGE>

         Any  questions  about  conflicts  of  interests,  including  whether  a
         particular  situation  might be a  conflict  or an  appearance  of one,
         should be directed to the DeAM Compliance Officer.

         C.       USE OF PERSONAL FUND SHAREHOLDER INFORMATION

         A Covered Officer may not use or disclose  personal  information  about
         Fund  shareholders,  except in the performance of his or her duties for
         the Fund. Each Covered Officer also must abide by the Funds' and DeAM's
         privacy policies under SEC Regulation S-P.

         D.       PUBLIC COMMUNICATIONS

         In connection with his or her  responsibilities for or involvement with
         a  Fund's  public   communications  and  disclosure   documents  (e.g.,
         shareholder reports,  registration  statements,  press releases),  each
         Covered  Officer must  provide  information  to Fund service  providers
         (within the DeAM  organization  or  otherwise)  and to the Fund's Board
         (and  any  committees  thereof),   independent   auditors,   government
         regulators and  self-regulatory  organizations that is fair,  accurate,
         complete, objective, relevant, timely and understandable.

         Further,  within the scope of their  duties,  Covered  Officers  having
         direct or supervisory authority over Fund disclosure documents or other
         public Fund communications will, to the extent appropriate within their
         area of responsibility, endeavor to ensure full, fair, timely, accurate
         and  understandable  disclosure  in  Fund  disclosure  documents.  Such
         Covered Officers will oversee, or appoint others to oversee,  processes
         for the timely and accurate  creation and review of all public  reports
         and regulatory filings. Within the scope of his or her responsibilities
         as a Covered  Officer,  each  Covered  Officer  also  will  familiarize
         himself or herself with the disclosure  requirements  applicable to the
         Fund,  as well as the business and  financial  operations  of the Fund.
         Each Covered  Officer  also will adhere to, and will promote  adherence
         to, applicable disclosure controls, processes and procedures, including
         DeAM's Disclosure Controls and Procedures,  which govern the process by
         which Fund disclosure documents are created and reviewed.

         To the extent that Covered  Officers  participate  in the creation of a
         Fund's  books or records,  they must do so in a way that  promotes  the
         accuracy, fairness and timeliness of those records.

         E.       COMPLIANCE WITH APPLICABLE LAWS, RULES AND REGULATIONS

         In connection with his or her duties and within the scope of his or her
         responsibilities as a Covered Officer, each Covered Officer must comply
         with governmental  laws, rules and regulations,  accounting  standards,
         and  Fund   policies/procedures   that   apply  to  his  or  her  role,
         responsibilities  and duties  with  respect  to the Funds  ("Applicable
         Laws").  These  requirements  do not  impose on  Covered  Officers  any
         additional  substantive duties.  Additionally,  Covered Officers should
         promote compliance with Applicable Laws.

         If a Covered  Officer  knows of any material  violations  of Applicable
         Laws or suspects that such a violation may have  occurred,  the Covered
         Officer  is  expected  to  promptly  report  the  matter  to  the  DeAM
         Compliance Officer.

                                                                               6

<PAGE>

      IV. VIOLATION REPORTING
         A.       OVERVIEW

         Each  Covered  Officer  must  promptly  report  to the DeAM  Compliance
         Officer,   and  promote  the  reporting  of,  any  known  or  suspected
         violations of the Officer Code.  Failure to report a violation may be a
         violation of the Officer Code.

         Examples of violations of the Officer Code include, but are not limited
         to, the following:
         o Unethical or dishonest behavior
         o Obvious lack of adherence to policies surrounding review and approval
           of public communications and regulatory filings
         o Failure to report violations of the Officer Code
         o Known or obvious deviations from Applicable Laws
         o Failure to acknowledge and certify adherence to the Officer Code

         The  DeAM  Compliance  Officer  has the  authority  to take any and all
         action he or she considers appropriate in his or her sole discretion to
         investigate  known or suspected Code violations,  including  consulting
         with  the  Fund's  Board,  the  independent  Board  members,   a  Board
         committee,  the Fund's legal counsel and/or counsel to the  independent
         Board members. The Compliance Officer also has the authority to use all
         reasonable resources to investigate violations,  including retaining or
         engaging legal counsel, accounting firms or other consultants,  subject
         to applicable law.3 The costs associated with such actions may be borne
         by the Fund, if appropriate,  after  consultation with the Fund's Board
         (or committee thereof). Otherwise, such costs will be borne by DeAM.

         B.       HOW TO REPORT

         Any known or suspected  violations of the Officer Code must be promptly
         reported to the DeAM Compliance Officer.

         C.       PROCESS FOR VIOLATION REPORTING TO THE FUND BOARD

         The DeAM Compliance  Officer will promptly report any violations of the
         Code to the Fund's Board (or committee thereof).

         D.       SANCTIONS FOR CODE VIOLATIONS

         Violations of the Code will be taken seriously. In response to reported
         or otherwise known  violations,  DeAM and the relevant Fund's Board may
         impose sanctions  within the scope of their  respective  authority over
         the Covered Officer at issue.  Sanctions  imposed by DeAM could include
         termination  of employment.  Sanctions  imposed by a Fund's Board could
         include termination of association with the Fund.

       V. WAIVERS FROM THE OFFICER CODE

         A  Covered  Officer  may  request  a waiver  from the  Officer  Code by
         transmitting  a written  request  for a waiver  to the DeAM  Compliance
         Officer.4  The request must include the  rationale  for the request and
         must explain how the waiver would be in furtherance of the standards of
         conduct  described in and underlying  purposes of the Officer Code. The
         DeAM  Compliance  Officer will present this  information


- ----------
3 For  example,  retaining  a Fund's  independent  accounting  firm may  require
pre-approval by the Fund's audit committee.

4 Of course,  it is not a waiver of the  Officer  Code if the  Fund's  Board (or
committee thereof)  determines that a matter is not a deviation from the Officer
Code's requirements or is otherwise not covered by the Code.
                                                                               7
<PAGE>

         to the Fund's Board (or committee  thereof).  The Board (or  committee)
         will determine  whether to grant the requested waiver. If the Board (or
         committee)  grants the requested  waiver,  the DeAM Compliance  Officer
         thereafter  will  monitor  the  activities  subject to the  waiver,  as
         appropriate, and will promptly report to the Fund's Board (or committee
         thereof) regarding such activities, as appropriate.

         The DeAM Compliance Officer will coordinate and facilitate any required
         public disclosures of any waivers granted or any implicit waivers.

      VI. AMENDMENTS TO THE CODE

         The DeAM  Compliance  Officer will review the Officer Code from time to
         time for its continued  appropriateness and will propose any amendments
         to the  Fund's  Board (or  committee  thereof)  on a timely  basis.  In
         addition, the Board (or committee thereof) will review the Officer Code
         at least annually for its continued  appropriateness  and may amend the
         Code as necessary or appropriate.

         The DeAM Compliance Officer will coordinate and facilitate any required
         public disclosures of Code amendments.

     VII. ACKNOWLEDGEMENT AND CERTIFICATION OF ADHERENCE TO THE OFFICER CODE

         Each  Covered  Officer  must sign a  statement  upon  appointment  as a
         Covered Officer and annually  thereafter  acknowledging  that he or she
         has  received  and read the Officer  Code,  as amended or updated,  and
         confirming  that  he or she has  complied  with  it  (see  Appendix  B:
         Acknowledgement  and  Certification  of  Obligations  Under the Officer
         Code).

         Understanding  and  complying  with the  Officer  Code  and  truthfully
         completing the  Acknowledgement  and Certification Form is each Covered
         Officer's obligation.

         The DeAM Compliance Officer will maintain such  Acknowledgements in the
         Fund's books and records.

    VIII. SCOPE OF RESPONSIBILITIES

          A  Covered  Officer's  responsibilities  under  the  Officer  Code are
          limited to:

                 (1)Fund   matters   over   which   the   Officer   has   direct
                    responsibility  or  control,  matters  in which the  Officer
                    routinely  participates,  and matters with which the Officer
                    is otherwise involved (I.E., matters within the scope of the
                    Covered Officer's responsibilities as a Fund officer); and

                 (2) Fund matters of which the Officer has actual knowledge.

      IX. RECORDKEEPING

         The DeAM  Compliance  Officer  will  create  and  maintain  appropriate
         records regarding the implementation and operation of the Officer Code,
         including records relating to conflicts of interest  determinations and
         investigations of possible Code violations.

                                                                               8
<PAGE>

       X. CONFIDENTIALITY

         All reports and records prepared or maintained pursuant to this Officer
         Code  shall be  considered  confidential  and shall be  maintained  and
         protected  accordingly.  Except as  otherwise  required  by law or this
         Officer Code,  such matters shall not be disclosed to anyone other than
         the DeAM Compliance  Officer,  the Fund's Board (or committee thereof),
         legal counsel, independent auditors, and any consultants engaged by the
         Compliance Officer.

                                                                               9

<PAGE>



         APPENDICES

         APPENDIX A:

         LIST OF OFFICERS COVERED UNDER THE CODE, BY BOARD:
<TABLE>
<CAPTION>

=========================================== ============================== =========================== ==========================
                FUND BOARD                  PRINCIPAL EXECUTIVE OFFICERS      PRINCIPAL FINANCIAL         OTHER PERSONS WITH
                                                                                    OFFICERS               SIMILAR FUNCTIONS
- ------------------------------------------- ------------------------------ --------------------------- --------------------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>
The Germany Fund, Inc.                      Richard T. Hale                Charles A. Rizzo            --
The New Germany Fund, Inc.
=========================================== ============================== =========================== ==========================
</TABLE>


         DEAM COMPLIANCE OFFICER:

         Name: Amy Olmert

         DeAM Department: Compliance

         Phone Numbers: 410-895-3661 (Baltimore) and 212-454-0111 (New York)

         Fax Numbers: 410-895-3837 (Baltimore) and 212-454-2152 (New York)









AS OF:   [July 15], 2003


<PAGE>



APPENDIX B: ACKNOWLEDGEMENT AND CERTIFICATION

                    Initial Acknowledgement and Certification

                      of Obligations Under the Officer Code


- --------------------------------------------------------------------------------
Print Name                  Department              Location           Telephone




1.            I  acknowledge  and certify that I am a Covered  Officer under the
              Scudder Fund  Principal  Executive and  Financial  Officer Code of
              Ethics  ("Officer  Code"),  and  therefore  subject  to all of its
              requirements and provisions.

2.            I have  received and read the Officer  Code and I  understand  the
              requirements and provisions set forth in the Officer Code.

3.            I have  disclosed any conflicts of interest of which I am aware to
              the DeAM Compliance Officer.

4.            I will act in the best  interest of the Funds for which I serve as
              an officer and have  maintained  the  confidentiality  of personal
              information about Fund shareholders.

5.            I will  report any known or  suspected  violations  of the Officer
              Code in a timely manner to the DeAM Compliance Officer.




- --------------------------------------------------------------------------------
Signature                                                        Date


                                                                              11
<PAGE>




                    Annual Acknowledgement and Certification

                      of Obligations Under the Officer Code




- --------------------------------------------------------------------------------
Print Name                  Department              Location           Telephone




6.            I  acknowledge  and certify that I am a Covered  Officer under the
              Scudder Fund  Principal  Executive and  Financial  Officer Code of
              Ethics  ("Officer  Code"),  and  therefore  subject  to all of its
              requirements and provisions.

7.            I have  received and read the Officer Code,  and I understand  the
              requirements and provisions set forth in the Officer Code.

8.            I have adhered to the Officer Code.

9.            I have not knowingly been a party to any conflict of interest, nor
              have I had actual knowledge about actual or apparent  conflicts of
              interest that I did not report to the DeAM  Compliance  Officer in
              accordance with the Officer Code's requirements.

10.           I have acted in the best  interest  of the Funds for which I serve
              as an officer and have maintained the  confidentiality of personal
              information about Fund shareholders.

11.           With  respect  to the  duties  I  perform  for the  Fund as a Fund
              officer, I believe that effective processes are in place to create
              and  file  public   reports  and  documents  in  accordance   with
              applicable regulations.

12.           With  respect  to the  duties  I  perform  for the  Fund as a Fund
              officer,  I have  complied  to the best of my  knowledge  with all
              Applicable  Laws (as that term is defined in the Officer Code) and
              have  appropriately  monitored  those persons under my supervision
              for compliance with Applicable Laws.

13.           I have  reported any known or suspected  violations of the Officer
              Code in a timely manner to the DeAM Compliance Officer.




- --------------------------------------------------------------------------------
Signature                                                        Date


                                                                              12
<PAGE>




         APPENDIX C:  DEFINITIONS

         PRINCIPAL EXECUTIVE OFFICER
         Individual  holding  the office of  President  of the Fund or series of
         Funds, or a person performing a similar function.

         PRINCIPAL FINANCIAL OFFICER
         Individual  holding  the office of  Treasurer  of the Fund or series of
         Funds, or a person performing a similar function.

         REGISTERED INVESTMENT MANAGEMENT INVESTMENT COMPANY
         Registered  investment  companies other than a face-amount  certificate
         company or a unit investment trust.

         WAIVER
         A waiver is an approval of an exemption from a Code requirement.

         IMPLICIT WAIVER
         An implicit  waiver is the failure to take action  within a  reasonable
         period of time  regarding a material  departure  from a requirement  or
         provision  of the  Officer  Code that has been  made  known to the DeAM
         Compliance Officer or the Fund's Board (or committee thereof).





                                                                              13

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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