SCHEDULE 14A
                                 (RULE 14a-101)

                     INFORMATION REQUIRED IN PROXY STATEMENT

                            SCHEDULE 14A INFORMATION

           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)) [ ] Definitive Proxy Statement
[X]    Definitive  Additional Materials
[ ]    Soliciting Material Pursuant to Section 240.14a-11(c) or Section
       240.14a-12

                    THE MEXICO EQUITY AND INCOME FUND, INC.
                    ---------------------------------------
                (Name of Registrant as Specified in Its Charter)

Payment of Filing Fee (Check the appropriate box):
[X]    No fee required.
[ ]    Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

  (1)  Title of each class of securities to which transaction applies:

  ------------------------------------------------------------------------------

  (2)  Aggregate number of securities to which transaction applies:

  ------------------------------------------------------------------------------

  (3)  Per unit price or other underlying value of transaction computed pursuant
       to Exchange  Act Rule 0-11 (set  forth the amount on which the filing fee
       is calculated and state how it was determined):

  ------------------------------------------------------------------------------

  (4)  Proposed maximum aggregate value of transaction:

  ------------------------------------------------------------------------------

  (5)  Total fee paid:

[ ]    Fee paid previously with preliminary materials.

[ ]    Check box if any part of the fee  is offset  as provided by  Exchange Act
       Rule 0-11(a)(2) and identify the filing for which  the offsetting fee was
       paid  previously.  Identify  the  previous  filing  by  the  registration
       statement number, or the Form or Schedule and the date of its filing.

  (1)  Amount Previously Paid:

  --------------------------------------------------------

  (2)  Form, Schedule or Registration Statement No.:

  --------------------------------------------------------

  (3)  Filing Party:

  --------------------------------------------------------

  (4)  Date Filed:

  --------------------------------------------------------





                             **SPECIAL ATTENTION**

    YOUR VOTE IS VERY IMPORTANT.  YOUR VOTE IS NECESSARY FOR THE FUND TO ACHIEVE
   A QUORUM TO HOLD THE  MEETING.  IN ORDER TO AVOID THE  ADDITIONAL  EXPENSE TO
   STOCKHOLDERS  OF THE FUND OF  FURTHER  SOLICITATIONS,  WE ASK THAT YOU PLEASE
   SIGN, DATE AND MAIL THE ENCLOSED WHITE PROXY CARD TODAY.


                     THE MEXICO EQUITY AND INCOME FUND, INC.
                             World Financial Center
                               200 Liberty Street
                            New York, New York 10281
                                 (212) 667-5000


                                            January 4, 2000

DEAR STOCKHOLDERS:

You should  have  received  The Mexico  Equity and  Income  Fund,  Inc.'s  proxy
materials for its 1999 Annual Meeting of Stockholders.  As previously announced,
the  Annual  Meeting  was  originally  scheduled  for  December  3, 1999 and was
adjourned on three occasions  because the necessary quorum to transact  business
was not achieved.  While the meeting will reconvene at 11:00 a.m. on February 4,
2000 at the offices of CIBC World Markets Corp., 200 Liberty Street,  Conference
Room E, 40th  Floor,  New York,  New York,  a quorum may not be achieved by that
time  and we may  have to  adjourn  the  meeting  again.  IT IS  THEREFORE  VERY
IMPORTANT  THAT WE RECEIVE  YOUR VOTE TODAY TO AVOID THE  ADDITIONAL  EXPENSE TO
STOCKHOLDERS OF THE FUND OF FURTHER ADJOURNMENTS AND FURTHER SOLICITATIONS.

We apologize for having to send another letter to  stockholders  with respect to
this matter. We explained in our previous letters to stockholders dated November
19, 1999 and December 9, 1999 why we feel that the Board of Directors' plans for
reducing  the  discount  at which the Fund's  shares are  trading  (including  a
program for  substantial  share  repurchases and a tender offer) are in the best
interests of stockholders.  The reason we are sending this letter is in response
to a Memorandum to Stockholders from Mr. Phillip  Goldstein's dated December 11,
1999.

In his Memorandum to Stockholders,  Mr. Goldstein claims that  stockholders will
be able to increase the value of their shares by 25% if they elect Mr. Goldstein
as a Director of the Fund and vote for his  proposals.  Further,  Mr.  Goldstein
states that, if the Fund were converted to an open-end fund,  shareholders would
realize net asset value for their shares. These statements are misleading.  They
suggest that open-ending the Fund is simply a matter of voting for Mr. Goldstein
and his proposals, while open-ending the Fund would be difficult, time consuming
and costly. Further, open-ending the Fund may not be feasible.

In addition,  while  stockholders would receive net asset value upon open-ending
or  liquidating  the Fund,  that net asset value could be  diminished,  possibly
significantly, by the costs incurred in the process and the need for the Fund to
dispose of securities,  possibly in unfavorable market conditions.  The Fund and
stockholders also may incur significant tax liabilities.

Thus,  although  open-ending  may enable  opportunists to realize some degree of
short-term  gains,  it would also  impose  significant  costs on, and  therefore
disadvantage,  long-term  investors in the Fund. In sum, Mr.  Goldstein's letter
fails to indicate that, if his proposals are approved, stockholders will have an
opportunity to realize net asset value only at some uncertain date in the future
and that that net asset  value  will be lower  than had this Fund  continued  to
operate as a closed-end fund.





As stated in our proxy statement, the persons named as proxies retain discretion
to vote in their best  judgment  on the  stockholder  proposals  for all proxies
submitted  to the  Fund.  These  proxies  intend  to  vote  against  each of Mr.
Goldstein's proposals.

YOUR  VOTE IS VERY  IMPORTANT.  IN ORDER  TO AVOID  THE  ADDITIONAL  EXPENSE  TO
STOCKHOLDERS OF THE FUND OF FURTHER SOLICITATIONS, WE ASK THAT YOU PLEASE RETURN
THE FUND'S WHITE PROXY CARD AS SOON AS POSSIBLE.

ALL YOU NEED TO DO TO AT THIS TIME IS THE FOLLOWING:
        1. SIGN, DATE AND MAIL THE FUND'S WHITE PROXY CARD AS SOON AS POSSIBLE.
           AN  ADDITIONAL  WHITE PROXY  CARD  AND  POSTAGE PREPAID  ENVELOPE  IS
           ENCLOSED FOR YOUR CONVENIENCE.
        2. DO NOT SIGN ANY GREEN PROXY CARD YOU MAY RECEIVE FROM MR. GOLDSTEIN.
        3. IF YOU HAVE ALREADY RETURNED  MR. GOLDSTEIN'S GREEN  PROXY  CARD, YOU
           MAY REVOKE THAT PROXY BY RETURNING A LATER  DATED WHITE PROXY CARD TO
           THE FUND.

Thank you for your continued support of the Fund.


                                                  Respectfully,

                                                  Bryan McKigney
                                                  PRESIDENT AND SECRETARY




                     THE MEXICO EQUITY AND INCOME FUND, INC.
             PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS FOR
                ANNUAL MEETING OF STOCKHOLDERS - DECEMBER 3, 1999

The  undersigned  stockholder  of The Mexico  Equity & Income  Fund,  Inc.  (the
"Fund")  hereby  appoints Alan H.  Rappaport,  Laurence E. Cranch and Carmine E.
Angone,  and each of them,  the proxies of the  undersigned,  with full power of
substitution,  to vote and act for and in the name and stead of the  undersigned
at the Annual Meeting of Stockholders of the Fund (the "Meeting"), to be held at
the offices of CIBC World Markets Corp.,  200 Liberty  Street,  39th floor,  New
York, New York 10281, on Friday,  December 3, 1999 at 11:00am New York time, and
at any and all  adjournments  thereof  according  to the  number  of  votes  the
undersigned would be entitled to cast if personally present.

PROPOSALS (Please check one box for each proposal.)

1.   The election of Dr. Luis Rubio as a Class III  Director to serve for a term
expiring  on the date on which the  Annual  Meeting of  Stockholders  is held in
2002.

     [     ] FOR                              [     ] WITHHOLD AUTHORITY
             the nominee listed below                 to vote for the nominee
                                                      listed below

     NOMINEE CLASS III:           Dr. Luis Rubio

2.   The ratification  of  the  selection  of   PricewaterhouseCoopers   LLP  as
independent accountants of the Fund for its fiscal year ending July 31, 2000.

         [     ] FOR       [    ] AGAINST         [     ] ABSTAIN

               THE BOARD OF DIRECTORS RECOMMENDS THAT STOCKHOLDERS
                           VOTE FOR PROPOSALS 1 AND 2.

(Continued and to be signed on the other side)

The  Shares  represented  by  this  proxy  will  be  voted  in  accordance  with
instructions  given by the stockholders,  but if no instructions are given, this
proxy  will be voted in favor of  Proposals  1 and 2. In  addition,  the  Shares
represented by this proxy will be voted on any other matter that may come before
the Meeting in accordance with the discretion of the proxies  appointed  hereby.
The  undersigned  hereby revokes any and all proxies with respect to such shares
heretofor given by the undersigned.  The undersigned acknowledges receipt of the
Proxy Statement dated November 3, 1999.

Dated ______________, 1999


- ------------------------------
Signature

- ------------------------------
Signature if held jointly

If shares are held  jointly,  each  Shareholder  named should sign.  If only one
signs,  his  or  her  signature  will  be  binding.  If  the  Shareholder  is  a
corporation,  the  President or a Vice  President  should sign in his or her own
name,  indicating  title. If the Shareholder is a partnership,  a partner should
sign in his or her own name, indicating that he or she is a "Partner."

SIGN, DATE AND MAIL YOUR PROXY TODAY