EX-99.77B

               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
                               ON INTERNAL CONTROL



Board of Directors
The Mexico Equity and Income Fund, Inc.
Milwaukee, Wisconsin


In planning and performing  our audit of the financial  statements of The Mexico
Equity and Income Fund,  Inc.,  for the year ended July 31, 2003,  we considered
its  internal   control   structure,   including   procedures  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 the internal control.

The management of the Fund is responsible  for  establishing  and maintaining an
internal control. In fulfilling this responsibility,  estimates and judgments by
management  are  required to assess the  expected  benefits  and  related  costs
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.  These  controls  include the  safeguarding  of
assets against unauthorized acquisition, use, or disposition.

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

Our  consideration  of the internal  control  components  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 the
specific  internal control  components  elements 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 the internal control,
including  procedures  for  safeguarding  securities,  that  we  consider  to be
material weaknesses, as defined above, as of July 31, 2003.

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


                                                           TAIT, WELLER & BAKER


Philadelphia, Pennsylvania
September 12, 2003

EX-99.77C

                     The Mexico Equity and Income Fund, Inc.

                 Form N-SAR Report for the Period Ended 7/31/03


                                  Item 77-C (1)

Results of Annual Stockholders Meeting

The Fund's  Annual  Stockholders  meeting was held on February 14, 2003,  at 405
Park Avenue, New York, New York 10022. As of December 30, 2002, the record date,
outstanding  shares  of common  stock  ("shares")  of the Fund  were  2,473,504.
Holders of 2,136,673  shares of the Fund were  present at the meeting  either in
person or by  proxy.  These  holders,  as being  holders  of a  majority  of the
outstanding shares of the Fund,  constituted a quorum. The stockholders voted on
four proposals.

The stockholders  elected three Directors to the Board of Directors,  approved a
new Investment  Advisory agreement between Clemente Capital,  Inc. and the Fund,
and approved the creation and  registration of put warrants,  which are designed
to afford  stockholders  an  opportunity  to realize  net asset  value for their
shares.  The stockholders also ratified the selection of Tait, Weller & Baker as
the Fund's independent auditor for the fiscal year ending July 31, 2003.

The following table provides information  concerning the matters voted on at the
meeting:

I.   Election of Directors

         Nominee                           For                         Withheld
         -------                           ---                         --------
         Glenn Goodstein                 2,015,470                     121,203
         Phillip Goldstein               2,016,023                     120,650
         Leopoldo M. Clemente, Jr.       2,019,996                     116,677


II.  Approval of the new Investment Advisory Agreement between Clemente Capital,
     Inc. and the Fund

Votes For  Votes Against  Votes Abstained  Broker Non-Votes
- ---------  -------------  ---------------  ----------------
1,993,353      96,489            46,831           2

III. Adoption of a proposal to approve the creation,  issuance and  registration
     of put warrants,  which are designed to afford stockholders the opportunity
     to realize net asset value for their shares

Votes For  Votes Against  Votes Abstained  Broker Non-Votes
- ---------  -------------  ---------------  ----------------
  724,401       169,275          79,677          1,163,322

IV.  Ratification  of the  selection  of Tait,  Weller,  & Baker  as the  Fund's
     independent auditor

Votes For  Votes Against  Votes Abstained  Broker Non-Votes
- ---------  -------------  ---------------  ----------------
2,033,955     59,381          43,339              0