DREYFUS INTERNATIONAL FUNDS INC, N-30D, 1997-01-28

DREYFUS INTERNATIONAL FUNDS INC
N-30D, 1997-01-28

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DREYFUS EMERGING MARKETS FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
The following semi-annual report on the Dreyfus Emerging Markets Fund
comes to you from D. Kirk Henry, the portfolio manager.
Kirk, who has managed the Fund since its inception on June 28, joined The
Boston Company - our corporate affiliate - in 1994 as an equity portfolio
manager. He is a Vice President of The Boston Company and has had 14 years
experience in the investment field.
Prior to joining The Boston Company he was Executive Vice President at
Cseh International & Associates, Inc., the international money management
division of Cashman Farrell and Associates. Previously, he was an
international portfolio manager at Provident Capital Management, Inc. He
started his career as a securities analyst with First Chicago Investment
Advisors and Sears Investment Management Co.
Kirk graduated with a B.A. in Human Biology from Stanford University in
1981 and received his MBA in accounting/finance from the University of
Chicago in 1984. He was awarded a Chartered Financial Analyst designation in
1986. In addition, he is a member of the Boston Security Analysts Society.
We have great confidence in Kirk Henry's ability to manage investments on
your behalf.
Sincerely,
[Stephen E. Canter signature logo]
Stephen E. Canter
Chief Investment Officer

DREYFUS EMERGING MARKETS FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
The Dreyfus Emerging Markets Fund was started five months ago on June 28,
1996. The emerging markets during this period declined 4.62% as measured by
the Morgan Stanley Capital International Emerging Markets Free Index
(MSCI/EMF).* Your Fund's performance, though down, didn't decline as much,
falling 2.16%.**
The U.S. market continued, during the period under review, to outpace the
international markets including the emerging markets. This is the second year
emerging markets have underperformed both the U.S. market and the developed
international markets. Over the past two years on an annualized basis, the
MSCI/EMF declined 5.9%, The Morgan Stanley Capital International World Index
rose 16.6%, and The Morgan Stanley Capital International Europe, Australasia,
Far East (EAFE (R)) Index rose 7.9%. This underperformance can be viewed as
an opportunity to diversify a portion of one's portfolio into the emerging
markets, which offer potentially higher returns. The GNP of the emerging
markets is growing at approximately twice the rate of developed markets. This
can translate into faster earnings growth and potentially higher stock market
returns. The emerging markets make up 85% of the world's population, 77% of
the land mass but only 23% of the GDP and 16% of the world's stock market
capitalization. Over the long term, the GDP and stock market capitalization
of the emerging markets will rise. The valuation of the emerging markets is
lower than international and world markets (see table). In addition, the
price-to-earnings ratio and price-to-book value ratio of the Fund's portfolio
is lower than the MSCI/EMF Index.
Market Valuations
______________________
P/E P/BV P/CF
___ ___ ___
Emerging Markets Free 15.8 1.6 8.4
EAFE
(International) 26.3 2.3 10.3
World 22.9 2.7 10.8
U.S. 19.7 3.6 11.4
Source: Morgan Stanley Capital International (11/29/96)
Our investment style is a bottom-up value stock selection process. We
invest in companies with good valuations, increasing earnings momentum, and
strong business fundamentals. After using computer screens to evaluate
potential candidates, our team of analysts performs rigorous fundamental
analysis on each company we consider or own. Country weightings are
determined by our ability to find attractively priced companies with good
business fundamentals.
We own 73 companies across 18 different emerging market countries. We are
well diversified across industries, holding a wide variety of companies in
the financial, cyclical, consumer, and utility industries.
From a global perspective, we are overweighted in Latin America (36.9%
vs. 29.2% for the Index) and underweighted in Asia (30.2% vs. 51.2%). Latin
America is recovering from the recession of 1994/1995 and we have recently
purchased Empaques Ponderosa, a Mexican boxboard manufacturer, and Cimentos
Itau, a Brazilian cement company, both of which are experiencing increases in
earnings as the recovery takes hold. Our overweighting in Latin America has
been beneficial as the Emerging Markets Latin America Index year-to-date is
up 15.5% whereas Emerging Markets Asia Index is only up 2.5%.
Our underweighted positions in Asia stem partly from valuation criteria
and partly from fundamentals. The valuations in Asia are higher than other
emerging market regions, reflecting higher growth expectations. At the same
time, economies in Asia are slowing. Recently, because of strong capital
expenditure in plant and equipment, the cost

basis for companies has risen while at the same time, demand has fallen short
of expectations, creating an overcapacity situation in industries such as
chemicals and cement. Slowing GDP growth, lower capacity utilization, rising
costs, and lower demand are negatively affecting the earnings growth of some
Asian companies and markets.
The countries with the biggest market weighting in the portfolio are
Brazil (14.1%), Malaysia (10.7%), and Mexico (10.8%). Countries that are
overweighted include the Philippines (5.0%), Argentina (5.4%), and Portugal
(4.3%). Among the larger emerging markets, the best performing markets so far
this year include Taiwan (+36.7%), Brazil (+31.5%), Portugal (+26.8%),
Indonesia (+23.3%), Malaysia (+23.3%), the Philippines (+14.1%), and Mexico
(+13.8%). We are underweighted in South Africa (4.6% vs. 10.8%), India (2.9%
vs. 5.2%), and Thailand (2.7% vs. 5.5%). The worst performing markets so far
this year include many of the markets in which we are underweighted: South
Africa has fallen -17.9% year-to-date, Thailand by -29.8%, India -8.9%, and
Korea -29.4%.
Despite the stock price declines in India, South Africa and Thailand, we
haven't found many attractive stocks with improving fundamentals. Our
underweighted positions still remain. However, in Korea we have been finding
attractive value situations with strong fundamentals and our weighting there
increased to 5.4%. We have recently added Korea Mobile Telephone and Kookmin
Bank to the portfolio.
Our strategy is to hold a well-diversified portfolio of emerging markets
stocks in many different countries and industries. As valuations and
fundamentals change, our specific holdings will change. We currently are
looking at companies in Eastern Europe and, assuming we find attractive
candidates, our exposure in that region will increase in the coming months.
We are pleased that you are one of our shareholders. We intend to exert
our best efforts to bring you rewarding returns on your investment.
Sincerely,
[D. Kirk Henry signature logo]
D. Kirk Henry
Portfolio Manager
December 20, 1996
New York, N.Y.

* The Morgan Stanley Capital International (MSCI) Emerging Markets Free
Index (EMF) is a market capitalization weighted index composed of companies
representative of the market structure of 26 Emerging Market countries in
Europe, Latin America, and the Pacific Basin. The MSCI/ EMF Index excludes
closed markets and those shares in otherwise free markets which are not
purchasable by foreigners.
**Total return includes reinvestment of dividends and any capital gains paid.

DREYFUS EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS NOVEMBER 30, 1996 (UNAUDITED)
Common Stocks-80.4% Shares Value
______ ______
<S> <C> <C> <C>
Argentina-5.5% Central Costanera, Cl. B...... 61,000 $ 195,298
Disco, ADR............................. 4,000 (a) 100,500
Telefonica de Argentina, ADR........... 6,500 165,750
YPF Sociedad Anonima, ADR.............. 11,400 265,050
______
726,598
______
Brazil-7.0% Aracruz Celulose, ADR 18,100 140,275
Companhia Brasileira de Distribuicao Grupo
Pao de Acucar........................ 4,800 80,400
Companhia Energentina De Minas Gerais, ADR 9,200 293,250
Companhia Vale do Rio Doce............. 7,100 148,213
Telecomunicacoes Brasileiras, ADR...... 3,500 265,125
______
927,263
______
Chile-4.3% Banco BHIF, ADR................... 13,300 (a) 224,438
Compania De Telecomunicaciones, ADR.... 1,500 142,687
Cristalerias De Chile, ADR............. 10,400 201,500
______
568,625
______
China-.9% Ek Chor China Motorcycle, ADR...... 5,600 41,300
Jilin Chemicals Industrial, ADR........ 6,000 76,500
______
117,800
______
Hong Kong-3.5% Dah Sing Financial........ 15,000 60,333
HSBC Holdings............................... 4,488 93,452
Harbour Centre Development............. 132,000 192,913
Yue Yuen Industrial.................... 344,000 115,675
______
462,373
______
Hungary-1.1% Pick Szeged, ADR................ 2,800 (a,b) 140,000
______
India-2.8% Reliance Industries, GDR.......... 12,000 138,360
State Bank of India, GDR............... 8,300 (b) 135,124
Steel Authority, GDR................... 12,000 (b) 102,000
______
375,484
______
Indonesia-2.9% PT Bank Bali.................. 106,000 246,354
PT Indosat, ADR........................ 3,400 93,925
PT Sari Husada......................... 10,000 46,908
______
387,187
______
Israel-1.3% Super sol........................ . 7,050 172,511
______
Luxembourg-1.3% Espirito Santo Financial, ADR 13,500 177,188
______
Malaysia-10.8% AMMB Holdings Berhad.......... 28,000 222,715
Affin Holdings Berhad.................. 50,000 146,419
IOI Properties Berhad.................. 60,000 197,072
Leader Universal Holdings Berhad....... 57,000 128,571
MBF Capital Berhad..................... 80,000 125,366
Malayawata Steel Berhad................ 60,000 117,293

DREYFUS EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
Common Stocks (continued) Shares Value
______ ______

Malaysia (continued) Pacific & Orient Berhad 50,000 $ 127,622
Perusahaan Otomobil Nasional Berhad.... 25,600 162,089
Petronas Dagangan Berhad............... 43,000 114,009
United Engineers....................... 10,000 90,621
______
1,431,777
______
Mexico-10.8% ALFA............................ 43,100 192,618
ARA......................................... 65,000 (a) 145,040
Controladora Comercial Mexicana, ADR... 9,500 171,594
Empaques Ponderosa..................... 294,000 152,824
Grupo Financiero Inbursa............... 59,700 189,980
Tablex...................................... 31,000 80,570
Telefonos de Mexico, Series L, ADR..... 6,800 206,550
Transportacion Maritima, ADR........... 29,000 199,375
Tubes de Acero de Mexico, ADR.......... 6,700 (a) 91,288
______
1,429,839
______
Peru-2.3% Telefonica del Peru, ADR........... 16,000 310,000
______
Philippines-5.0% Empire East Land Holdings... 225,000 (a) 109,161
First Philippine Holdings.............. 45,000 95,034
Philippine Long Distance Telephone..... 3,500 201,250
Philippine National Bank............... 12,000 (a) 150,045
Universal Robina....................... 230,000 113,775
______
... 669,265
______
Portugal-3.0% Banco Comercial Portugues, ADR 10,000 132,500
Cimpor-Cimentos de Portugal............ 5,500 114,923
Portugal Telecom, ADR.................. 5,800 153,700
______
401,123
______
Singapore-5.1% Development Bank of Singapore 18,000 232,300
Far East Levingston Shipbuilding....... 45,000 239,037
Singapore Airlines..................... 20,000 204,235
______
675,572
______
South Africa-4.6% Barlow, ADR................ 11,000 99,688
Barlow...................................... 11,800 108,273
Malbak...................................... 32,000 151,697
Polifin..................................... 80,000 137,093
Sasol....................................... 9,000 111,279
______
608,030
______
South Korea-5.5% Kookmin Bank, GDR........... 6,500 (a,b) 119,860
Korea Electric Power................... 5,000 160,024
Korea Mobile Telecommunications........ 17,400 226,200
Pohang Iron & Steel, ADR............... 11,000 221,375
______
727,459
______
Thailand-2.7% Bangkok Bank Public............ 16,500 188,645

DREYFUS EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
Common Stocks (continued) Shares Value
______ ______

Thailand (continued) Srithai Superware....... 36,000 $ 176,194
______
364,839
______
TOTAL COMMON STOCKS
(cost $10,848,472)................... $10,672,933
======
Preferred Stocks-7.2%
Brazil: Banco Itau........................... 500 $ 197,483
Brasmotor.............................. . 700 197,193
Companhia Cimento Portland Itau........ 600 175,992
Ericsson Telecomunicacoes.............. 11,800 183,911
Petroleo Brasileiro.................... 1,500 204,758
______
TOTAL PREFERRED STOCKS
(cost $978,146)...................... $ 959,337
======
Principal
Short-Term Investments-18.2% Amount
______
U.S. Treasury Bills: 5%, 12/5/96............. $ 141,000 $ 140,902
5.02%, 12/12/96........................ 386,000 385,348
5.13%, 12/19/96........................ 562,000 560,477
4.92%, 1/2/97.......................... 92,000 91,587
4.98%, 1/16/97......................... 212,000 210,633
5.12%, 1/23/97......................... 187,000 185,614
4.98%, 2/27/97......................... 856,000 845,651
______
TOTAL SHORT-TERM INVESTMENTS
(cost $2,420,359).................... $ 2,420,212
======
TOTAL INVESTMENTS (cost $14,246,977)........................................ 105.8% $14,052,482
==== ======
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (5.8%) $ (764,412)
==== ======
NET ASSETS.................................................................. 100.0% $13,288,070
==== ======
Notes to Statement of Investments:
(a) Non-income producing.
(b) Securities exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
November 30, 1996, these securities amounted to $496,984 or approximately
3.7% of net assets.

SEE NOTES TO FINANCIAL STATEMENTS.

DREYFUS EMERGING MARKETS FUND
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1996 (UNAUDITED)
Cost Value
______ ______
ASSETS: Investments in securities-See Statement of Investments $14,246,977 $14,052,482
Cash....................................... 77,175
Cash denominated in foreign currencies..... 365,118 364,133
Dividends receivable....................... 13,530
Receivable for subscriptions to Common Stock 12,000
Prepaid expenses........................... 5,064
Due from The Dreyfus Corporation and affiliates 2,514
______

14,526,898
______
LIABILITIES: Due to Distributor......................... 8,139
Net unrealized (depreciation) on forward
....... currency exchange contracts-Note 3(a) 683
Payable for investment securities purchased 1,201,433
Accrued expenses........................... 28,573
______

1,238,828
______
NET ASSETS.................................................................. $13,288,070
======
REPRESENTED BY: Paid-in capital............................ $13,383,789
Accumulated undistributed investment income-net 4,959
Accumulated net realized gain (loss) on investments 94,741
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (195,419)
______
NET ASSETS.................................................................. $13,288,070
======
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized)............. 1,086,938
NET ASSET VALUE per share................................................... $12.23
====

See notes to financial statements.

DREYFUS EMERGING MARKETS FUND
STATEMENT OF OPERATIONS
FROM JUNE 28, 1996 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1996 (UNAUDITE
D)
INVESTMENT INCOME

INCOME: Cash dividends
(net of $3,506 foreign taxes withheld at source) $ 36,252
Interest................................... 33,822
_____
Total Income......................... $ 70,074
EXPENSES: Management fee-Note 2(a)................... 40,697
Custodian fees............................. 15,656
Legal fees................................. 14,648
Shareholder servicing costs-Note 2(b)...... 10,722
Audit fees................................. 10,359
Registration fees.......................... 7,337
Directors' fees and expenses-Note 2(c)..... 5,966
Prospectus and shareholders' reports....... 1,560
Miscellaneous.............................. 927
_____
Total Expenses....................... 107,872

Less-expense reimbursement from the Manager due to
undertaking-Note 2(a).................. (42,757)
_____
Net Expenses......................... 65,115
_____
INVESTMENT INCOME-NET....................................................... 4,959
_____
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 3:
Net realized gain (loss) on investments and
foreign currency transactions.......... $105,559
Net realized gain (loss) on forward currency
exchange contracts..................... (10,818)
_____
Net Realized Gain (Loss)............... 94,741
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions...... (195,419)
_____
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (100,678)
_____
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (95,719)
=====

See notes to financial statements.

DREYFUS EMERGING MARKETS FUND
STATEMENT OF CHANGES IN NET ASSETS
FROM JUNE 28, 1996 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1996 (UNAUDITED)
OPERATIONS:
Investment income-net................................................................... $ 4,959
Net realized gain (loss) on investments................................................. 94,741
Net unrealized appreciation (depreciation) on investments............................... (195,419)
______
Net Increase (Decrease) in Net Assets Resulting from Operations....................... (95,719)
______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................................... 13,526,522
Cost of shares redeemed................................................................. (142,733)
______
Increase (Decrease) in Net Assets from Capital Stock Transactions..................... 13,383,789
______
Total Increase (Decrease) in Net Assets............................................. 13,288,070
NET ASSETS:
Beginning of Period..................................................................... -
______
End of Period........................................................................... $13,288,070
======
Undistributed investment income-net....................................................... $ 4,959
______
Shares
______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................................. 1,098,719
Shares redeemed......................................................................... (11,781)
______
Net Increase (Decrease) in Shares Outstanding......................................... 1,086,938
======

See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for the period June 28, 1996 (commencement
of operations) to November 30, 1996. This information has been derived from
the Fund's financial statements.
<S> <C>
PER SHARE DATA:
Net asset value, beginning of period.................................................... $12.50
____
Investment Operations:
Investment income-net................................................................... -
Net realized and unrealized gain (loss)
on investments........................................................................ (.27)
____
Total from Investment Operations........................................................ (.27)
____
Net asset value, end of period.......................................................... $12.23
====
TOTAL INVESTMENT RETURN..................................................................... (2.16%)(1)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................................. .85%(2)
Ratio of net investment income
to average net assets................................................................. .07%(2)
Decrease reflected in above expense ratio
due to undertaking by the Manager..................................................... .56%(2)
Portfolio Turnover Rate................................................................. 19.86%(2)
Average commission rate paid (3)........................................................ $.0212
Net Assets, end of period (000's Omitted)............................................... $13,288
(1) Exclusive of redemption fee.
(2) Not annualized.
(3) The Fund is required to disclose its average commission rate paid per
share for purchases and sales of investment securities.

See notes to financial statements.
</TABLE>
DREYFUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus International Funds, Inc. (the "Company") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering two series, including the Dreyfus Emerging Markets Fund (the "Fund")
which commenced operations on June 28, 1996. The Fund's investment objective
is long-term capital appreciation. The Dreyfus Corporation ("Manager") serves
as the Fund's investment adviser. The Manager is a direct subsidiary of
Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon Bank
Corporation. Premier Mutual Fund Services, Inc. (the "Distributor") acts as
the distributor of the Fund's shares, which are sold to the public without a
sales charge. The Fund's fiscal year end is May 31.
As of November 30, 1996, APT Holdings Corporation, an indirect subsidiary
of Mellon Bank Corporation, held 400,000 shares of the Fund.
The Company accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each fund are
charged to that fund's operations; expenses which are applicable to all funds
are allocated among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: The Fund's investments in securities (including
options and financial futures) are valued at the last sales price on the
securities exchange on which such securities are primarily traded or at the
last sales price on the national securities market. Securities not listed on
an exchange or the national securities market, or securities for which there
were no transactions, are valued at the average of the most recent bid and
asked prices, except for open short positions, where the asked price is used
for valuation purposes. Bid price is used when no asked price is available.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange. Forward currency exchange contracts are
valued at the forward rate.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in the market
prices of securities held. Such fluctuations are included with the net
realized and unrealized gain or loss from investments.
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 on securities transactions, the difference between
the amount of dividends, interest and foreign withholding taxes recorded on
the Fund'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, resulting from changes in exchange rates. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Fund not to distribute such gain.

DREYFUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

(E) FEDERAL INCOME TAXES: It is the policy of the Fund to qualify as a
regulated investment company, if such qualification is
in the best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of 1.25% of the value of
the Fund's average daily net assets and is payable monthly. The Manager has
undertaken from June 28, 1996 through May 31, 1997 to reduce the management
fee paid by or reimburse such excess expenses of the Fund, to the extent that
the Fund's aggregate annual expenses, exclusive of taxes, brokerage, interest
on borrowings and extraordinary expenses, exceed an annual rate of 2% of the
value of the Fund's average daily net assets. The expense reimbursement,
pursuant to the undertaking, amounted to $42,757 during the period ended
November 30, 1996.
(B) Under the Shareholder Services Plan, the Fund pays the Distributor at
an annual rate of .25 of 1% of the value of the Fund's average daily net
assets for the provision of certain services. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
The Distributor may make payments to Service Agents (a securities dealer,
financial institution or other industry professional) in respect of these
services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended November 30, 1996, the Fund was charged an
aggregate of $8,139 pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $938 during the period ended November 30, 1996.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $2,500 and an attendance fee of
$500 per meeting. The Chairman of the Board receives an additional 25% of
such compensation.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the period ended November 30, 1996 amounted to $12,927,164 and
$1,201,667, respectively.
In addition, the following summarizes open forward currency exchange
contracts at November 30, 1996:
<TABLE>
<CAPTION>

Foreign
Currency Unrealized
Forward Currency Buy Contracts Amounts Cost Value (Depreciation)
______________________________ _____ _____ _____ _______
<S> <C> <C> <C> <C>
Malaysian Ringgit, expiring 12/6/96..... 300,723 $119,065 $119,004 $ (61)
Philippines Peso, expiring 12/2/96...... 708,935 27,048 26,976 (72)
Philippines Peso, expiring 12/3/96...... 827,925 31,588 31,504 (84)
South African Rand, expiring 12/6/96.... 158,790 34,910 34,444 (466)
___
$(683)
===

</TABLE>
DREYFUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

The Fund enters into forward currency exchange contracts in order to hedge
its exposure to changes in foreign currency
exchange rates on its foreign portfolio holdings. When executing forward
currency exchange contracts, the Fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the Fund would incur a loss if
the value of the contract increases between the date the forward contract is
opened and the date the forward contract is closed. The Fund realizes a gain
if the value of the contract decreases between those dates. With respect to
purchases of forward currency exchange contracts, the Fund would incur a loss
if the value of the contract decreases between the date the forward contract
is opened and the date the forward contract is closed. The Fund realizes a
gain if the value of the contract increases between those dates. The Fund is
also exposed to credit risk associated with counter party nonperformance on
these forward currency exchange contracts which is typically limited to the
unrealized gains on such contracts that are recognized in the Statement of
Assets and Liabilities.
(B) At November 30, 1996, accumulated net unrealized depreciation on
investments and forward currency exchange contracts was $195,178, consisting
of $400,877 gross unrealized appreciation and $596,055 gross unrealized
depreciation.
At November 30, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).

[Dreyfus lion "d" logo]
DREYFUS EMERGING MARKETS FUND
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 327SA9611
[Dreyfus logo]
Emerging Markets
Fund
Semi-Annual
Report
November 30, 1996

<PAGE>
Dreyfus
International
Growth Fund
Semi-Annual
Report

November 30, 1996

<PAGE>
Dreyfus International Growth Fund
(formerly Dreyfus International Equity Fund, Inc.)--See Note 1
- -------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:
Your Fund recorded a total return of 1.42%* for the six months ended November
30, 1996, which was lower than the 3.36% return of the Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE) Index for the same period.**
The Fund underperformed the EAFE Index because of underweight positions in
the U.K., Spain, Germany and the Netherlands, which outperformed the EAFE Index
over the period, and because of positions in Thailand, an emerging market, that
declined during the six months under review. The Hong Kong and Swedish markets
added to fund performance over the period as did a number of individual stocks.

Investment Approach
I assumed management of the Dreyfus International Equity Fund in April, 1996,
just prior to the start of the six-month period under review. The Fund's name
was changed to Dreyfus International Growth Fund to reflect my investment policy
and style, which is growth oriented. The Fund has been restructured to reflect
this orientation. My investment policies and style are detailed below.
During my twelve years in the international equity management business I have
developed an investment process designed to deliver to investors a portfolio
that includes a wide variety of holdings in 15 to 25 markets around the world,
exposure to rapidly growing emerging markets when they are attractive for
investment, and active currency management. The crucial challenge for an
international investor is how to judge the relative attractiveness of various
markets when there are scores to choose from. I address this challenge by
evaluating inputs on growth, valuation, interest rates, liquidity, technical
factors and currency in each of the world's major markets. My work in these
areas is driven by PC-based tools I have developed over time. Markets and
industry sectors will be overweighted, underweighted or market weighted relative
to those of the EAFE Index. Markets and industry sectors are overweighted or
underweighted by no more than 70%, with two exceptions. First, the largest
market in the EAFE Index, Japan, has a 50%-150% weighting band. The second
exception is the asset class of emerging markets. While these markets comprise
only 7% of the EAFE Index, the Dreyfus International Growth Fund will invest up
to 30% of its assets in this area when significant opportunities present
themselves. The reason for this policy is twofold. First, emerging markets have
the highest secular GDP and EPS growth rates in the world and an international
portfolio should offer shareholders substantial exposure to this long-term
opportunity. Second, emerging markets often reach valuation extremes seldom seen
in more developed equity markets. Making a significant investment at the
appropriate time positions the Fund to benefit from these extraordinary
opportunities.
In the investment process I have developed, stocks are managed in a
disciplined way. I search for stocks expected to have higher earnings growth
rates than the market in which they trade. Attractive companies often have made
a corporate change in management, strategy or business structure that will
positively alter their future growth rate. Stocks purchased also need to have
attractive valuations relative to both their own history and that of the local
market. Companies are sold when growth is forecast to fall below my own or
consensus estimates, the valuation target is reached or the weighting in that
market reduced as a result of an asset allocation decision.
Foreign currencies are at least partially hedged, where practicable, when I
believe that a given currency has 10% or more downside risk against the U.S.
Dollar over the next 12 to 18 months.
Below I look at the three main geographic areas outside the U.S. -- Europe,
Japan and Emerging Markets -- and what the next six months might bring to these
markets.

<PAGE>
Europe
In our view the European markets do not present so much a choice among
markets as a choice among stocks. Europe is just entering into a period of
enormous change. Many of the most interesting investments that are drawing our
attention in Europe fall into one of three categories.
First, there are a significant number of "new" companies, either IPOs
(initial public offerings of stock) or parts of very large companies being spun
off into independent publicly traded stocks. Some of these are exciting either
because they are in fast-growing areas or are undervalued because the market has
little to compare them against.
Second, there are very major structural changes going on in various European
business sectors. These changes can offer rich rewards for investors positioned
in stocks driving the changes or benefitting from them. Among the sectors going
through huge changes are media, where print, television and the Internet are
offering opportunities to competitors in both the content (TV programming,
sports, etc.) and distribution (cable, satellite, etc.). Schibsted, a
Norwegian-based company that is growing into a Scandinaviawide media competitor
in television, newspapers and Internet content, was a strong performer in your
Fund over the period under review here and remains an important investment in
the Dreyfus International Growth Fund.
Third, a large number of companies in Europe are restructuring, reengineering
and generally rethinking the way they do business. One of the main goals of
these changes is improved financial performance, which may mean setting higher
targets for profit margins and return on equity, divesting businesses that have
performed badly, repurchasing stock with excess cash and other actions that
often bolster share performance. If this all sounds familiar, it should to
American investors. These are the same types of changes that many American
companies have been implementing over the last few years. We believe that many
European companies can lift their share prices in the same way in the period
ahead. A good example of such a company is Philips Electronics of the
Netherlands, which contributed positively to your Fund's performance during the
past six months. We continue to search for growth stocks in Europe. The three
areas mentioned above are some of the fertile hunting grounds.

Japan
In my last letter I drew an analogy between Japan's current situation and the
U.S.A. during the thirties. Following a long bear market and a difficult period
of economic contraction, company profits are rising again and many economic
indicators point to better times ahead. Valuation is reasonable by Japan's
historical standards. Japanese investors have cash to invest in the market. What
is missing? Confidence. This simple word appears to be holding the market back
and may be solely responsible for the Nikkei Index's extremely poor performance
over the past six months. Dreyfus International Growth's substantial investment
in Japanese stocks is testimony to the fact that we believe fundamentals are
improving in that country and that investor confidence will follow.

Emerging Markets
Emerging markets in Asia, Latin America and Eastern Europe began 1996 with
sharp rises. Many are now consolidating. I believe the consolidation period may
last a bit longer but that many emerging markets will end 1997 a good deal
higher than they currently stand. As investors become acclimated to a world of
high growth and, unfortunately, somewhat higher interest rates, they will also
realize that in previous periods of strong global growth emerging markets
performed quite well.
In the "Investment Approach" section of this letter above, I mentioned that
attractive emerging markets exhibit two very strong characteristics -- growth
and volatility. We may well see both of these attributes during 1997, as we do
in many years. We expect the developed countries in Europe, North America and
Japan to be growing simultaneously in 1997 for the first time since the late
1980s. This is a positive environment for growth in many of the Asian emerging
nations, which are huge beneficiaries of the increase in global trade that
typically accompanies a

<PAGE>
pickup in growth. So the economic background is
quite positive. But these markets also react strongly to even the slightest
turmoil in the larger and more liquid stock markets of the world. It is quite
possible that a mild correction in one or more of the world's larger markets may
present a very strong buying opportunity in the emerging markets. While your
Fund remains strongly represented in emerging markets, we will take an
opportunistic approach in adding to positions in these markets in the period
ahead. The Asian emerging markets where fundamentals are currently most
favorable are Hong Kong (including Chinese "red chip" companies listed in that
market), the Philippines and Malaysia. In South America, Brazil has strong
fundamentals and a vibrant privatization program that interest us. I plan to
visit Poland early in calendar 1997, where I may well find some new emerging
market investments.
Ownership of the Dreyfus International Growth Fund offers investors the
opportunity to increase long-term capital through ownership of growth-oriented
companies and economies outside the U.S. I continue to manage the Fund toward
that goal.

Sincerely,

Ron Chapman
Portfolio Manager
December 20, 1996
New York, N.Y.

*Total return includes reinvestment of dividends and any capital gains paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- Unlike the Fund which may
invest in various types of securities and engage in different investment
techniques, the Morgan Stanley Capital International Europe, Australasia,
Far East (EAFE) Index is an unmanaged index of global stock market
performance, consisting of equity securities.

Common Stocks--96.5% Shares Value
- --------------------------------------------------------------------------------- ----------- -----------
<S> <C> <C>
Australia--1.1% Boral..................................... 400,000 $ 1,045,176
-----------

Brazil--.5% Telecomunicacoes Brasileiras, A.D.R. ..... 6,400 484,800
-----------

Canada--1.4% Ranger Oil............................... 150,000 1,312,500
-----------

China--3.1% China Overseas Land & Investment......... 1,000,000 381,531
China Resources Enterprise............... 325,000 466,568
Guangnan Holdings........................ 276,000 217,744
New World Infrastructure..............(a) 400,000 1,189,860
Shanghai Industrial Holdings............. 250,000 813,179
-----------
3,068,882
-----------

Finland--1.1% Cultor Oy, Ser. 1....................... 22,000 1,042,654
-----------

France--5.3% Banque Nationale de Paris................ 30,000 1,194,487
Compagnie Generale des Eaux.............. 10,000 1,232,772
Elf Aquitaine............................ 7,000 611,160
Lafarge ................................. 6,500 410,605
Michelin, Cl. B.......................... 18,000 923,086
Thomson.................................. 25,000 808,288
-----------
5,180,398
-----------

Germany--2.6% Continental ............................. 60,000 1,037,711
Deutsche Bank ........................... 28,000 1,334,460
Henkel KGaA.............................. 2,700 131,665
-----------
2,503,836
-----------

Hong Kong--9.2% Bank of East Asia ....................... 140,000 599,328
Cheung Kong Holdings..................... 145,000 1,275,220
Henderson Land Development............... 100,000 1,005,561
HKR International........................ 656,480 972,154
Hong Kong & China Gas.................... 300,000 595,577
Hong Kong Telecommunications, A.D.R. .... 55,000 962,500
HSBC Holdings............................ 53,000 1,103,596
Hutchison Whampoa........................ 90,000 695,486
New World Development ................... 125,000 844,704
Swire Pacific, Cl. A..................... 100,000 947,362
-----------
9,001,488
-----------

Ireland--2.3% Independent Newspapers .................. 160,000 820,816
Irish Continental Group.................. 70,000 512,169
Jurys Hotel Group........................ 205,000 955,124
-----------
2,288,109
-----------

Italy--4.1% Fiat .................................... 300,000 882,772
Istituto Nazionale delle Assicurazioni... 950,000 1,309,934
Parmalat Finanziaria .................... 1,140,000 1,769,822
-----------
3,962,528
-----------
<PAGE>
Dreyfus International Growth Fund
(formerly Dreyfus International Equity Fund, Inc.)--See Note 1
- -------------------------------------------------------------------------------
Statement of Investments (continued)

Common Stocks (continued) Shares Value
- --------------------------------------------------------------------------------- ----------- -----------
Japan--34.2% Bank of Tokyo-Mitsubishi................. 54,000 $ 1,104,653
DDI...................................... 180 1,287,972
Daikin Industries........................ 107,000 995,786
Dainippon Ink & Chemicals................ 190,000 752,327
Daiwa Securities......................... 40,000 431,958
Eisai ................................... 30,000 589,991
Fuji Photo Film.......................... 46,000 1,441,791
Industrial Bank of Japan................. 50,000 987,708
Ishikawajima-Harima Heavy Industries..... 194,000 902,722
Kato Denki............................... 22,600 287,709
Komatsu Forklift ........................ 32,000 202,564
Laox..................................... 36,500 560,799
Maruzen.................................. 30,000 316,067
Matsushita-Kotobuki Electron............. 25,000 640,913
Matsushita Communication................. 48,000 1,247,410
Matsushita Electric Industrial........... 100,000 1,729,587
Minebea ................................. 120,000 1,024,056
Mitsui & Co.............................. 88,000 747,884
NKK...................................(a) 175,000 430,202
Namco.................................... 20,000 626,866
Nichiei.................................. 12,000 835,470
Nintendo................................. 20,000 1,406,497
Nippon Steel............................. 167,000 504,372
Nippon Telegraph & Telephone............. 200 1,425,812
Nitto Electric Works..................... 75,000 1,376,207
P.S. .................................... 400 6,427
Rohm..................................... 25,000 1,536,435
Sankyo .................................. 45,000 1,205,004
Sekisui House............................ 70,000 749,781
Shiseido................................. 99,000 1,190,781
Sony..................................... 26,000 1,664,091
Sumitomo Bank............................ 60,000 1,043,020
TDK...................................... 22,000 1,417,735
Tokyo Style.............................. 60,000 884,987
Toyota Motor............................. 71,000 1,938,630
------------
33,494,214
------------

Malaysia--5.3% Commerce Asset Holdings.................. 40,000 305,500
DCB Holdings ............................ 75,000 256,727
Edaran Otomobil Nasional ................ 75,000 739,019
Kentucky Fried Chicken Holdings.......... 225,000 997,230
Renong .................................. 490,000 903,601
Road Builder (M) Holdings................ 130,000 673,922
Tenaga Nasional ......................... 275,000 1,251,484
------------
5,127,483
------------

Common Stocks (continued) Shares Value
- --------------------------------------------------------------------------------- ----------- -----------
Mexico--.8% Grupo Casa Autrey, A.D.R. ............... 20,000 $ 387,500
Grupo Financiero Bancomer, Cl.B.......(a) 1,075,000 433,407
Grupo Financiero Inbursa, Cl.B........... 2,338 7,440
------------
828,347
------------

Netherlands--6.1% ABN Amro Holding......................... 15,000 971,868
Goudsmit ................................ 12,000 1,064,965
Philips Electronics...................... 43,000 1,738,457
PolyGram ................................ 20,000 964,037
Verenigde Nederlandse Uitgeversbedrijven
Verenigd Bezit........................... 60,000 1,225,058
------------
5,964,385
------------

New Zealand--1.9% Fletcher Challenge Building.............. 275,000 772,867
Lion Nathan.............................. 400,000 1,027,406
------------
1,800,273
------------

Norway--1.5% Schibsted................................ 80,000 1,457,944
------------

Philippines--1.0% Ayala Land, Cl.B......................... 262,500 284,675
Filinvest Land........................(a) 500,000 176,941
Manila Electric, Cl.B.................... 45,500 337,614
Pilipino Telephone....................(a) 200,000 175,038
------------
974,268
------------

Portugal--.8% Cimpor-Cimentos de Portugal.............. 38,000 794,011
------------

Sweden--2.7% Skandia Forsakrings ..................... 59,000 1,681,324
Sparbanken Sverige , Cl.A................ 60,000 991,072
------------
2,672,396
------------

Switzerland--1.6% Elektrowatt, Cl.B........................ 1,400 561,934
Sandoz .................................. 900 1,047,122
------------
1,609,056
------------

Thailand--1.4% Finance One Public (Foreign Registered).. 57,000 162,921
Industrial Finance Corporation of Thailand 47,000 149,060
Industrial Finance Corporation of Thailand
(Foreign Registered)................. 74,000 233,242
Krung Thai Bank Public
(Foreign Registered)................... 82,000 234,378
PTT Exploration & Production Public
(Foreign Registered)................... 40,000 588,880
------------
1,368,481
------------

Common Stocks (continued) Shares Value
- --------------------------------------------------------------------------------- ----------- -----------
United Kingdom--8.5% British Sky Broadcasting Group........... 190,000 $ 1,649,033
Grand Metropolitan....................... 135,000 1,054,740
Great Universal Stores................... 100,000 1,153,852
TeleWest Communications...............(a) 450,000 915,849
Viatel................................... 108,000 1,080,000
Vodafone Group .......................... 580,000 2,512,067
------------
8,365,541
------------
TOTAL COMMON STOCKS
(cost $89,441,197)..................... $94,346,770
============

Preferred Stocks--2.3%
- --------------------------------------------------------------------------------------------------------
Brazil--1.5% Banco Bradesco........................... 43,500 $ 315,828
Companhia Energetica de Minas Gerais..... 12,900 412,100
Petroleo Brasileiro...................... 2,800 382,215
Telecomunicacoes do Rio de Janeiro....(a) 3,500 362,537
------------
1,472,680
------------

Germany--.8% Henkel KGaA Vorzug....................... 16,300 811,820
------------

TOTAL PREFERRED STOCKS
(cost $ 2,014,729)..................... $ 2,284,500
============

Principal
Short-Term Investments--.4% Amount
- ------------------------------------------------------------------------------- ---------------
United States; U.S. Treasury Bills;
5.10%, 12/19/96
(cost $437,881)........................ $ 439,000 $ 437,810
============

TOTAL INVESTMENTS (cost $ 91,893,807)........................................... 99.2% $ 97,069,080
======= ============
CASH AND RECEIVABLES (NET)...................................................... .8% $ 753,720
======= ============
NET ASSETS...................................................................... 100.0% $ 97,822,800
======= ============

<FN>
Notes to Statement of Investments:
- --------------------------------------------------------------------------------
(a) Non-income producing.

</TABLE>

See notes to financial statements.

Cost Value
----------- ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $91,893,807 $ 97,069,080
Cash............................................. 4,134,192
Receivable for investment securities sold and
forward currency exchange contracts............ 598,478
Dividends and interest receivable................ 244,337
Prepaid expenses................................. 52,942
------------
102,099,029
------------

LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 69,089
Due to Distributor............................... 60,807
Payable for investment securities purchased and
forward currency exchange contracts............ 4,023,733
Accrued expenses................................. 122,600
------------
4,276,229
------------

NET ASSETS..................................................................... $ 97,822,800
============

REPRESENTED BY: Paid-in capital.................................. $ 88,343,913
Accumulated undistributed investment income--net.. 371,603
Accumulated net realized gain (loss) on investments,
foreign currency transactions and forward currency
exchange contracts............................. 3,935,334
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 5,171,950
------------

NET ASSETS..................................................................... $ 97,822,800
============

SHARES OUTSTANDING
(300 million shares of $.001 par value Common Stock authorized)................ 6,227,038

NET ASSET VALUE, offering and redemption price per share....................... $15.71
-------
-------

</TABLE>
See notes to financial statements.

<TABLE>

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME: Cash dividends
(net of $94,774 foreign taxes withheld at source) $ 840,255
Interest......................................... 93,444
----------
Total Income................................ $ 933,699

EXPENSES: Management fee--Note 2(a)......................... 375,073
Shareholder servicing costs--Note 2(b,c).......... 486,944
Custodian fees................................... 56,148
Professional fees................................ 28,495
Directors' fees and expenses--Note 2(d).......... 21,084
Registration fees................................ 17,998
Prospectus and shareholders' reports--Note 2(b).. 8,991
Miscellaneous.................................... 12,160
----------
Total Expenses.............................. 1,006,893
----------

INVESTMENT (LOSS)--NET......................................................... (73,194)
----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments and
foreign currency transactions.................. $2,700,147
Net realized gain (loss) on forward currency
exchange contracts:
Short transactions............................. 1,130,389
----------
Net Realized Gain (Loss)....................... 3,830,536

Net unrealized appreciation (depreciation) on investments
and foreign currency transactions.............. (1,741,954)
-----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 2,088,582
-----------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $2,015,388
==========
</TABLE>

See notes to financial statements.

Six Months Ended
November 30, 1996 Year Ended
(Unaudited) May 31, 1996
------------------ -------------
OPERATIONS:
<S> <C> <C>
Investment income (loss)--net........................................ $ (73,194) $ 709,200
Net realized gain (loss) on investments.............................. 3,830,536 10,297,222
Net unrealized appreciation (depreciation) on investments............ (1,741,954) 3,566,028
------------- ------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 2,015,388 14,572,450
------------- ------------

CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 214,353,261 418,554,429
Cost of shares redeemed.............................................. (221,256,231) (468,325,648)
------------- ------------
Increase (Decrease) in Net Assets from Capital Stock Transactions (6,902,970) (49,771,219)
------------- ------------
Total Increase (Decrease) in Net Assets........................ (4,887,582) (35,198,769)
------------- ------------

NET ASSETS:
Beginning of Period.................................................. 102,710,382 137,909,151
------------- ------------
End of Period........................................................ $ 97,822,800 $102,710,382
------------- ------------
------------- ------------
Undistributed investment income--net.................................... $ 371,603 $ 444,797
------------- ------------

Shares Shares
------------- ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 14,043,560 29,117,194
Shares redeemed...................................................... (14,446,554) (32,523,537)
------------- ------------
Net Increase (Decrease) in Shares Outstanding.................... (402,994) (3,406,343)
------------- ------------
------------- ------------

</TABLE>

See notes to financial statements.

Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.

Six Months Ended Year Ended May 31,
November 30, 1996 ______________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994(1)
------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $15.49 $13.74 $15.20 $12.50
------- ------- ------- -------
Investment Operations:
Investment income (loss)--net......................... (.01) .09 .01 .05
Net realized and unrealized gain (loss)
on investments.................................... .23 1.66 (1.19) 2.74
------- ------- ------- -------
Total from Investment Operations..................... .22 1.75 (1.18) 2.79
------- ------- ------- -------
Distributions:
Dividends from investment income--net................. -- -- (.01) (.02)
Dividends in excess of investment income--net......... -- -- (.02) (.04)
Dividends from net realized gain on investments...... -- -- (.25) (.03)
------- ------- ------- -------
Total Distributions.................................. -- -- (.28) (.09)
------- ------- ------- -------
Net asset value, end of period....................... $15.71 $15.49 $13.74 $15.20
======= ======= ======= =======
TOTAL INVESTMENT RETURN................................. 1.42%(2) 12.74% (7.81%) 22.32%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. 1.01%(2) 2.04% 1.92% 1.71%(2)
Ratio of net investment income
to average net assets............................. (.07%)(2) .62% .09% .11%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager................ -- -- -- .16%(2)
Portfolio Turnover Rate.............................. 71.65%(2) 96.45% 40.15% 51.32%(2)
Average commission rate paid(3)...................... $.0183 -- -- --
Net Assets, end of period (000's Omitted)............ $97,823 $102,710 $137,909 $179,907

<FN>
- -----------------------
(1) From June 29, 1993 (commencement of operations) to May 31, 1994.
(2) Not annualized.
(3) For fiscal years beginning December 1, 1995, the Fund is required
to disclose its average commission rate paid per share for purchases and
sales of investment securities.

</TABLE>

See notes to financial statements.

NOTE 1--Significant Accounting Policies:
Dreyfus International Funds, Inc. (the "Company") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company and operates as a series company currently offering two
series, including the Dreyfus International Growth Fund (the "Fund"). The Fund's
investment objective is to provide investors with capital growth. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager is
a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. (the
"Distributor") acts as the distributor of the Fund's shares, which are sold to
the public without a sales load.

Effective June 24, 1996, the Fund changed its name from "Dreyfus
International Equity Fund, Inc." to "Dreyfus International Growth Fund."

The Company accounts separately for the assets, liabilities and operations
of each fund. Expenses directly attributable to each fund are charged to that
fund's operation; expenses which are applicable to all funds are allocated among
them on a pro rata basis.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.

(a) Portfolio valuation: The Fund's investments in securities (including
options and financial futures) are valued at the last sales price on the
securities exchange on which such securities are primarily traded or at the last
sales price on the national securities market. Securities not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices, except for open short positions, where the asked price is used for
valuation purposes. Bid price is used when no asked price is available.
Investments denominated in foreign currencies are translated to U.S. dollars at
the prevailing rates of exchange. Forward currency exchange contracts are valued
at the forward rate.

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

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 on securities transactions, the difference between the amount
of dividends, interest and foreign withholding taxes recorded on the Fund'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, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis.

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the policy
of the Fund not to distribute such gain.

(e) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Internal Revenue Code, and to make distributions of taxable income
sufficient to relieve it from substantially all Federal income and excise taxes.

NOTE 2--Management Fee and Other Transactions with Affiliates:

(a) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .75 of 1% of the value of the
Fund's average daily net assets and is payable monthly.

(b) Under the Distribution Plan (the "Plan") pursuant to Rule 12b-1 under
the Act, the Fund (a) reimburses the Distributor for payments to certain Service
Agents (a securities dealer, financial institution or other industry
professional) for distributing the Fund's shares and (b) pays the Manager,
Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus, and any
affiliate of either of them for advertising and marketing relating to the Fund,
at an aggregate annual rate of .50 of 1% of the value of the Fund's average
daily net assets. The Distributor may pay one or more Service Agents in respect
of distribution services. The Distributor determines the amounts, if any, to be
paid to Service Agents under the Plan and the basis on which such payments are
made. The fees payable under the Plan are payable without regard to actual
expenses incurred. The Plan also separately provides for the Fund to bear the
costs of preparing, printing and distributing certain of the Fund's prospectuses
and statements of additional information and costs associated with implementing
and operating the Plan, not to exceed the greater of $100,000 or .005 of 1% of
the Fund's average daily net assets for any full fiscal year. During the period
ended November 30, 1996, $250,791 was charged to the Fund pursuant to the Plan.

(c) Under the Shareholder Services Plan, the Fund pays the Distributor an
annual rate of .25 of 1% of the value of the Fund's average daily net assets for
the provision of certain expenses. The services provided may include personal
services relating to shareholder accounts, such as answering shareholder
inquiries regarding the Fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. The Distributor may
make payments to Service Agents in respect of these services. The Distributor
determines the amounts to be paid to Service Agents. During the period ended
November 30, 1996, the Fund was charged an aggregate of $125,024 pursuant to the
Shareholder Services Plan.

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $56,558 during the period ended November 30, 1996.

(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

NOTE 3--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended November 30, 1996 amounted to $68,345,921 and $77,115,905,
respectively.

The Fund enters into forward currency exchange contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings. When executing forward currency exchange contracts, the Fund
is obligated to buy or sell a foreign currency at a specified rate on a certain
date in the future. With respect to sales of forward currency exchange
contracts, the Fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The Fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the Fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The Fund realizes a gain if the value of the
contract increases between those dates. The Fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gains on such contracts
that are recognized in the Statement of Assets and Liabilities. At November 30,
1996, there were no open forward currency exchange contracts.

(b) At November 30, 1996, accumulated net unrealized appreciation on
investments was $5,175,273, consisting of $9,115,026 gross unrealized
appreciation and $3,939,753 gross unrealized depreciation.

At November 30, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting purposes
(see the Statement of Investments).

<PAGE>
Dreyfus International
Growth Fund
200 Park Avenue
New York, NY 10166

Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
The Bank of New York
90 Washington Street
New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 095SA9611