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November 15, 2000 Securities & Exchange Commission 450 5th Street, N.W. Washington, D.C. 20549 RE: Form N-SAR Gentlemen: Pursuant to Section 30(a) of the Investment Company Act of 1940 and Rule 30a-1, please find Franklin Strategic Mortgage Portfolio Form N-SAR as of September 30, 2000. Should you have any questions, please call me at (916) 463-5509. Thank you. Sincerely, FRANKLIN STRATEGIC MORTGAGE PORTFOLIO Gaston Gardey Fund Accounting Manager
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