SUPPLEMENT TO
                                 PROXY STATEMENT

                           THE FIRST AUSTRALIA FUND, INC.

                                Gateway Center 3
                               100 Mulberry Street
                            Newark, New Jersey 07102

                          -----------------------------
                         Special Meeting of Shareholders
                                November 30, 2000
                          -----------------------------

The  following  information  supplements  information  contained  in  the  proxy
statement  ("Proxy  Statement") for The First Australia Fund, Inc. ("Fund") that
was mailed to you on or about October 31, 2000.

On November 10, 2000,  EquitiLink  Holdings  Limited ("EL") entered into a Stock
Purchase Agreement ("Agreement") with Mira, L.P. ("Mira"),  pursuant to which EL
agreed to sell, or to cause one of its  affiliates  to sell,  to Mira,  and Mira
agreed to buy from EL or such affiliate, 2,742,461 shares of common stock of the
Fund,  adjusted to reflect any stock  dividends,  splits,  combinations or other
corporate actions. The sale is to be concluded subsequent to the satisfaction of
certain  conditions  including:  the  expiration or  termination  of the waiting
period under the  Hart-Scott-Rodino  Antitrust  Improvements Act; the absence of
any court  order  prohibiting  or  restraining  the  sale;  the  receipt  of all
necessary  regulatory  approvals;  and the closing of the sale of the EquitiLink
Group,  including  the  Fund's  manager,   EquitiLink  International  Management
Limited, and investment adviser, EquitiLink Australia Limited, to Aberdeen Asset
Management  PLC.  Assuming  Mira  continues to hold the Fund shares it presently
owns,  following  the share  sale  Mira will own 31.8% of the Funds  outstanding
shares. As part of the agreement, Mira has agreed to vote all the Fund shares it
currently  owns in favor of the  proposal  ("Proposal")  of the Fund's  Board of
Directors,  described  in  the  Proxy  Statement,  for  the  approval  of a  new
management  agreement and new investment  advisory  agreement for the Fund. Mira
has also agreed not to solicit  proxies in  opposition to the Proposal or, prior
to the stock sale,  to attempt to influence  Fund  management  or policies or to
take or support any action opposing the Proposal. Finally, Mira has acknowledged
that the Fund  shares it is to acquire  under the  Agreement  will be subject to
certain legal restrictions regarding their further sale.

Because the Agreement withdraws the threat of an opposition proxy statement, the
estimated  costs of  solicitation of proxies for the Special Meeting are reduced
from the $250,000 indicated in the Proxy Statement to $90,000.

Date: November 16, 2000