Satellite-tracked drifting buoys, deployed in the Canary Basin as part of the Subduction Experiment between July 1991 and October 1993 and the French Semaphore Experiment during October 1993, were used to obtain a description of surface currents and temperature in the Canary Basin. The study focuses on surface water convergence, eddy energy production, and heat transport. The Azores Current associated with the subtropical convergence zone is clearly visible at 34 ¿N, and bifurcates around 22 ¿W, with the major branch of the current circling the Madeira plateau and joining the Canary Current along the continental slope. Eddy kinetic energy maxima are found along the Azores Current. The mean current revealed a region of maximum convergence north of the Azores Current around longitude 29 ¿W occurring with a negative heating anomaly and positive work done by the Reynolds stress. The southward meridional temperature fluxes in the Ekman layer (0--50 m) between 37 ¿W and the African and European coast are estimated between -0.076¿0.022¿1015 W, produced by mean southward volume transport in our study area. The residual between local surface heat fluxes and horizontal convergence of heat implies a vertical heat convergence process associated with mesoscale temperature and flow fields. ¿ 2000 American Geophysical Union