<PAGE>
PAGE 1
000 B000000 08/31/97
000 C000000 350900
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 TEMPLETON GLOBAL SMALLER COMPANIES FUND, INC.
001 B000000 811-3143
001 C000000 9545277591
002 A000000 500 EAST BROWARD BLVD, SUITE 2100
002 B000000 FT. LAUDERDALE
002 C000000 FL
002 D010000 33394
002 D020000 3091
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
<PAGE>
PAGE 2
008 A000001 TEMPLETON INVESTMENT COUNSEL, INC.
008 B000001 A
008 C000001 801-15125
008 D010001 FORT LAUDERDALE
008 D020001 FL
008 D030001 33394
008 D040001 3091
010 A000001 FRANKLIN TEMPLETON SERVICES, INC.
010 C010001 FORT LAUDERDALE
010 C020001 FL
010 C030001 33394
010 C040001 3091
011 A000001 FRANKLIN TEMPLETON DISTRIBUTORS, INC.
011 B000001 8-5889
011 C010001 ST. PETERSBURG
011 C020001 FL
011 C030001 33701
011 C040001 3628
012 A000001 FRANKLIN TEMPLETON INVESTOR SERVICES, INC.
012 B000001 84-00000
012 C010001 ST. PETERSBURG
012 C020001 FL
012 C030001 33701
012 C040001 3628
013 A000001 MCGLADREY & PULLEN, LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10017
013 B040001 2416
<PAGE>
PAGE 3
015 A000001 THE CHASE MANHATTAN BANK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10081
015 E010001 X
015 A000002 THE CHASE MANHATTAN BANK
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 D020002 1061
015 E040002 X
015 A000003 THE CHASE MANHATTAN BANK
015 B000003 S
015 C010003 SYDNEY
015 D010003 AUSTRALIA
015 D020003 2000
015 E040003 X
015 A000004 CREDITANSTALT - BANKVEREIN
015 B000004 S
015 C010004 VIENNA
015 D010004 AUSTRIA
015 D020004 A-1011
015 E040004 X
015 A000005 GENERALE BANK
015 B000005 S
015 C010005 BRUSSELLES
015 D010005 BELGIUM
015 D020005 1000
015 E040005 X
015 A000006 BANCO CHASE MANHATTAN, S.A.
015 B000006 S
015 C010006 SAO PAULO
015 D010006 BRAZIL
015 D020006 04719-002
015 E040006 X
015 A000007 BARCLAYS BANK OF BOTSWANA LIMITED
015 B000007 S
015 C010007 GABORONE
015 D010007 BOTSWANA
015 E040007 X
015 A000008 THE ROYAL BANK OF CANADA
015 B000008 S
015 C010008 TORONTO
015 D010008 CANADA
015 D020008 M5J-2J5
015 E040008 X
015 A000009 CANADA TRUST
015 B000009 S
015 C010009 TORONTO
015 D010009 CANADA
<PAGE>
PAGE 4
015 D020009 M5J-2T2
015 E040009 X
015 A000010 STANDARD CHARTERED BANK
015 B000010 S
015 C010010 DHAKA
015 D010010 BANGLADESH
015 D020010 1000
015 E040010 X
015 A000011 DEN DANSKE BANK
015 B000011 S
015 C010011 COPENHAGEN
015 D010011 DENMARK
015 E040011 X
015 A000012 CESKOSLOVENSKA OBCHODNI BANKA, A.S.
015 B000012 S
015 C010012 PRAHA
015 D010012 CZECH REPUBLIC
015 D020012 1
015 E040012 X
015 A000013 THE CHASE MANHATTAN BANK
015 B000013 S
015 C010013 LONDON
015 D010013 UNITED KINGDOM
015 D020013 EC2P 2HD
015 E040013 X
015 A000014 MERITA BANK LTD
015 B000014 S
015 C010014 HELSINKI
015 D010014 FINLAND
015 E040014 X
015 A000015 BANQUE PARIBAS
015 B000015 S
015 C010015 PARIS
015 D010015 FRANCE
015 D020015 75078
015 E040015 X
015 A000016 CHASE MANHATTAN BANK A.G.
015 B000016 S
015 C010016 FRANKFURT
015 D010016 GERMANY
015 D020016 60284
015 E040016 X
015 A000017 BARCLAYS BANK PLC
015 B000017 S
015 C010017 ATHENS
015 D010017 GREECE
015 D020017 10562
015 E040017 X
015 A000018 THE CHASE MANHATTAN BANK
015 B000018 S
015 C010018 HONG KONG
<PAGE>
PAGE 5
015 D010018 HONG KONG
015 E040018 X
015 A000019 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000019 S
015 C010019 JAKARTA
015 D010019 INDONESIA
015 D020019 10023
015 E040019 X
015 A000020 BANK OF IRELAND
015 B000020 S
015 C010020 DUBLIN
015 D010020 IRELAND
015 D020020 1
015 E040020 X
015 A000021 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000021 S
015 C010021 BOMBAY
015 D010021 INDIA
015 D020021 400 001
015 E040021 X
015 A000022 THE FUJI BANK LTD.
015 B000022 S
015 C010022 TOKYO
015 D010022 JAPAN
015 E040022 X
015 A000023 BANK LEUMI LE-ISRAEL B.M.
015 B000023 S
015 C010023 TEL AVIV
015 D010023 ISRAEL
015 D020023 61000
015 E040023 X
015 A000024 CITIBANK BUDAPEST RT.
015 B000024 S
015 C010024 BUDAPEST
015 D010024 HUNGARY
015 D020024 H-1051
015 E040024 X
015 A000025 BARCLAYS BANK OF KENYA
015 B000025 S
015 C010025 NAIROBI
015 D010025 KENYA
015 E040025 X
015 A000026 THE CHASE MANHATTAN BANK
015 B000026 S
015 C010026 KUALA LUMPUR
015 D010026 MALAYSIA
015 D020026 50250
015 E040026 X
015 A000027 THE CHASE MANHATTAN BANK, S.A.
015 B000027 S
015 C010027 MEXICO D.F.
<PAGE>
PAGE 6
015 D010027 MEXICO
015 D020027 01210
015 E040027 X
015 A000028 DELETE
015 A000029 BANQUE COMMERCIALE DU MAROC
015 B000029 S
015 C010029 CASABLANCA
015 D010029 MOROCCO
015 D020029 20000
015 E040029 X
015 A000030 ABN-AMRO N.V.
015 B000030 S
015 C010030 DE BREDA
015 D010030 NETHERLANDS
015 D020030 4800
015 E040030 X
015 A000031 NATIONAL NOMINEES LIMITED
015 B000031 S
015 C010031 AUCKLAND
015 D010031 NEW ZEALAND
015 E040031 X
015 A000032 DEN NORSKE BANK
015 B000032 S
015 C010032 OSLO
015 D010032 NORWAY
015 D020032 N-0107
015 E040032 X
015 A000033 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000033 S
015 C010033 PASIG CITY
015 D010033 PHILIPPINES
015 E040033 X
015 A000034 BANCO ESPIRITO SANTO E COMERCIAL DE LISBOA
015 B000034 S
015 C010034 LISBON
015 D010034 PORTUGAL
015 D020034 1200
015 E040034 X
015 A000035 DEUTSCHE BANK A.G.
015 B000035 S
015 C010035 KARACHI
015 D010035 PAKISTAN
015 E040035 X
015 A000036 THE CHASE MANHATTAN BANK
015 B000036 S
015 C010036 SINGAPORE
015 D010036 SINGAPORE
015 D020036 189720
015 E040036 X
015 A000037 THE CHASE MANHATTAN BANK
015 B000037 S
<PAGE>
PAGE 7
015 C010037 MADRID
015 D010037 SPAIN
015 D020037 28046
015 E040037 X
015 A000038 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000038 S
015 C010038 COLOMBO
015 D010038 SRI LANKA
015 D020038 1
015 E040038 X
015 A000039 SKANDINAVISKA ENSKILDA BANKEN
015 B000039 S
015 C010039 STOCKHOLM
015 D010039 SWEDEN
015 D020039 S-106 40
015 E040039 X
015 A000040 UNION BANK OF SWITZERLAND
015 B000040 S
015 C010040 ZURICH
015 D010040 SWITZERLAND
015 D020040 8021
015 E040040 X
015 A000041 THE CHASE MANHATTAN BANK
015 B000041 S
015 C010041 BANGKOK
015 D010041 THAILAND
015 D020041 10500
015 E040041 X
015 A000042 CITIBANK, N.A.
015 B000042 S
015 C010042 LIMA
015 D010042 PERU
015 D020042 27
015 E040042 X
015 A000043 CITIBANK N.A.
015 B000043 S
015 C010043 CARACAS
015 D010043 VENEZUELA
015 D020043 1010
015 E040043 X
015 A000044 THE CHASE MANHATTAN BANK
015 B000044 S
015 C010044 ISTANBUL
015 D010044 TURKEY
015 D020044 80700
015 E040044 X
015 A000045 STANDARD BANK OF SOUTH AFRICA LIMITED
015 B000045 S
015 C010045 JOHANNESBURG
015 D010045 SOUTH AFRICA
015 D020045 2001
<PAGE>
PAGE 8
015 E040045 X
015 A000046 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000046 S
015 C010046 SEOUL
015 D010046 SOUTH KOREA
015 E040046 X
015 A000047 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000047 S
015 C010047 SHANGHAI
015 D010047 CHINA
015 D020047 200120
015 E040047 X
015 A000048 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000048 S
015 C010048 SHENZHEN
015 D010048 CHINA
015 E040048 X
015 A000049 THE FIRST NATIONAL BANK OF BOSTON
015 B000049 S
015 C010049 MONTEVIDEO
015 D010049 URUGUAY
015 E040049 X
015 A000050 NATIONAL BANK OF EGYPT
015 B000050 S
015 C010050 CAIRO
015 D010050 EGYPT
015 E040050 X
015 A000051 BARCLAYS BANK OF GHANA LTD
015 B000051 S
015 C010051 ACCRA
015 D010051 GHANA
015 E040051 X
015 A000052 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000052 S
015 C010052 CUREPIPE
015 D010052 MAURITIUS
015 E040052 X
015 A000053 BARCLAYS BANK OF ZIMBABWE
015 B000053 S
015 C010053 HARARE
015 D010053 ZIMBABWE
015 E040053 X
015 A000054 BANK HANDLOWY W. WARSZAWIE S.A.
015 B000054 S
015 C010054 WARSAW
015 D010054 POLAND
015 D020054 00-920
015 E040054 X
015 A000055 CESKOSLOVENSKA OBCHODNI BANKA, A.S.
015 B000055 S
015 C010055 BRATISLAVA
<PAGE>
PAGE 9
015 D010055 SLOVAK REPUBLIC
015 D020055 815 63
015 E040055 X
015 A000056 BANQUE GENERALE DU LUXEMBOURG S.A.
015 B000056 S
015 C010056 LUXEMBOURG
015 D010056 LUXEMBOURG
015 D020056 L-2951
015 E040056 X
015 A000057 THE BRITISH BANK OF THE MIDDLE EAST
015 B000057 S
015 C010057 MANAMA
015 D010057 BAHRAIN
015 E040057 X
015 A000058 DELETE
015 A000059 BARCLAYS BANK OF ZAMBIA
015 B000059 S
015 C010059 LUSAKA
015 D010059 ZAMBIA
015 E040059 X
015 A000060 DELETE
015 A000061 BARCLAYS BANK PLC
015 B000061 S
015 C010061 NICOSIA
015 D010061 CYPRUS
015 D020061 1644
015 E040061 X
015 A000062 CITIBANK, N.A
015 B000062 S
015 C010062 QUITO
015 D010062 ECUADOR
015 E040062 X
015 A000063 DELETE
015 A000064 BANQUE PARIBAS
015 B000064 S
015 C010064 MILAN
015 D010064 ITALY
015 D020064 20121
015 E040064 X
015 A000065 DELETE
015 A000066 DELETE
015 A000067 FIRST CHICAGO CLEARING CENTRE
015 B000067 S
015 C010067 LONDON
015 D010067 UNITED KINGDOM
015 D020067 EC3A 1AA
015 E040067 X
015 A000068 THE BRITISH BANK OF THE MIDDLE EAST
015 B000068 S
015 C010068 MUSCAT
015 D010068 OMAN
<PAGE>
PAGE 10
015 E040068 X
015 A000069 STANDARD BANK NAMIBIA LTD
015 B000069 S
015 C010069 WINDHOEK
015 D010069 NAMIBIA
015 E040069 X
015 A000070 CHASE MANHATTAN BANK INTERNATIONAL ("CMBI")
015 B000070 S
015 C010070 MOSCOW
015 D010070 RUSSIA
015 D020070 125047
015 E040070 X
015 A000071 STANBIC BANK SWAZILAND LTD
015 B000071 S
015 C010071 MBABANE
015 D010071 SWAZILAND
015 E040071 X
015 A000072 RESERVE BANK
015 B000072 S
015 C010072 SYDNEY
015 D010072 AUSTRALIA
015 E040072 X
015 A000073 CEDEL BANK
015 B000073 S
015 C010073 LUXEMBOURG
015 D010073 LUXEMBOURG
015 D020073 50
015 E040073 X
015 A000074 DELETE
015 A000077 DELETE
015 A000078 DELETE
018 000000 Y
019 A000000 Y
019 B000000 203
019 C000000 FRNKTEMGRP
020 A000001 BARINGS SECURITIES
020 B000001 95-4339369
020 C000001 160
020 A000002 INSTINET/CROSSING NETWORK
020 B000002 13-3443395
020 C000002 89
020 A000003 DEUTSCHE MORGAN GRENFELL
020 B000003 13-2730828
020 C000003 76
020 A000004 CROSBY SECURITES
020 B000004 13-3431728
020 C000004 75
020 A000005 CREDIT LYONNAIS
020 B000005 13-3518368
020 C000005 69
020 A000006 SG WARBURG & CO
<PAGE>
PAGE 11
020 B000006 13-3340045
020 C000006 63
020 A000007 FIRST BOSTON
020 B000007 13-5659485
020 C000007 62
020 A000008 UBS/PHILLIPS & DREW
020 B000008 13-2932996
020 C000008 58
020 A000009 KEMPEN & CO
020 B000009 13-3832013
020 C000009 53
020 A000010 BANQUE PARIBUS
020 B000010 13-2555119
020 C000010 51
021 000000 2125
022 A000001 MORGAN STANLEY & CO
022 B000001 13-2655998
022 C000001 4160132
022 D000001 0
022 A000002 BANK OF AMERICA
022 B000002 95-4035346
022 C000002 1120989
022 D000002 0
022 A000003 SWISS BANK
022 B000003 NETHERLANS
022 C000003 994017
022 D000003 0
022 A000004 CHASE MANHATTAN BANK
022 B000004 13-3112953
022 C000004 678780
022 D000004 275522
022 A000005 UBS SECURITIES
022 B000005 13-3873456
022 C000005 925433
022 D000005 0
022 A000006 AUBREY LANSTON
022 B000006 13-5552129
022 C000006 793833
022 D000006 0
022 A000007 LEHMAN BROS
022 B000007 13-2518466
022 C000007 554283
022 D000007 1771
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022 B000008 13-2650272
022 C000008 378816
022 D000008 638
022 A000009 BZW SECURITIES
022 B000009 UK
022 C000009 298859
022 D000009 0
<PAGE>
PAGE 12
022 A000010 DRESDNER BANK
022 B000010 04-2442748
022 C000010 249595
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025 A000001 ALEX BROWN & SONS, INC.
025 B000001 52-1319768
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025 B000002 13-3351177
025 C000002 E
025 D000002 1991
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<PAGE>
PAGE 13
028 B010000 26343
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<PAGE>
PAGE 14
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<PAGE>
PAGE 15
058 A000000 N
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070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
<PAGE>
PAGE 16
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
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<PAGE>
PAGE 17
072AA000000 182739
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<PAGE>
PAGE 18
081 B000000 205
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SIGNATURE JAMES R. BAIO
/s/JAMES R. BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
The schedule contains summary financial information extracted from the
Templeton Global Smaller Companies Fund, Inc., August 31, 1997, annual report
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000350900
<NAME> TEMPLETON GLOBAL SMALLER COMPANIES FUND, INC.
<SERIES>
<NUMBER> 001
<NAME> TEMPLETON GLOBAL SMALLER COMPANIES FUND, INC. - CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-END> AUG-31-1997
<INVESTMENTS-AT-COST> 1404636202
<INVESTMENTS-AT-VALUE> 1929338981
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<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 173811
<TOTAL-ASSETS> 1940769770
<PAYABLE-FOR-SECURITIES> 2111460
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6145805
<TOTAL-LIABILITIES> 8257265
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1312201626
<SHARES-COMMON-STOCK> 197394010
<SHARES-COMMON-PRIOR> 180697334
<ACCUMULATED-NII-CURRENT> 18349708
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 77258392
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 524702779
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<DIVIDEND-INCOME> 35615805
<INTEREST-INCOME> 12010301
<OTHER-INCOME> 0
<EXPENSES-NET> 22837314
<NET-INVESTMENT-INCOME> 24788792
<REALIZED-GAINS-CURRENT> 131178737
<APPREC-INCREASE-CURRENT> 222212496
<NET-CHANGE-FROM-OPS> 378180025
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (22987597)
<DISTRIBUTIONS-OF-GAINS> (146191211)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 25217003
<NUMBER-OF-SHARES-REDEEMED> (26636251)
<SHARES-REINVESTED> 18115924
<NET-CHANGE-IN-ASSETS> 372815144
<ACCUMULATED-NII-PRIOR> 18851474
<ACCUMULATED-GAINS-PRIOR> 91856937
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 13090483
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 22837314
<AVERAGE-NET-ASSETS> 1714646635
<PER-SHARE-NAV-BEGIN> 8.55
<PER-SHARE-NII> 0.13
<PER-SHARE-GAIN-APPREC> 1.77
<PER-SHARE-DIVIDEND> (0.13)
<PER-SHARE-DISTRIBUTIONS> (0.79)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.53
<EXPENSE-RATIO> 1.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
The schedule contains summary financial information extracted from the
Templeton Global Smaller Companies Fund, Inc., August 31, 1997, annual report
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000350900
<NAME> TEMPLETON GLOBAL SMALLER COMPANIES FUND, INC.
<SERIES>
<NUMBER> 002
<NAME> TEMPLETON GLOBAL SMALLER COMPANIES FUND, INC. CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-END> AUG-31-1997
<INVESTMENTS-AT-COST> 1404636202
<INVESTMENTS-AT-VALUE> 1929338981
<RECEIVABLES> 11256978
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 173811
<TOTAL-ASSETS> 1940769770
<PAYABLE-FOR-SECURITIES> 2111460
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6145805
<TOTAL-LIABILITIES> 8257265
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1312201626
<SHARES-COMMON-STOCK> 4573588
<SHARES-COMMON-PRIOR> 1827886
<ACCUMULATED-NII-CURRENT> 18349708
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 77258392
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 524702779
<NET-ASSETS> 1932512505
<DIVIDEND-INCOME> 35615805
<INTEREST-INCOME> 12010301
<OTHER-INCOME> 0
<EXPENSES-NET> 22837314
<NET-INVESTMENT-INCOME> 24788792
<REALIZED-GAINS-CURRENT> 131178737
<APPREC-INCREASE-CURRENT> 222212496
<NET-CHANGE-FROM-OPS> 378180025
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (172517)
<DISTRIBUTIONS-OF-GAINS> (1716515)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3007827
<NUMBER-OF-SHARES-REDEEMED> (476380)
<SHARES-REINVESTED> 214255
<NET-CHANGE-IN-ASSETS> 372815144
<ACCUMULATED-NII-PRIOR> 18851474
<ACCUMULATED-GAINS-PRIOR> 91856937
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 13090483
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 22837314
<AVERAGE-NET-ASSETS> 26876565
<PER-SHARE-NAV-BEGIN> 8.47
<PER-SHARE-NII> 0.07
<PER-SHARE-GAIN-APPREC> 1.75
<PER-SHARE-DIVIDEND> (0.08)
<PER-SHARE-DISTRIBUTIONS> (0.79)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.42
<EXPENSE-RATIO> 2.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
The schedule contains summary financial information extracted from the
Templeton Global Smaller Companies Fund, Inc., August 31, 1997, annual report
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000350900
<NAME> TEMPLETON GLOBAL SMALLER COMPANIES FUND, INC.
<SERIES>
<NUMBER> 003
<NAME> TEMPLETON GLOBAL SMALLER COMPANIES FUND, INC. - ADVISOR CLASS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-END> AUG-31-1997
<INVESTMENTS-AT-COST> 1404636202
<INVESTMENTS-AT-VALUE> 1929338981
<RECEIVABLES> 11256978
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 173811
<TOTAL-ASSETS> 1940769770
<PAYABLE-FOR-SECURITIES> 2111460
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6145805
<TOTAL-LIABILITIES> 8257265
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1312201626
<SHARES-COMMON-STOCK> 826488
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 18349708
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 77258392
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 524702779
<NET-ASSETS> 1932512505
<DIVIDEND-INCOME> 35615805
<INTEREST-INCOME> 12010301
<OTHER-INCOME> 0
<EXPENSES-NET> 22837314
<NET-INVESTMENT-INCOME> 24788792
<REALIZED-GAINS-CURRENT> 131178737
<APPREC-INCREASE-CURRENT> 222212496
<NET-CHANGE-FROM-OPS> 378180025
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1052028
<NUMBER-OF-SHARES-REDEEMED> (225540)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 372815144
<ACCUMULATED-NII-PRIOR> 18851474
<ACCUMULATED-GAINS-PRIOR> 91856937
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 13090483
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 22837314
<AVERAGE-NET-ASSETS> 5868009
<PER-SHARE-NAV-BEGIN> 8.33
<PER-SHARE-NII> 0.10
<PER-SHARE-GAIN-APPREC> 1.12
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.55
<EXPENSE-RATIO> 1.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Board of Directors and Shareholders
Templeton Global Smaller Companies Fund, Inc.
In planning and performing our audit of the financial statements of Templeton
Global Smaller Companies Fund, Inc. for the year ended August 31, 1997, 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 Global Smaller Companies Fund, Inc. is responsible
for establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in conformity with
generally accept accounting principles. Those controls include safeguarding of
assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of internal control to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control would not necessarily disclose all
matters in internal control 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 component 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,
including controls over safeguarding securities, that we consider to be material
weaknesses as defined above as of August 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/ McGladrey & Pullen, LLP
MCGLADREY & PULLEN, LLP
New York, New York
September 26, 1997
