DREYFUS INTERNATIONAL FUNDS INC, N-30D, 1998-02-06

DREYFUS INTERNATIONAL FUNDS INC
N-30D, 1998-02-06

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<PAGE>

Dreyfus
International
Growth Fund
Semi-Annual
Report

November 30, 1997

<PAGE>

Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

We are pleased to provide you with this semi-annual report for Dreyfus
International Growth Fund, covering the six months ended November 30, 1997. Over
this period, your Fund produced a total return of -7.33%,* underperforming both
the Lipper Median for International Funds and the Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE(R)) Index for the period.**

The months under review saw negative returns for the MSCI/EAFE Index and
many of its individual component markets. International markets had recorded
positive returns for the first half of calendar 1997. The unfolding currency and
economic crisis in Asian emerging markets caused sharp corrections in virtually
all international stock markets beginning in August. While some recovery had
begun toward the end of the period under review, returns were well into negative
territory for the period.

Your Fund's investments were heavily concentrated in Europe during the
period in question. Thus, the Fund suffered almost no direct impact from the
plummeting Asian emerging markets and currencies, but European and Japanese
stocks held by the Fund declined in the general downturn.

INVESTMENT APPROACH

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 is 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 against the U.S. dollar
over the next 12 to 18 months.

CURRENT STRATEGY

Four broad conclusions are driving current strategy for the Fund. First,
growth of the world economy is likely to be significantly lower as a result of
the currency turmoil that has swept emerging markets in recent months, but there
is a silver lining--interest rates are likely to be lower also. Second, my
research on both markets and individual stocks indicates that Continental Europe
should be an attractive area for investment. Third, I believe Japan may be
nearing the end of its seven-year-long bear market, a development that warrants
close monitoring for potential opportunities. Last, emerging markets are likely
to need more time to sort out their recent difficulties before they become a
target for significant investment by your Fund. The remainder of this letter
expands on these conclusions.

<PAGE>

Given that about half of the world's GDP growth has been derived from
emerging markets (specifically Asian emerging markets) during the current
decade, it is reasonable to conclude that worldwide growth will be impacted by
the overcapacity, banking sector weakness and currency devaluations in many
emerging countries. As a result, revenue and earnings growth rates are projected
to slow for many companies based in developed countries such as the U.S., Europe
and Japan. Each investment by the Dreyfus International Growth Fund needs to be
re-evaluated in light of this significant change. While stock prices depend on
many factors, I believe the level and trend of earnings and interest rates are
the two most important variables. In my view the latter of these two, interest
rates, will be positively impacted by the growth slowdown. In the period ahead,
one of the main strategies in your Fund will be to focus on investments where
earnings are least affected and which benefit the most from an improved interest
rate outlook.

Continental Europe exhibits many attractive investment characteristics. In
the context of my analytic discipline, the Continent is expected to see strong
earnings growth in 1998 even after adjusting for the difficulties in emerging
markets. Continental Europe's economy is just accelerating after several years
of minimal growth, and companies are in the earlier stages of the restructuring
process that has produced such handsome returns for many U.S. companies over the
last decade. Continental European stock valuations have improved markedly after
the correction of the last several months. Long-term interest rates are likely
to be benign at worst and, I suspect, may surprise many by actually falling
during the coming months. Liquidity is very strong in Continental Europe
because, as many Europeans move away from dependence on government retirement
schemes and take responsibility for their own savings, the mutual fund industry
is growing rapidly. The Continental European financial sector emerges from my
analysis as an outstanding opportunity for restructuring and consolidation.
Continental European banks produce much lower returns than their counterparts
across the channel in the U.K. where the industry is known to be much more
efficient. Many Continental European banks are now taking action to raise
returns, and I believe your Fund is positioned to benefit from the potential
rewards of that restructuring.

The Japanese stock market peaked in 1990 and today stands at about 60% of
that all-time high. The reasons for the decline have been well documented.
Investors, including myself, who have attempted to " find the bottom" and
participate in the new bull market that will inevitably emerge in Tokyo have
been frustrated for several years now. In the short run, the bad news is that
Japan is expected to be hardest hit by the developing slowdown in Asian emerging
countries. Our analytic work indicates that the Japanese market has in fact
deteriorated over the last few months. A ray of hope is present in that there is
some evidence of deregulation in the financial sector and a slow unwinding of
the cross-shareholding system that has made Japanese companies historically more
accountable to one another than to outside shareholders. It is certainly a
positive in terms of valuation that nearly 40% of the stocks traded in Tokyo are
now priced at less than 1.0 times book value, compared to an average of just
under 4.0 for the U.S. market. But the Japanese market needs positive news to
trigger a repricing of these stocks. Until that "trigger" emerges, your Fund's
investments in Japan will remain company-specific.

<PAGE>

Emerging markets have fallen dramatically, particularly in U.S. dollar
terms, since the currencies of many of these countries have eroded as well. Like
Japan, many of these markets now have at least some aspects of valuation on
their side. The next few months will witness all of the ramifications of the
recent crisis including recapitalization of banks, widespread earnings declines,
forced mergers of weak companies, and capital flight. My recent research trip to
Southeast Asia revealed all of these effects to be in their early stages. It is
possible that in a matter of months some of these countries will have in place
the building blocks of renewed prosperity. Others will require considerably more
time. I remain cautious on emerging markets, looking for selected opportunities
as they present themselves.

As manager of Dreyfus International Growth Fund, I look forward to
communicating with you again at the end of the fiscal year in the Annual
Shareholder's Letter.

Sincerely,

/s/ Ron Chapman

Ron Chapman
Portfolio Manager

December 22, 1997
New York, N.Y.

* Total return includes reinvestment of dividends and any capital gains paid.

** SOURCE: LIPPER ANALYTICAL SERVICES, INC.--The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE(R)) Index is an unmanaged
index composed of a sample of companies representative of the market
structure of European and Pacific Basin countries. The return indicated
includes net dividends reinvested. The Index is the property of Morgan
Stanley & Co., Incorporated.

<PAGE>
Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
Statement of Investments November 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
Common Stocks--102.2% Shares Value
- ------------------------------------------------------------------------------- ------------- -----------
<S> <C> <C> <C>
Austria--1.7% Wolford....................................... 18,000 $ 1,298,147
-----------

Brazil--.9% Companhia de Saneamento Basico
do Estado de Sao Paulo..................... 3,000,000 697,800
-----------

Canada--.2% Canadian Conquest Exploration..............(a) 275,000 193,104
-----------

Chile--1.3% Empresa Nacional de Electricidad, A.D.R....... 40,000 742,500
Quinenco, A.D.R............................... 25,200 299,250
-----------
1,041,750
-----------

Denmark--2.3% Bang & Olufsen Holding, Cl. B................. 15,000 881,185
Den Danske Bank............................... 7,500 888,993
-----------
1,770,178
-----------

Finland--3.1% Merita, Cl. A................................. 210,000 1,062,056
Sampo Insurance, Cl. A........................ 44,000 1,368,124
-----------
2,430,180
-----------

France--8.4% Banque Nationale de Paris..................... 38,500 1,875,983
Bouygues Offshore............................. 20,000 886,558
Compagnie Generale des Eaux................... 11,500 1,517,638
Compagnie Generale des Eaux (Warrants)........ 7,500 4,581
Elf Aquitaine................................. 8,000 927,164
Groupe, A.D.R................................. 64,000 464,000
SGS-Thomson Microelectronics (New York Shares)(a) 12,000 842,250
-----------
6,518,174
-----------

Germany--10.0% Adidas........................................ 6,500 914,379
Allianz....................................... 4,500 1,066,091
Bankgesellschaft Berlin....................... 32,000 680,215
BETA Systems Software......................... 5,000 478,347
Daimler-Benz.................................. 10,000 707,048
Deutsche Bank................................. 21,000 1,344,523
GEA........................................... 2,200 778,375
Henkel KGaA................................... 2,700 151,316
Metro......................................... 16,800 770,337
SGL Carbon.................................... 7,000 901,500
-----------
7,792,131
-----------

Ireland--2.5% Bank of Ireland............................... 80,000 1,081,924
Jurys Hotel Group............................. 145,000 876,208
-----------
1,958,132
------------
</TABLE>

<PAGE>
Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------- ------------- -----------
<S> <C> <C> <C>
Italy--15.1% Aeroporti di Roma............................. 215,000 $ 2,049,590
Assicurazioni Generali........................ 105,000 2,352,167
Bulgari....................................... 140,000 709,427
Fiat.......................................... 469,000 1,355,413
Istituto Bancario San Paolo di Torino......... 180,000 1,489,336
Istituto Mobiliare Italiano................... 200,000 2,083,695
La Rinascente................................. 80,000 607,549
Telecom Italia................................ 180,000 1,122,594
-----------
11,769,771
-----------

Japan--10.9% Bank of Tokyo--Mitsubishi..................... 24,000 347,881
Canon ........................................ 15,000 361,984
Dai Nippon Printing........................... 24,000 475,750
Daikin Industries............................. 70,000 368,017
Dainippon Ink & Chemicals..................... 190,000 669,905
Fuji Machine Manufacturing.................... 18,000 516,180
Minolta....................................... 80,000 460,707
Mitsui Fudosan................................ 50,000 528,872
Murata Manufacturing.......................... 22,000 660,190
NKK........................................... 350,000 353,757
Nintendo...................................... 7,000 723,968
Nippon Soda................................... 95,000 885,763
Otsuka Kagu................................... 3,500 174,685
SHIMANO....................................... 21,000 480,451
Sony.......................................... 4,500 384,314
Uni-Charm..................................... 20,000 676,957
Yamanouchi Pharmaceutical..................... 18,000 437,201
-----------
8,506,582
-----------

Luxembourg--.3% Scandinavian Broadcasting System...........(a) 8,800 223,850
-----------

Mexico--4.2% Empresas ICASociedad Controladora, A.D.R...... 70,000 1,085,000
Grupo Financiero Banamex Accival, Cl. B....(a) 190,000 417,491
Grupo Financiero Bancomer, Cl. B...........(a) 1,105,000 632,582
Grupo Televisa, A.D.R......................(a) 30,000 1,110,000
-----------
3,245,073
-----------

Netherlands--7.9% ABN Amro Holding.............................. 45,000 856,820
ASM Lithography Holding....................(a) 9,500 593,750
BE Semiconductor Industries................(a) 23,000 273,851
Koninklijke Nutricia Verenigde Bedrijven...... 37,000 1,048,380
Koninklijke Pakhoed........................... 45,000 1,220,799
Ordina.....................................(a) 25,000 376,789
Philips Electronics........................... 11,000 725,596
Unique International.......................... 50,000 1,075,107
-----------
6,171,092
-----------
</TABLE>

<PAGE>
Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)

Spain--7.1% Aldeasa....................................... 40,000 834,449
Banco Santander............................... 28,000 845,701
Corporacion Bancaria de Espana................ 15,000 929,212
Endesa........................................ 110,000 2,066,368
Repsol........................................ 20,000 863,916
-----------
5,539,646
-----------

Sweden--5.9% Electrolux, Cl. B............................. 23,000 1,808,588
Skandia Forsakrings........................... 16,000 842,214
Svenska Handelsbanken, Cl. A.................. 30,000 1,055,354
Volvo, Cl. B.................................. 32,000 852,561
-----------
4,558,717
-----------

Switzerland--3.6% Ciba Specialty Chemicals...................... 10,000 1,063,345
Novartis...................................... 450 718,310
Schweizerische Lebensversicherungs-
und Rentenanstalt.......................... 1,500 996,426
-----------
2,778,081
-----------

Taiwan--.8% Taiwan Semiconductor Manufacturing, A.D.R..... 27,800 611,600
-----------

United Kingdom--14.7% British Sky Broadcasting Group................ 115,000 854,027
Gallaher Group................................ 200,000 1,083,568
Granada Group................................. 70,000 1,000,697
Grand Metropolitan............................ 72,000 655,001
JBA Holdings.................................. 50,000 829,554
Misys......................................... 48,857 1,381,219
Powerscreen International..................... 95,000 1,051,837
Reuters Holdings.............................. 100,000 1,127,450
SEMA Group.................................... 19,000 422,018
SmithKline Beecham............................ 130,000 1,206,777
Viatel.....................................(a) 108,000 675,000
Vodafone Group................................ 175,000 1,169,645
-----------
11,456,793
-----------
TOTAL COMMON STOCKS
(cost $77,519,265).......................... $79,607,662
===========
</TABLE>

<PAGE>
Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
Preferred Stocks--3.2% Shares Value
- ------------------------------------------------------------------------------- ------------- -----------
<S> <C> <C> <C>
Germany: Henkel KGaA--Vorzug............................ 16,300 $ 1,000,238
ProSieben Media............................... 14,800 708,791
SAP--Vorzug.................................... 2,700 829,946
-----------
TOTAL PREFERRED STOCKS
(cost $1,844,544)........................... $ 2,538,975
===========

TOTAL INVESTMENTS (cost $79,363,809)........................................... 105.4% $82,146,637
======= ===========
LIABILITIES, LESS CASH AND RECEIVABLES......................................... (5.4%) $(4,240,413)
======= ===========
NET ASSETS..................................................................... 100.0% $77,906,224
======= ===========
<FN>
Notes to Statement of Investments:
- ---------------------------------------------------------------------------------------------------------------------------
(a) Non-income producing.

See notes to financial statements.

</TABLE>

<PAGE>
Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities November 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
Cost Value
----------- -----------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $79,363,809 $82,146,637
-----------
Receivable for investment securities sold and forward
currency exchange contracts.................... 652,458
Dividends and interest receivable................ 81,358
Prepaid expenses................................. 27,482
-----------
82,907,935
-----------

LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 57,719
-----------
Due to Distributor............................... 49,719
Cash overdraft due to Custodian.................. 3,293,079
Payable for investment securities purchased and forward
currency exchange contracts.................... 1,522,572
Accrued expenses................................. 78,622
-----------
5,001,711
-----------

NET ASSETS..................................................................... $77,906,224
===========

REPRESENTED BY: Paid-in capital.................................. $67,651,026
Accumulated distributions in excess of
investment income--net.......................... (701,862)

Accumulated net realized gain (loss) on investments,
foreign currency transactions and forward
currency exchange contracts.................... 8,186,699

Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 2,770,361
-----------
NET ASSETS..................................................................... $77,906,224
===========

SHARES OUTSTANDING

(300 million shares of $.001 par value Common Stock authorized)................ 5,311,928

NET ASSET VALUE, offering and redemption price per share....................... $14.67
======
</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
Statement of Operations Six Months Ended November 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $71,621 foreign taxes
withheld at source)...................... $ 346,538

EXPENSES: Management fee--Note 3(a)................... $ 342,568
Shareholder servicing costs--Note 3(b,c).... 398,385
Custodian fees............................. 59,816
Professional fees.......................... 22,247
Directors' fees and expenses--Note 3(d)..... 17,028
Registration fees.......................... 11,550
Prospectus and shareholders' reports--Note 3(b) 7,388
Loan commitment fees--Note 2................ 402
Miscellaneous.............................. 11,840
-----------

Total Expenses........................ 871,224
-----------

INVESTMENT (LOSS)........................................................ (524,686)
-----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments and
foreign currency transactions............ $ 5,844,797
-----------
Net realized gain (loss) on forward currency
exchange contracts
Short Transactions....................... (193,987)
-----------
Net Realized Gain (Loss).............. 5,650,810

Net unrealized appreciation (depreciation) on
investments, foreign currency transactions and
forward currency exchange contracts...... (5,987,625)
-----------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... (336,815)
-----------

NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................... $ (861,501)
===========
</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Six Months Ended
November 30, 1997 Year Ended
(Unaudited) May 31, 1997
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment (loss)...................................................... $ (524,686) $ (170,888)
Net realized gain (loss) on investments................................ 5,650,810 6,773,463
Net unrealized appreciation (depreciation) on investments.............. (5,987,625) 1,844,082
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations..... (861,501) 8,446,657
-------------- --------------

DIVIDENDS TO SHAREHOLDERS:

From investment income--net............................................. -- (571,399)
In excess of investment income--net..................................... -- (177,176)
From net realized gain on investments.................................. -- (4,084,610)
-------------- --------------
Total Dividends..................................................... -- (4,833,185)
-------------- --------------

CAPITAL STOCK TRANSACTIONS:

Net proceeds from shares sold.......................................... 521,477,953 580,556,282
Dividends reinvested................................................... -- 4,195,270
Cost of shares redeemed................................................ (531,404,100) (602,381,534)
-------------- --------------
Increase (Decrease) in Net Assets from Capital Stock Transactions... (9,926,147) (17,629,982)
-------------- --------------
Total Increase (Decrease) in Net Assets.......................... (10,787,648) (14,016,510)

NET ASSETS:

Beginning of Period.................................................... 88,693,872 102,710,382
-------------- --------------
End of Period.......................................................... $ 77,906,224 $ 88,693,872
============== ==============
[Distributions in excess of investment (loss)]--net........................ $ (701,862) $ (177,176)
-------------- --------------

Shares Shares
-------------- --------------
CAPITAL SHARE TRANSACTIONS:

Shares sold............................................................ 32,419,081 38,309,032
Shares issued for dividends reinvested................................. -- 285,781
Shares redeemed........................................................ (32,711,736) (39,620,262)
-------------- --------------
Net Increase (Decrease) in Shares Outstanding....................... (292,655) (1,025,449)
============== ==============
</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
Financial Highlights

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.

<TABLE>
<CAPTION>
Six Months Ended Year Ended May 31,
November 30, 1997 ------------------------------------
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994(1)
----------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $15.83 $15.49 $13.74 $15.20 $12.50
------ ------ ------ ------ ------
Investment Operations:
Investment income (loss)--net............................ (.10) (.02) .09 .01 .05
Net realized and unrealized gain (loss) on investments.. (1.06) 1.11 1.66 (1.19) 2.74
------ ------ ------ ------ ------
Total from Investment Operations........................ (1.16) 1.09 1.75 (1.18) 2.79
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net.................... -- (.09) -- (.01) (.02)
Dividends in excess of investment income--net............ -- (.03) -- (.02) (.04)
Dividends from net realized gain on investments......... -- (.63) -- (.25) (.03)
------ ------ ------ ------ ------
Total Distributions..................................... -- (.75) -- (.28) (.09)
------ ------ ------ ------ ------
Net asset value, end of period......................... $14.67 $15.83 $15.49 $13.74 $15.20
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.................................... (7.33%)(2) 7.36% 12.74% (7.81%) 22.32%(2)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. .96%(2) 1.98% 2.04% 1.92% 1.71%(2)
Ratio of net investment income (loss) to average net assets (.58%)(2) (.18%) .62% .09% .11%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager................... -- -- -- -- .16%(2)
Portfolio Turnover Rate................................. 86.04%(2) 158.04% 96.45% 40.15% 51.32%(2)
Average commission rate paid(3)......................... $.0284 $.0217 -- -- --
Net Assets, end of period (000's omitted)............... $77,906 $88,694 $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.

<PAGE>

Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus International Growth Fund (the "Fund") is a series of Dreyfus
International Funds, Inc. (the "Company") which 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 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") is the distributor
of the Fund's shares, which are sold to the public without a sales load.

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: 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 and 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. This may result in distributions that
are in excess of investment income-net and net realized gain on a fiscal year
basis. 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.

<PAGE>

Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(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--Bank Line of Credit:

The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
November 30, 1997, the Fund did not borrow under the Facility.

NOTE 3--Management Fee and Other Transactions With Affiliates:

(A) Pursuant to a management 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 the Manager, 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, 1997, the Fund was charged $228,379 pursuant to the Plan.

(C) 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 in respect of these services. The Distributor
determines the amounts to be paid to Service Agents. During the period ended
November 30, 1997, the Fund was charged $114,189 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. During the period
ended November 30, 1997, the Fund was charged $44,510 pursuant to the transfer
agency agreement.

(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.

<PAGE>

Dreyfus International Growth Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

NOTE 4--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, 1997 amounted to $80,699,719 and $99,905,645,
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 gain on each open
contract. At November 30, 1997, there were no open forward exchange contracts
outstanding.

(B) At November 30, 1997, accumulated net unrealized appreciation on
investments was $2,770,361, consisting of $8,044,443 gross unrealized
appreciation and $5,274,082 gross unrealized depreciation.

At November 30, 1997, 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

Manager
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. 095SA9711

<PAGE>
Dreyfus
Emerging Markets
Fund
Semi-Annual
Report

November 30, 1997

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

The past six months has proven to be quite difficult for the emerging
markets. Unfortunately, the first-half gains of 1997 were erased by declines in
emerging equity markets and currency devaluations particularly in Asia. For the
six months ended November 30, 1997, the Dreyfus Emerging Markets Fund declined
- -16.33%,* compared to the Morgan Stanley Capital International Emerging Markets
Free Index (MSCI/EMF) which fell -22.76%.**

We have outperformed the index by being underweighted in emerging market
equity assets in Asia. Our weighting at the end of November was 22.9% versus
32.5% for the index. Asia as a region has been a poor performer, declining
- -44.5% in U.S. dollar terms over the past six months. The Latin America and
Emerging Eastern Europe regions have fallen as well but not as dramatically,
declining -4.8% and -3.7% over six months respectively. In Latin America, we
currently have a neutral weighting (compared to the MSCI/EMF) of 40.0%, with an
underweight position in Brazil and an overweight position in Mexico, Chile and
Argentina. In Emerging Europe, Middle East and Africa we have an overweighted
position of 27.7% in the region, and specific overweights in Hungary, Israel and
Portugal.

ECONOMIC REVIEW

The current South East Asian crisis began in July in Thailand when the Thai
Baht was devalued. Competitive pressure along with overvalued currencies in
Malaysia, the Philippines and Indonesia forced those countries to devalue their
currencies. The currencies have fallen over 40% through November. Reliance on
dollar-denominated debt has exacerbated the currency decline. As a result of the
devaluations, we anticipate that Gross Domestic Product growth in these
countries will slow dramatically, interest rates will stay high, inflation will
pick up and government spending will need to slow in order to improve the budget
and trade deficit. On the positive side, lower currencies will help export
growth in the years to follow.

Recently, the turmoil has spread to South Korea, with its currency falling
dramatically. The International Monetary Fund has come in to help Korea,
Indonesia, and Thailand. Hong Kong and Brazil as well as Greece and Poland have
been hit with bouts of currency speculation that have forced interest rates
higher. This can be expected to slow their respective economies.

PORTFOLIO FOCUS

As you would expect from a risk-averse, bottom-up, value manager, we held up
relatively well in a declining market environment. We adhere to our value,
risk-averse investment philosophy. We run a diversified portfolio of
approximately 100 securities representing 25 different countries and diversified
across many industries. We invest in companies trading at what we believe are
attractive price-to-earnings ratios, price-to-book value ratios and
price-to-cash flow ratios. We are attracted to companies that appear to show
improving business conditions, good earnings growth, positive earnings
revisions, strong management and a solid balance sheet. We believe market timing
is difficult, so our goal is to keep country and regional diversification from
being extreme.

Our bottom-up stock selection has led us to an underweight position in Asia
during the past 17 months as valuations have been high and fundamentals continue
to deteriorate. Noticing overcapacity in many industries, we have stayed out of
some of the poorer performing industries. Lower valuations and better
fundamentals in Latin America and Emerging Europe have led us to be overweight
in these regions during the past six months.

<PAGE>
Given large declines in equity prices and cheap valuations, we believe
foreign capital will return and opportunities abound. Our strategy in Asia,
determined from a stock selection standpoint, is to emphasize the export sector,
which is likely to benefit from a lower currency valuation. Companies with
dollar revenue streams and costs in local currencies will have margin expansion
and that will translate into earnings increases. Examples of export
beneficiaries in the portfolio include PT Indah Kiat Pulp & Paper, a paper
company in Indonesia, Daya Guna Samudera, a fishing company in Indonesia, and
Jaya Tiasa, a plywood company in Malaysia. We are also exposed to utilities,
both electric and telephone, as they are less sensitive to the current economic
turmoil.

Attractive valuations are appearing in the emerging markets, particularly in
Asia. We believe, however, that fundamentals are not improving yet and hence the
portfolio is underweight in Asia. As the dust settles and better fundamentals
reassert themselves, our goal will be to begin to increase our weightings to
this region. Nonetheless, we currently own what we believe are some attractively
priced companies. Universal Robina, a Philippine food company, sells for 5 times
earnings with net cash on the balance sheet. Telecom Malaysia, at under 10 times
earnings, is cheap on a global telecom comparison. PT Indorama Synthetics, an
Indonesian textile company and an exporter, is selling at 7 times earnings.
Cintra, a Mexican airline company, is trading under 7 times earnings. Quinenco
ADR, a Chilean diversified conglomerate, is trading at 11 times earnings and at
a significant discount to its net asset value.

The best performing securities in the portfolio during the past six months
included Vestel Elektronik Sanayi ve Ticaret, a Turkish electronics company, Pao
de Acucar, a Brazilian food retailer, Desc, a Mexican industrial conglomerate,
Magyar Olaj-es Gazipari, GDR, a Hungarian oil company and ARA, a Mexican housing
company.

Stocks that most negatively affected the portfolio included Leader Universal
Holdings, a Malaysian cable manufacturer, Tenega Nasional, a Malaysian electric
utility, Brasmotor, a Brazilian appliance manufacturer, and Korea Electric
Power, a Korean electric utility company.

We continue to believe that emerging market securities are attractive given
current valuations (see table). Though near-term uncertainties exist, these
valuations are providing long-term investors an opportunity to get into the
markets at excellent prices. As the cyclical difficulties pass, we believe
attractive returns will be made by those willing to be patient and assume some
risk.

Market Valuations:

Index P/E P/BV P/CF
- ------ ---- ---- ----
Emerging Markets Free 14.8 1.5 8.2
EAFE (International) 23.0 2.4 10.0
World 22.7 3.0 11.6
U.S. 22.6 4.2 13.7

Source: Morgan Stanley Capital International (11/28/97)

<PAGE>
We will, of course, continue to adjust the Fund's portfolio as economic and
market conditions change. We appreciate your support and will continue to strive
to produce attractive returns.
Sincerely,

/s/ D. Kirk Henry

D. Kirk Henry
Portfolio Manager
December 18, 1997
Boston, MA

* Total return includes reinvestment of dividends and any capital gains paid.

** 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.

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
Statement of Investments November 30, 1997 (Unaudited)

Common Stocks--85.0% Shares Value
- -------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C> <C>
Argentina--5.3% Banco Rio de la Plata, ADR.................... 66,200(a) $ 831,638
Central Costanera, Cl. B...................... 161,000(a) 418,767
Mirgor S.A.C.I.F.I.A., ADR.................... 115,000(a,b) 402,500
Telefonica de Argentina, ADS.................. 35,000 1,157,188
YPF Sociedad Anonima, ADS..................... 20,000 671,250
-----------
3,481,343
-----------

Brazil--5.7% Aracruz Celulose, ADS......................... 50,800 730,250
Companhia Brasileira de Distribuicao Grupo
Pao de Acucar, GDR......................... 30,100 447,739
Companhia Vale do Rio Doce, ADS............... 61,000 1,105,626
Telecomunicacoes Brasileiras, ADS............. 13,600 1,419,500
-----------
3,703,115
-----------

Chile--7.0% Banco BHIF, ADS............................... 42,600 734,850
Compania de Telecomucicaciones de Chile, ADS.. 49,000 1,326,062
Cristalerias de Chile, ADS.................... 25,400 381,000
Linea Aerea Nacional de Chile, ADS............ 44,000(a) 555,500
Quinenco, ADR................................. 68,600(a) 814,625
Santa Isabel, ADR............................. 42,200 772,788
-----------
4,584,825
-----------

China--.5% China Southern Airlines, ADR.................. 22,500(a) 338,906
-----------

Czech Republic--.9% Czeske energeticke zavody..................... 14,600(a) 430,582
Komercni Banka, GDR........................... 12,000(b) 150,000
-----------
580,582
-----------

Egypt--1.9% MISR INTERNATIONAL BANK, GDR.................. 36,000(a,b) 544,680
Paints & Chemical Industry, GDR............... 73,000(a,b) 730,000
-----------
1,274,680
-----------

Greece--2.0% AEGEK ........................................ 27,500 133,968
Hellenic Technodomiki......................... 30,000 280,384
Hellenic Tellecommunication Organization...... 81,000(a,b) 769,500
Michaniki..................................... 24,000 129,907
-----------
1,313,759
-----------

Hong Kong--4.4% China Hong Kong Photo Products Holdings....... 745,000 182,146
Guoco Group................................... 231,000 539,378
HSBC Holdings................................. 15,155 365,627
Hongkong Electric Holdings.................... 141,000 476,974
Huaneng Power International, ADR.............. 9,900(a) 217,800
Jiangxi Copper................................ 1,700,000(a) 226,511
QPL International Holdings.................... 775,000 481,224
Swire Pacific................................. 435,000 413,599
-----------
2,903,259
-----------
</TABLE>

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- -------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C> <C>
Hungary--3.9% Fotex......................................... 275,658 $ 273,380
MOL Magyar Olaj-es Gazipari, GDR.............. 47,000(b) 985,825
Magyar Tavkozlesi............................. 35,000(a) 708,750
Pick Szeged................................... 3,000 187,828
Pick Szeged, GDR.............................. 5,800(b) 368,300
-----------
2,524,083
-----------

India--4.6% Reliance Industries, GDR...................... 110,000(b) 855,250
State Bank of India, GDR...................... 39,600(b) 524,700
Steel Authority of India, GDR................. 75,000(b) 337,500
Tata Engineering & Locomotive, GDR............ 49,000(a,b) 477,750
Videsh Sanchar Nigam, GDR..................... 60,000(b) 795,000
-----------
2,990,200
-----------

Indonesia--2.4% Daya Guna Samudera............................ 194,500 204,596
PT Indah Kiat Pulp & Paper.................... 2,160,000 501,640
PT Indorama Synthetics........................ 649,000 332,479
PT Indosat.................................... 25,100 561,613
-----------
1,600,328
-----------

Israel--5.5% Bank Leumi Le-Israel.......................... 550,000(a) 877,824
Blue Square Chain Investments & Properties.... 117,800(a) 1,074,842
Koor Industries............................... 9,000 969,458
Supersol, ADR................................. 49,000 686,000
-----------
3,608,124
-----------

Luxembourg--1.6% Quilmes Industrial, ADR....................... 82,400 1,071,200
-----------

Malaysia--3.8% Jaya Tiasa Holdings........................... 244,000 428,743
Kwantas....................................... 195,000 156,557
Leader Universal Holdings..................... 230,000 78,857
Pacific & Orient.............................. 159,000 90,857
Petronas Dagangan............................. 503,000 485,755
Telekom Malaysia.............................. 249,000 554,914
Tenaga Nasional............................... 372,000 684,144
-----------
2,479,827
-----------

Mexico--12.7% ALFA, Ser. A.................................. 95,000 715,104
ARA........................................... 219,000(a) 960,293
Apasco........................................ 138,000 813,545
Cintra........................................ 775,900(a) 765,505
Controladora Comercial Mexicana, GDS.......... 36,300 780,450
Desc, Ser. B.................................. 72,000 679,659
Desc, Ser. C.................................. 750 7,015
Empaques Ponderosa, Ser. B.................... 597,000(a) 475,563
Grupo Financiero Inbursa, Ser. B.............. 302,300 1,108,311
Sistema Argos, Ser. B......................... 504,000 773,495

</TABLE>

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- -------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C> <C>
Mexico (continued) Tablex........................................ 37,108 $ 84,747
Telefonos de Mexico, Cl. L, ADR............... 8,500 420,750
Tubes de Acero de Mexico, ADR................. 31,400(a) 694,725
-----------
8,279,162
-----------

Peru--2.2% Telefonica del Peru, ADS...................... 70,000 1,470,000
-----------

Philippines--3.1% First Philippine Holdings..................... 399,600 348,721
Philippine Long Distance Telephone, ADS....... 42,400 1,049,400
Solid Group................................... 4,720,000 248,492
Universal Robina.............................. 2,951,600 377,923
-----------
2,024,536
-----------

Poland--1.3% Bank Handlowy W Warszawie..................... 46,000(a) 540,564
KGHM Polska Miedz, GDR........................ 35,300(a,b) 291,225
-----------
831,789
-----------

Portugal--4.6% Banco Totta E Acores.......................... 54,000 1,017,456
Corticeira Amorin............................ 55,700 632,779
Electricidade de Portugal, ADR................ 19,400(a) 702,038
Mota e Companhia.............................. 40,000 631,532
-----------
2,983,805
-----------

Singapore--1.3% Development Bank of Singapore................. 91,000 855,799
-----------

South Africa--6.7% Anglo American................................ 12,300 511,393
Barlow........................................ 100,534 955,989
Barlow, ADR................................... 11,083 102,518
Engen ........................................ 153,500 860,940
Foodcorp...................................... 71,500 356,138
Ingwe Coal.................................... 240,900 971,831
Polifin....................................... 208,300 342,986
Sasol......................................... 29,000 292,178
-----------
4,393,973
-----------

South Korea--2.8% Pohang Iron & Steel........................... 23,580 942,838
SK Telecom.................................... 540 176,753
SK Telecom, ADR............................... 74,922(a) 444,849
Samsung Electronics........................... 2,795 102,139
Samsung Electronics, GDR...................... 6,048(a,b) 133,056
-----------
1,799,635
-----------

Taiwan--.0% China Steel, ADR.............................. 500(a,b) 7,138
-----------

Thailand--.1% Ayudhya Insurance Public...................... 11,000 50,749
Srithai Superware Public...................... 29,000 5,693
-----------
56,442
-----------

</TABLE>

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)

Common Stocks (continued) Shares Value
- -------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C> <C>
Turkey--.7% Uzel Makina Sanayii, ADR...................... 8,500(a,b) $ 365,500
Vestel Elektronik Sanayi ve Ticaret........... 1,350,000(a) 103,545
-----------
469,045
-----------
TOTAL COMMON STOCKS
(cost $65,000,307).......................... $55,625,555
===========

Prefered Stocks--5.4%
- --------------------------------------------------------------------------------
Brazil: Brasmotor..................................... 3,600 $ 402,452
Companhia Cemento Portland Itau............... 2,800 526,325
Companhia Energetica de Minas Gerais.......... 14,000(a) 675,261
Companhia Paranaense de Energia-Copel......... 31,000 465,335
Ericsson Telecomunicacoes..................... 15,000(a) 520,645
Petroleo Brasileiro........................... 4,500 973,715
-----------
TOTAL PREFFERED STOCKS
(cost $4,350,784)........................... $ 3,563,733
===========

Principal
Short-Term Investments--11.0% Amount
- -------------------------------------------------------------------------------- ----------------
U.S. Treasury Bills: 4.86%, 1/2/98................................. $ 95,000 $ 94,557
4.92%, 1/8/98................................. 357,000 354,986
5.05%, 1/22/98................................ 6,776,000 6,723,555
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $7,176,329)........................... $ 7,173,098
===========

TOTAL INVESTMENTS (cost $76,527,420)........................................... 101.4% $66,362,386
====== ===========
LIABILITIES, LESS CASH AND RECEIVABLES......................................... (1.4%) $ (937,455)
====== ===========
NET ASSETS..................................................................... 100.0% $65,424,931
====== ===========

<FN>
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,
1997, these securities amounted to $7,737,924 or approximately 11.8% of
net assets.

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities November 30, 1997 (Unaudited)

Cost Value
----------- -----------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $76,527,420 $66,362,386
Cash............................................. 354,709
Receivable for investment securities sold........ 333,876
Dividends and interest receivable................ 59,324
Cash denominated in foreign currencies........... 52,775 52,703
Prepaid expenses................................. 10,432
-----------
67,173,430
-----------

LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 70,105
Due to Distributor............................... 13,701
Payable for investment securities purchased...... 1,587,057
Net unrealized (depreciation) on forward
currency exchange contracts--Note 4(a)......... 1,705
Accrued expenses................................. 75,931
-----------
1,748,499
-----------

NET ASSETS..................................................................... $65,424,931
===========

REPRESENTED BY: Paid-in capital.................................. $75,095,001
Accumulated undistributed investment income--net. 83,833
Accumulated net realized gain (loss) on investments 411,279
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (10,165,182)
-----------
NET ASSETS..................................................................... $65,424,931
===========

SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized)................ 5,501,249

NET ASSET VALUE, offering and redemption price per share--Note 3(d)............ $11.89
======

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
Statement of Operations Six Months Ended November 30, 1997 (Unaudited)

<TABLE>

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME: Cash dividends (net of $39,805 foreign taxes
withheld at source)...................... $444,586
Interest................................... 179,774
--------
Total Income............................. $ 624,360

EXPENSES: Management fee--Note 3(a).................. 422,620
Custodian fees............................. 97,570
Shareholder servicing costs--Note 3(b)..... 91,578
Registration fees.......................... 18,260
Directors' fees and expenses--Note 3(c).... 12,617
Professional fees.......................... 11,995
Prospectus and shareholders' reports....... 3,540
Loan commitment fees--Note 2............... 127
Miscellaneous.............................. 1,661
--------
Total Expenses........................... 659,968
------------

INVESTMENT (LOSS)........................................................ (35,608)
------------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments and
foreign currency transactions............ $(18,042)
Net realized gain (loss) on forward currency
exchange contracts....................... (239,014)
--------
Net Realized Gain (Loss)................. (257,056)
Net unrealized appreciation (depreciation) on
investments and foreign currency transactions (13,583,826)
------------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... (13,840,882)
------------

NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS......................... $(13,876,490)
============

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets

Six Months Ended
November 30, 1997 Year Ended
(Unaudited) May 31, 1997*
----------------- -------------
<S> <C> <C>
OPERATIONS:
Investment income (loss)--net.......................................... $ (35,608) $ 144,385
Net realized gain (loss) on investments................................ (257,056) 695,774
Net unrealized appreciation (depreciation) on investments.............. (13,583,826) 3,418,644
------------ -----------
Net Increase (Decrease) in Net Assets Resulting from Operations..... (13,876,490) 4,258,803
------------ -----------

DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................. -- (24,944)
Net realized gain on investments....................................... -- (27,439)
------------ -----------
Total Dividends..................................................... -- (52,383)
------------ -----------

CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 36,306,205 53,106,244
Dividends reinvested................................................... -- 42,829
Cost of shares redeemed................................................ (7,427,397) (6,973,772)
Redemption fee......................................................... 40,892 --
------------ -----------
Increase (Decrease) in Net Assets from Capital Stock Transactions... 28,919,700 46,175,301
------------ -----------
Total Increase (Decrease) in Net Assets.......................... 15,043,210 50,381,721

NET ASSETS:
Beginning of Period.................................................... 50,381,721 --
------------ -----------
End of Period.......................................................... $ 65,424,931 $50,381,721
============ ===========
Undistributed investment income--net...................................... $ 83,833 $ 119,441
------------ -----------

Shares Shares
------------ -----------

CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 2,519,057 4,062,299
Shares issued for dividends reinvested................................. -- 3,508
Shares redeemed........................................................ (564,175) (519,440)
------------ -----------
Net Increase (Decrease) in Shares Outstanding....................... 1,954,882 3,546,367
============ ===========

<FN>
- ------------------
* From June 28, 1996 (commencement of operations) to May 31, 1997.

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
Financial Highlights

Six Months Ended
November 30, 1997 Year Ended
PER SHARE DATA: (Unaudited) May 31, 1997(1)
----------------- ------------
<S> <C> <C>
Net asset value, beginning of period................................. $14.21 $12.50
------ ------
Investment Operations:
Investment income (loss)--net......................................... (.02) .05
Net realized and unrealized gain (loss) on investments............... (2.31) 1.70
------ ------
Total from Investment Operations..................................... (2.33) 1.75
------ ------
Distributions:
Dividends from investment income--net................................. -- (.02)
Dividends from net realized gain on investments...................... -- (.02)
------ ------
Total Distributions.................................................. -- (.04)
------ ------
Redemption fee added to paid in capital.............................. .01 --
------ ------
Net asset value, end of period....................................... $11.89 $14.21
====== ======
TOTAL INVESTMENT RETURN................................................ (16.33%)(2) 14.07%(2)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................. .98%(2) 1.85%(2)
Ratio of net investment income to average net assets................ (.05%)(2) .70%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager............................... -- .36%(2)
Portfolio Turnover Rate............................................. 56.20%(2) 52.52%(2)
Average commission rate paid (3).................................... $.0121 $.0152
Net Assets, end of period (000's Omitted)........................... $65,425 $50,382

<FN>
- -------------
(1) From June 28, 1996 (commencement of operations) to May 31, 1997.
(2) Not annualized.
(3) 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.

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Dreyfus Emerging Markets Fund (the "Fund") is a series of Dreyfus
International Funds, Inc. (the "Company") which 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 Fund. 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.
Premier Mutual Fund Services, Inc (the "Distributor") is the distributor of the
Fund's shares, which are sold to the public without a sales charge.

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.

(a) Portfolio valuation: 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.

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(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--Bank Line of Credit:

The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended November
30, 1997, the Fund did not borrow under the Facility.

NOTE 3--Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management 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 1, 1997
through May 31, 1998 to reduce the management fee paid by the Fund, to the
extent that the Fund's aggregate annual expenses, exclusive of taxes, brokerage,
interest on borrowings, commitment fees and extraordinary expenses, exceed an
annual rate of 2% of the value of the Fund's average daily net assets. No
expense reimbursement was required for the period ended November 30, 1997.

(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, 1997, the Fund was charged an aggregate of $84,524 pursuant to the
Shareholder Services Plan.

(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.

(d) A 1% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemptions through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to a
specified effective date and the redemption or exchange occurs less than six
months following the date of issuance.

NOTE 4--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, 1997 amounted to $59,584,729 and $33,165,110,
respectively.

<PAGE>
Dreyfus Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

In addition, the following summarizes open forward currency exchange
contracts at November 30, 1997:

<TABLE>
<CAPTION>
Foreign
Currency Unrealized
Forward Currency Exchange Contracts Amount Proceeds Value (Depreciation)
- ----------------------------------- ---------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Sales:
- ------
Thailand Bat, expiring 12/1/97................... 11,088 $ 271 $ 272 $ (1)

Purchases: Cost
- ---------- -----------
Malaysian Ringgit, expiring 12/2/97.............. 326,067 93,394 93,162 (232)
South African Rand, expiring 12/2/97............. 2,309,673 476,860 475,388 (1,472)
--------
Total......................................... $(1,705)
=======
</TABLE>

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 and to settle foreign currency transactions. 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 gain on each open contract.

(b) At November 30, 1997, accumulated net unrealized depreciation on
investments and forward currency exchange contracts was $10,166,739, consisting
of $2,446,941 gross unrealized appreciation and $12,613,680 gross unrealized
depreciation.

At November 30, 1997, 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 Emerging Markets Fund
200 Park Avenue
New York, NY 10166

Manager
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. 327SA9711