Report of Independent Accountants

To the Board of Directors and Shareholders
of the GMO Trust

Re: GMO U.S Sector Fund, GMO Emerging Country Debt Share Fund, GMO Domestic Bond
Fund, GMO U.S. Core Fund, GMO Small Cap Growth Fund, GMO Short-Term Income Fund,
GMO Tax-Managed  U.S.  Equities Fund, GMO Tax-Managed  Small Companies Fund, GMO
Value Fund,  GMO  Tobacco-Free  Core Fund,  GMO REIT Fund,  GMO Growth Fund, GMO
Inflation Indexed Bond Fund, GMO International Equity Allocation Fund, GMO World
Equity Allocation Fund, GMO Global Balanced  Allocation Fund, GMO Global (U.S.+)
Equity  Allocation Fund,  Pelican Fund, GMO U.S.  Bond/Global  Alpha A Fund, GMO
Currency Hedged International Bond Fund, GMO Intrinsic Value Fund, GMO Small Cap
Value Fund,  GMO Asia Fund,  GMO Tax Managed  International  Equities  Fund, GMO
International  Intrinsic Value Fund (formerly GMO International  Core Fund), GMO
Currency  Hedged   International  Equity  Fund  (formerly  GMO  Currency  Hedged
International  Core Fund),  GMO Foreign Small  Companies  Fund,  GMO Alpha LIBOR
Fund, GMO  International  Bond Fund, GMO Global Bond Fund, GMO Emerging  Country
Debt Fund, GMO Evolving  Countries  Fund,  GMO Foreign Fund,  GMO  International
Small Companies  Fund, GMO Global Hedged Equity Fund, GMO Emerging  Markets Fund
(individually a "Fund", collectively the "Trust")


In planning and performing  our audits of the financial  statements of the Trust
for the period ended  February 28, 2001,  we  considered  its internal  control,
including control activities for safeguarding securities,  in order to determine
our  auditing  procedures  for the  purpose  of  expressing  our  opinion on the
financial  statements and to comply with the  requirements of Form N-SAR, not to
provide assurance on internal control.

The  management of the Trust is responsible  for  establishing  and  maintaining
internal control. In fulfilling this responsibility,  estimates and judgments by
management  are  required to assess the expected  benefits and related  costs of
controls.  Generally,  controls  that are  relevant  to an audit  pertain to the
entity's objective of preparing financial  statements for external purposes that
are fairly presented in conformity with accounting principles generally accepted
in the United States of America.  Those  controls  include the  safeguarding  of
assets against unauthorized acquisition, use or disposition.




Because of inherent  limitations in internal control,  errors or fraud may occur
and not be detected.  Also,  projection of any evaluation of internal control to
future  periods  is  subject to the risk that  controls  may  become  inadequate
because of changes in conditions or that the  effectiveness  of their design and
operation may deteriorate.

Our consideration of internal control would not necessarily disclose all matters
in  internal   control  that  might  be  material   weaknesses  under  standards
established  by the  American  Institute  of  Certified  Public  Accountants.  A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk  that  misstatements  caused  by error or fraud in  amounts  that  would be
material in relation to the financial statements being audited may occur and not
be  detected  within a timely  period  by  employees  in the  normal  course  of
performing  their assigned  functions.  However,  we noted no matters  involving
internal  control  and  its  operation,   including  controls  for  safeguarding
securities,  that we consider to be material  weaknesses  as defined above as of
February 28, 2001.

This report is intended solely for the information and use of the management and
Trustees of the Trust and the  Securities  and  Exchange  Commission  and is not
intended  to be and  should not be used by anyone  other  than  these  specified
parties.




April 23, 2001

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