EXHIBIT (A)(8)

                              THE ITALY FUND INC.
                   7 World Trade Center, New York, NY 10048

                                                                   June 20, 2001
Dear Shareholder:

   The Italy Fund Inc. (the ''Fund'') is offering to purchase up to 1,691,573
of its issued and outstanding shares of common stock at a price equal to 95% of
the net asset value per share determined as of the close of the regular trading
session of the New York Stock Exchange on the day after the date the offer
expires (the ''Offer'').

   The Offer is explained in detail in the enclosed Offer to Purchase and
Letter of Transmittal. If you wish to tender your shares, instructions on how
to tender shares are provided in the enclosed materials. I encourage you to
read these material carefully before making any decision with respect to the
Offer. Neither the Fund nor its Board of Directors makes any recommendation to
any shareholder on whether to tender any or all shares.

   Please note that the Offer is scheduled to expire at 12:00 Midnight Eastern
Time on July 19, 2001, unless extended by the Fund. Questions regarding the
Offer should be directed to Georgeson Shareholder Communications Inc. at (800)
223-2064.

                                          Sincerely,

                                          /s/ Heath B. McLendon
                                          Heath B. McLendon
                                          Chairman of the Board of Directors