Report of Independent Auditors

To the Board of Directors of
The Japan Equity Fund, Inc.

We have examined management's assertion, included in the
accompanying Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940,
about The Japan Equity Fund, Inc.'s (the "Fund's") compliance
with the requirements of subsections (b) and (c) of Rule 17f-
2 under the Investment Company Act of 1940 ("the Act") as of
October 31, 2006.  Management is responsible for the Fund's
compliance with those requirements.  Our responsibility is to
express an opinion on management's assertion about the Fund's
compliance based on our examination.

Our examination was conducted in accordance with attestation
standards established by the American Institute of Certified
Public Accountants and, accordingly, included examining, on a
test basis, evidence about the Fund's compliance with those
requirements and performing such other procedures as we
considered necessary in the circumstances.  Included among
our procedures were the following tests performed as of
October 31, 2006, and with respect to agreement of security
purchases and sales, for the period from June 7, 2006 (the
date of our last examination) through October 31, 2006:

-	Confirmation of securities and cash held for the Fund at
the Bank of New York and Sumitomo Mitsui Banking
Corporation as the Fund's sub custodian (there were no
securities held by Daiwa Securities Trust Company, the
Fund's Custodian, at October 31, 2006);

-	Reconciliation of all such securities and cash to the
books and records of the Fund and the Fund's Custodian;

-	Confirmation of all securities out for transfer with
brokers or validation of open trades through subsequent
liquidation; and

-	Selection of three security purchases and three security
sales since our last report from the books and records of
the Fund noting settlement of these transactions through
a review of the Sumitomo Mitsui Banking Corporation's
(the Fund's Sub-Custodian) cash statements.

We believe that our examination provides a reasonable basis
for our opinion.  Our examination does not provide a legal
determination on the Fund's compliance with specified
requirements.


In our opinion, management's assertion that The Japan Equity
Fund, Inc. complied with the requirements of subsections (b)
and (c) of Rule 17f-2 of the Investment Company Act of 1940
as of October 31, 2006, with respect to securities reflected
in the investment account of the Fund is fairly stated, in
all material respects.

This report is intended solely for the information and use of
the Board of Directors, 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.



PricewaterhouseCoopers LLP
New York, New York
December 21, 2006




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