<PAGE> PAGE 1
000 B000000 11/30/97
000 C000000 0000843287
000 D000000 N
000 E000000 NF
000 F000000 Y
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000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 FRANKLIN PRINCIPAL MATURITY TRUST
001 B000000 811-5699
001 C000000 4153122000
002 A000000 777 MARINERS ISLAND BOULEVARD
002 B000000 SAN MATEO
002 C000000 CA
002 D010000 94404
002 D020000 1585
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
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<PAGE> PAGE 2
007 C012900 29
007 C013000 30
008 A000001 FRANKLIN ADVISERS, INC.
008 B000001 A
008 C000001 801-26292
008 D010001 SAN MATEO
008 D020001 CA
008 D030001 94404
008 D040001 1585
010 A000001 FRANKLIN TEMPLETON SERVICES, INC.
010 C010001 SAN MATEO
010 C020001 CA
010 C030001 94404
010 C040001 1585
011 A000001 PAINE WEBBER INCORPORATED
011 B000001 8-00000000
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10019
012 A000001 FIRST DATA INVESTOR SERVICES GROUP
012 B000001 84-0000
012 C010001 BOSTON
012 C020001 MA
012 C030001 02109
013 A000001 COOPERS & LYBRAND L.L.P.
013 B010001 SAN FRANCISCO
013 B020001 CA
013 B030001 94105
013 B040001 2119
015 A000001 THE BANK OF NEW YORK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10286
015 E010001 X
015 A000002 THE BANK OF BOSTON
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 E040002 X
015 A000003 NATIONAL AUSTRALIA BANK LIMITED
015 B000003 S
015 C010003 MELBOURNE
015 D010003 AUSTRALIA
015 E040003 X
015 A000004 CREDITANSTALT BANKVEREIN
015 B000004 S
015 C010004 VIENNA
015 D010004 AUSTRIA
015 E040004 X
015 A000005 STANDARD CHARTERED BANK PLC (SCB)
<PAGE> PAGE 3
015 B000005 S
015 C010005 DHAKA
015 D010005 BANGLADESH
015 E040005 X
015 A000006 BANQUE BRUXELLES LAMBERT (BBL)
015 B000006 S
015 C010006 BRUSSELS
015 D010006 BELGIUM
015 E040006 X
015 A000007 STANBIC BANK BOTSWANA LIMITED (STANBIC)
015 B000007 S
015 C010007 GABARONE
015 D010007 BOTSWANA
015 E040007 X
015 A000008 THE FIRST NATIONAL BANK OF BOSTON
015 B000008 S
015 C010008 SAO PAULO
015 D010008 BRAZIL
015 E040008 X
015 A000009 ROYAL BANK OF CANADA
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015 C010009 MONTREAL
015 D010009 CANADA
015 E040009 X
015 A000010 THE FIRST NATIONAL BANK OF BOSTON
015 B000010 S
015 C010010 SANTIAGO
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015 E040010 X
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015 D010012 CHINA
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015 B000014 S
015 C010014 PRAHA (PRAGUE)
015 D010014 CZECH REPUBLIC
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015 A000015 DEN DANSKE BANK
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<PAGE> PAGE 4
015 C010015 COPENHAGEN
015 D010015 DENMARK
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015 A000016 CITIBANK, N.A.
015 B000016 S
015 C010016 QUITO
015 D010016 ECUADOR
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015 B000017 S
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015 E040018 X
015 A000019 BANQUE PARIBAS
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015 D010019 FRANCE
015 E040019 X
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015 B000020 S
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015 E040024 X
015 A000025 CITIBANK BUDAPEST RT.
015 B000025 S
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<PAGE> PAGE 5
015 D010025 HUNGARY
015 E040025 X
015 A000026 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000026 S
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015 D010026 INDIA
015 E040026 X
015 A000027 THE HONGKONG AND SHANGHAI BANKING CORP.
015 B000027 S
015 C010027 JAKARTA
015 D010027 INDONESIA
015 E040027 X
015 A000028 ALLIED IRISH BANKS, PLC (AIB)
015 B000028 S
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015 D010028 IRELAND
015 E040028 X
015 A000029 BANK LEUMI LE-ISRAEL B.M.
015 B000029 S
015 C010029 TEL AVIV
015 D010029 ISRAEL
015 E040029 X
015 A000030 BANCA COMMERCIALE ITALIANA (BCI)
015 B000030 S
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015 D010030 ITALY
015 E040030 X
015 A000031 BANQUE PARIBAS SA
015 B000031 S
015 C010031 MILAN
015 D010031 ITALY
015 E040031 X
015 A000032 BANK OF TOKYO MITSUBISHI (BTM)
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015 D010032 JAPAN
015 E040032 X
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015 C010033 TOKYO
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015 E040033 X
015 A000034 THE BRITISH BANK OF THE MIDDLE EAST
015 B000034 S
015 C010034 AMMAN
015 D010034 JORDAN
015 E040034 X
015 A000035 STANBIC BANK KENYA LIMTIED (STANBIC)
015 B000035 S
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<PAGE> PAGE 6
015 E040035 X
015 A000036 BANQUE INTERNATIONALE A LUXEMBOURG
015 B000036 S
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015 D010036 LUXEMBOURG
015 E040036 X
015 A000037 CEDEL (DEPOSITORY)
015 B000037 S
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015 D010037 LUXEMBOURG
015 E040037 X
015 A000038 THE HONGKONG BANK MALAYSIA BERHAD (HBMB)
015 B000038 S
015 C010038 KUALA LUMPUR
015 D010038 MALAYSIA
015 E040038 X
015 A000039 BANCO NACIONAL DE MEXICO
015 B000039 S
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015 D010039 MEXICO
015 E040039 X
015 A000040 BANQUE COMMERCIALE DU MAROC (BCM)
015 B000040 S
015 C010040 CASABLANCA
015 D010040 MOROCCO
015 E040040 X
015 A000041 STANBIC BANK NAMIBIA LIMITED (STANBIC)
015 B000041 S
015 C010041 WINDHOEK
015 D010041 NAMIBIA
015 E040041 X
015 A000042 MEESPIERSON
015 B000042 S
015 C010042 AMSTERDAM
015 D010042 NETHERLANDS
015 E040042 X
015 A000043 KAS - ASSOCIATIE NV
015 B000043 S
015 C010043 AMSTERDAM
015 D010043 NETHERLANDS
015 E040043 X
015 A000044 AUSTRALIA AND NEW ZEALAND BANKING GROUP (ANZ)
015 B000044 S
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015 D010044 NEW ZEALAND
015 E040044 X
015 A000045 STANBIC MERCHANT BANK NIGERIA LIMITED
015 B000045 S
015 C010045 LAGOS
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<PAGE> PAGE 7
015 A000046 DEN NORSKE BANK ASA
015 B000046 S
015 C010046 OSLO
015 D010046 NORWAY
015 E040046 X
015 A000047 STANDARD CHARTERED BANK (SCB)
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015 D010047 PAKISTAN
015 E040047 X
015 A000048 CITIBANK, N.A.
015 B000048 S
015 C010048 LIMA
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015 B000049 S
015 C010049 PASIG CITY MANILA
015 D010049 PHILIPPINES
015 E040049 X
015 A000050 THE PHILIPPINE CENTRAL DEPOSITORY, INC.
015 B000050 S
015 C010050 MAKATI CITY
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015 E040050 X
015 A000051 BANK HANDLOWY W WARSZAWIE S.A.
015 B000051 S
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015 E040051 X
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015 B000052 S
015 C010052 LISBON
015 D010052 PORTUGAL
015 E040052 X
015 A000053 UNITED OVERSEAS BANK LIMITED (UOB)
015 B000053 S
015 C010053 SINGAPORE
015 D010053 SINGAPORE
015 E040053 X
015 A000054 DEVELOPMENT BANK OF SINGAPORE
015 B000054 C
015 C010054 SINGAPORE
015 D010054 SINGAPORE
015 E040054 X
015 A000055 CESKOSLOVENSKA OBCHODNA BANKA AS (CSOB)
015 B000055 S
015 C010055 BRATISLAVA
015 D010055 SLOVAK REPUBLIC
015 E040055 X
015 A000056 STANDARD CORPORATE AND MERCHANT BANK (SCMB)
<PAGE> PAGE 8
015 B000056 S
015 C010056 JOHANNESBURG
015 D010056 SOUTH AFRICA
015 E040056 X
015 A000057 SEOULBANK (SB)
015 B000057 S
015 C010057 SEOUL
015 D010057 SOUTH KOREA
015 E040057 X
015 A000058 BANCO BILBAO VIZCAYA (BBV)
015 B000058 S
015 C010058 MADRID
015 D010058 SPAIN
015 E040058 X
015 A000059 STANDARD CHARTERED BANK (SCB)
015 B000059 S
015 C010059 COLOMBO
015 D010059 SRI LANKA
015 E040059 X
015 A000060 STANBIC BANK SWAZILAND LIMITED (STANIC)
015 B000060 S
015 C010060 MBABANE
015 D010060 SWAZILAND
015 E040060 X
015 A000061 SKANDINAVISKA ENSKILDA BANKEN (SEB)
015 B000061 S
015 C010061 STOCKHOLM
015 D010061 SWEDEN
015 E040061 X
015 A000062 BANK LEU LTD.
015 B000062 S
015 C010062 ZURICH
015 D010062 SWITZERLAND
015 E040062 X
015 A000063 UNION BANK OF SWITZERLAND
015 B000063 S
015 C010063 ZURICH
015 D010063 SWITZERLAND
015 E040063 X
015 A000064 THE HONGKONG AND SHANGHAI BANKING CORPORATION
015 B000064 S
015 C010064 TAIPEI
015 D010064 TAIWAN (ROC)
015 E040064 X
015 A000065 THE SIAM COMMERCIAL BANK PUBLIC COMPANY LTD
015 B000065 S
015 C010065 BANGKOK
015 D010065 THAILAND
015 E040065 X
015 A000066 BANGKOK BANK PUBLIC COMPANY LTD
015 B000066 S
<PAGE> PAGE 9
015 C010066 BANGKOK
015 D010066 THAILAND
015 E040066 X
015 A000067 OSMANLI BANKASI A.S. (OTTOMAN BANK)
015 B000067 S
015 C010067 ISTANBUL
015 D010067 TURKEY
015 E040067 X
015 A000068 THE BANK OF NEW YORK
015 B000068 S
015 C010068 LONDON
015 D010068 UNITED KINGDOM
015 E040068 X
015 A000069 FIRST CHICAGO CLEARING CENTRE (FCCC)
015 B000069 S
015 C010069 LONDON
015 D010069 UNITED KINGDOM
015 E040069 X
015 A000070 THE FIRST NATIONAL BANK OF BOSTON
015 B000070 S
015 C010070 MONTEVIDEO
015 D010070 URUGUAY
015 E040070 X
015 A000071 CITIBANK, N.A.
015 B000071 S
015 C010071 CARACAS
015 D010071 VENEZUELA
015 E040071 X
015 A000072 STANBIC BANK ZAMBIA LIMITED (STANBIC)
015 B000072 S
015 C010072 LUSAKA
015 D010072 ZAMBIA
015 E040072 X
015 A000073 STANBIC BANK ZIMBABWE LIMTED (STANBIC)
015 B000073 S
015 C010073 HARARE
015 D010073 ZIMBABWE
015 E040073 X
018 000000 Y
019 A000000 Y
019 B000000 213
019 C000000 FRNKTEMGRP
020 A000001 BEAR, STEARNS & CO INC
020 B000001 13-3299429
020 C000001 5
020 A000002 MERRILL LYNCH PIERCE FENNER
020 B000002 13-5674085
020 C000002 5
020 A000003 CREDIT SUISSE FIRST BOSTON CORP.
020 B000003 13-5659485
020 C000003 4
<PAGE> PAGE 10
020 A000004 GOLDMAN SACHS & CO
020 B000004 13-5108880
020 C000004 4
020 A000005 EDWARDS (AG) & SONS INC
020 B000005 43-0895447
020 C000005 1
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 20
022 A000001 UBS SECURITIES, LLC.
022 B000001 13-2932996
022 C000001 160425
022 D000001 0
022 A000002 DONALDSON LUFKIN & JENRETTE
022 B000002 13-2741729
022 C000002 149178
022 D000002 9663
022 A000003 FUJI SECURITIES, INC.
022 B000003 13-3038090
022 C000003 149673
022 D000003 0
022 A000004 CIBC WOOD GUNDY SECURITY
022 B000004 13-3639028
022 C000004 139331
022 D000004 0
022 A000005 BEAR, STEARNS & CO, INC.
022 B000005 13-3299429
022 C000005 126487
022 D000005 5166
022 A000006 DAIWA SECURITIES AMERICA, INC.
022 B000006 13-5680329
022 C000006 130467
022 D000006 0
022 A000007 SBCI SWISS BANK CORP INV BANK
022 B000007 13-2639550
022 C000007 123428
022 D000007 1927
022 A000008 LEHMAN BROTHERS, INC.
022 B000008 13-2518466
022 C000008 122638
022 D000008 254
022 A000009 AUBREY LANSTON & COMPANY
022 B000009 13-5552129
022 C000009 122730
022 D000009 0
022 A000010 NIKKO SECURITIES CO INTL, INC.
022 B000010 94-1302123
022 C000010 91351
<PAGE> PAGE 11
022 D000010 0
023 C000000 1663608
023 D000000 120259
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025 D000001 0
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025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
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026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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070 I020000 N
070 J010000 Y
070 J020000 Y
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<PAGE> PAGE 15
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<PAGE> PAGE 16
074 U020000 0
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080 B000000 NONE
080 C000000 150000
081 A000000 Y
081 B000000 212
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083 A000000 N
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086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
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087 A020000 35459D103
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088 A000000 N
088 B000000 N
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088 D000000 N
SIGNATURE DIOMEDES LOO-TAM
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
PRINCIPAL MATURITY TRUST NOVEMBER 30, 1997 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-END> NOV-30-1997
<INVESTMENTS-AT-COST> 176,263,548
<INVESTMENTS-AT-VALUE> 209,494,376
<RECEIVABLES> 842,779
<ASSETS-OTHER> 28,004
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 210,365,159
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,133,892
<TOTAL-LIABILITIES> 1,133,892
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 186,574,765
<SHARES-COMMON-STOCK> 20,462,600
<SHARES-COMMON-PRIOR> 20,462,600
<ACCUMULATED-NII-CURRENT> 228,936
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (10,801,113)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 33,228,679
<NET-ASSETS> 209,231,267
<DIVIDEND-INCOME> 141,115
<INTEREST-INCOME> 17,386,847
<OTHER-INCOME> 0
<EXPENSES-NET> (5,887,229)
<NET-INVESTMENT-INCOME> 11,640,733
<REALIZED-GAINS-CURRENT> (5,334,961)
<APPREC-INCREASE-CURRENT> 18,455,091
<NET-CHANGE-FROM-OPS> 24,760,863
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (11,152,121)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 13,608,742
<ACCUMULATED-NII-PRIOR> (258,792)
<ACCUMULATED-GAINS-PRIOR> (5,467,036)
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<INTEREST-EXPENSE> 4,659,768
<GROSS-EXPENSE> 5,887,229
<AVERAGE-NET-ASSETS> 194,574,203
<PER-SHARE-NAV-BEGIN> 9.560
<PER-SHARE-NII> 0.570
<PER-SHARE-GAIN-APPREC> 0.650
<PER-SHARE-DIVIDEND> (0.550)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.230
<EXPENSE-RATIO> 3.030
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
Franklin Principal Maturity Trust
In planning and performing our audit of the financial
statements of Franklin Principal Maturity Trust for the year
ended November 30, 1997, we considered its internal control,
including controls over 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 internal control.
The management of Franklin Principal Maturity Trust 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 accepted account principles. Those controls
include the safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitations in 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 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 any 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 internal control,
including controls over safeguarding securities that we
consider to be material weaknesses as defined above as of
November 30, 1997.
This report is intended solely for the information and use
of management and Securities and Exchange Commission.
COOPERS & LYBRAND L.L.P.
San Francisco, California
December 31, 1997
