<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>def-801.txt
<DESCRIPTION>HERZFELD CARIBBEAN BASIN FUND, INC.
<TEXT>

                   Proxy Statement Pursuant to Section 14(a)
                     of the Securities Exchange Act of 1934
                                (Amendment No. )

Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]

Check the appropriate box:
[ ]  Preliminary Proxy Statement
[ ]  Confidential,  for  Use  of the  Commission  Only  (as  permitted  by  Rule
     14a-6(e)(2))
[x]  Definitive Proxy Statement
[ ]  Definitive Additional Materials
[ ]  Soliciting Material Pursuant to Rule 14a-11(c) or
         Rule 14a-12

                     The Herzfeld Caribbean Basin Fund, Inc.
                     ---------------------------------------
                (Name of Registrant as Specified in Its Charter)


     -----------------------------------------------------------------------
     (Name of Person(s) Filing Proxy Statement if other than the Registrant)

<PAGE>

                    THE HERZFELD CARIBBEAN BASIN FUND, INC.
                    ---------------------------------------
                    NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
                               November 14, 2001
                    ---------------------------------------

                                                                  Miami, Florida
                                                                 August 31, 2001

TO THE STOCKHOLDERS OF
     THE HERZFELD CARIBBEAN BASIN FUND, INC.:

     The Annual Meeting of  Stockholders  of The Herzfeld  Caribbean Basin Fund,
Inc. (the "Fund") will be held on November 14, 2001 at 2:00 p.m., at the offices
of E-Lysium Transaction Systems, 4601 Sheridan Street, Suite 500, Hollywood,  FL
33021, for the following purposes:

     (1)  the election of three Class II directors; and

     (2)  to  transact  such other  business  as may  properly  come  before the
          meeting and any adjournments thereof.

     The  subjects  referred  to above  are  discussed  in  detail  in the Proxy
Statement  attached to this notice.  Each  stockholder  is invited to attend the
Annual Meeting of Stockholders in person. Stockholders of record at the close of
business on August 24, 2001 have the right to vote at the meeting. If you cannot
be present at the meeting, we urge you to fill in, sign, and promptly return the
enclosed proxy in order that the meeting can be held without  additional expense
and a maximum number of shares may be voted.

                             CECILIA GONDOR-MORALES
                                   Secretary

--------------------------------------------------------------------------------
                             YOUR VOTE IS IMPORTANT
            NO MATTER HOW MANY SHARES YOU OWNED ON THE RECORD DATE.

PLEASE INDICATE YOUR VOTING  INSTRUCTIONS ON THE ENCLOSED PROXY CARD, DATE, SIGN
AND RETURN IT IN THE ENVELOPE PROVIDED,  WHICH IS ADDRESSED FOR YOUR CONVENIENCE
AND  NEEDS NO  POSTAGE  IF MAILED IN THE  UNITED  STATES.  IN ORDER TO AVOID THE
ADDITIONAL EXPENSE TO THE FUND OF FURTHER SOLICITATION,  WE ASK YOUR COOPERATION
IN MAILING YOUR PROXY PROMPTLY.  THE PROXY IS REVOCABLE AT ANY TIME PRIOR TO ITS
USE.
--------------------------------------------------------------------------------

<PAGE>

IF YOU CANNOT ATTEND THE ANNUAL  MEETING,  IT IS REQUESTED THAT YOU COMPLETE AND
SIGN THE  ENCLOSED  PROXY AND  RETURN IT IN THE  ENVELOPE  PROVIDED  SO THAT THE
MEETING MAY BE HELD AND ACTION  TAKEN ON THE MATTERS  DESCRIBED  HEREIN WITH THE
GREATEST POSSIBLE NUMBER OF SHARES PARTICIPATING.

<PAGE>

                    THE HERZFELD CARIBBEAN BASIN FUND, INC.

                     P.O. Box 161465, Miami, Florida 33116
                                PROXY STATEMENT
                   ANNUAL MEETING OF STOCKHOLDERS TO BE HELD
                               NOVEMBER 14, 2001

     This statement is furnished in connection with the  solicitation of proxies
by the Board of  Directors  of The  Herzfeld  Caribbean  Basin Fund,  Inc.  (the
"Fund") for use at the Annual Meeting of Stockholders  (the "Annual Meeting") to
be held at the offices of E-Lysium  Transaction  Systems,  4601 Sheridan Street,
Suite 500, Hollywood, FL 33021 on November 14, 2001 at 2:00 p.m.

     Proxies  may be  solicited  by  mail,  telephone,  telegraph  and  personal
interview.  The  Fund has  also  requested  brokers,  dealers,  banks or  voting
trustees,  or their nominees to forward proxy material to the beneficial  owners
of stock of record.  The enclosed proxy is revocable by you at any time prior to
the  exercise   thereof  by  submitting  a  written   notice  of  revocation  or
subsequently executed proxy to the Secretary of the meeting. Signing and mailing
the proxy  will not  affect  your  right to give a later  proxy or to attend the
meeting and vote your shares in person.  The cost of soliciting  proxies will be
paid by the  Fund.  This  proxy  statement  is  expected  to be  distributed  to
shareholders on or about August 31, 2001.

     THE PERSONS NAMED IN THE ACCOMPANYING  PROXY WILL VOTE THE NUMBER OF SHARES
REPRESENTED  THEREBY AS DIRECTED OR, IN THE ABSENCE OF SUCH DIRECTION,  FOR EACH
OF THE  NOMINEES  FOR  DIRECTOR  AND TO TRANSACT  SUCH OTHER  BUSINESS  THAT MAY
PROPERLY COME BEFORE THE MEETING AND ANY ADJOURNMENTS THEREOF.

     On August 24, 2001, the date for determination of shareholders  entitled to
receive notice of and to vote at the Annual Meeting, or any adjournment thereof,
there were issued and outstanding  1,677,636 shares of Common Stock of the Fund,
each  entitled  to one vote,  constituting  all of the Fund's  then  outstanding
securities.

     At the Annual Meeting,  a quorum shall consist of the holders of a majority
of the  outstanding  shares of the Common Stock of the Fund  entitled to vote at
the meeting. If a quorum is present, a plurality of all votes cast at the Annual
Meeting shall be sufficient  for the election of a director  (Proposal 1). Under
Maryland law,  abstentions and broker non-votes will be included for purposes of
determining  whether a quorum is  present  at the  Annual  Meeting,  but will be
treated as votes not cast,  and  therefore,  will not be counted for purposes of
determining  whether  matters to be voted upon at the Annual  Meeting  have been
approved.

     THE FUND WILL FURNISH,  WITHOUT CHARGE, A COPY OF ITS ANNUAL REPORT FOR ITS
FISCAL YEAR ENDED JUNE 30, 2001 AND THE MOST RECENT SEMI-ANNUAL REPORT SUCCEDING
THE ANNUAL REPORT TO ANY SHAREHOLDER REQUESTING SUCH REPORT.

     REQUESTS  FOR THE ANNUAL  REPORT OR  SEMI-ANNUAL  REPORT  SHOULD BE MADE IN
WRITING TO THE FUND AT THE ADDRESS  SET FORTH ABOVE OR BY CALLING THE  SECRETARY
OF THE FUND, CECILIA GONDOR-MORALES,  AT 800-854-3863, OR FOR FLORIDA RESIDENTS,
800-718-3863 OR 305-271-1900.

<PAGE>

                              ELECTION OF DIRECTORS
                                  (Proposal 1)

     Three  directors are to be elected at the Annual  Meeting.  Pursuant to the
Fund's By-Laws,  the directors are classified into three classes with respect to
the year of  expiration  of their terms of office.  Because the Fund's  Class II
directors' terms of office will expire in 2001, the Annual Meeting is being held
for the election of those directors.  The Class I and Class III directors' terms
of office will expire in 2003 and 2002, respectively.

     If authority is granted on the  accompanying  proxy to vote in the election
of  directors,  it is the intention of the persons named in the proxy to vote at
the Annual Meeting for the election of each of the nominees named below, who has
consented to being named in the proxy  statement  and to serve if elected.  If a
nominee is  unavailable  to serve for any reason,  the persons  named as proxies
will vote for such other nominee or nominees selected by the Board of Directors,
or the Board may  reduce  the  number of  directors  as  provided  in the Fund's
By-Laws.  The Fund currently  knows of no reason why any of the nominees  listed
below would be unable or unwilling to serve if elected.

     As of August 31,  2001,  the Fund's  Board of  Directors  consisted of five
members. The Class II directors of the Fund, Ms. Cecilia Gondor-Morales, Ms. Ann
S. Lieff,  and Mr.  Kenneth A.B.  Trippe,  are nominees for election,  and their
current terms as directors will expire on the date of the Annual Meeting or when
his or her successor is elected and qualifies. The nominee would serve until his
or her successor has been elected and qualified.

     Certain information regarding each nominee as well as the current directors
and executive officers of the Fund is set forth below.

NOMINEES FOR DIRECTOR

<TABLE>
<CAPTION>
                                                                       Year First   Shares Owned     Percent Owned
Name and Position             Principal Occupation                       Became     Beneficially      Beneficially
    with Fund                 for Past 5 Years                  Age     Director   August 24, 2001   August 24, 2001
    ---------                 ----------------                  ---     --------   ---------------   ---------------
<S>                           <C>                                <C>      <C>           <C>               <C>
Cecilia Gondor-Morales*       Executive Vice President of        39       1993          1,400             0.08%
Director, Treasurer &         Thomas J. Herzfeld & Co., Inc.
Secretary                     and Thomas J. Herzfeld
                              Advisors, Inc.

Kenneth A. B. Trippe          Chairman of Cruise Brokers         68       1993          2,004             0.12%
Director                      Inc., and Trippe & Company,
                              Inc., consultants to the cruise
                              industry.

Ann S. Lieff                  President of the Lieff             49       1998          1,666             0.10%
Director                      Company, a management
                              consulting firm that offers
                              business solutions, strategies
                              and CEO mentoring to corporations
                              and women/family-owned businesses,
                              1998-present; former CEO Spec's
                              Music 1980-1998, a retailer of
                              recorded music.
</TABLE>

<PAGE>

DIRECTORS AND OFFICERS

<TABLE>
<CAPTION>
                                                                            Shares Owned     Percent Owned
Name and Position                 Position  Principal Occupation            Beneficially      Beneficially
    with Fund             Age      Since    for Past 5 Years               August 24, 2001   August 24, 2001
    ---------             ---      -----    ----------------               ---------------   ---------------
<S>                        <C>      <C>     <C>                                 <C>               <C>
Thomas J. Herzfeld*        56       1993    Chairman and President of           47,300            2.82%
President & Director                        Thomas J. Herzfeld & Co., Inc.
                                            and Thomas J. Herzfeld
                                            Advisors, Inc.

Cecilia Gondor-Morales*    39       1993                         See "Nominee for Director" above
Director, Treasurer &
Secretary

Ann S. Lieff               49       1998                         See "Nominee for Director" above
Director

Kenneth A.B. Trippe        68       1993                         See "Nominee for Director" above
Director

Albert L. Weintraub        72       1999    Senior Partner of Weintraub,           500            0.03%
Director                                    Weintraub, Seiden and Orshan;
                                            Chairman/CEO of iTelsa, Inc., a
                                            provider of Internet protocol
                                            telephony servcies; Chairman of
                                            E-lysium Transaction Systems, Inc.,
                                            an application service provider of
                                            transaction processing, billing and
                                            payment systems; City Attorney for
                                            Miami Springs, FL
</TABLE>

-------------------------
* An "interested  person" (as defined in the Investment  Company Act of 1940) of
the Fund  because  he/she is an officer and  employee  of the Fund's  investment
adviser.

     The Board of Directors of the Fund held four  regular  meetings  during the
Fund's fiscal year ended June 30, 2001. Each of the directors  attended at least
75% of the  aggregate  number of meetings of the Board of Directors  and of each
committee of which he was a member.

     The Audit Committee of the Board currently consists of Messrs.  Trippe, and
Weintraub,  and Ms. Lieff,  none of whom is an "interested  person" of the Fund.
Each  member  of  the  Audit  Committee  is  considered  independent  under  the
applicable NASD listing standards.  The Board of Directors adopted and the Audit
Committee  approved a written charter,  which became effective on March 3, 2000.
The  charter  is  attached  as  Appendix A to this  proxy  statement.  The Audit
Committee  reviews  the scope of the audit by the Fund's  independent  auditors,
confers with the auditors with respect to the audit and the internal  accounting
controls of the Fund and with respect to such other  matters as may be important
to an  evaluation of the audit and the  financial  statements  of the Fund,  and
makes recommendations with respect to the selection of auditors for the Fund.

<PAGE>

AUDIT COMMITTEE REPORT

     The Audit Committee met once during the fiscal year ended June 30, 2001 and
has reviewed and discussed the Fund's  audited  financial  statements  with Fund
management.  Further,  the Audit Committee has discussed with Kaufman,  Rossin &
Co., the Fund's  independent  auditors,  the matters required to be discussed by
statement on Auditing  Standards No. 61 (Communication  with Audit  Committees).
The Audit  Committee  has  received  the written  disclosures  and a letter from
Kaufman,  Rossin & Co. required by Independence  Standards Board Standard No. 1.
(Independence Discussions with Audit Committees) and has discussed with Kaufman,
Rossin & Co. their independence.  Based upon the foregoing,  the Audit Committee
recommended to the Board of Directors that the audited  financial  statements of
the Fund be included in the Fund's annual report to stockholders for filing with
the U.S.  Securities and Exchange  Commission for the fiscal year ended June 30,
2001.

                               Kenneth A.B. Trippe
                               Albert L. Weintraub
                               Ann S. Lieff

     The Board does not have a nominating or  compensation  committee.  The Fund
pays those  directors  who are not  "interested  persons" of the Fund $1,000 per
year  in  addition  to  $400  for  each  meeting  of the  Board  attended,  plus
reimbursement  for expenses.  Such fees totaled $6,600 for the fiscal year ended
June 30, 2001.

     As of August 24, 2001, directors and executive officers  beneficially owned
an aggregate 3.15% of the Fund's outstanding shares on that date.

     The  aggregate  compensation  paid by the  Fund  to  each of its  directors
serving  during  the  fiscal  year  ended  June  30,  2001 is set  forth  in the
compensation table below. Mr. Herzfeld and Ms. Gondor-Morales  receive no direct
compensation for their services on the Fund's Board.

<TABLE>
<CAPTION>
                                                                            Total Compensation
                                  Aggregate       Pension or Retirement     From Fund and Fund
Name of Person and              Compensation         Benefits Accrued         Complex Paid to
Position with Fund              from the Fund    as Part of Fund Expenses        Directors
------------------              -------------    ------------------------        ---------
<S>                                <C>                      <C>                    <C>
Thomas J. Herzfeld*                    $0                   $0                         $0
President and Director

Cecilia Gondor-Morales*                $0                   $0                         $0
Director, Treasurer & Secretary

Ann S. Lieff                       $2,200                   $0                     $2,200
Director

Kenneth A.B. Trippe                $2,200                   $0                     $2,200
Director

Albert L. Weintraub                $2,200                   $0                     $2,200
Director
</TABLE>
----------------------
*"Interested  person"  of  the  Fund  as  defined  by  Section  2(a)(19)  of the
Investment Company Act of 1940.

<PAGE>

THE BOARD OF DIRECTORS  RECOMMENDS THAT THE FUND'S  STOCKHOLDERS  VOTE "FOR" THE
ELECTION OF THE NOMINEES FOR DIRECTOR.

                             ADDITIONAL INFORMATION

     HERZFELD/CUBA  (the "Adviser"),  a division of Thomas J. Herzfeld Advisors,
Inc., with offices at The Herzfeld  Building,  P.O. Box 161465,  Miami,  Florida
33116,  serves  as the  Fund's  investment  adviser  pursuant  to an  Investment
Advisory  Contract  dated June 24,  1993.  The  Adviser  also  provides  certain
administration  services to the Fund, but the Fund has no formal  administrative
contract.  Mr.  Herzfeld  and Ms.  Gondor-Morales,  directors  of the Fund,  are
executives of the Adviser.

     Thomas J. Herzfeld & Co.,  Inc.,  P.O. Box 161465,  Miami,  Florida  33116,
acted as Underwriter to the Fund.

                           INDEPENDENT AUDITORS' FEES

     The following  table sets forth the aggregate fees paid to the  independent
auditors for the most recent fiscal year for professional services rendered for:
(i) the audit of the annual financial statements and the review of the financial
statements  included  in the  Fund's  report  to  stockholders;  (ii)  financial
information systems design and implementation services provided to the Fund, its
investment  advisor and  entities  controlling,  controlled  by or under  common
control with the investment advisor that provide services to the Fund; and (iii)
all other non-audit services provided to the Fund, its investment  advisor,  and
entities controlling,  controlled by or under common control with the investment
advisor that provide  services to the Fund.  The Audit  Committee has determined
that the provision of information  technology services under clause (ii) and the
provision  of  non-audit   services  under  clause  (iii)  are  compatible  with
maintaining the independence of the independent auditors of the Fund.

Audit Fees Charged    Financial Information     Other Fees     Fiscal Year-End
  to the Fund          Systems Design and
                       Implementation Fees
--------------------------------------------------------------------------------
    $15,500                    $0                  $5,209           6/30/01

                 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

         As of August 24, 2001,  there were no persons  known by the Fund to own
beneficially more than 5% of the outstanding shares of the Fund.

<PAGE>

                              STOCKHOLDER PROPOSALS

         Proposals intended to be presented by stockholders for consideration at
the 2002 Annual Meeting of Stockholders must be received by the Secretary of the
Fund no later than July 17, 2002 in order to be included in the proxy  statement
for the meeting.  A stockholder who wishes to make a proposal at the 2002 Annual
Meeting of  stockholders  without  including  the  proposal in the Fund's  proxy
statement  must notify the Fund,  and the Fund's  officers,  of such proposal no
later than  September 15, 2002.  If a  stockholder  fails to give notice by this
date,  then the persons  named as proxies in the proxies  solicited by the Board
for the 2002 Annual Meeting of Stockholders  may exercise  discretionary  voting
power with respect to any such proposal.

         To submit a  proposal,  a  stockholder  must own 1% or $2,000  worth of
shares of the Fund for at least one year,  and must own those shares through the
date of the 2002 Annual  Meeting.  Stockholders  who qualify may submit only one
proposal per Annual Meeting, and the proposal may be no longer than 500 words.

                REPORTS TO STOCKHOLDERS AND FINANCIAL STATEMENTS

         The  Annual  Report  to  Stockholders  of the Fund,  including  audited
financial  statements  of the Fund for the fiscal year ended June 30,  2001,  is
being mailed to  stockholders.  The Annual Report should be read in  conjunction
with this Proxy Statement,  but is not part of the proxy soliciting  material. A
copy of the Annual  Report may be obtained  from the Fund,  without  charge,  by
contacting  the Fund in  writing  at the  address  on the  cover  of this  Proxy
Statement, or by calling 800-854-3863 (for Florida residents,  800-718-3863), or
305-271-1900.

                                  OPEN MATTERS

     Management  of the Fund does not know of any matters to be presented at the
Annual Meeting other than those mentioned in this Proxy Statement.  If any other
business  should  come before the  meeting,  the  proxies  will vote  thereon in
accordance with their best judgment.

                                                      By Order of the Directors,

                                                          Cecilia Gondor-Morales
                                                 Director, Treasurer & Secretary
                                         The Herzfeld Caribbean Basin Fund, Inc.

Dated: August 31, 2001

<PAGE>

                                   Appendix A

                            AUDIT COMMITTEE CHARTER

1.   The Audit  Committee shall consist of at least three Directors and shall be
     composed entirely of Directors who are not "interested persons" (as defined
     in the Investment  Company Act of 1940) of the Fund, the investment adviser
     or principal underwriter.

2.   The purposes of the Audit Committee are:

     a.   To  oversee  the  accounting  and  financial  reporting  policies  and
          practices of the Fund, its internal controls and, as appropriate,  the
          internal controls of certain service providers;

     b.   to  oversee  the  quality  and  objectivity  of the  Fund's  financial
          statements and the independent audit thereof; and

     c.   to act as a liaison  between the Fund's  independent  auditors and the
          full Board of Directors.

     The  function  of the Audit  Committee  is  oversight;  it is  management's
     responsibility to maintain  appropriate systems for accounting and internal
     control,  and the auditor's  responsibility  to plan and carry out a proper
     audit.

3.   To carry out its  purposes,  the Audit  Committee  shall have the following
     duties and powers:

     a.   to recommend the selection,  retention or termination of auditors and,
          in connection therewith,  to evaluate the independence of the auditors
          and to  receive  the  auditors'  specific  representation  as to their
          independence;

     b.   to meet  with  the  Fund's  independent  auditors,  including  private
          meetings, as necessary (i) to review the arrangements for and scope of
          the annual audit and any special  audits;  (ii) to discuss any matters
          of concern relating to the Fund's financial statements,  including any
          adjustments to such statements  recommended by the auditors,  or other
          results of said  audit(s);  (iii) to consider the  auditors'  comments
          with  respect  to  the  Fund's  financial  policies,  procedures,  and
          internal accounting controls and management's  responses thereto;  and
          (iv) to review the opinion the auditors render or propose to render to
          the Board and shareholders.

     c.   to  consider  the effect  upon the Fund of any  changes in  accounting
          principles or practices proposed by management or the auditors;

     d.   to review the fees  charged by the  auditors  for audit and  non-audit
          services;

     e.   to investigate any  improprieties  or suspected  improprieties in fund
          operations; and

<PAGE>

     f.   to report the  Committee's  activities  to the full Board on a regular
          basis and to make such  recommendations  with respect to the above and
          other matters as the Committee may deem necessary or appropriate.

4.   The  Committee  shall  meet on a  regular  basis and is  empowered  to hold
     special meetings as circumstances require.

5.   The Committee  shall meet at least annually with management of the Fund and
     with the  Fund's  independent  public  accountants  to  discuss  any issues
     arising from the Committee's oversight obligations.

6.   The  Committee  shall meet at least  annually with the  independent  public
     accountants  (outside  the  presence of  management)  to discuss any issues
     arising from the Committee's oversight obligations.

7.   The Committee  shall meet at least  annually with  management  (outside the
     presence of the independent  public  accountants)  to discuss  management's
     evaluation of the work performed by the independent  public accountants and
     the appropriateness of their fees.

8.   The  Committee  shall  have the  resources  and  authority  appropriate  to
     discharge its  responsibilities,  including the authority to retain special
     counsel and other experts or consultants at the expense of the Fund.

9.   The Committee shall review this Charter at least annually and recommend any
     changes to the full Board of Directors.

Approved by Audit Committee on March 3, 2000
Adopted by Board of Directors on March 3, 2000

</TEXT>
</DOCUMENT>
