<DOCUMENT>
<TYPE>EX-99.J1
<SEQUENCE>10
<FILENAME>dex99j1.txt
<DESCRIPTION>EXHIBIT (J)(1)
<TEXT>
<PAGE>

                                                                  EXHIBIT (j)(1)

                               CUSTODIAN CONTRACT
                                     Between
                        THE FIRST COMMONWEALTH FUND, INC.
                                       and
                       STATE STREET BANK AND TRUST COMPANY

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                             <C>
1. Employment of Custodian and Property to be Held by It ......................................  1

2. Duties of the Custodian with Respect to Property of the Fund Held By the
   Custodian in the United States .............................................................  1

     2.1    Holding Securities ................................................................  1
     2.2    Delivery of Securities ............................................................  2
     2.3    Registration of Securities ........................................................  4
     2.4    Bank Accounts .....................................................................  4
     2.5    Availability of Federal Funds .....................................................  4
     2.6    Collection of Income ..............................................................  4
     2.7    Payment of Fund Monies ............................................................  5
     2.8    Liability for Payment in Advance of Receipt of Securities Purchased ...............  6
     2.9    Appointment of Agents .............................................................  6
     2.10   Deposit of Securities in Securities Systems .......................................  6
     2.10A  Fund Assets Held in the Custodian's Direct Paper System ...........................  8
     2.11   Segregated Account ................................................................  8
     2.12   Ownership Certificates for Tax Purposes ...........................................  9
     2.13   Proxies ...........................................................................  9
     2.14   Communications Relating to Fund Portfolio Securities ..............................  9
     2.15   Reports to Fund by Independent Public Accountants ................................. 10

3. Duties of the Custodian with Respect to Property of the Fund Held Outside of
   the United States .......................................................................... 10

     3.1    Appointment of Foreign Sub-Custodians ............................................. 10
     3.2    Assets to be Held ................................................................. 10
     3.3    Foreign Securities Depositories ................................................... 10
     3.4    Segregation of Securities ......................................................... 10
     3.5    Agreements with Foreign Banking Institutions ...................................... 11
     3.6    Access of Independent Accountants of the Fund ..................................... 11
     3.7    Reports by Custodian .............................................................. 11
     3.8    Transactions in Foreign Custody Account ........................................... 11
     3.9    Liability of Foreign Sub-Custodians ............................................... 12
     3.10   Liability of Custodian ............................................................ 12
     3.11   Reimbursement for Advances ........................................................ 12
     3.12   Monitoring Responsibilities ....................................................... 13
     3.13   Branches of U.S. Banks ............................................................ 13

4.  Proper Instructions ....................................................................... 13

5.  Actions Permitted without Express Authority ............................................... 14

6.  Evidence of Authority ..................................................................... 14

7.  Duties of Custodian with Respect to the Books of Account and Calculation of
    Net Asset Value and Net Income ............................................................ 14

8.  Records ................................................................................... 15

9.  Opinion of Fund's Independent Accountant .................................................. 15

10. Compensation of Custodian ................................................................. 15

11. Responsibility of Custodian ............................................................... 15

12. Effective Period, Termination and Amendment ............................................... 16
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                   <C>
13.  Successor Custodian ...........................................................  17

14.  Interpretive and Additional Provisions ........................................  18

15.  Massachusetts Law to Apply ....................................................  18

16.  Prior Contracts ...............................................................  18
</TABLE>

<PAGE>

                               CUSTODIAN CONTRACT

     This Contract between The First Commonwealth Fund, Inc., a corporation
organized and existing under the laws of Maryland, having its principal place of
business at 45 Broadway, New York, New York, 10006 hereinafter called the
"Fund", and State Street Bank and Trust Company, a Massachusetts trust company,
having its principal place of business at 225 Franklin Street, Boston,
Massachusetts, 02110, hereinafter called the "Custodian",

     WITNESSETH: That in consideration of the mutual covenants and agreements
hereinafter contained, the parties hereto agree as follows:

1.   Employment of Custodian and Property to be Held by It

     The Fund hereby employs the Custodian as the custodian of each group, or
portfolio, of its assets more fully described on Schedule B (each a
"Portfolio"), including securities it desires to be held in places within the
United States ("domestic securities") and securities it desires to be held
outside the United States ("foreign securities") pursuant to the provisions of
the Articles of Incorporation. The Fund agrees to deliver to the Custodian all
securities and cash owned by it as described in Schedule B, and all payments of
income, payments of principal or capital distributions received by it with
respect to all securities in the Portfolios owned by the Fund from time to time,
and the cash consideration received by it for such new or treasury shares of
capital stock, $.001 par value, ("Shares") of the Fund as may be issued or sold
from time to time. The Custodian shall not be responsible for any property of
the Fund held or received by the Fund and not delivered to the Custodian.

     Upon receipt of "Proper Instructions" (within the meaning of Article 4),
the Custodian shall from time to time employ one or more sub-custodians located
in the United States, but only in accordance with an applicable vote by the
Board of Directors of the Fund, and provided that the Custodian shall have no
more or less responsibility or liability to the Fund on account of any actions
or omissions of any sub-custodian so employed than any such sub-custodian has to
the Custodian. The Custodian may employ as sub-custodians for the Fund's
Portfolios the foreign banking institutions and foreign securities depositories
designated in Schedules "A-1", "A-2", and "A-3" hereto but only in accordance
with the provisions of Article 3.

2.   Duties of the Custodian with Respect to Property of the Fund Held By the
Custodian in the United States

2.1  Holding Securities. The Custodian shall hold and physically segregate for
     the account of the Fund all non-cash property, to be held by it in the
     United States, including all domestic securities owned by the Fund, other
     than securities which are maintained pursuant to Section 2.10 in a clearing
     agency which acts as a securities depository or in a book-entry system
     authorized by the U.S. Department of the Treasury, collectively referred to
     herein as "Securities System" and (b) commercial paper of an issuer for
     which State Street Bank and Trust Company acts as issuing and paying agent
     ("Direct Paper")

<PAGE>

     which is deposited and/or maintained in the Direct Paper System of the
     Custodian pursuant to Section 2.10A.

2.2  Delivery of Securities. The Custodian shall release and deliver domestic
     securities owned by the Fund held by the Custodian or in a Securities
     System account of the Custodian or in the Custodian's Direct Paper book
     entry system account ("Direct Paper Account") only upon receipt of Proper
     Instructions, which may be continuing instructions when deemed appropriate
     by the parties, and only in the following cases:

          1)   Upon sale of such securities for the account of the Fund and
               receipt of payment therefor;

          2)   Upon the receipt of payment in connection with any repurchase
               agreement related to such securities entered into by the Fund;

          3)   In the case of a sale effected through a Securities System, in
               accordance with the provisions of Section 2.10 hereof;

          4)   To the depository agent in connection with tender or other
               similar offers for portfolio securities of the Fund;

          5)   To the issuer thereof or its agent when such securities are
               called, redeemed, retired or otherwise become payable; provided
               that, in any such case, the cash or other consideration is to be
               delivered to the Custodian;

          6)   To the issuer thereof, or its agent, for transfer into the name
               of the Fund or into the name of any nominee or nominees of the
               Custodian or into the name or nominee name of any agent appointed
               pursuant to Section 2.9 or into the name or nominee name of any
               sub-custodian appointed pursuant to Article l; or for exchange
               for a different number of bonds, certificates or other evidence
               representing the same aggregate face amount or number of units;
               provided that, in any such case, the new securities are to be
               delivered to the Custodian;

          7)   Upon the sale of such securities for the account of the Fund, to
               the broker or its clearing agent, against a receipt, for
               examination in accordance with "street delivery" custom; provided
               that in any such case, the Custodian shall have no responsibility
               or liability for any loss arising from the delivery of such
               securities prior to receiving payment for such securities except
               as may arise from the Custodian's own negligence or willful
               misconduct;

          8)   For exchange or conversion pursuant to any plan of merger,
               consolidation, recapitalization, reorganization or readjustment
               of the securities of the issuer of such securities, or pursuant
               to provisions for conversion

                                       -2-

<PAGE>

               contained in such securities, or pursuant to any deposit
               agreement; provided that, in any such case, the new securities
               and cash, if any, are to be delivered to the Custodian;

          9)   In the case of warrants, rights or similar securities, the
               surrender thereof in the exercise of such warrants, rights or
               similar securities or the surrender of interim receipts or
               temporary securities for definitive securities; provided that, in
               any such case, the new securities and cash, if any, are to be
               delivered to the Custodian;

          10)  For delivery in connection with any loans of securities made by
               the Fund, but only against receipt of adequate collateral as
               agreed upon from time to time by the Custodian and the Fund,
               which may be in the form of cash or obligations issued by the
               United States government, its agencies or instrumentalities,
               except that in connection with any loans for which collateral is
               to be credited to the Custodian's account in the book-entry
               system authorized by the U.S. Department of the Treasury, the
               Custodian will not be held liable or responsible for the delivery
               of securities owned by the Fund prior to the receipt of such
               collateral;

          11)  For delivery as security in connection with any borrowings by the
               Fund requiring a pledge of assets by the Fund, but only against
               receipt of amounts borrowed;

          12)  For delivery in accordance with the provisions of any agreement
               among the Fund, the Custodian and a broker-dealer registered
               under the Securities Exchange Act of 1934 (the "Exchange Act")
               and a member of The National Association of Securities Dealers,
               Inc. ("NASD"), relating to compliance with the rules of The
               Options Clearing Corporation and of any registered national
               securities exchange, or of any similar organization or
               organizations, regarding escrow or other arrangements in
               connection with transactions by the Fund;

          13)  For delivery in accordance with the provisions of any agreement
               among the Fund, the Custodian, and a Futures Commission Merchant
               registered under the Commodity Exchange Act, relating to
               compliance with the rules of the Commodity Futures Trading
               Commission and/or any Contract Market, or any similar
               organization or organizations, regarding account deposits in
               connection with transactions by the Fund;

          14)  For any other proper corporate purpose, but only upon receipt of,
               in addition to Proper Instructions, a certified copy of a
               resolution of the Board of Directors or of the Executive
               Committee signed by an officer of the Fund and certified by the
               Secretary or an Assistant Secretary, specifying the securities to
               be delivered, setting forth the purpose for

                                       -3-

<PAGE>

               which such delivery is to be made, declaring such purpose to be a
               proper corporate purpose, and naming the person or persons to
               whom delivery of such securities shall be made.

2.3  Registration of Securities. Domestic securities held by the Custodian
     (other than bearer securities) shall be registered in the name of the Fund
     or in the name of any nominee of the Fund or of any nominee of the
     Custodian which nominee shall be assigned exclusively to the Fund, unless
     the Fund has authorized in writing the appointment of a nominee to be used
     in common with other registered investment companies having the same
     investment adviser as the Fund, or in the name or nominee name of any agent
     appointed pursuant to Section 2.9 or in the name or nominee name of any
     sub-custodian appointed pursuant to Article 1. All securities accepted by
     the Custodian on behalf of the Fund under the terms of this Contract shall
     be in "street name" or other good delivery form. If, however, the Fund
     directs the Custodian to maintain securities in "street name", the
     Custodian shall utilize its best efforts only to timely collect income due
     the Fund on such securities and to notify the Fund on a best efforts basis
     only of relevant corporate actions including, without limitation, pendency
     of calls, maturities, tender or exchange offers.

2.4  Bank Accounts. The Custodian shall open and maintain a separate bank
     account or accounts in the United States in the name of the Fund, subject
     only to draft or order by the Custodian acting pursuant to the terms of
     this Contract, and shall hold in such account or accounts, subject to the
     provisions hereof, all cash received by it from or for the account of the
     Fund, other than cash maintained by the Fund in a bank account established
     and used in accordance with Rule 17f-3 under the Investment Company Act of
     1940. Funds held by the Custodian for the Fund may be deposited by it to
     its credit as Custodian in the Banking Department of the Custodian or in
     such other banks or trust companies as it may in its discretion deem
     necessary or desirable; provided, however, that every such bank or trust
     company shall be qualified to act as a custodian under the Investment
     Company Act of 1940 and that each such bank or trust company and the funds
     to be deposited with each such bank or trust company shall be approved by
     vote of a majority of the Board of Directors of the Fund. Such funds shall
     be deposited by the Custodian in its capacity as Custodian and shall be
     withdrawable by the Custodian only in that capacity.

2.5  Availability of Federal Funds. Upon mutual agreement between the Fund and
     the Custodian, the Custodian shall, upon the receipt of Proper
     Instructions, make federal funds available to the Fund as of specified
     times agreed upon from time to time by the Fund and the Custodian in the
     amount of checks received in payment for Shares of the Fund which are
     deposited into the Fund's account.

2.6  Collection of Income. Subject to the provisions of Section 2.3, the
     Custodian shall collect on a timely basis all income and other payments
     with respect to United States registered securities held hereunder to which
     the Fund shall be entitled either by law or

                                       -4-

<PAGE>

     pursuant to custom in the securities business, and shall collect on a
     timely basis all income and other payments with respect to United States
     bearer securities if, on the date of payment by the issuer, such securities
     are held by the Custodian or its agent thereof and shall credit such
     income, as collected, to the Fund's custodian account. Without limiting the
     generality of the foregoing, the Custodian shall detach and present for
     payment all coupons and other income items requiring presentation as and
     when they become due and shall collect interest when due on securities held
     hereunder. Income due the Fund on United States securities loaned pursuant
     to the provisions of Section 2.2 (10) shall be the responsibility of the
     Fund. The Custodian will have no duty or responsibility in connection
     therewith, other than to provide the Fund with such information or data as
     may be necessary to assist the Fund in arranging for the timely delivery to
     the Custodian of the income to which the Fund is properly entitled.

2.7  Payment of Fund Monies. Upon receipt of Proper Instructions, which may be
     continuing instructions when deemed appropriate by the parties, the
     Custodian shall pay out monies of the Fund in the following cases only:

          1)   Upon the purchase of domestic securities, options, futures
               contracts or options on futures contracts for the account of the
               Fund but only (a) against the delivery of such securities or
               evidence of title to such options, futures contracts or options
               on futures contracts to the Custodian (or any bank, banking firm
               or trust company doing business in the United States or abroad
               which is qualified under the Investment Company Act of 1940, as
               amended, to act as a custodian and has been designated by the
               Custodian as its agent for this purpose) registered in the name
               of the Fund or in the name of a nominee of the Custodian referred
               to in Section 2.3 hereof or in proper form for transfer; (b) in
               the case of a purchase effected through a Securities System, in
               accordance with the conditions set forth in Section 2.10 hereof;
               (c) in the case of a purchase involving the Direct Paper System,
               in accordance with the conditions set forth in Section 2.10A; (d)
               in the case of repurchase agreements entered into between the
               Fund and the Custodian, or another bank, or a broker-dealer which
               is a member of NASD, (i) against delivery of the securities
               either in certificate form or through an entry crediting the
               Custodian's account at the Federal Reserve Bank with such
               securities or (ii) against delivery of the receipt evidencing
               purchase by the Fund of securities owned by the Custodian along
               with written evidence of the agreement by the Custodian to
               repurchase such securities from the Fund or (e) for transfer to a
               time deposit account of the Fund in any bank, whether domestic or
               foreign; such transfer may be effected prior to receipt of a
               confirmation from a broker and/or the applicable bank pursuant to
               Proper Instructions from the Fund as defined in Article 4;

                                       -5-

<PAGE>

          2)   In connection with conversion, exchange or surrender of
               securities owned by the Fund as set forth in Section 2.2 hereof;

          3)   For the payment of any expense or liability incurred by the Fund,
               including but not limited to the following payments for the
               account of the Fund: interest, taxes, management, accounting,
               transfer agent and legal fees, and operating expenses of the Fund
               whether or not such expenses are to be in whole or part
               capitalized or treated as deferred expenses;

          4)   For the payment of any dividends declared pursuant to the
               governing documents of the Fund;

          5)   For payment of the amount of dividends received in respect of
               securities sold short;

          6)   For any other proper purpose, but only upon receipt of, in
               addition to Proper Instructions, a certified copy of a resolution
               of the Board of Directors or of the Executive Committee of the
               Fund signed by an officer of the Fund and certified by its
               Secretary or an Assistant Secretary, specifying the amount of
               such payment, setting forth the purpose for which such payment is
               to be made, declaring such purpose to be a proper purpose, and
               naming the person or persons to whom such payment is to be made.

2.8  Liability for Payment in Advance of Receipt of Securities Purchased. Except
     as specifically stated otherwise in this Contract, in any and every case
     where payment for purchase of domestic securities for the account of the
     Fund is made by the Custodian in advance of receipt of the securities
     purchased in the absence of specific written instructions from the Fund to
     so pay in advance, the Custodian shall be absolutely liable to the Fund for
     such securities to the same extent as if the securities had been received
     by the Custodian.

2.9  Appointment of Agents. The Custodian may at any time or times in its
     discretion appoint (and may at any time remove) any other bank or trust
     company which is itself qualified under the Investment Company Act of 1940,
     as amended, to act as a custodian, as its agent to carry out such of the
     provisions of this Article 2 as the Custodian may from time to time direct;
     provided, however, that the appointment of any agent shall not relieve the
     Custodian of its responsibilities or liabilities hereunder.

2.10 Deposit of Securities in Securities Systems. The Custodian may deposit
     and/or maintain domestic securities owned by the Fund in a clearing agency
     registered with the Securities and Exchange Commission under Section 17A of
     the Securities Exchange Act of 1934, which acts as a securities depository,
     or in the book-entry system authorized by the U.S. Department of the
     Treasury and certain federal agencies, collectively referred to herein as
     "Securities System" in accordance with applicable Federal Reserve Board and
     Securities

                                       -6-

<PAGE>

     and Exchange Commission rules and regulations, if any, and subject to the
     following provisions:

          1)   The Custodian may keep domestic securities of the Fund in a
               Securities System provided that such securities are represented
               in an account ("Account") of the Custodian in the Securities
               System which shall not include any assets of the Custodian other
               than assets held as a fiduciary, custodian or otherwise for
               customers;

          2)   The records of the Custodian with respect to domestic securities
               of the Fund which are maintained in a Securities System shall
               identify by book-entry those securities belonging to the Fund;

          3)   The Custodian shall pay for domestic securities purchased for the
               account of the Fund upon (i) receipt of advice from the
               Securities System that such securities have been transferred to
               the Account, and (ii) the making of an entry on the records of
               the Custodian to reflect such payment and transfer for the
               account of the Fund. The Custodian shall transfer domestic
               securities sold for the account of the Fund upon (i) receipt of
               advice from the Securities System that payment for such
               securities has been transferred to the Account, and (ii) the
               making of an entry on the records of the Custodian to reflect
               such transfer and payment for the account of the Fund. Copies of
               all advices from the Securities System of transfers of domestic
               securities for the account of the Fund shall identify the Fund,
               be maintained for the Fund by the Custodian and be provided to
               the Fund at its request. Upon request, the Custodian shall
               furnish the Fund confirmation of each transfer to or from the
               account of the Fund in the form of a written advice or notice and
               shall furnish to the Fund copies of daily transaction sheets
               reflecting each day's transactions in the Securities System for
               the account of the Fund.

          4)   The Custodian shall provide the Fund with any report obtained by
               the Custodian on the Securities System's accounting system,
               internal accounting control and procedures for safeguarding
               domestic securities deposited in the Securities System;

          5)   The Custodian shall have received the initial or annual
               certificate, as the case may be, required by Article 12 hereof;

          6)   Anything to the contrary in this Contract notwithstanding, the
               Custodian shall be liable to the Fund for any loss or damage to
               the Fund resulting from use of the Securities System by reason of
               any negligence, misfeasance or misconduct of the Custodian or any
               of its agents or of any of its or their employees or from failure
               of the Custodian or any such agent to enforce effectively such
               rights as it may have against the Securities

                                       -7-

<PAGE>

               System; at the election of the Fund, it shall be entitled to be
               subrogated to the rights of the Custodian with respect to any
               claim against the Securities System or any other person which the
               Custodian may have as a consequence of any such loss or damage if
               and to the extent that the Fund has not been made whole for any
               such loss or damage.

2.10A  Fund Assets Held in the Custodian's Direct Paper System. The Custodian
       may deposit and/or maintain securities owned by the Fund in the Direct
       Paper System of the Custodian subject to the following provisions:

          1)   No transaction relating to securities in the Direct Paper System
               will be effected in the absence of Proper Instructions;

          2)   The Custodian may keep securities of the Fund in the Direct Paper
               System only if such securities are represented in an account
               ("Account") of the Custodian in the Direct Paper System which
               shall not include any assets of the Custodian other than assets
               held as a fiduciary, custodian or otherwise for customers;

          3)   The records of the Custodian with respect to securities of the
               Fund which are maintained in the Direct Paper System shall
               identify by book-entry those securities belonging to the Fund;

          4)   The Custodian shall pay for securities purchased for the account
               of the Fund upon the making of an entry on the records of the
               Custodian to reflect such payment and transfer of securities to
               the account of the Fund. The Custodian shall transfer securities
               sold for the account of the Fund upon the making of an entry on
               the records of the Custodian to reflect such transfer and receipt
               of payment for the account of the Fund;

          5)   The Custodian shall furnish the Fund confirmation of each
               transfer to or from the account of the Fund, in the form of a
               written advice or notice, of Direct Paper on the next business
               day following such transfer and shall furnish to the Fund copies
               of daily transaction sheets reflecting each day's transaction in
               the Securities System for the account of the Fund;

          6)   The Custodian shall provide the Fund with any report on its
               system of internal accounting control as the Fund may reasonably
               request from time to time.

2.11   Segregated Account. The Custodian shall upon receipt of Proper
       Instructions establish and maintain a segregated account or accounts for
       and on behalf of the Fund, into which account or accounts may be
       transferred cash and/or securities, including securities maintained in an
       account by the Custodian pursuant to Section 2.10 hereof, (i) in
       accordance with the provisions of any agreement among the Fund, the
       Custodian and a

                                       -8-

<PAGE>

     broker-dealer registered under the Exchange Act and a member of the NASD
     (or any futures commission merchant registered under the Commodity Exchange
     Act), relating to compliance with the rules of The Options Clearing
     Corporation and of any registered national securities exchange (or the
     Commodity Futures Trading Commission or any registered contract market), or
     of any similar organization or organizations, regarding escrow or other
     arrangements in connection with transactions by the Fund, (ii) for purposes
     of segregating cash or government securities in connection with options
     purchased, sold or written by the Fund or commodity futures contracts or
     options thereon purchased or sold by the Fund, (iii) for the purposes of
     compliance by the Fund with the procedures required by Investment Company
     Act Release No. 10666, or any subsequent release or releases of the
     Securities and Exchange Commission relating to the maintenance of
     segregated accounts by registered investment companies and (iv) for other
     proper corporate purposes, but only, in the case of clause (iv), upon
     receipt of, in addition to Proper Instructions, a certified copy of a
     resolution of the Board of Directors or of the Executive Committee signed
     by an officer of the Fund and certified by the Secretary or an Assistant
     Secretary, setting forth the purpose or purposes of such segregated account
     and declaring such purposes to be proper corporate purposes.

2.12 Ownership Certificates for Tax Purposes. The Custodian shall execute
     ownership and other certificates and affidavits for all federal and state
     tax purposes in connection with receipt of income or other payments with
     respect to domestic securities of the Fund held by it and in connection
     with transfers of such securities.

2.13 Proxies. The Custodian shall, with respect to the domestic securities held
     hereunder, cause to be promptly executed by the registered holder of such
     securities, if the securities are registered otherwise than in the name of
     the Fund or a nominee of the Fund, all proxies, without indication of the
     manner in which such proxies are to be voted, and shall promptly deliver to
     the Fund such proxies, all proxy soliciting materials and all notices
     relating to such securities.

2.14 Communications Relating to Fund Portfolio Securities. Subject to the
     provisions of Section 2.3, the Custodian shall transmit promptly to the
     Fund all written information (including, without limitation, pendency of
     calls and maturities of domestic securities and expirations of rights in
     connection therewith and notices of exercise of call and put options
     written by the Fund and the maturity of futures contracts purchased or sold
     by the Fund) received by the Custodian from issuers of the domestic
     securities being held for the Fund. With respect to tender or exchange
     offers, the Custodian shall transmit promptly to the Fund all written
     information received by the Custodian from issuers of the domestic
     securities whose tender or exchange is sought and from the party (or his
     agents) making the tender or exchange offer. If the Fund desires to take
     action with respect to any tender offer, exchange offer or any other
     similar transaction, the Fund shall notify the Custodian at least three
     business days prior to the date on which the Custodian is to take such
     action.

                                       -9-

<PAGE>

2.15 Reports to Fund by Independent Public Accountants. The Custodian shall
     provide the Fund, at such times as the Fund may reasonably require, with
     reports by independent public accountants on the accounting system,
     internal accounting control and procedures for safeguarding securities,
     futures contracts and options on futures contracts, including domestic
     securities deposited and/or maintained in a Securities System, relating to
     the services provided by the Custodian under this Contract; such reports
     shall be of sufficient scope and in sufficient detail, as may reasonably be
     required by the Fund, to provide reasonable assurance that any material
     inadequacies would be disclosed by such examination, and, if there are no
     such inadequacies, the reports shall so state.

3.   Duties of the Custodian with Respect to Property of the Fund Held Outside
of the United States

3.1  Appointment of Foreign Sub-Custodians. The Fund hereby authorizes and
     instructs the Custodian to employ as sub-custodians for the Fund's
     Portfolios maintained outside the United States the foreign banking
     institutions and foreign securities depositories designated for each
     Portfolio on Schedules A-1, A-2 and A-3 hereto ("foreign sub-custodians").
     Upon receipt of "Proper Instructions", as defined in Section 4 of this
     Contract, together with a certified resolution of the Fund's Board of
     Directors, the Custodian and the Fund may agree to amend Schedules A-1, A-2
     or A-3 hereto from time to time to designate additional foreign banking
     institutions and foreign securities depositories to act as a sub-custodian
     with respect to any Fund Portfolio. Upon receipt of Proper Instructions,
     the Fund may instruct the Custodian to cease the employment of any one or
     more such sub-custodians for maintaining custody of any of the Fund's
     Portfolios.

3.2  Assets to be Held. The Custodian shall limit the Fund Portfolios maintained
     in the custody of the foreign sub-custodians to: (a) "foreign securities",
     as defined in paragraph (c)(1) of Rule 17f-5 under the Investment Company
     Act of 1940, and (b) cash and cash equivalents in such amounts as the
     Custodian or the Fund may determine to be reasonably necessary to effect
     the Fund's foreign securities transactions.

3.3  Foreign Securities Depositories. Except as may otherwise be agreed upon in
     writing by the Custodian and the Fund, assets of Fund Portfolios shall be
     maintained in foreign securities depositories only through arrangements
     implemented by the foreign banking institutions serving as sub-custodians
     pursuant to the terms hereof. Where possible, such arrangements shall
     include entry into agreements containing the provisions set forth in
     Section 3.5 hereof.

3.4  Segregation of Securities. The Custodian shall identify on its books as
     belonging to the Fund, the foreign securities of each Portfolio of the Fund
     held by each foreign sub-custodian. Each agreement pursuant to which the
     Custodian employs a foreign banking institution shall require that such
     institution establish a custody account for the Custodian on behalf of the
     Fund and physically segregate in that account, securities and other assets
     of the Fund Portfolio, and, in the event that such institution deposits the
     Fund's securities

                                       -10-

<PAGE>

     in a foreign securities depository, that it shall identify on its books as
     belonging to the Custodian, as agent for the Fund, the securities so
     deposited.

3.5  Agreements with Foreign Banking Institutions. Each agreement with a foreign
     banking institution shall be substantially in the form set forth in Exhibit
     1 hereto and shall provide that: (a) the Fund's assets will not be subject
     to any right, charge, security interest, lien or claim of any kind in favor
     of the foreign banking institution or its creditors or agent, except a
     claim of payment for their safe custody or administration; (b) beneficial
     ownership of the Fund's assets will be freely transferable without the
     payment of money or value other than for custody or administration; (c)
     adequate records will be maintained identifying the assets as belonging to
     the Fund; (d) officers of or auditors employed by, or other representatives
     of the Custodian, including to the extent permitted under applicable law
     the independent public accountants for the Fund, will be given access to
     the books and records of the foreign banking institution relating to its
     actions under its agreement with the Custodian; and (e) assets of the Fund
     held by the foreign sub-custodian will be subject only to the instructions
     of the Custodian or its agents.

3.6  Access of Independent Accountants of the Fund. Upon request of the Fund,
     the Custodian will use its best efforts to arrange for the independent
     accountants of the Fund to be afforded access to the books and records of
     any foreign banking institution employed as a foreign sub-custodian insofar
     as such books and records relate to the performance of such foreign banking
     institution under its agreement with the Custodian.

3.7  Reports by Custodian. The Custodian will supply to the Fund from time to
     time, as mutually agreed upon, statements in respect of the securities and
     other assets of each Fund Portfolio held by foreign sub-custodians,
     including but not limited to an identification of entities having
     possession of the Fund's securities and other assets and advices or
     notifications of any transfers of securities to or from each custodial
     account maintained by a foreign banking institution for the Custodian on
     behalf of the Fund indicating, as to securities acquired for the Fund, the
     identity of the entity having physical possession of such securities.

3.8  Transactions in Foreign Custody Account. (a) Except as otherwise provided
     in paragraph (b) of this Section 3.8, the provision of Sections 2.2 and 2.7
     of this Contract shall apply, mutatis mutandis to the foreign securities of
     the Fund held outside the United States by foreign sub-custodians. (b)
     Notwithstanding any provision of this Contract to the contrary, settlement
     and payment for securities received for the account of the Fund and
     delivery of securities maintained for the account of the Fund may be
     effected in accordance with the customary established securities trading or
     securities processing practices and procedures in the jurisdiction or
     market in which the transaction occurs, including, without limitation,
     delivering securities to the purchaser thereof or to a dealer therefor (or
     an agent for such purchaser or dealer) against a receipt with the
     expectation of receiving later payment for such securities from such
     purchaser or dealer. (c) Securities maintained in the custody of a foreign
     sub-custodian may be maintained in the

                                       -11-

<PAGE>

     name of such entity's nominee to the same extent as set forth in Section
     2.3 of this Contract, and the Fund agrees to hold any such nominee harmless
     from any liability as a holder of record of such securities. (d) Upon
     receipt of Proper Instructions, which may be continuing instructions when
     deemed appropriate by the Parties, the Custodian shall cause its foreign
     sub-custodian to pay out monies of the Fund for expenses associated with
     the management of a Fund Portfolio, including without limitation, the
     payment of interest, taxes, accounting or legal fees and management,
     advisory and other fees relating to the operation of a Fund Portfolio.

3.9  Liability of Foreign Sub-Custodians. Each agreement pursuant to which the
     Custodian employs a foreign banking institution as a foreign sub-custodian
     shall require the institution to exercise reasonable care in the
     performance of its duties and to indemnify, and hold harmless, the
     Custodian and each Fund from and against any loss, damage, cost, expense,
     liability or claim arising out of or in connection with the institution's
     performance of such obligations. At the election of the Fund, it shall be
     entitled to be subrogated to the rights of the Custodian with respect to
     any claims against a foreign banking institution as a consequence of any
     such loss, damage, cost, expense, liability or claim if and to the extent
     that the Fund has not been made whole for any such loss, damage, cost,
     expense, liability or claim.

3.10 Liability of Custodian. The Custodian shall be liable for the acts or
     omissions of a foreign banking institution to the same extent as set forth
     with respect to sub-custodians generally in this Contract and, regardless
     of whether assets are maintained in the custody of a foreign banking
     institution, a foreign securities depository or a branch of a U.S. bank as
     contemplated by paragraph 3.13 hereof, the Custodian shall not be liable
     for any loss, damage, cost, expense, liability or claim resulting from
     nationalization, expropriation, currency restrictions, or acts of war or
     terrorism or any loss where the sub-custodian has otherwise exercised
     reasonable care. Notwithstanding the foregoing provisions of this paragraph
     3.10, in delegating custody duties to State Street London Ltd., the
     Custodian shall not be relieved of any responsibility to the Fund for any
     loss due to such delegation, except such loss as may result from (a)
     political risk (including, but not limited to, exchange control
     restrictions, confiscation, expropriation, nationalization, insurrection,
     civil strife or armed hostilities) or (b) other losses (excluding a
     bankruptcy or insolvency of State Street London Ltd. not caused by
     political risk) due to Acts of God, nuclear incident or other losses under
     circumstances where the Custodian and State Street London Ltd. have
     exercised reasonable care.

3.11 Reimbursement for Advances. If the Fund requires the Custodian to advance
     cash or securities for any purpose including the purchase or sale of
     foreign exchange or of contracts for foreign exchange, or in the event that
     the Custodian or its nominee shall incur or be assessed any taxes, charges,
     expenses, assessments, claims or liabilities in connection with the
     performance of this Contract, except such as may arise from its or its
     nominee's own negligent action, negligent failure to act or willful
     misconduct, any property at any time held for the account of the Fund shall
     be security therefor and should

                                       -12-

<PAGE>

     the Fund fail to repay the Custodian promptly, the Custodian shall be
     entitled to utilize available cash and to dispose of the Fund assets to the
     extent necessary to obtain reimbursement.

3.12 Monitoring Responsibilities. The Custodian shall furnish annually to the
     Fund, during the month of June, information concerning the foreign
     sub-custodians employed by the Custodian. Such information shall be similar
     in kind and scope to that furnished to the Fund in connection with the
     initial approval of this Contract. In addition, the Custodian will promptly
     inform the Fund in the event that the Custodian learns of a material
     adverse change in the financial condition of a foreign sub-custodian or any
     material loss of the assets of the Fund or in the case of any foreign
     sub-custodian not the subject of an exemptive order from the Securities and
     Exchange Commission is notified by such foreign sub-custodian that there
     appears to be a substantial likelihood that its shareholders' equity will
     decline below $200 million (U.S. dollars or the equivalent thereof) or that
     its shareholders' equity has declined below $200 million (in each case
     computed in accordance with generally accepted U.S. accounting principles).

3.13 Branches of U.S. Banks. (a) Except as otherwise set forth in this Contract,
     the provisions hereof shall not apply where the custody of the Fund assets
     are maintained in a foreign branch of a banking institution which is a
     "bank" as defined by Section 2(a)(5) of the Investment Company Act of 1940
     meeting the qualification set forth in Section 26(a) of said Act. The
     appointment of any such branch as a sub-custodian shall be governed by
     paragraph 1 of this Contract.

     (b) Cash held for any Portfolio of the Fund in the United Kingdom shall be
     maintained in an interest bearing account established for the Fund with the
     Custodian's London branch, which account shall be subject to the direction
     of the Custodian, State Street London Ltd. or both.

4.   Proper Instructions

     Proper Instructions as used herein means a writing signed or initialled by
one or more person or persons as the Board of Directors shall have from time to
time authorized. Each such writing shall set forth the specific transaction or
type of transaction involved, including a specific statement of the purpose for
which such action is requested. Oral instructions will be considered Proper
Instructions if the Custodian reasonably believes them to have been given by a
person authorized to give such instructions with respect to the transaction
involved. The Fund shall cause all oral instructions to be confirmed in writing.
Upon receipt of a certificate of the Secretary or an Assistant Secretary as to
the authorization by the Board of Directors of the Fund accompanied by a
detailed description of procedures approved by the Board of Directors, Proper
Instructions may include communications effected directly between
electro-mechanical or electronic devices provided that the Board of Directors
and the Custodian are satisfied that such procedures afford adequate safeguards
for the Fund's assets. For purposes of this Section, Proper Instructions shall
include instructions received by the Custodian pursuant to any three-party
agreement which requires a segregated asset account in accordance with Section
2.11.

                                       -13-

<PAGE>

5.   Actions Permitted without Express Authority

     The Custodian may in its discretion, without express authority from the
Fund:

     1) make payments to itself or others for minor expenses of handling
securities or other similar items relating to its duties under this Contract,
provided that all such payments shall be accounted for to the Fund;

     2) surrender securities in temporary form for securities in definitive
form;

     3) endorse for collection, in the name of the Fund, checks, drafts and
other negotiable instruments; and

     4) in general, attend to all non-discretionary details in connection with
the sale, exchange, substitution, purchase, transfer and other dealings with the
securities and property of the Fund except as otherwise directed by the Board of
Directors of the Fund.

6.   Evidence of Authority

     The Custodian shall be protected in acting upon any instructions, notice,
request, consent, certificate or other instrument or paper believed by it to be
genuine and to have been properly executed by or on behalf of the Fund. The
Custodian may receive and accept a certified copy of a vote of the Board of
Directors of the Fund as conclusive evidence (a) of the authority of any person
to act in accordance with such vote or (b) of any determination or of any action
by the Board of Directors pursuant to the Articles of Incorporation as described
in such vote, and such vote may be considered as in full force and effect until
receipt by the Custodian of written notice to the contrary.

7.   Duties of Custodian with Respect to the Books of Account and Calculation of
Net Asset Value and Net Income

     The Custodian shall cooperate with and supply necessary information to the
entity or entities appointed by the Board of Directors of the Fund to keep the
books of account of the Fund and/or compute the net asset value per share of the
outstanding shares of the Fund or, if directed in writing to do so by the Fund,
shall itself keep such books of account and/or compute such net asset value per
share. If so directed, the Custodian shall also calculate weekly the net income
of the Fund as described in the Fund's currently effective prospectus and shall
advise the Fund and the Transfer Agent weekly of the total amounts of such net
income and, if instructed in writing by an officer of the Fund to do so, shall
advise the Transfer Agent periodically of the division of such net income among
its various components. The calculations of the net asset value per share and
the weekly income of the Fund shall be made at the time or times described from
time to time in the Fund's currently effective prospectus.

                                       -14-

<PAGE>

8.   Records

     The Custodian shall create and maintain all records relating to its
activities and obligations under this Contract in such manner as will meet the
obligations of the Fund under the Investment Company Act of 1940, with
particular attention to Section 31 thereof and Rules 31a-1 and 31a-2 thereunder.
All such records shall be the property of the Fund and shall at all times during
the regular business hours of the Custodian be open for inspection by duly
authorized officers, employees or agents of the Fund and employees and agents of
the Securities and Exchange Commission. The Custodian shall, at the Fund's
request, supply the Fund with a tabulation of securities owned by the Fund and
held by the Custodian and shall, when requested to do so by the Fund and for
such compensation as shall be agreed upon between the Fund and the Custodian,
include certificate numbers in such tabulations.

9.   Opinion of Fund's Independent Accountant

     The Custodian shall take all reasonable action, as the Fund may from time
to time request, to obtain from year to year favorable opinions from the Fund's
independent accountants with respect to its activities hereunder in connection
with the preparation of the Fund's Form N-2, and Form N-SAR or other annual
reports to the Securities and Exchange Commission and with respect to any other
requirements of such Commission.

10.  Compensation of Custodian

     The Custodian shall be entitled to reasonable compensation for its services
and expenses as Custodian, as agreed upon from time to time between the Fund and
the Custodian.

11.  Responsibility of Custodian

     So long as and to the extent that it is in the exercise of reasonable care,
the Custodian shall not be responsible for the title, validity or genuineness of
any property or evidence of title thereto received by it or delivered by it
pursuant to this Contract and shall be held harmless in acting upon any notice,
request, consent, certificate or other instrument reasonably believed by it to
be genuine and to be signed by the proper party or parties, including any
futures commission merchant acting pursuant to the terms of a three-party
futures or options agreement. The Custodian shall be held to the exercise of
reasonable care in carrying out the provisions of this Contract, but shall be
kept indemnified by and shall be without liability to the Fund for any action
taken or omitted by it in good faith without negligence. It shall be entitled to
rely on and may act upon advice of counsel (who may be counsel for the Fund) on
all matters, and shall be without liability for any action reasonably taken or
omitted pursuant to such advice.

     The Custodian shall be liable for the acts or omissions of a foreign
banking institution appointed pursuant to the provisions of Article 3 to the
same extent as set forth in Article 1 hereof with respect to sub-custodians
located in the United States and, regardless of whether assets are maintained in
the custody of a foreign banking institution, a foreign securities depository or
a branch of a U.S. bank as contemplated by paragraph 3.11 hereof, the Custodian

                                       -15-

<PAGE>

shall not be liable for any loss, damage, cost, expense, liability or claim
resulting from, or caused by, the direction of or authorization by the Fund to
maintain custody or any securities or cash of the Fund in a foreign country
including, but not limited to, losses resulting from nationalization,
expropriation, currency restrictions, or acts of war or terrorism.

     If the Fund requires the Custodian to take any action with respect to
securities, which action involves the payment of money or which action may, in
the opinion of the Custodian, result in the Custodian or its nominee assigned to
the Fund being liable for the payment of money or incurring liability of some
other form, the Fund, as a prerequisite to requiring the Custodian to take such
action, shall provide indemnity to the Custodian in an amount and form
satisfactory to it.

     If the Fund requires the Custodian, its affiliates, subsidiaries or agents,
to advance cash or securities for any purpose (including but not limited to
securities settlements, foreign exchange contracts and assumed settlement) or in
the event that the Custodian or its nominee shall incur or be assessed any
taxes, charges, expenses, assessments, claims or liabilities in connection with
the performance of this Contract, except such as may arise from its or its
nominee's own negligent action, negligent failure to act or willful misconduct,
any property at any time held for the account of the Fund shall be security
therefor and should the Fund fail to repay the Custodian promptly, the Custodian
shall be entitled to utilize available cash and to dispose of the Fund assets to
the extent necessary to obtain reimbursement.

12.  Effective Period, Termination and Amendment

     This Contract shall become effective as of its execution, shall continue in
full force and effect until terminated as hereinafter provided, may be amended
at any time by mutual agreement of the parties hereto and may be terminated by
either party by an instrument in writing delivered or mailed, postage prepaid to
the other party, such termination to take effect not sooner than thirty (30)
days after the date of such delivery or mailing; provided, however that the
Custodian shall not act under Section 2.10 hereof in the absence of receipt of
an initial certificate of the Secretary or an Assistant Secretary that the Board
of Directors of the Fund has approved the initial use of a particular Securities
System and the receipt of an annual certificate of the Secretary or an Assistant
Secretary that the Board of Directors has reviewed the use by the Fund of such
Securities System, as required in each case by Rule 17f-4 under the Investment
Company Act of 1940, as amended and that the Custodian shall not act under
Section 2.10A hereof in the absence of receipt of an initial certificate of the
Secretary or an Assistant Secretary that the Board of Directors has approved the
initial use of the Direct Paper System and the receipt of an annual certificate
of the Secretary or an Assistant Secretary that the Board of Directors has
reviewed the use by the Fund of the Direct Paper System; provided further,
however, that the Fund shall not amend or terminate this Contract in
contravention of any applicable federal or state regulations, or any provision
of the Articles of Incorporation, and further provided, that the Fund may at any
time by action of its Board of Directors (i) substitute another bank or trust
company for the Custodian by giving notice as described above to the Custodian,
or (ii) immediately terminate this Contract in the event of the appointment of a
conservator or receiver

                                       -16-

<PAGE>

for the Custodian by the Comptroller of the Currency or upon the happening of a
like event at the direction of an appropriate regulatory agency or court of
competent jurisdiction.

     Upon termination of the Contract, the Fund shall pay to the Custodian such
compensation as may be due as of the date of such termination and shall likewise
reimburse the Custodian for its costs, expenses and disbursements.

13.  Successor Custodian

     If a successor custodian shall be appointed by the Board of Directors of
the Fund for one or more of the Fund's Portfolios or if the Contract is
terminated under Section 12 hereof, and a successor Custodian shall be appointed
by the Board of Directors of the Fund, the Custodian shall deliver to such
successor custodian at the office of the Custodian, duly endorsed and in the
form for transfer, all securities then held by it hereunder and shall transfer
to an account of the successor custodian all of the Fund's securities held in
the relevant Portfolio or Portfolios or in a Securities System.

     If no such successor custodian shall be appointed, the Custodian shall, in
like manner, upon receipt of a certified copy of a vote of the Board of
Directors of the Fund, deliver at the office of the Custodian and transfer such
securities, funds and other properties in accordance with such vote.

     In the event that no written order designating a successor custodian or
certified copy of a vote of the Board of Directors shall have been delivered to
the Custodian on or before the date when a termination shall become effective,
then the Custodian shall have the right to deliver to a bank or trust company,
which is a "bank" as defined in the Investment Company Act of 1940, doing
business in Boston, Massachusetts, of its own selection, having an aggregate
capital, surplus, and undivided profits, as shown by its last published report,
of not less than $25,000,000, all securities, funds and other properties held by
the Custodian and all instruments held by the Custodian relative thereto and all
other property held by it under this Contract and to transfer to an account of
such successor custodian all of the Fund's securities held in any Securities
System. Thereafter, such bank or trust company shall be the successor of the
Custodian under this Contract.

     In the event that securities, funds and other properties remain in the
possession of the Custodian after the date of termination hereof owing to
failure of the Fund to procure the certified copy of the vote referred to or of
the Board of Directors to appoint a successor custodian, the Custodian shall be
entitled to fair compensation for its services during such period as the
Custodian retains possession of such securities, funds and other properties and
the provisions of this Contract relating to the duties and obligations of the
Custodian shall remain in full force and effect.

                                       -17-

<PAGE>

14.  Interpretive and Additional Provisions

     In connection with the operation of this Contract, the Custodian and the
Fund may from time to time agree on such provisions interpretive of or in
addition to the provisions of this Contract as may in their joint opinion be
consistent with the general tenor of this Contract. Any such interpretive or
additional provisions shall be in a writing signed by both parties and shall be
annexed hereto, provided that no such interpretive or additional provisions
shall contravene any applicable federal or state regulations or any provision of
the Articles of Incorporation of the Fund. No interpretive or additional
provisions made as provided in the preceding sentence shall be deemed to be an
amendment of this Contract.

15.  Massachusetts Law to Apply

     This Contract shall be construed and the provisions thereof interpreted
under and in accordance with laws of The Commonwealth of Massachusetts.

16.  Prior Contracts

     This Contract supersedes and terminates, as of the date hereof, all prior
contracts between the Fund and the Custodian relating to the custody of the
Fund's assets.

     IN WITNESS WHEREOF, each of the parties has caused this instrument to be
executed in its name and behalf by its duly authorized representative and its
seal to be hereunder affixed as of the 20/th/ day of February, 1992.


ATTEST                                     THE FIRST COMMONWEALTH FUND, INC.

By /s/ Margaret A. Bancroft                By /s/ Laurence S. Freedman
   ------------------------                   ------------------------
       Assistant Secretary                        President


ATTEST                                     STATE STREET BANK AND TRUST COMPANY

/s/ Illegible                              /s/ Illegible

_______________________________            By ________________________________
Assistant Secretary                                    Vice President

                                      -18-

<PAGE>

                                  Schedule A-1

     The following foreign banking institutions and foreign securities
depositories have been approved by the Board of Directors of The First
Commonwealth Fund, Inc. for use as a sub-custodian for the Fund securities and
assets held in the Australian and New Zealand Portfolio:

     Australia and New Zealand Banking Group Limited

     Banque Bruxelles Lambert S.A. with respect to Eurodollar Australian and New
Zealand Portfolio Assets

     State Street London Limited with respect to Eurodollar Australian and New
Zealand Portfolio Assets

                                       -19-

<PAGE>

                                  Schedule A-2

     The following foreign banking institutions and foreign securities
depositories have been approved by the Board of Directors of The First
Commonwealth Fund, Inc. for use as a sub-custodian for the Fund securities and
assets held in the United Kingdom Portfolio:

     State Street London Limited

     Banque Bruxelles Lambert S.A. with respect to Eurodollar United Kingdom
Portfolio Assets

     State Street London Limited with respect to Eurodollar United Kingdom
Portfolio Assets

                                       -20-

<PAGE>

                                  Schedule A-3

     The following foreign banking institutions and foreign securities
depositories have been approved by the Board of Directors of The First
Commonwealth Fund, Inc. for use as a sub-custodian for the Fund securities and
assets held in the Canadian Portfolio:

     The Canadian Trust Company

     Banque Bruxelles Lambert S.A. with respect to Eurodollar Canadian Portfolio
Assets

     State Street London Limited with respect to Eurodollar Canadian Portfolio
Assets

                                       -21-

<PAGE>

                                  Schedule B

     The Fund's securities and other assets in accordance with the Fund's
prospectus are held in the following Portfolios:

     The Australian and New Zealand Portfolio: Australian and New Zealand Dollar
Assets

     The United Kingdom Portfolio: United Kingdom Pound Sterling Assets

     The Canadian Portfolio: Canadian Dollar Assets

     The U.S. Portfolio: All other assets of the Fund

                                      -22-

</TEXT>
</DOCUMENT>
