210FPKR
SUPPLEMENT DATED MAY 29, 1996
TO THE PROSPECTUS OF
FRANKLIN TEMPLETON GERMAN
GOVERNMENT BOND FUND
dated March 1, 1996
The section "How Does the Fund Invest Its Assets?" is revised in the following
respects:
A third category is added to paragraph five, which describes the securities in
which the Fund may invest up to 35% of its total assets:
(iii) German non-callable, fixed-income securities known as Offentliche
Pfandbriefe and global Pfandbriefe. Global Pfandbriefe represents a pool of
Offentliche Pfandbriefe which are issued by German privately owned mortgage
banks and collateralized by loans to public sector institutions. The Fund may
invest in Pfandbriefe issued by mortgage banks, rated triple-A by a U.S.
nationally recognized securities rating organization at the time of purchase,
or which, if unrated, are considered by the Fund's Investment Managers to be
comparable in quality to triple-A rated instruments. The Fund currently intends
to limit its investment in Pfandbriefe to no more than 20% of its total assets.
