SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED JANUARY 1, 1997
FRANKLIN TEMPLETON GERMAN GOVERNMENT BOND FUND
DATED MARCH 1, 1996 AS AMENDED OCTOBER 1, 1996
FRANKLIN NATURAL RESOURCES FUND
DATED SEPTEMBER 1, 1996
I. As of January 1, 1997 the Fund offers a second class of shares, designated
"Advisor Class shares." This SAI describes the Class I shares of the Fund.
All Fund shares outstanding before the offering of Advisor Class shares will
retain their previous rights and privileges.
Class I and Advisor Class shares differ as to sales charges, expenses and
services. Different fees and expenses will affect performance. Advisor Class
shares are described in a separate prospectus and SAI relating only to that
class. For more information concerning Advisor Class shares, contact your
investment representative or Distributors.
II. The discussion under "How Do I Buy, Sell and Exchange Shares? - Letter of
Intent" is amended to remove the reference to Class II shares.
III. The first sentence of the discussion under "The Fund's Underwriter - The
Fund's Rule 12b-1 Plan" is amended by replacing the heading and the first
sentence with the following text:
The Fund's Rule 12b-1 Plan - Class I
The Fund has adopted a distribution plan or "Rule 12b-1 plan" pursuant to Rule
12b-1 of the 1940 Act, with respect to its Class I shares.
