FRANKLIN INTERNATIONAL TRUST, N-30D, 1995-12-27

FRANKLIN INTERNATIONAL TRUST
N-30D, 1995-12-27

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Table of Contents

Page

Franklin Pacific Growth Fund 3

Franklin International Equity Fund 9

Schedule of Foreign
Tax Withholding 14

Statement of Investments 16

Financial Statements 27

Notes to Financial Statements 30

Report of Independent Accountants 36

To reduce the volume of mail shareholders receive and to reduce your fund's
expenses, only one copy of most fund reports, such as annual and semi-annual
reports, may be mailed to a household. Additional copies can be obtained,
without charge, by calling Franklin Templeton Fund Information at 1-800/DIAL BEN
(1-800/342-5236).

December 15, 1995

Dear Shareholder:

It's a pleasure to bring you the fifth annual report of the Franklin
International Trust, which covers the fiscal year ended October 31, 1995. The
Trust consists of the Franklin International Equity Fund and the Franklin
Pacific Growth Fund. Effective February 1, 1996, the Franklin Pacific Growth
Fund will change its name to the Templeton Pacific Growth Fund. Templeton
Investment Counsel, Inc., noted for its expertise in global investing,
co-manages both funds.

During the reporting period, fluctuations in international securities markets,
particularly in emerging market countries, served as a reminder that volatility
is a normal part of investing. However, we have always maintained a long-term
perspective when managing the funds, and we encourage shareholders to view their
investments in a similar manner. Although past performance cannot guarantee
future results, history has proven that, over the long term, stocks and bonds
have delivered impressive financial results. If you remain invested for the long
term, you need not be unduly concerned about short-term market fluctuations.

For specific information about the Franklin International Equity Fund and the
Franklin Pacific Growth Fund, including the effects of market conditions and
management strategies upon their performance during the past fiscal year, please
refer to the pages listed in the table of contents on the preceding page.

We thank you for your support, welcome your questions, and look forward to
serving your investment needs in the years to come.

Sincerely,

Rupert H. Johnson, Jr.
President
Franklin International Trust

FRANKLIN PACIFIC GROWTH FUND

Your Fund's Objective:

The Franklin Pacific Growth Fund seeks to provide long-term growth of capital by
investing in equity securities of which at least 65% trade on markets in the
Pacific Rim.

The fiscal year ended October 31, 1995 was a challenging time for investors in
Pacific Rim equity markets. Many stock markets in this region experienced
extreme volatility throughout the year due to a myriad of problems. Negative
effects from Mexico's December 1994 currency devaluation spilled over into other
emerging markets, including those in Southeast Asia, in what many referred to as
the "Tequila Effect." Japan continued to suffer from a deteriorating real estate
market and a weak banking system, while Hong Kong struggled with runaway
economic growth, high inflation levels, and uncertainty surrounding its 1997
reversion to China.

Within this difficult environment, your fund posted a one-year total return of
- -5.54%, as shown in the Performance Summary on page 7. However, the fund
significantly outperformed its benchmark, the unmanaged Morgan Stanley Capital
International (MSCI) Pacific Basin Index, which delivered a total return of
- -11.00% for the same period. Although short-term volatility can be
disconcerting, we have always maintained a long-term perspective when managing
the fund and encourage shareholders to view their investments in a similar
manner. As you can see from the Performance Summary, the fund has delivered a
cumulative total return of more than 56% since its inception on September 20,
1991.

At the end of the reporting period, Hong Kong was our largest geographic
exposure, representing 26.9% of total net assets. Pessimism regarding company
earnings and the events surrounding Hong Kong's upcoming reversion to China
reached a high point in the first quarter of 1995, and we took advantage of
resulting market declines by adding to several of the fund's positions. For
example, we increased our holdings of New World Development Co. Ltd., a Hong
Kong-based real estate company, and purchased shares of Cathay Pacific Airways
Ltd., whose stock price suffered from investor concerns that the airline's
monopolistic position would be in jeopardy when China assumes control of Hong
Kong.

Compared with our exposure to Hong Kong, the fund's weighting in Japan was
conservative, representing 20.3% of total net assets at the end of the fiscal
year. This contrasted sharply with the MSCI Pacific Basin Index's Japanese
weighting of 80.2%. We maintained this relatively low exposure to Japan due to
growing concerns surrounding its banking system, which was plagued by a mountain
of bad debts throughout the year.

GRAPHIC MATERIAL 1 OMMITTED - SEE APPENDIX AT END OF DOCUMENT

Many experts in the banking industry estimate these debts at $450 billion, but
we believe they far exceed this amount. Fortunately, your fund had no direct
investments in Japanese banks during the fiscal year. Taking advantage of a
rising yen, we sold portions of our positions in Nippon Telegraph & Telephone
Corp. and Mitsubishi Heavy Industrial Co. in March. In August, we trimmed our
holdings of Nintendo Co. following solid performance by this stock. Although
Japanese stock valuations are characteristically expensive, we intend to
continue our search for value there.

Over the course of the fiscal year, we decreased our Australian exposure, from
14.7% to 11.4% of total net assets. Taking advantage of rising commodities
prices, we sold the fund's largest Australian position, Western Mining Corp., as
metals prices appeared to reach their peak. A large position in BTR Nylex, Ltd.
was eliminated from the portfolio when the company was acquired by its
controlling U.K. parent corporation, BTR PLC.

Inflationary pressures continued to be a problem in the Philippines, as delayed
exports and unfavorable growing conditions caused prices for rice to soar by
50-60% during the year. These pressures do not alarm us, however, and we remain
optimistic about the long-term prospects for this country. Our exposure there
increased slightly, from 3.9% to 5.0% of total net assets, with the addition of
a position in Filinvest Land, Inc., a Philippine-based real estate company.

During the reporting period, we also initiated positions in India and Pakistan.
As India's economic growth slowed following rapid growth in 1994, we took
advantage of a sharp sell-off in this market and purchased shares of Great
Eastern Shipping Co. Ltd. at what we felt was a bargain price. Although Pakistan
has lagged other countries in the Pacific Rim due to its fiscal distress and
weak agricultural output, we found value in positions such as Fauji Fertilizer
Co. Ltd. and Pakistan Telecom Corp.

Looking forward, we are optimistic about the potential prospects for equity
markets in the Pacific Rim. Although these markets experienced volatility this
past fiscal year, we are confident that our value-oriented investment approach
could provide our shareholders with attractive results over the long term. There
are, of course, special risks involved with investing in a portfolio of
securities concentrated in a single geographic region, which also contains
developing markets. These risks include currency fluctuations, market
volatility, economic, social, and political uncertainty, and in some cases the
relatively small size and lesser liquidity of these markets. For further
information concerning these risks, please refer to the fund's prospectus.

We appreciate your participation in the Franklin Pacific Growth Fund and look
forward to serving your investment needs in the years to come.

Franklin Pacific Growth Fund
Top 10 Holdings on October 31, 1995
Based on Total Net Assets

Company % of Total
Industry, Country Net Assets

HSBC Holdings PLC 2.9%
Banking, Hong Kong

New World Development Co. Ltd. 2.4%
Real Estate, Hong Kong

Brambles Industries Ltd. 2.3%
Transportation, Australia

Cheung Kong Holdings Ltd. 2.2%
Multi-Industry, Hong Kong

Nintendo Co. Ltd. 2.2%
Recreation, Other Consumer Goods, Japan

Philippine Long Distance Telephone Co. 2.2%
Telecommunications, Philippines

Jardine Strategic Holdings Ltd. 2.1%
Multi-Industry, Hong Kong

Nisshinbo Industries Inc. 2.1%
Textiles & Apparel, Japan

Mitsubishi Heavy Industries Ltd. 2.0%
Industrial Components, Japan

Nippon Telegraph & Telephone Corp. 2.0%
Telecommunications, Japan

For a complete list of portfolio holdings, please see page 16 of this report.

Performance Summary

The Franklin Pacific Growth Fund provided a total return of -5.54% for the
one-year period ended October 31, 1995. Total return measures the change in
value of an investment, assum- ing reinvestment of dividends and capital gains,
and does not include the fund's maximum initial sales charge.

Of course, we maintain a long-term perspective when managing the fund, and we
encourage shareholders to view their investments in a similar manner. As you can
see from the table on page 8, the fund delivered a cumulative total return of
more than 56% since its inception on September 20, 1991.

The fund's share price, as measured by net asset value, decreased from $15.40 on
October 31, 1994 to $14.11 on October 31, 1995. During the reporting period,
shareholders received distributions totaling 15.6 cents ($0.156) per share in
dividend income and 27.1 cents ($0.271) per share in capital gains, of which
11.41 cents ($0.1141) represented long-term gains and 15.69 cents ($0.1569)
represented short-term gains. Of course, past performance is not predictive of
future results, and distributions will vary depending on income earned by the
fund and any profits realized from the sale of securities in the portfolio.

The graph on the following page compares the performance of the Franklin Pacific
Growth Fund with the performance of the unmanaged Morgan Stanley Capital
International (MSCI) Pacific Basin Index from the fund's inception on September
20, 1991. As you can see, the fund outperformed the index during the past fiscal
year.

GRAPHIC MATERIAL 2 OMMITTED - SEE APPENDIX AT END OF DOCUMENT

Of course, such unmanaged market indices have inherent performance differentials
in comparison with any fund. They don't pay management fees to cover salaries
of security analysts or portfolio managers, or pay commissions or market spreads
to buy and sell stocks. And, unlike unmanaged indices, mutual funds are never
100% invested because of the need to have cash on hand to redeem shares. In
addition, the performance shown for the fund includes the maximum initial sales
charge, all fund expenses and account fees. If operating expenses such as the
Franklin Pacific Growth Fund's had been applied to this index, its performance
would have been lower. Please remember that an index is simply a measure of
performance, and one cannot invest in an index directly. Past performance is not
predictive of future results.

*Includes all sales charges and represents the change in value of an investment
over the period shown. Total return assumes reinvestment of dividends and
capital gains. Past performance is not predictive of future results.
**Index is unmanaged and includes reinvested dividends.

Franklin Pacific Growth Fund
Periods ended October 31, 1995

Since
Inception
1-Year 3-Year (09/20/91)

Cumulative

Total Return1 -5.54% 41.85% 56.64%

Average Annual
Total Return2 -9.79% 10.65% 10.28%

1. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the maximum 4.5% initial sales
charge.

2. Average annual total return represents the average annual change in value of
an investment over the specified periods and includes the maximum 4.5% initial
sales charge.

All total return calculations assume reinvestment of dividends and capital
gains. Past expense limitations increased the fund's total returns. Investment
return and principal value will fluctuate with market conditions, currencies and
the economic and political climates of countries where investments are made, so
that your shares, when redeemed, may be worth more or less than their initial
cost. Past performance is not predictive of future results.

FRANKLIN INTERNATIONAL EQUITY FUND

Your Fund's Objective:

The Franklin International Equity Fund seeks to provide long-term growth of
capital by investing in an internationally diversified portfolio of equity
securities, of which at least 65% trade on markets in countries other than the
United States.

The past fiscal year was marked by a high level of volatility in emerging
markets and unexpected advances in developed markets. Stock markets of most
developed countries posted double-digit returns despite the high degree of
uncertainty prevalent in many overseas markets at the beginning of 1995. Much of
this uncertainty was precipitated by the devaluation of the Mexican peso in
December 1994, which led to a decline of more than 70% (in U.S. dollar terms) in
the Mexican equity market. The ensuing negative impact on financial markets,
which some called the "Tequila Effect," was not limited to Latin America.
Investors in Asian securities soon discovered that their stocks were declining
in value due to professional money managers' generally poor opinions of most
emerging markets. With the exception of Japan, which suffered from a
deteriorating real estate market and a weakened banking system, most major
developed markets, particularly those in Sweden, the Netherlands, and the United
Kingdom, showed surprising strength.

Responding to these conditions, we reduced our holdings in certain developed
markets, such as the United Kingdom and France, and bought securities elsewhere,
which we felt were better bargains. At the end of the fiscal year, 82.3% of the
fund's total net assets were invested in developed countries, with the remaining
17.7% in developing countries.

With regard to individual investment sectors, cyclical stocks performed very
well throughout the reporting period because of economic growth worldwide. This
was especially true of the paper, chemicals and metals sectors, although the
financial services, technology, and commodities sectors also performed strongly.
Increasing economic activity and growing demand for commodities in emerging
markets led to rising prices for aluminum and paper, which gave a big boost to
the stock prices of companies operating in those industries. The fund's position
in Comalco Ltd., an Australian mining company, benefited from this trend. Stocks
in other sectors that performed well during the period included Pharmacia AB,
Hafslund Nycomed, and British Aerospace.

The fiscal year, however, was not without some disappointments. Every year, some
of our stock picks do not live up to our expectations. This is normally due to
some unanticipated events at these companies, a major change in the industry
that adversely impacts them, or less-than-perfect stock selection on our part.
Examples of stocks that did not perform as well as we had hoped include Celsius
Industrier AB, Electrolux AB, Oriental Press Group Ltd., and Peregrine
Investments Holdings Ltd. Although these stocks declined in price, we did not
sell them because we believed they had attractive potential long-term value.
Although we do make some mistakes in our stock selections, if we keep them to a
minimum, we should be able to achieve the type of returns investors have come to
expect.

GRAPHIC MATERIAL 3 OMMITTED - SEE APPENDIX AT END OF DOCUMENT

Looking forward, the world's financial markets should, hopefully, continue to be
volatile. We say "hopefully," because the more volatile the market, the more
share prices tend to fluctuate. The more share prices fluctuate, the less likely
the market will reflect the "true" value of a company, and the easier it becomes
for us to find potential bargain-priced stocks for your fund. Many investors are
frightened by volatility, but as managers, we welcome the opportunity it
provides us. While short-term volatility can be disconcerting, declines of as
much as 40% to 50% are not unusual in emerging markets. For example, the Hong
Kong stock market has increased 695% in the last 15 years, but has suffered six
declines of more than 20% during that time.* There are, of course, special risks
involved with foreign investing related to market, currency, economic,
political, and other factors. Developing markets involve similar but heightened
risks, in addition to risks associated with the relatively small size and lesser
liquidity of these markets, which are discussed in the fund's prospectus.

We thank you for your participation in the Franklin International Equity Fund
and welcome any comments or suggestions you may have.

*Source: Bloomberg. Based on quarterly percentage change over 15 years ended
September 30, 1995.

Franklin International Equity Fund
Top 10 Holdings on October 31, 1995
Based on Total Net Assets

Name % of Total
Industry, Country Net Assets

U.S. Treasury Note, 5.125%, 3/31/96 3.9%
Government Bond, United States

International Nederlanden Group 3.3%
Insurance, Netherlands

Ace Ltd. 2.9%
Insurance, Bermuda

Hafslund Nycomed SA, B 2.8%
Health & Personal Care, Norway

Volvo AB, B 2.3%
Automobiles, Sweden

Ecco SA 2.2%
Business & Public Services, France

Enso Gutzeit OY, R 2.1%
Forest Products & Paper, Finland

Telefonica de Espana SA 2.0%
Telecommunications, Spain

Iberdrola SA 2.0%
Utilities -- Electrical & Gas, Spain

DSM NV 1.7%
Chemicals, Netherlands

For a complete list of portfolio holdings, please see page 21 of this report.

Performance Summary

The Franklin International Equity Fund provided a total return of +1.75% for the
one-year period ended October 31, 1995. Total return measures the change in
value of an investment, assum ing reinvestment of dividends and capital gains,
and does not include the fund's maximum initial sales charge.

Of course, we maintain a long-term perspective when managing the fund, and we
encourage shareholders to view their investments in a similar manner. As you can
see from the table on page 13, the fund delivered a cumulative total return of
more than 51% since its inception on September 20, 1991.

The fund's share price, as measured by net asset value, decreased from $13.83 on
October 31, 1994 to $13.23 on October 31, 1995. During the reporting period,
shareholders received distributions totaling 19 cents ($0.19) per share in
dividend income and 58.8 cents ($0.588) per share in capital gains, of which 34
cents ($0.34) represented long-term gains and 24.8 cents ($0.248) represented
short-term gains. Of course, past performance is not predictive of future
results, and distributions will vary depending on income earned by the fund and
any profits realized from the sale of securities in the portfolio.

The graph on the following page compares the performance of the Franklin
International Equity Fund with the performance of the unmanaged Morgan Stanley
Capital International Europe, Australia, Far East (EAFE) Index since the fund's
inception on September 20, 1991. As you can see, the fund outperformed the index
toward the end of the fiscal year, as it has done for the majority of the time
since the fund's inception.

Of course, such unmanaged market indices have inherent performance differentials
in comparison with any fund. They don't pay management fees to cover salaries of
security analysts or portfolio managers, or pay commissions or market spreads to
buy and sell stocks. And, unlike unmanaged indices, mutual funds are never 100%
invested because of the need to have cash on hand to redeem shares. In addition,
the performance shown for the fund includes the maximum initial sales charge,
all fund expenses and account fees. If operating expenses such as the Franklin
International Equity Fund's had been applied to this index, its performance
would have been lower. Please remember that an index is simply a measure of
performance, and one cannot invest in an index directly. Past performance is not
predictive of future results.

GRAPHIC MATERIAL 4 OMMITTED - SEE APPENDIX AT END OF DOCUMENT

Franklin International Equity Fund
Periods ended October 31, 1995

Since
Inception
1-Year 3-Year (09/20/91)

Cumulative

Total Return1 1.75% 48.50% 51.57%

Average Annual
Total Return2 -2.83% 12.35% 9.40%

1. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the maximum 4.5% initial sales
charge.

2. Average annual total return represents the average annual change in value of
an investment over the specified periods and includes the maximum 4.5% initial
sales charge.

All total return calculations assume reinvestment of dividends and capital
gains. Past expense reductions by the fund's manager increased the fund's total
returns. Investment return and principal value will fluctuate with market
conditions, currencies and the economic and political climates of countries
where investments are made, so that your shares, when redeemed, may be worth
more or less than their initial cost. Past performance is not predictive of
future results.

FRANKLIN INTERNATIONAL TRUST

Schedule of Foreign Tax Withholding (unaudited)

At October 31, 1995, the two Funds in the Franklin Institutional Trust had
invested more than 50% of their respective total assets in securities of foreign
corporations. In many cases, foreign taxes were withheld from dividends paid to
the funds on investments. Section 853 of the Internal Revenue Code (the Code)
permits the Funds to pass through to their shareholders a tax benefit on the
withholding of these foreign taxes.

The amounts of foreign tax withheld and foreign source income designated below
are estimates, and should be used for planning purposes only. The actual amount
of taxes withheld and foreign source income distributed during calendar year
1995 will be provided to shareholders with their Form 1099-DIV in January 1996.

Franklin Pacific Growth Fund

a. Shareholders receiving the December 1994 distributions of $0.2189 per share
comprising of $0.062 and $0.1569 per share distributions from net
investment income and short-term capital gain, respectively:1

Foreign Taxes Foreign Source
Withheld Income
Country Per Share Per Share
- ---------------------------------------------------------
Australia $0.002290 $0.017029
Hong Kong -- 0.026538
Indonesia 0.000665 0.004544
Japan 0.001539 0.005319
Malaysia 0.001491 0.002944
New Zealand 0.000095 0.000328
Philippines 0.000339 0.000704
Portugal 0.000039 0.000097
Singapore 0.001295 0.002532
Thailand 0.000270 0.002411
--------- ----------
Total $0.008023 $0.062446
========= ==========

b. Shareholders receiving the June 1995 income dividend of $.094 per share:

Foreign Taxes Foreign Source
Withheld Income
Country Per Share Per Share
- ---------------------------------------------------------
Australia $0.002059 $0.013394
Hong Kong -- 0.019935
Indonesia 0.000838 0.004116
Japan 0.001669 0.005254
Malaysia 0.002726 0.003075
New Zealand 0.000096 0.000301
Philippines 0.000071 0.000166
Singapore 0.001010 0.001802
Thailand 0.000326 0.002420
--------- ----------
Total $0.008795 $0.050463
========= ==========

1. These amounts were previously reported to shareholders on their 1994 Form
1099-DIV statements.

Under section 854(b)(2) of the Internal Revenue Code, the Pacific Growth Fund
hereby designates 1.85% of its ordinary income dividends paid by the Fund during
the fiscal year ended October 31, 1995, as income qualifying for the corporate
dividends received deduction.

Franklin International Equity Fund

a. Shareholders receiving the December 1994 distributions of $0.303 per share
comprising of $0.055 and $0.248 per share distribution from net investment
income and short-term capital gain, respectively:1

Foreign Taxes Foreign Source
Withheld Income
Country Per Share Per Share
- ----------------------------------------------------------
Argentina $0.000021 $0.000646
Australia 0.000391 0.003247
Austria -- 0.000012
Belgium 0.000151 0.000464
Colombia -- 0.000496
Canada 0.000393 0.001540
Finland 0.000196 0.000768
France . -- 0.002423
Germany 0.000059 0.000396
Greece -- 0.000863
Hong Kong -- 0.006671
Italy 0.000361 0.001414
Japan 0.000094 0.000368
Mexico 0.000023 0.002257
Netherlands 0.000522 0.004526
New Zealand 0.000039 0.000153
Norway 0.000235 0.000921
Philippines 0.000002 0.000094
Portugal 0.000185 0.000543
Spain 0.001774 0.005237
Sweden 0.000663 0.002200
Switzerland 0.000160 0.000707
Turkey -- 0.000232
United Kingdom 0.002718 0.009625
--------- ----------
Total $0.007987 $0.045803
========= ==========

b. Shareholders receiving the June 1995 income dividend of $.135 per share:

Foreign Taxes Foreign Source
Withheld Income
Country Per Share Per Share
- ----------------------------------------------------------
Argentina $-- $0.000668
Australia 0.000495 0.004707
Belgium . 0.000093 0.000482
Colombia -- 0.000653
Canada 0.000496 0.002081
Finland 0.000466 0.001956
France -- 0.004750
Germany -- 0.000079
Greece -- 0.003629
Hong Kong -- 0.011040
Italy 0.000439 0.001217
Japan 0.000030 0.000127
Mexico 0.000015 0.001468
Netherlands 0.001684 0.009534
New Zealand 0.000110 0.000463
Norway 0.000479 0.002007
Philippines 0.000001 0.000075
Portugal -- 0.000480
South Korea 0.000095 0.000385
Spain 0.002271 0.008112
Sweden 0.001978 0.007805
Switzerland 0.000944 0.002577
Turkey -- 0.000286
United Kingdom 0.003508 0.013717
--------- ----------
Total $0.013104 $0.078298
========= ==========

The Funds hereby designate the total foreign taxes paid and foreign source
income received, on a per share basis as detailed above, as payments qualifying
under Sec. 853 of the Code. Shareholders are advised to consult with their tax
advisors for information on the treatment of these amounts in their income tax
returns.

1. These amounts were previously reported to shareholders on their 1994 Form
1099-DIV statements.

<TABLE>
<CAPTION>
FRANKLIN INTERNATIONAL TRUST

Statement of Investments in Securities and Net Assets, October 31, 1995

Shares/ Value
Country* Warrants Franklin Pacific Growth Fund (Note 1)
Common Stocks & Warrants 92.1%

Australia 11.4%
<S> <C> <C> <C>
AU 210,635 Australian Gas & Light Company ...................................... $ 730,051
AU 110,000 Brambles Industries Ltd. ............................................ 1,169,740
AU 67,400 Capral Aluminium Ltd. ............................................... 154,025
AU 277,869 GIO Australia Holdings, Ltd. ........................................ 588,432
AU 872,017 Goodman Fielder Ltd. ................................................ 876,819
AU 170,000 Mayne Nickless Ltd., A .............................................. 769,213
AU 569,800 National Foods Ltd. ................................................. 638,045
AU 214,884 Pacific Dunlop Ltd. ................................................. 520,526
US 15,800 a,bQantas Airways Ltd., ADR, 144A ...................................... 276,500
-----------
5,723,351
-----------
China 1.3%
CH 226,000 Dongfang Electrical Machinery Co. Ltd., H ........................... 67,230
CH 600,000 Maanshan Iron & Steel Co. Ltd., H ................................... 109,420
CH 59,500 Shandong Huaneng Power .............................................. 476,000
-----------
652,650
-----------
Hong Kong 26.9%
HK 600,000 Cathay Pacific Airways Ltd. ......................................... 884,670
HK 200,000 Cheung Kong Holdings Ltd. ........................................... 1,127,824
HK 651,795 Dairy Farm International Holdings Ltd. .............................. 534,472
HK 700,000 Gold Peak Industries (Holdings) Ltd. ................................ 339,511
HK 508,000 Grand Hotel Holdings Ltd. ........................................... 185,612
HK 2,430,000 Great Wall Electronic International Ltd. ............................ 191,717
HK 34,600 aGreat Wall Electronics International Ltd., warrants ................. 103
HK 32,200 aHang Lung Development Co. Ltd., warrants ............................ 5,456
HK 1,411,872 Hon Kwok Land Investment Co. Ltd. ................................... 429,129
HK 38,400 aHong Kong & China Gas Co. Ltd., warrants ............................ 1,937
HK 5,502 Hong Kong Land Holdings Co. ......................................... 9,904
HK 500,000 Hong Kong Telecommunications Ltd. ................................... 873,029
HK 100,000 HSBC Holdings PLC ................................................... 1,455,049
HK 458,000 Hualing Holdings Ltd. ............................................... 71,084
HK 117,924 Jardine Matheson Holdings Ltd. ...................................... 719,336
HK 393,750 Jardine Strategic Holdings Ltd. ..................................... 1,059,187
HK 43,750 aJardine Strategic Holdings Ltd., warrants ........................... 11,594
HK 850,000 Lai Sun Development Co. Ltd. ........................................ 106,639
HK 100,000 LI & Fung Ltd. ...................................................... 71,136
HK 714,000 National Mutual Asia Ltd. ........................................... 549,465
HK 315,372 New World Development Co. Ltd. ...................................... 1,227,763
HK 100,000 Peregrine Investments Holdings Ltd. ................................. 127,398

Hong Kong (cont.)
HK 550,000 Shun Tak Holdings ................................................... $ 433,928
HK 213,400 Sing Tao Holdings Ltd. .............................................. 123,513
HK 798,000 South China Morning Post Ltd. ....................................... 464,452
HK 110,000 Sun Hung Kai Properties Ltd. ........................................ 878,526
HK 62,500 Swire Pacific Ltd., A ............................................... 468,849
HK 450,000 Wheelock & Co. Ltd. ................................................. 742,075
HK 397,000 Winsor Industrial Corp. Ltd. ........................................ 356,862
HK 842,000 Yaohan Hongkong Corp. Ltd. .......................................... 41,383
-----------
13,491,603
-----------
India .4%
IN 24,100 Great Eastern Shipping Co. Ltd., GDR ................................ 209,188
-----------
Indonesia 5.0%
ID 53,300 aAsia Pacific Resources International, A ............................. 386,425
ID 84,000 PT Bank Bali, foreign ............................................... 196,037
ID 200,000 PT Barito Pacific Timber, foreign ................................... 138,705
ID 252,900 PT Ever Shine Textile, foreign ...................................... 105,793
ID 111,500 PT Hadtex Indosyntec, foreign ....................................... 60,144
ID 203,876 PT Indorama Synthetics, foreign ..................................... 673,303
US 17,000 PT Indosat, ADR ..................................................... 563,125
ID 74,000 PT Inti Indorayon Utama, foreign .................................... 91,237
ID 106,020 PT Pabrik Kertas Tjiwi Kimia, foreign ............................... 196,074
ID 50,000 PT Panin Bank, foreign .............................................. 55,042
ID 70,000 PT Toko Gunung Agung, foreign ....................................... 52,400
-----------
2,518,285
-----------
Japan 20.3%
JP 149,000 Daicel Chemical Industries Ltd. ..................................... 782,561
JP 61,500 Daito Trust Construction Co. Ltd. ................................... 541,347
JP 200 East Japan Railway .................................................. 944,789
JP 90,200 Hitachi Ltd. ........................................................ 926,304
JP 54,000 aIino Kaiun Kaisha Ltd. .............................................. 266,184
JP 28,000 Matsushita Electric Industrial Co. Ltd. ............................. 397,085
JP 132,000 Mitsubishi Heavy Industries Ltd. .................................... 1,018,612
JP 15,000 Nintendo Co. Ltd. ................................................... 1,103,232
JP 121 Nippon Telegraph & Telephone Corp. .................................. 989,617
JP 120,000 Nisshinbo Industries Inc. ........................................... 1,065,676
JP 60,000 Nittetsu Mining Co. Ltd. ............................................ 519,341
JP 110,000 Rengo Co. Ltd. ...................................................... 763,851
JP 10,000 Tenma Corp. ......................................................... 213,213

Japan (cont.)
JP 16,000 Tokyo Style Co. Ltd. ................................................ $ 242,555
JP 78,000 Toyo Engineering Corp. .............................................. 427,209
-----------
10,201,576
Malaysia 4.2%
MY 50,000 Commerce Asset-Holding Bhd., foreign ................................ 247,934
MY 317,333 Malaysian International Shipping Corp. Bhd., foreign ................ 836,731
MY 120,000 Public Finance Bhd., foreign ........................................ 225,738
MY 327,600 Sime Darby Bhd., foreign ............................................ 818,678
-----------
2,129,081
-----------
New Zealand .5%
NZ 86,200 Fletcher Challenge Ltd. ............................................. 228,172
NZ 12,231 Fletcher Challenge Ltd. Forestry Division ........................... 16,874
-----------
245,046
-----------
Pakistan 2.5%
PK 322,100 Fauji Fertilizer Co. Ltd. ........................................... 517,758
PK 7,400 aPakistan Telecom Corp. PTC .......................................... 706,700
-----------
1,224,458
-----------
Philippines 5.0%
PH 2,500,000 aFilinvest Land Inc. ................................................. 672,818
PH 17,250 Philippine Long Distance Telephone Co. .............................. 961,649
US 2,080 Philippine Long Distance Telephone Co., ADR ......................... 116,740
PH 90,460 aPhilippine National Bank ............................................ 761,659
-----------
2,512,866
-----------
Singapore 4.8%
SG 127,200 City Developments Ltd., foreign ..................................... 787,686
SG 68,000 Development Bank of Singapore Ltd., foreign ......................... 779,618
SG 20,000 G.P. Batteries International Ltd. ................................... 48,800
SG 244,000 Parkway Holdings Ltd., foreign ...................................... 618,202
SG 27,200 Singapore Bus Service, Ltd. ......................................... 184,317
-----------
2,418,623
-----------
South Korea 1.6%
KR 31,500 aPacific Chemical Co. Ltd. ........................................... 819,251
-----------
Thailand 6.5%
TH 88,800 Bangkok Bank Public Co. Ltd., foreign ............................... 917,465
TH 78,500 Chareon Pokphand Feedmill Public Co. Ltd., foreign .................. 399,285
TH 203,833 Industrial Finance Corp. of Thailand, foreign ....................... 668,239
Thailand (cont.)
TH 120,000 MDX Public Co. Ltd., foreign ........................................ $ 218,160
TH 22,700 Oriental Hotel Public Co. Ltd., foreign ............................. 61,339
TH 37,140 Thai Farmers Bank Public Co. Ltd. ................................... 243,517
TH 90,860 Thai Farmers Bank Public Co. Ltd., foreign .......................... 750,999
-----------
3,259,004
-----------
United States 1.7%
US 35,000 American President Cos. ............................................. 848,750
-----------
Total Common Stocks & Warrants (Cost $48,907,591) ............. 46,253,732
-----------
Face
Amount
Convertible Bonds .2%
US $ 6,000 Dairy Farm International Holdings, cvt., 6.50%, 10/09/49 ............ 4,530
US 13,000 Jardine Strategic Holdings Ltd., cvt., 7.50%, 09/09/49 .............. 13,179
US 192,000 MDX Public Co. Ltd., cvt., 4.75%, 9/17/03 ........................... 82,560
-----------
Total Convertible Bonds (Cost $240,824) ....................... 100,269
-----------
Total Investments before Repurchase Agreement
(Cost $49,148,415)
c,dReceivables from Repurchase Agreements 4.7%
Joint Repurchase Agreement, 5.85%, 11/01/95 (Cost $2,369,000)
Lehman Securities Inc. (Maturity Value $2,369,385)
US 2,416,549 Collateral: U.S. Treasury Note, 7.875% , 11/15/99 .................. 2,369,000
-----------
Total Investments (Cost $51,517,415) 97.0% ............... 48,723,001
Other Assets and Liabilities, Net 3.0% ................... 1,523,883
-----------
Net Assets 100.0% ........................................ $50,246,884
===========

At October 31, 1995, the net unrealized depreciation based on the cost of
investments for income tax purposes of $51,701,136 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost ....................... 4,021,699
Aggregate gross unrealized depreciation for all investments which
there was an excess of tax cost over value ....................... (6,816,113)
-----------
Net unrealized depreciation ....................................... $ (2,794,414)
===========

CURRENCY LEGEND:
AU - Australia
CH - China
HK - Hong Kong
IN - India
ID - Indonesia
JP - Japan
KR - South Korea
MY - Malaysia
NZ - New Zealand
PK - Pakistan
PH - Philippines
SG - Singapore
TH - Thailand
US - United States of America

*Securities traded in currency of country indicated.
aNon-income producing.
bSee Note 7 regarding Rule 144A securities.
cFace amount for repurchase agreements is for the underlying collateral.
dSee Note 1 (h) regarding Joint Repurchase Agreement.

The accompanying notes are an integral part of these financial statements.
</TABLE>

<TABLE>
<CAPTION>
FRANKLIN INTERNATIONAL TRUST

Statement of Investments in Securities and Net Assets, October 31, 1995

Shares/ Value
Country* Warrants Franklin International Equity Fund (Note 1)
Common Stocks & Warrants 84.5%

Argentina 1.0%
<S> <C> <C> <C>
AR 47,966 Ciadea SA ........................................................... $ 175,067
US 2,900 Transportadora de Gas del Sur SA, ADR B.............................. 29,725
AR 4,000 YPF Sociedad Anonima ................................................ 68,997
US 13,700 YPF Sociedad Anonima, ADR ........................................... 234,613
-----------
508,402
-----------
Australia 5.4%
AU 93,188 Australia & New Zealand Banking Group Ltd. .......................... 390,422
AU 126,000 aEmail Ltd............................................................ 316,735
AU 83,026 GIO Australia Holdings Ltd. ......................................... 175,821
AU 106,600 National Foods Ltd. ................................................. 119,367
AU 186,700 News International PLC .............................................. 841,190
AU 116,077 Pacific Dunlop Ltd. ................................................. 281,180
AU 241,300 Pioneer International Ltd. .......................................... 591,868
-----------
2,716,583
-----------
Belgium .4%
BE 400 Solvay, SA .......................................................... 202,488
-----------
Bermuda 2.9%
US 43,400 ACE, Ltd............................................................. 1,475,600
-----------
Canada 1.9%
CA 13,600 Bank of Montreal .................................................... 302,053
CA 14,000 Canadian Imperial Bank of Commerce .................................. 380,179
CA 1,900 Gendis Inc., A ...................................................... 18,262
CA 9,100 London Insurance Group Inc. ......................................... 181,728
CA 9,300 National Bank of Canada ............................................. 75,504
-----------
957,726
-----------
China .5%
CN 564,000 Maanshan Iron & Steel Co. Ltd., H ................................... 102,854
US 16,500 Shandong Huaneng Power, ADR ......................................... 132,000
CN 152,500 Shenzhen China Bicycles Co. (Holdings) Ltd., B ...................... 41,420
-----------
276,274
-----------
Colombia .3%
US 14,100 Banco Ganadero SA, ADR C ............................................ 139,238
-----------
Finland 2.8%
FI 9,000 Amer Group Ltd., A .................................................. 142,455
FI 133,200 Enso Gutzeit Oy, R .................................................. 1,044,755

Finland (cont.)
FI 15,000 Outokumpu Oy, A ..................................................... $ 238,485
FI 8,400 aOutokumpu Oy, warrants .............................................. 940
-----------
1,426,635
-----------
France 4.3%
FR 1,600 Alcatel Cable SA .................................................... 93,376
FR 7,243 Ecco SA ............................................................. 1,124,233
FR 3,600 aPechiney International SA ........................................... 82,121
FR 10,738 Societe Elf Aquitane SA ............................................. 732,211
FR 2,932 Total SA, B ......................................................... 181,438
-----------
2,213,379
-----------
Greece 1.9%
GR 11,500 bAlpha Credit Bank, 144A ............................................. 691,606
GR 6,850 Ergo Bank SA ........................................................ 295,310
-----------
986,916
-----------
Hong Kong 8.8%
HK 443,000 C.P. Pokphand Co. Ltd. .............................................. 177,619
HK 33,000 Cathay Pacific Airways Ltd. ......................................... 48,657
HK 53,000 Cheung Kong Holdings Ltd. ........................................... 298,873
HK 300,000 CNT Group Ltd. ...................................................... 17,655
HK 63,000 Consolidated Electric Power Asia Ltd. ............................... 127,520
HK 635,000 Dairy Farm International Holdings Ltd. .............................. 520,700
HK 88,000 Hang Lung Development Co. Ltd. ...................................... 146,255
HK 14,462 HSBC Holdings PLC ................................................... 215,141
HK 57,200 Jardine Matheson Holdings Ltd. ...................................... 348,920
HK 202,500 Jardine Strategic Holdings Ltd. ..................................... 544,725
HK 22,500 aJardine Strategic Holdings Ltd., warrants ........................... 5,963
HK 423,000 Oriental Press Group Limited ........................................ 173,704
HK 663,000 Peregrine Investments Holdings Ltd. ................................. 844,646
HK 1,045,000 Shun Tak Holdings ................................................... 824,463
HK 310,200 Sing Tao Holdings Ltd. .............................................. 179,539
-----------
4,474,380
-----------
India .1%
US 7,800 bGujarat Narmada Valley Fertilizers Co. Ltd., GDR, 144A .............. 53,625
-----------
Indonesia .1%
ID 22,500 PT Barito Pacific Timber, foreign ................................... 15,604
-----------
Italy 1.2%
IT 23,300 Banco di Sardegna SPA, di Risp ...................................... $ 163,812
IT 11,840 Cartiere Burgo SPA .................................................. 67,567
IT 13,280 aCartiere Burgo SPA, warrants ........................................ 200
IT 44,600 Sasib SPA, di Risp .................................................. 110,139
IT 35,700 Sirti SPA ........................................................... 216,479
IT 20,000 Unione Cementi Marchino Emiliane (Unicem), di Risp .................. 60,262
-----------
618,459
-----------
Luxembourg .4%
LU 2,200 Arbed SA ............................................................ 215,515
-----------
Mexico 1.6%
MX 56,300 Consorcio G Grupo Dina SA de CV ..................................... 33,930
US 3,200 Consorcio G Grupo Dina SA de CV, ADR ................................ 8,400
MX 20,000 Grupo Financiero Banamex Accival SA, B .............................. 34,198
MX 1,525 Grupo Financiero Banamex Accival SA, L .............................. 2,501
US 18,000 Telefonos de Mexico SA, L, ADR ...................................... 495,000
MX 109,200 Vitro, SA ........................................................... 239,368
-----------
813,397
-----------
Netherlands 10.3%
NL 8,600 ABN AMRO NV ......................................................... 361,262
NL 2,380 Akzo Nobel NV ....................................................... 270,979
NL 11,400 DSM NV .............................................................. 853,754
NL 28,231 International Nederlanden Group ..................................... 1,683,164
NL 11,900 Koninklijke Bijenkorf Beheer ........................................ 844,453
NL 2,940 NV Holdingsmij de Telegraaf ......................................... 422,847
NL 21,200 Philips Electronics NV .............................................. 819,363
-----------
5,255,822
-----------
New Zealand .7%
NZ 247,000 Fletcher Challenge Ltd. Forestry Division ........................... 340,764
-----------
Norway 3.3%
NO 1,100 aElkem, A/S .......................................................... 11,928
NO 7,400 Fokus Bank AS ....................................................... 39,229
NO 50,132 Hafslund Nycomed SA, B .............................................. 1,401,280
NO 17,000 Unitor AS ........................................................... 210,281
-----------
1,662,718
-----------
Peru .2%
PE 57,000 Telefonica de Peru, B ............................................... 101,786
-----------
Portugal .7%
PT 17,400 Banco Portugues de Investimento SA .................................. $ 268,008
US 15,000 bPortucel Industrial Empresa Product Celulose, ADR, 144A ............. 105,056
-----------
373,064
-----------
South Korea 1.8%
KR 4,190 Byucksan Development Co. Ltd. ....................................... 81,046
KR 3,540 Daegu Bank Co. Ltd. ................................................. 60,605
KR 2,280 Daehan Synthetic Fiber Co. Ltd. ..................................... 335,228
KR 4,230 Pohang Iron & Steel Co. Ltd. ........................................ 427,096
-----------
903,975
-----------
Spain 7.5%
ES 15,750 Banco Bilbao Vizcaya ................................................ 481,517
ES 2,500 Banco de Andalucia .................................................. 327,855
ES 1,450 Banco Popular Espanol ............................................... 230,445
ES 2,430 Bankinter SA ........................................................ 210,724
ES 60,600 Compania Sevillana de Electricidad .................................. 400,341
ES 6,000 Dragados y Construcciones SA ........................................ 78,685
ES 131,700 Iberdrola SA ........................................................ 993,107
ES 80,600 Telefonica de Espana SA ............................................. 1,017,368
ES 4,000 Unipapel SA ......................................................... 91,800
-----------
3,831,842
-----------
Sweden 10.1%
SE 1,300 Autoliv ............................................................. 74,610
SE 44,600 Celsius AB, B ....................................................... 843,151
SE 13,800 Electrolux AB, B .................................................... 590,370
SE 13,100 Esselte AB, B ....................................................... 192,399
SE 14,600 Pharmacia AB, B ..................................................... 510,232
SE 17,000 Stadshypotek AB, A .................................................. 308,576
SE 38,800 Stena Line AB, B .................................................... 197,549
SE 64,500 Stora Kopparbergs Bergslags AB, B ................................... 782,136
SE 27,650 Svenska Handelsbanken, A ............................................ 485,230
SE 52,400 Volvo AB, B ......................................................... 1,180,047
-----------
5,164,300
-----------
Switzerland 5.6%
CH 180 Baloise-Holding ..................................................... 369,223
CH 695 BBC Brown Boveri Ltd., br ........................................... 805,806
CH 740 Bucher Holding AG ................................................... 465,798
CH 600 Ciba-Geigy AG ....................................................... 519,236
Switzerland (cont.)
CH 200 Kuoni Reisen Holding AG, B .......................................... $ 318,690
CH 600 SMH, AG ............................................................. 373,977
-----------
2,852,730
-----------
Turkey .6%
TR 484,800 Tofas Turk Otomobil Fabrikasi AS, GDR ............................... 305,424
-----------
United Kingdom 10.1%
GB 587,100 Albert Fisher Group Plc. ............................................ 473,355
GB 91,700 Anglian Group Plc ................................................... 171,063
GB 101,400 Argyll Group Plc. ................................................... 516,177
GB 37,333 British Aerospace Plc. .............................................. 418,451
GB 469,200 aCordiant Plc. ....................................................... 637,913
GB 154,800 Govett & Co. Ltd. ................................................... 594,679
GB 198,900 Hillsdown Holdings Plc. ............................................. 528,262
GB 60,400 Kwik Save Group Plc. ................................................ 662,676
GB 179,075 Meggitt Plc. ........................................................ 249,128
GB 18,694 National Westminster Bank Plc. ...................................... 186,777
GB 569,000 Raine Plc. .......................................................... 197,897
GB 21,300 Thames Water Group Plc. ............................................. 177,458
GB 91,000 Wace Group Plc. ..................................................... 346,708
-----------
5,160,544
-----------
Preferred Stocks .1%
Netherlands
NL 216 ABN Amro NV, conv., pfd. (Cost $7,457)............................... 8,553
-----------
Total Common Stocks, Warrants and Preferred Stocks
(Cost $42,482,208)............................................ 43,055,743
-----------
Face
Amount
Government Securities 3.9%
US $2,000,000 U.S. Treasury Note, 5.125%, 3/31/96 (Cost $1,998,438) ............... 1,996,560
-----------
Convertible Bonds .6%
US 250,000 Amer Group Ltd., 6.25%, conv., 6/15/03 .............................. 223,750
US 90,000 Banco Nacional de Mexico SA, 7.00%, conv., 12/15/99 ................. 70,875
US 10,000 Jardine Strategic Holdings Ltd., 7.50%, 05/07/49 .................... 10,137
-----------
Total Convertible Bonds (Cost $379,300) ....................... 304,762
-----------
Total Investment before Repurchase Agreement
(Cost $44,859,946)............................................ 45,357,065
-----------
c,dReceivables from Repurchase Agreements 10.3%........................
Joint Repurchase Agreement, 5.85%, 11/01/95 (Cost $5,269,000)
Lehman Securities Inc. (Maturity Value $5,269,856)
US $5,376,943 Collateral: U.S. Treasury Notes, 8.875%, 11/15/98 .................. $ 5,269,000
-----------
Total Investments (Cost $50,128,946) 99.4% ............... 50,626,065
Other Assets and Liabilities, Net .6% .................... 321,357
-----------
Net Assets 100.0% $50,947,422
===========

At October 31, 1995, the net unrealized appreciation based on the cost
of investments for income tax purposes of $50,221,084 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost ..................................................... $ 6,983,912
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value ..................................................... (6,486,793)
-----------
Net unrealized appreciation ....................................... $ 497,119
===========

CURRENCY LEGEND:
AR - Argentina
AU - Australia
BE - Belgium
CA - Canada
CH - Switzerland
CN - China
ES - Spain
FI - Finland
FR - France
GB - United Kingdom
GR - Greece
HK - Hong Kong

ID - Indonesia
IT - Italy
LU - Luxembourg
MX - Mexico
NL - Netherlands
NZ - New Zealand
NO - Norway
PE - Peru
PT - Portugal
SE - Sweden
TR - Turkey
US - United States of America

The accompanying notes are an integral part of these financial statements.
</TABLE>

<TABLE>
<CAPTION>
FRANKLIN INTERNATIONAL TRUST

Financial Statements

Statements of Assets and Liabilities
October 31, 1995

Franklin Franklin
Pacific International
Growth Fund Equity Fund
--------- ---------
<S> <C> <C>
Assets:
Investments in securities:
At identified cost .............................................................. $49,148,415 $44,859,946
========= =========
At value ........................................................................ 46,354,001 45,357,065
Receivables from repurchase agreements, at value and cost ........................ 2,369,000 5,269,000
Cash ............................................................................. 41,198 88,563
Receivables:
Dividends and interest .......................................................... 200,240 109,674
Capital shares sold ............................................................. 251,475 141,269
Investments securities sold ..................................................... 1,353,058 250,366
Unamortized organization costs (Note 2) .......................................... 5,779 5,779
--------- ---------
Total assets ................................................................ 50,574,751 51,221,716
--------- ---------
Liabilities:
Payables:
Investment securities purchased ................................................. 68,246 57,944
Capital shares repurchased ...................................................... 54,665 42,462
Distribution fees ............................................................... 69,214 75,176
Management fees ................................................................. 43,943 44,287
Accrued expenses and other liabilities ........................................... 91,799 54,425
--------- ---------
Total liabilities ........................................................... 327,867 274,294
--------- ---------
Net assets, at value .............................................................. $50,246,884 $50,947,422
========= =========
Net assets consist of:
Undistributed net investment income............................................... $ 203,161 $ 432,957
Unrealized appreciation (depreciation) on investments and translation of assets and
liabilities denominated in foreign currencies .................................... (2,794,414) 497,119
Undistributed net realized gain from investments and foreign currency transactions 3,511,683
2,480,502
Capital shares ................................................................... 35,601 38,523
Additional paid-in capital ....................................................... 49,290,853 47,498,321
--------- ---------
Net assets, at value .............................................................. $50,246,884 $50,947,422
========= =========
Shares outstanding ................................................................ 3,560,082 3,852,263
========= =========
Net asset value per share ......................................................... $14.11 $13.23
========= =========
Representative computation of net asset value and offering price per share:
Net asset value and redemption price per share (Pacific Growth)
($50,246,884 / 3,560,082)......................................................... $14.11
=========
Maximum offering price (100/95.5 of $14.11)........................................ $14.77
=========

The accompanying notes are an integral part of these financial statements.
</TABLE>

<TABLE>
<CAPTION>
FRANKLIN INTERNATIONAL TRUST

Financial Statements (cont.)

Statements of Operations
for the year ended October 31, 1995

Franklin Franklin
Pacific International
Growth Fund Equity Fund
--------- ---------
<S> <C> <C>
Investment Income:
Dividends, net of foreign taxes withheld of $115,271 and $203,701, respectively .. $ 1,344,127 $ 1,463,217
Interest ......................................................................... 106,597 330,046
--------- ---------
Total income ................................................................ 1,450,724 1,793,263
--------- ---------
Expenses:
Management fees (Note 5) ......................................................... 526,350 517,232
Distribution fees (Note 5) ....................................................... 101,772 113,904
Shareholder servicing costs (Note 5) ............................................. 62,208 50,000
Registration fees ................................................................ 54,474 36,400
Custodian fees ................................................................... 60,518 47,000
Reports to shareholders .......................................................... 61,482 45,000
Professional fees ................................................................ 13,918 12,700
Amortization of organization cost (Note 2) ....................................... 6,489 6,489
Other ............................................................................ 15,697 9,287
--------- ---------
Total expenses .............................................................. 902,908 838,012
--------- ---------
Net investment income ...................................................... 547,816 955,251
--------- ---------
Realized and unrealized gain (loss) from investments and foreign currency:
Net realized gain from:
Investments ..................................................................... 3,513,636 2,480,501
Foreign currency transactions ................................................... 58,786 8,159
Net unrealized depreciation on:
Investments ..................................................................... (7,165,548) (3,033,315)
Translation of assets and liabilities denominated in foreign currency ........... (2,127) (9,297)
--------- ---------
Net realized and unrealized loss on investments and foreign currency .............. (3,595,253) (553,952)
--------- ---------
Net increase (decrease) in net assets resulting from operations ................... $(3,047,437) $ 401,299
========= =========

The accompanying notes are an integral part of these financial statements.
</TABLE>

<TABLE>
<CAPTION>
FRANKLIN INTERNATIONAL TRUST

Financial Statements (cont.)

Statements of Changes in Net Assets
for the years ended October 31, 1995 and 1994

Franklin Pacific Franklin International
Growth Fund Equity Fund
--------------------- ---------------------
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ............................. $ 547,816 $ 741,217 $ 955,251 $ 876,352
Net realized gain from investments and foreign
currency transactions ............................. 3,572,422 991,968 2,488,660 2,589,842
Net unrealized appreciation (depreciation) on
investments and translation of assets and liabilities
denominated in foreign currencies ................. (7,167,675) 486,055 (3,042,612) 904,404
--------- --------- --------- ---------
Net increase (decrease) in net assets resulting
from operations ................................... (3,047,437) 2,219,240 401,299 4,370,598
Distributions to shareholders from:
Net investment income.............................. (584,289) (590,947) (755,317) (717,638)
Net realized capital gains ........................ (1,040,435) (126,733) (2,401,292) --
Increase (decrease) in net assets from capital share
transactions (Note 3) ............................. (3,321,764) 34,120,244 (4,151,357) 34,984,050
--------- --------- --------- ---------
Net increase (decrease) in net assets ........ (7,993,925) 35,621,804 (6,906,667) 38,637,010
Net assets:
Beginning of period ............................... 58,240,809 22,619,005 57,854,089 19,217,079
--------- --------- --------- ---------
End of period ..................................... $50,246,884 $58,240,809 $50,947,422 $57,854,089
========= ========= ========= =========

Undistributed net investment income included in net assets:

Beginning of year ................................ $ 231,385 $ 81,099 $ 239,703 $ 80,945
========= ========= ========= =========
End of year ...................................... $ 203,161 $ 231,385 $ 432,957 $ 239,703
========= ========= ========= =========

The accompanying notes are an integral part of these financial statements.
</TABLE>

FRANKLIN INTERNATIONAL TRUST

Notes to Financial Statements

1. SIGNIFICANT ACCOUNTING POLICIES

Franklin International Trust (the Trust) is an open-end management investment
company (mutual fund) registered under the Investment Company Act of 1940, as
amended. The Trust currently has two separate diversified Funds (the Funds)
consisting of the Franklin Pacific Growth Fund (the Pacific Fund) and the
Franklin International Equity Fund (the International Fund). Each of the Funds
issues a separate series of shares and maintains a totally separate investment
portfolio.

The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.

a. Securities Valuations:

Portfolio securities listed on a securities exchange or on the NASDAQ National
Market System for which market quotations are readily available are valued at
the last quoted sale price of the day or, if there is no such reported sale,
within the range of the most recent quoted bid and ask prices. Over the counter
portfolio securities for which market quotations are readily available are
valued within the range of the most recent bid and asked prices as obtained from
one or more dealers that make markets in the securities. Portfolio securities
which are traded both in the over-the-counter market and on a securities
exchange are valued according to the broadest and most representative market as
determined by Franklin Advisers, Inc. ("Manager"). Other securities for which
market quotations are readily available are valued at current market values,
obtained from pricing services, which are based on a variety of factors,
including recent trades, institutional size trading in similar types of
securities (considering yield, risk and maturity) and/or developments related to
specific securities. Other securities for which market quotations are not
available, if any, are valued in accordance with procedures established by the
Board of Trustees.

The value of a foreign security is determined as of the close of trading on the
foreign exchange on which it is traded or as of the close of trading on the New
York Stock Exchange, if that is earlier, and that value is then converted into
its U.S. dollar equivalent at the foreign exchange rate in effect at noon, New
York time, on the day the value of the foreign security is determined. If no
sale is reported at that time, the mean between the current bid and asked price
is used. Occasionally, events which affect the values of foreign securities and
foreign exchange rates may occur between the times at which they are determined
and the close of the exchange and will, therefore, not be reflected in the
computation of the Fund's net asset value, unless material. If events which
materially affect the value of these foreign securities occur during such
period, then these securities will be valued in accordance with procedures
established by the Board of Trustees.

b. Income Taxes:

The Trust intends to continue to qualify for the tax treatment applicable to
regulated investment companies under the Internal Revenue Code and to make the
requisite distributions to its shareholders which will be sufficient to relieve
it from income and excise taxes. Therefore, no income tax provision is required.
Each Fund is treated as a separate entity in the determination of compliance
with the Internal Revenue Code.

c. Security Transactions:

Security transactions are accounted for on the date the securities are purchased
or sold (trade date). Realized gains and losses on security transactions are
determined on the basis of specific identification for both financial statement
and income tax purposes.

1. SIGNIFICANT ACCOUNTING POLICIES (cont.)

d. Investment Income, Expenses and Distributions:

Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income and estimated expenses are accrued daily. Bond
discount, if any, is amortized as required by the Internal Revenue Code.

Net investment income differs for financial statement and tax purposes primarily
due to differing treatments of foreign currency transactions.

e. Expense Allocation:

Common expenses incurred by the Trust are allocated among the Funds based on the
ratio of net assets of each Fund to the combined net assets. In all other
respects, expenses are charged to each Fund as incurred on a specific
identification basis.

f. Foreign Currency Translation:

The accounting records of the Trust are maintained in U.S. dollars. All assets
and liabilities denominated in foreign currencies are translated into U.S.
dollars at the rate of exchange of such currencies against U.S. dollars on the
date of the valuation. Purchases and sales of securities, income and expenses
are translated at the rate of exchange quoted on the respective date that such
transactions are recorded. Differences between income and expense amounts
recorded and collected or paid are recognized when reported by the custodian
bank.

The Trust does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from fluctuations arising
from changes in market prices of securities held. Such fluctuations are included
with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency gains
or losses realized between the trade date and settlement dates on securities
transactions, the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the Trust's books, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities other than investments in securities at the end of the period,
resulting from changes in exchange rates.

g. Forward Foreign Currency Contracts:

A forward currency contract, which is individually negotiated and privately
traded by currency traders and their customers, is a commitment to purchase or
sell a specific currency for an agreed upon price at a future date.

The Trust may enter into forward contracts with the objective of minimizing the
risk of the Trust from adverse changes in the relationship between currencies or
to enhance Fund value. The Trust may also enter into a forward contract in
relation to a security denominated in a foreign currency or when it anticipates
receipt in a foreign currency of dividends or interest payments in order to
"lock in" the U.S. dollar price of a security or the U.S. dollar equivalent of
such dividend or interest payments.

The Trust segregates sufficient cash, cash equivalents or readily marketable
debt securities as collateral for commitments created by open forward contracts.
The Trust could be exposed to risk if counterparties to the contracts are unable
to meet the terms of their contracts or if the value of the foreign currency
changes unfavorably.

Any gain or loss realized from a forward currency contract is recorded as a
realized gain or loss from investments. At October 31, 1995, the Trust had no
outstanding foreign currency forward contracts.

1. SIGNIFICANT ACCOUNTING POLICIES (cont.)

h. Repurchase Agreements:

The Trust may enter into a Joint Repurchase Agreements whereby its uninvested
cash balances are deposited into a joint cash account to be used to invest in
one or more repurchase agreements with government securities dealers recognized
by the Federal Reserve Board and/or member banks of the Federal Reserve System.
The value and face amount of the Joint Repurchase Agreement has been allocated
to the Funds based on their pro rata interest.

In a repurchase agreement, the Trust purchases a U.S. Government security from a
dealer or bank subject to an agreement to resell it at a mutually agreed upon
price and date. Such a transaction is accounted for as a loan by the Trust to
the seller, collaterized by the underlying security. The transaction requires
the initial collaterization of the seller's obligation by U.S. government
securities with market value, including accrued interest, of at least 102% of
the dollar amount invested by the Trust, with the value of the underlying
security marked to market daily to maintain coverage of at least 100%. The
collateral is delivered to the Trust's custodian and held until resold to the
dealer or bank. At October 31, 1995, all outstanding joint repurchase agreements
held by the Trust had been entered into on that date.

2. UNAMORTIZED ORGANIZATION COSTS

The organization costs of each Fund are amortized on a straight-line basis over
a period of five years from September 20, 1991 (the effective day of the
registration under the Securities Act of 1933). In the event Franklin Resources,
Inc. (which was the sole shareholder prior to September 20, 1991) redeems its
shares within the five year period, the pro-rata share of the then unamortized
deferred organization costs will be deducted from the redemption price paid to
Franklin Resources, Inc.

New investors purchasing shares of the Funds subsequent to that date bear such
costs during the amortization period only as such charges are accrued daily
against investment income.

<TABLE>
<CAPTION>
3. TRUST SHARES

At October 31, 1995, there were an unlimited number of $.01 par value shares of
beneficial interest authorized. Transactions in each of the Fund's shares for
the years ended October 31, 1995 and 1994 were as follows:

Franklin Pacific Franklin International
Growth Fund Equity Fund
------------------- -------------------
Shares Amount Shares Amount
-------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Year ended October 31, 1995
Shares sold ................................................ 555,600 $ 7,787,181 536,079 $ 6,892,374
Shares issued in reinvestment of distributions ............. 102,552 1,423,427 221,229 2,728,090
Shares redeemed ............................................ (670,145) (9,387,914) (625,269) (8,024,312)
Changes from exercise of exchange privilege:
Shares sold ............................................... 3,461,542 48,778,021 1,197,116 15,441,515
Shares redeemed ........................................... (3,671,174) (51,922,479) (1,658,944) (21,189,024)
-------- ---------- -------- ----------
Net decrease ............................................... (221,625)$ (3,321,764) (329,789)$ (4,151,357)
======== ========== ======== ==========
</TABLE>

<TABLE>
<CAPTION>
3. TRUST SHARES (cont.)
Franklin Pacific Franklin International
Growth Fund Equity Fund
------------------- -------------------
Shares Amount Shares Amount

-------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Year Ended October 31, 1994
Shares sold ................................................ 1,264,909 $ 19,532,648 918,242 $ 12,289,792
Shares issued in reinvestment of distributions ............. 40,119 608,594 46,611 599,058
Shares redeemed ............................................ (359,599) (5,536,957) (335,945) (4,490,047)
Changes from exercise of exchange privilege:
Shares sold ............................................... 6,124,921 93,795,170 6,103,434 81,761,759
Shares redeemed ........................................... (4,855,164) (74,279,211) (4,115,714) (55,176,512)
-------- ---------- -------- ----------
Net increase ............................................... 2,215,186 $ 34,120,244 2,616,628 $ 34,984,050
======== ========== ======== ==========
</TABLE>

4. PURCHASES AND SALES OF SECURITIES

Aggregate purchases and sales of securities (excluding purchases and sales of
short-term securities) for the year ended October 31, 1995 were as follows:

Franklin Franklin
Pacific International
Growth Fund Equity Fund
--------- ---------
<S> <C> <C>
Purchases ............................................................................ $18,155,976 $ 4,000,234
========= =========
Sales ................................................................................ $22,592,750 $12,330,630
========= =========
</TABLE>

5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES

Franklin Advisers, Inc. ("Manager"), under the terms of a management agreement,
provides investment advice, office space and facilities to each Fund and
receives fees computed monthly on the average daily net assets of each Fund at
an annualized rate of 1% of the first $100 million of net assets; 9/10 of 1% of
net assets in excess of $100 million up to and including $250 million; 8/10 of
1% of net assets in excess of $250 million up to and including $500 million; and
3/4 of 1% of net assets in excess of $500 million. Under a subadvisory
agreement, Templeton Investment Counsel, Inc. ("TICI" or the "Subadviser"), an
indirect subsidiary of Templeton Worldwide, Inc., which is a direct,
wholly-owned subsidiary of Franklin Resources, Inc. receives from the Manager a
fee equal to an annual rate of 1/2 of 1% of the value of each Fund's net assets
up to and including $100 million; 2/5 of 1% of net assets in excess of $100
million up to and including $250 million; 3/10 of 1% of net assets in excess of
$250 million up to and including $500 million; and 1/4 of 1% of net assets in
excess of $500 million. The terms of these agreements provide that aggregate
annual expenses of the Funds be limited to the extent necessary to comply with
the limitations set forth in the laws, regulations, and administrative
interpretations of the states in which the Funds' shares are registered. For the
year ended October 31, 1995, the Funds' expenses did not exceed these
limitations.

<TABLE>
<CAPTION>
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (cont.)

In its capacity as underwriter for the shares of the Trust, Franklin Templeton
Distributors, Inc. receives commissions on sales of the Trust's shares.
Commissions received by Franklin Templeton Distributors, Inc. and the amounts
which were subsequently paid to other dealers for the year ended October 31,
1995 were as follows:

Franklin Franklin
Pacific International
Growth Fund Equity Fund
-------- --------
<S> <C> <C>
Total commissions received ............................................................. $255,959 $222,274
======== ========
Paid to other dealers .................................................................. $227,217 $197,147
======== ========
</TABLE>

Commissions are deducted from the gross proceeds received from the sale of the
shares of the Trust, and as such are not expenses of the Funds.

Under the terms of a distribution agreement pursuant to Rule 12b-1 of the
Investment Company Act of 1940, the Funds will reimburse Franklin Templeton
Distributors, Inc., in an amount up to 0.25% per annum of the Funds' average
daily net assets for cost incurred in the promotion, offering, and marketing of
the Funds' shares. Cost incurred by the Pacific Fund and International Fund
under the agreement aggregated $101,772 and $113,904, respectively, for the year
ended October 31, 1995.

Pursuant to a shareholder service agreement with Franklin Templeton Investor
Services, Inc., the Funds pay costs on a per shareholder account basis. Such
costs incurred for the year ended October 31, 1995 aggregated $112,208.

Certain officers and trustees of the Trust are also officers and/or directors of
Franklin Templeton Distributors, Inc., Franklin Advisers, Inc., Templeton
Worldwide, Inc., Templeton Investment Counsel, Inc., and Franklin Templeton
Investor Services, Inc., all wholly-owned subsidiaries of Franklin Resources,
Inc.

<TABLE>
<CAPTION>
6. RULE 144A SECURITIES

Rule 144A provided a non-exclusive safe harbor exemption from registration
requirements of the Securities Act of 1933 for specified resales of restricted
securities to qualified institutional investors. The Funds value these
securities as disclosed in Note 1. See the accompanying Statement of Investments
and Net Assets for specific information on such securities.

At October 31, 1995, 144A securities were held as follows:
Franklin Franklin
Pacific International
Growth Fund Equity Fund
-------- --------
<S> <C> <C>
Value .................................................................................. $276,500 $850,287
======== ========
Ratio of value to net assets ........................................................... .54% 1.67%
======== ========
</TABLE>

7. PROPOSED REORGANIZATION

The Board of Directors has approved an Agreement and Plan of Reorganization,
subject to shareholder approval, providing for the acquisition of all or
substantially all of the assets of the International Fund by Templeton Foreign
Fund ("Foreign Fund"), in exchange for shares of Foreign Fund and the assumption
by Foreign Fund of certain identified liabilities of the International Fund. The
shares if Foreign Fund thereby received would be distributed to shareholders of
the International Fund and the International Fund would be liquidated and
dissolved.

<TABLE>
<CAPTION>
8. FINANCIAL HIGHLIGHTS

Select data for each share of beneficial interest outstanding throughout each
period, by Fund, are as follows:

Per Share Operating Performance Ratios/Supplemental Data
------------------------------------------------------ --------------------------
Net Ratio
Realized & Total Distri- Distri- of Net
Net Asset Net Unrealized From butions butions Net Asset Net Assets Ratio of Investment
Year Value at Invest- Gain (Loss) Invest- From Net From Total Value at End Expenses Income Portfolio
Ended Beginning ment on ment Investment Capital Distri- at End Total of Year to Average to Average Turnover
Oct.31 of Year Income Securities Operations Income Gains butions of Year Return++ (in 000's) Net Assets Net Assets Rate
- ------------------------------------------------------------------------------------------------------------------------------------
Franklin Pacific Growth Fund
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1991+ $10.01$ .06 $ -- $ .060 $ -- $ -- $ -- $10.07 .60% $ 1,165 --%** 5.01%* --%
1992 10.07 .14 .836 .976 (.146) -- (.146) 10.90 9.77 5,724 .29** 1.80 62.96
1993 10.90 .19 3.825 4.015 (.193) (.282) (.475) 14.44 38.46 22,619 .50** 2.03 47.52
1994 14.44 .21 1.008 1.218 (.198) (.060) (.258) 15.40 8.46 58,241 1.22** 1.54 9.16
1995 15.40 .15 (1.013) (.863) (.156) (.271) (.427) 14.11 (5.54) 50,247 1.72 1.04 36.21
Franklin International Equity Fund
1991+ 10.01 .06 -- .060 -- -- -- 10.07 .60 1,286 --** 4.92* --
1992 10.07 .19 (.038) .152 (.202) -- (.202) 10.02 1.46 6,944 .29** 2.36 48.78
1993 10.02 .42 2.253 2.673 (.413) -- (.413) 12.28 27.40 19,217 .50** 4.22 52.99
1994 12.28 .23 1.540 1.770 (.220) -- (.220) 13.83 14.56 57,854 1.22** 1.99 21.80
1995 13.83 .25 (.077) .173 (.190) (.588) (.778) 13.23 1.75 50,947 1.63 1.86 9.12

*Annualized
+For the period September 20, 1991 (effective date of registration) to October 31, 1991.
++Total return measures the changes in value of an investment over the periods
indicated. It does not include the maximum initial sales charge and assumes
reinvestment of dividends and capital gains, if any, at net asset value and is
not annualized.
**During the periods indicated below, Franklin Advisers, Inc., the investment
manager, agreed to waive in advance a portion of its management fees. Had such
action not been taken, ratios of expenses to average net assets would have been
as follows:
</TABLE>

Ratio of expenses to
average net assets
-------------------
Franklin Pacific Growth Fund
1991 .................................. 2.50%*
1992 .................................. 2.50
1993 .................................. 2.31
1994 .................................. 1.72

Ratio of expenses to
average net assets
-------------------
Franklin International Equity Fund
1991 .................................. 2.50%*
1992 .................................. 2.50
1993 .................................. 2.27
1994 .................................. 1.76

FRANKLIN INTERNATIONAL TRUST

Report of Independent Accountants

To the Shareholders and Board of Trustees
of Franklin International Trust:

We have audited the accompanying statements of assets and liabilities of the
funds comprising the Franklin International Trust, including each Fund's
statement of investments in securities and net assets as of October 31, 1995,
and the related statements of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended, and
the financial highlights for the periods indicated thereon. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
funds comprising the Franklin International Trust as of October 31, 1995, the
results of their operations for the year then ended, the changes in their net
assets for each of the two years in the period then ended, and the financial
highlights for the periods indicated thereon, in conformity with generally
accepted accounting principles.

COOPERS & LYBRAND L.L.P.

Boston, Massachusetts
November 30, 1995,
except as to the information
presented in Note 7 for which
the date is December 15, 1995.

Franklin International Trust

APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PURSUANT TO ITEM 304 (a) OF REGULATION S-T)

GRAPHIC MATERIAL (1)

This chart shows in pie chart format the fund's securities breakdown by
region as a percentage of the fund's total net assets.

Franklin Pacific Growth Fund
Regional Breakdown on 10/31/95

Hong Kong 26.9%
Japan 20.3%
Australia 11.4%
Thailand 6.5%
Indonesia 5.0%
Philippines 5.0%
Singapore 4.8%
Malaysia 4.2%
Pakistan 2.5%
United States 1.7%
Other Countries 3.8%
Short-Term Obligations & Other Net Assets 7.9%

GRAPHIC MATERIAL (2)

The following line graph hypothetically compares the performance of Franklin
Pacific Growth Fund to that of the MSCI Pacific Basin Index, based on a
$10,000 investment from 9/20/91 to 10/31/95.

Period Ending Fund Index

9/20/91 $9552 $10000
9/30/91 $9571 $10250
10/31/91 $9609 $10688
11/30/91 $9552 $10002
12/31/91 $9899 $10311
1/31/92 $9947 $9913
2/29/92 $10149 $9220
3/31/92 $9947 $8345
4/30/92 $10101 $7964
5/31/92 $10592 $8587
6/30/92 $10964 $7914
7/31/92 $10296 $7806
8/31/92 $10025 $8877
9/30/92 $10064 $8675
10/31/92 $10548 $8371
11/30/92 $10451 $8530
12/31/92 $10260 $8434
1/31/93 $10430 $8420
2/28/93 $10861 $8830
3/31/93 $10861 $9899
4/30/93 $11612 $11478
5/31/93 $12172 $11814
6/30/93 $11914 $11622
7/31/93 $12167 $12311
8/31/93 $12895 $12677
9/30/93 $13037 $12205
10/31/93 $14604 $12478
11/30/93 $14534 $10719
12/31/93 $16512 $11468
1/31/94 $16685 $12797
2/28/94 $16154 $13129
3/31/94 $14889 $12406
4/30/94 $15103 $12945
5/31/94 $15807 $13255
6/30/94 $15316 $13690
7/31/94 $15727 $13398
8/31/94 $16427 $13633
9/30/94 $15738 $13294
10/31/94 $15840 $13632
11/30/94 $14657 $12874
12/31/94 $14748 $12962
1/31/95 $13473 $12146
2/28/95 $14084 $11847
3/31/95 $14484 $12759
4/30/95 $14663 $13304
5/31/95 $15221 $12774
6/30/95 $14941 $12235
7/31/95 $15546 $13119
8/31/95 $15355 $12627
9/30/95 $15588 $12746
10/31/95 $14973 $12128

GRAPHIC MATERIAL (3)

This chart shows in pie chart format the fund's securities breakdown by
region as a percentage of the fund's total net assets.

Franklin International Equity Fund
Regional Breakdown on 10/31/95

European Stocks 58.6%
Asian Stocks 11.9%
Australian & New Zealand Stocks 6.1%
North American Stocks 4.8%
Latin American Stocks 3.2%
Fixed-Income Securities 4.5%
Short-Term Obligations & Other Net Assets 10.9%

GRAPHIC MATERIAL (4)

The following line graph hypothetically compares the performance of Franklin
International Equity Fund to that of the MSCI EAFE Index, based on a $10,000
investment from 9/20/91 to 10/31/95.

Period Ending Fund Index

9/20/91 $9552 $10000
9/30/91 $9571 $10268
10/31/91 $9609 $10416
11/30/91 $9523 $9933
12/31/91 $9904 $10449
1/31/92 $10019 $10229
2/29/92 $10115 $9865
3/31/92 $9721 $9217
4/30/92 $9942 $9263
5/31/92 $10471 $9886
6/30/92 $10274 $9420
7/31/92 $10041 $9182
8/31/92 $10099 $9761
9/30/92 $9934 $9571
10/31/92 $9749 $9072
11/30/92 $9905 $9160
12/31/92 $9992 $9210
1/31/93 $9845 $9212
2/28/93 $10021 $9493.
3/31/93 $10256 $10323
4/30/93 $10637 $11306
5/31/93 $10969 $11548
6/30/93 $10620 $11370
7/31/93 $10802 $11771
8/31/93 $11489 $12408
9/30/93 $11449 $12132
10/31/93 $12420 $12509
11/30/93 $12066 $11418
12/31/93 $13291 $12245
1/31/94 $14287 $13283
2/28/94 $14053 $13249
3/31/94 $13555 $12681
4/30/94 $13657 $13222
5/31/94 $13708 $13149
6/30/94 $13322 $13338
7/31/94 $13878 $13469
8/31/94 $14300 $13791
9/30/94 $13971 $13359
10/31/94 $14228 $13807
11/30/94 $13518 $13147
12/31/94 $13276 $13232
1/31/95 $12951 $12727
2/28/95 $13157 $12694
3/31/95 $13113 $13489
4/30/95 $13720 $14000
5/31/95 $13991 $13836
6/30/95 $14345 $13597
7/31/95 $15024 $14448
8/31/95 $14586 $13900
9/30/95 $14947 $14176
10/31/95 $14477 $13798