Attachment 77E



As previously reported to shareholders, Full Value Partners,
L.P. ("Full Value") filed a purported class action on behalf of
the Fund's shareholders, in Newark, New Jersey federal
court in March 2003 against both the Fund and its Board of
Directors. Full Value sought injunctive relief enjoining (i) the
effectuation of a then proposed tender offer, (ii) the
enforcement of certain bylaw amendments, and (iii) the
overturning of any "wrongful election" of directors of the
Fund. The Fund and its Directors believed, and continue to
believe, that the claims were without merit. On March 31,
2004, as part of a settlement agreement, Full Value's claims
were dismissed with prejudice. Full Value determined that, in
light of various events and circumstances occurring since the
filing of the lawsuit, including the submission of two
corporate governance proposals at the Fund's 2004 Annual
Meeting of Shareholders, Full Value would not proceed with
the suit if the Fund agreed to pay Full Value's legal fees of
approximately $81,000. The Fund has so agreed, without
any admission of liability, in order to avoid additional
litigation expense.