<PAGE> PAGE 1
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<PAGE> PAGE 2
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012 A00AA01 TEMPLETON FUNDS TRUST COMPANY
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
"015 A00AA36 CHASE MANHATTAN BANK, N.A."
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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070 G010200 N
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 N
070 J020200 N
070 K010200 Y
070 K020200 N
070 L010200 Y
070 L020200 Y
070 M010200 Y
070 M020200 Y
070 N010200 N
070 N020200 N
070 O010200 Y
070 O020200 N
070 P010200 Y
070 P020200 N
070 Q010200 N
070 Q020200 N
<PAGE> PAGE 19
070 R010200 N
070 R020200 N
071 A000200 1885017
071 B000200 1013489
071 C000200 2744450
071 D000200 37
072 A000200 12
072 B000200 47445
072 C000200 65699
072 D000200 0
072 E000200 0
072 F000200 23889
072 G000200 3094
072 H000200 0
072 I000200 2876
072 J000200 2314
072 K000200 0
072 L000200 948
072 M000200 72
072 N000200 748
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 53
072 S000200 17
072 T000200 9216
072 U000200 0
072 V000200 0
072 W000200 130
072 X000200 43357
072 Y000200 0
072 Z000200 69788
072AA000200 279244
072BB000200 26105
072CC010200 277919
072CC020200 0
072DD010200 42656
072DD020200 0
072EE000200 45810
073 A010200 0.1300
073 A020200 0.0000
073 B000200 0.1300
073 C000200 0.0000
074 A000200 0
074 B000200 0
074 C000200 1422419
074 D000200 344006
074 E000200 61123
074 F000200 3159934
074 G000200 0
074 H000200 0
<PAGE> PAGE 20
074 I000200 0
074 J000200 1229
074 K000200 0
074 L000200 59851
074 M000200 0
074 N000200 5048562
074 O000200 24233
074 P000200 0
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 9891
074 S000200 0
074 T000200 5014438
074 U010200 500863
074 U020200 0
074 V010200 10.01
074 V020200 0.00
074 W000200 0.0000
074 X000200 20165
074 Y000200 0
075 A000200 0
075 B000200 3794020
076 000200 0.00
SIGNATURE JAMES BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE TEMPLETON
FOREIGN FUND AUGUST 31, 1994 ANNUAL REPORT AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> TEMPLETON FOREIGN FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1994
<PERIOD-END> AUG-31-1994
<INVESTMENTS-AT-COST> 4322675299
<INVESTMENTS-AT-VALUE> 4987481618
<RECEIVABLES> 61079970
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5048561588
<PAYABLE-FOR-SECURITIES> 24233411
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9890569
<TOTAL-LIABILITIES> 34123980
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4047210764
<SHARES-COMMON-STOCK> 500863467
<SHARES-COMMON-PRIOR> 101734118
<ACCUMULATED-NII-CURRENT> 58852340
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 243568185
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 664806319
<NET-ASSETS> 5014437608
<DIVIDEND-INCOME> 65699502
<INTEREST-INCOME> 47445039
<OTHER-INCOME> 0
<EXPENSES-NET> 43356519
<NET-INVESTMENT-INCOME> 69788022
<REALIZED-GAINS-CURRENT> 253139732
<APPREC-INCREASE-CURRENT> 277918869
<NET-CHANGE-FROM-OPS> 600846623
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (42656339)
<DISTRIBUTIONS-OF-GAINS> (45810480)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 447225401<F1>
<NUMBER-OF-SHARES-REDEEMED> (50785053)
<SHARES-REINVESTED> 2689001
<NET-CHANGE-IN-ASSETS> 2346666581
<ACCUMULATED-NII-PRIOR> 31720657
<ACCUMULATED-GAINS-PRIOR> 36238933
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 23889119
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 43356519
<AVERAGE-NET-ASSETS> 3794019865
<PER-SHARE-NAV-BEGIN> 8.74
<PER-SHARE-NII> 0.19
<PER-SHARE-GAIN-APPREC> 1.34
<PER-SHARE-DIVIDEND> (0.13)
<PER-SHARE-DISTRIBUTIONS> (0.13)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.01
<EXPENSE-RATIO> 1<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Effective February 25, 1994, the shares of the Fund were split on a
three shares for one share basis. As a result of the split, 266,109,385
shares were issued and added to the prior period number of shares.
<F2>The expense ratio per the Templeton Foreign Fund Annual Report
August 31, 1994 is 1.14%.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
The schedule contains summary financial information extracted from the Templeton
World Fund August 31, 1994 annual report and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> TEMPLETON WORLD FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1994
<PERIOD-END> AUG-31-1994
<INVESTMENTS-AT-COST> 4142114378
<INVESTMENTS-AT-VALUE> 5415508982
<RECEIVABLES> 30890399
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 287570
<TOTAL-ASSETS> 5446686951
<PAYABLE-FOR-SECURITIES> 15807744
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9187716
<TOTAL-LIABILITIES> 24995460
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3645846716
<SHARES-COMMON-STOCK> 317781804
<SHARES-COMMON-PRIOR> 289997756
<ACCUMULATED-NII-CURRENT> 77691521
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 424758650
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1273394604
<NET-ASSETS> 5421691491
<DIVIDEND-INCOME> 106668928
<INTEREST-INCOME> 28686426
<OTHER-INCOME> 0
<EXPENSES-NET> 51986529
<NET-INVESTMENT-INCOME> 83368825
<REALIZED-GAINS-CURRENT> 479395263
<APPREC-INCREASE-CURRENT> 300256449
<NET-CHANGE-FROM-OPS> 863020537
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (75645206)
<DISTRIBUTIONS-OF-GAINS> (398442723)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 27805398
<NUMBER-OF-SHARES-REDEEMED> (28680400)
<SHARES-REINVESTED> 28659050
<NET-CHANGE-IN-ASSETS> 800567645
<ACCUMULATED-NII-PRIOR> 69967902
<ACCUMULATED-GAINS-PRIOR> 343806110
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 31051062
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 51986529
<AVERAGE-NET-ASSETS> 4987676953
<PER-SHARE-NAV-BEGIN> 15.94
<PER-SHARE-NII> 0.26
<PER-SHARE-GAIN-APPREC> 2.50
<PER-SHARE-DIVIDEND> (0.26)
<PER-SHARE-DISTRIBUTIONS> (1.38)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.06
<EXPENSE-RATIO> 1<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>The expense ratio per the Templeton World Fund Annual Report August 31, 1994 is
1.04%.
</FN>
</TABLE>
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors and Shareholders
Templeton Funds, Inc.
In planning and performing our audit of the financial statements of Templeton
World Fund and Templeton Foreign Fund series of Templeton Funds, Inc. for the
year ended August 31, 1994, we considered its internal control structure,
including procedures for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, not to provide
assurance on the internal control structure.
The management of Templeton Funds, Inc. is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected
benefits and related costs of internal control structure policies and proce-
dures. Two of the objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are safe-
guarded against loss from unauthorized use or disposition and that transac-
tions are executed in accordance with management's authorization and recorded
properly to permit preparation of financial statements in conformity with
generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the effective-
ness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safe-
guarding securities, that we consider to be material weaknesses as defined
above as of August 31, 1994.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
McGladrey & Pullen
New York, New York
September 27, 1994
