REPORT OF INDEPENDENT AUDITORS


Board of Trustees
Kemper Funds

In planning and performing  our audit of the financial  statements of the Kemper
Funds  listed in  Exhibit A  attached  hereto  (the  "Fund")  for the year ended
October  31,  2000,  we  considered  its  internal  control,  including  control
activities for safeguarding securities, 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,  and not to provide  assurance on internal
control.

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

Because of inherent  limitations in any internal  control,  misstatements due to
errors  or  fraud  may  occur  and not be  detected.  Also,  projections  of any
evaluation  of internal  control to future  periods are subject to the risk that
internal control may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.

Our  consideration  of the 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 specific internal control  components does not reduce to a relatively low
level the risk  that  errors  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,
including control activities for safeguarding securities, and its operation that
we consider to be material weaknesses as defined above as of October 31, 2000.

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





                                                         /s/ Ernst & Young LLP

Chicago, Illinois
December 20, 2000






                                    Exhibit A



Kemper New Europe Fund, Inc.

Kemper Technology Fund

Kemper Total Return Fund

Kemper Income and Capital Preservation Fund

Kemper Strategic Income Fund

Kemper U.S. Government Securities Fund

Kemper International Fund

Kemper Blue Chip Fund

Kemper International Research Fund