<PAGE> PAGE 1
000 B000000 08/31/95
000 C000000 909226
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
"001 A000000 TEMPLETON CHINA WORLD FUND, INC."
001 B000000 811-7876
001 C000000 3055277591
002 A000000 500 EAST BROWARD BLVD SUITE 2100
002 B000000 FT LAUDERDALE
002 C000000 FL
002 D010000 33394
002 D020000 3091
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 TEMPLETON INVESTMENT MANAGEMENT(HONGKONG) LTD
008 B000001 A
008 C000001 801-42353
008 D010001 HONG KONG
008 D050001 HONG KONG
"010 A000001 TEMPLETON GLOBAL INVESTORS, INC."
010 B000001 8-31192
010 C010001 FT LAUDERDALE
010 C020001 FL
010 C030001 33394
010 C040001 3091
010 A000002 MIDDLESEX ADMINISTRATORS L.P.
010 C010002 PLAINSBORO
010 C020002 NJ
010 C030002 08536
010 C040002 9011
011 A000001
011 B000001
<PAGE> PAGE 2
011 C010001
011 C020001
011 C030001
011 A000002
011 B000002
011 C010002
011 C020002
011 C030002
011 A000003
011 B000003
011 C010003
011 C020003
011 C030003
011 A000004
011 B000004
011 C010004
011 C020004
011 C030004
011 A000005
011 B000005
011 C010005
011 C020005
011 C030005
012 A000001 CHEMICAL MELLON FINANCIAL SERVICES
012 B000001 84-0000
012 C010001 NEW YORK
012 C020001 NY
012 C030001 07660
"013 A000001 MCGLADREY AND PULLEN, LLP"
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10017
013 B040001 2416
015 A000001 THE CHASE MANHATTAN BANK NA
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10081
015 E010001 X
015 A000002 CHASE MANHATTAN BANK NA
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 D020002 2000
015 E040002 X
015 A000003 CHASE MANHATTAN BANK AUSTRALIA LIMITED
015 B000003 S
015 C010003 SYDNEY
015 D010003 AUSTRALIA
015 D020003 2000
015 E040003 X
<PAGE> PAGE 3
015 A000004 CREDITANSTALT - BANKVEREIN
015 B000004 S
015 C010004 VIENNA
015 D010004 AUSTRIA
015 D020004 A-1011
015 E040004 X
015 A000005 GENERALE BANK
015 B000005 S
015 C010005 BRUSSELS
015 D010005 BELGIUM
015 D020005 1000
015 E040005 X
015 A000006 THE ROYAL BANK OF CANADA
015 B000006 S
015 C010006 TORONTO
015 D010006 CANADA
015 D020006 M5J 2J5
015 E040006 X
015 A000007 CANADA TRUST
015 B000007 S
015 C010007 TORONTO
015 D010007 CANADA
015 D020007 M5J 2T2
015 E040007 X
015 A000008 STANDARD CHARTERED BANK
015 B000008 S
015 C010008 DHAKA
015 D010008 BANGLADESH
015 D020008 1000
015 E040008 X
015 A000009 BARCLAYS BANK PLC
015 B000009 S
015 C010009 ATHENS
015 D010009 GREECE
015 D020009 10562
015 E040009 X
015 A000010 CHASE MANHATTAN BANK N.A.
015 B000010 S
015 C010010 HONG KONG
015 D010010 HONG KONG
015 E040010 X
015 A000011 BANK LEUMI LE-ISRAEL B.M.
015 B000011 S
015 C010011 TEL AVIV
015 D010011 ISRAEL
015 D020011 65136
015 E040011 X
015 A000012 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000012 S
015 C010012 JAKARTA
015 D010012 INDONESIA
<PAGE> PAGE 4
015 D020012 10023
015 E040012 X
015 A000013 BANK OF IRELAND
015 B000013 S
015 C010013 DUBLIN
015 D010013 IRELAND
015 D020013 1
015 E040013 X
015 A000014 CHASE MANHATTAN BANK N.A.
015 B000014 S
015 C010014 MEXICO CITY
015 D010014 MEXICO
015 D020014 06660
015 E040014 X
015 A000015 CITIBANK N.A.
015 B000015 S
015 C010015 LIMA
015 D010015 PERU
015 D020015 27
015 E040015 X
015 A000016 CHASE MANHATTAN BANK N.A.
015 B000016 S
015 C010016 MILAN
015 D010016 ITALY
015 D020016 20121
015 E040016 X
015 A000017 CHASE MANHATTAN BANK N.A.
015 B000017 S
015 C010017 TOKYO
015 D010017 JAPAN
015 D020017 100
015 E040017 X
015 A000018 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000018 S
015 C010018 SHANGHAI
015 D010018 CHINA
015 E040018 X
015 A000019 CHASE MANHATTAN BANK N.A.
015 B000019 S
015 C010019 KUALA LUMPUR
015 D010019 MALAYSIA
015 D020019 50250
015 E040019 X
015 A000020 ABN-AMRO BANK N.V.
015 B000020 S
015 C010020 DE BREDA
015 D010020 NETHERLANDS
015 D020020 4800
015 E040020 X
015 A000021 NATIONAL NOMINEES LIMITED
015 B000021 S
<PAGE> PAGE 5
015 C010021 AUCKLAND
015 D010021 NEW ZEALAND
015 E040021 X
015 A000022 DEN NORSKE BANK
015 B000022 S
015 C010022 OSLO
015 D010022 NORWAY
015 D020022 1
015 E040022 X
015 A000023 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000023 S
015 C010023 MANILA
015 D010023 PHILIPPINES
015 E040023 X
015 A000024 BANCO ESPIRITO SANTO & COMMERCIAL DE LISBOA
015 B000024 S
015 C010024 LISBON
015 D010024 PORTUGAL
015 D020024 1200
015 E040024 X
015 A000025 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000025 S
015 C010025 SEOUL
015 D010025 SOUTH KOREA
015 E040025 X
015 A000026 CHASE MANHATTAN BANK NA
015 B000026 S
015 C010026 MADRID
015 D010026 SPAIN
015 D020026 28042
015 E040026 X
015 A000027 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000027 S
015 C010027 COLOMBO
015 D010027 SRI LANKA
015 D020027 1
015 E040027 X
015 A000028 CHASE MANHATTAN BANK NA
015 B000028 S
015 C010028 SINGAPORE
015 D010028 SINGAPORE
015 D020028 0104
015 E040028 X
015 A000029 SKANDINAVISKA ENSKILDA BANKEN
015 B000029 S
015 C010029 STOCKHOLM
015 D010029 SWEDEN
015 D020029 S-106 40
015 E040029 X
015 A000030 UNION BANK OF SWITZERLAND
015 B000030 S
<PAGE> PAGE 6
015 C010030 ZURICH
015 D010030 SWITZERLAND
015 D020030 8021
015 E040030 X
015 A000031 CHASE MANHATTAN BANK NA
015 B000031 S
015 C010031 BANGKOK
015 D010031 THAILAND
015 D020031 10500
015 E040031 X
015 A000032 CHASE MANHATTAN BANK NA
015 B000032 S
015 C010032 ISTANBUL
015 D010032 TURKEY
015 E040032 X
015 A000033 CHASE MANHATTAN BANK NA
015 B000033 S
015 C010033 LONDON
015 D010033 UNITED KINGDOM
015 D020033 EC2P 2HD
015 E040033 X
015 A000034 CEDEL SA
015 B000034 S
015 C010034 LUXEMBOURG
015 D010034 LUXEMBOURG
015 E040034 X
015 A000035 FIRST CHICAGO CLEARING CENTRE
015 B000035 S
015 C010035 LONDON
015 D010035 UNITED KINGDOM
015 E040035 X
015 A000036 STANDARD BANK OF SOUTH AFRICA
015 B000036 S
015 C010036 JOHANNESBURG
015 D010036 SOUTH AFRICA
015 D020036 2001
015 E040036 X
015 A000037 DEN DANSKE BANK
015 B000037 S
015 C010037 COPENHAGEN
015 D010037 DENMARK
015 E040037 X
015 A000038 HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000038 S
015 C010038 SHENZHEN
015 D010038 CHINA
015 E040038 X
015 A000039 KANSALLIS-OSAKE-PANKKI
015 B000039 S
015 C010039 HELSINKI
015 D010039 FINLAND
<PAGE> PAGE 7
015 D020039 00500
015 E040039 X
015 A000040 BANQUE PARIBAS
015 B000040 S
015 C010040 PARIS
015 D010040 FRANCE
015 D020040 75078
015 E040040 X
015 A000041 CHASE BANK AG
015 B000041 S
015 C010041 FRANKFURT
015 D010041 GERMANY
015 D020041 60441
015 E040041 X
015 A000042 CITITRUST COLOMBIA SA
015 B000042 S
015 C010042 SANTA FE DE BOGATA
015 D010042 COLOMBIA
015 E040042 X
015 A000043 THE FIRST NATIONAL BANK OF BOSTON
015 B000043 S
015 C010043 MONTEVIDEO
015 D010043 URUGUAY
015 E040043 X
015 A000044 RESERVE BANK
015 B000044 S
015 C010044 SYDNEY
015 D010044 AUSTRALIA
015 E040044 X
015 A000045 CITIBANK BUDAPEST RT.
015 B000045 S
015 C010045 BUDAPEST
015 D010045 HUNGARY
015 D020045 1052
015 E040045 X
015 A000046 CITIBANK N.A.
015 B000046 S
015 C010046 CARACAS
015 D010046 VENEZUELA
015 D020046 1010
015 E040046 X
015 A000047 CITIBANK NA
015 B000047 S
015 C010047 KARACHI
015 D010047 PAKISTAN
015 E040047 X
015 A000048 BANK HANDLOWY W. WARSAWIE SA
015 B000048 S
015 C010048 WARSAW
015 D010048 POLAND
015 D020048 01-211
<PAGE> PAGE 8
015 E040048 X
015 A000049 CESKOSLOVENSKA OBCHODNI BANKA AS
015 B000049 S
015 C010049 PRAHA
015 D010049 CZECH REPUBLIC
015 E040049 X
015 A000050 NATIONAL BANK OF EGYPT
015 B000050 S
015 C010050 CAIRO
015 D010050 EGYPT
015 E040050 X
015 A000051 BARCLAYS BANK OF GHANA LTD
015 B000051 S
015 C010051 ACCRA
015 D010051 GHANA
015 E040051 X
015 A000052 THE HONGKONG & SHANGHAI BANKING CORP LTD
015 B000052 S
015 C010052 PORT LOUIS
015 D010052 MAURITIUS
015 E040052 X
015 A000053 BANQUE COMMERCIALE DU MAROC
015 B000053 S
015 C010053 CASABLANCA
015 D010053 MOROCCO
015 D020053 01
015 E040053 X
015 A000054 CESKOSLOVENSKA OBCHODNI BANKA SA
015 B000054 S
015 C010054 BRATISLAVA
015 D010054 SLOVAK REPUBLIC
015 D020054 815 63
015 E040054 X
015 A000055 BARCLAYS BANK OF ZIMBABWE
015 B000055 S
015 C010055 HARARE
015 D010055 ZIMBABWE
015 E040055 X
018 000000 Y
019 A000000 Y
019 B000000 190
019 C000000 FRNKTEMGRP
020 A000001 HOENIG AND COMPANY INC
020 B000001 HONG KONG
020 C000001 113
020 A000002 NOMURA SECURITIES INTNL
020 B000002 13-2642206
020 C000002 66
020 A000003 STANDARD CHARTERED SECURITIES
020 B000003 HONG KONG
020 C000003 40
<PAGE> PAGE 9
"020 A000004 MERRILL LYNCH, PIERCE, FENNER & SMITH"
020 B000004 HONG KONG
020 C000004 34
020 A000005 SWISS BANK CORP
020 B000005 13-2639550
020 C000005 32
020 A000006 WORLD SECURITIES
020 B000006 HONG KONG
020 C000006 21
020 A000007 JAMES CAPEL (FAR EAST) LTD
020 B000007 HONG KONG
020 C000007 20
020 A000008 SMITH NEWCOURT SECURITIES
020 B000008 HONG KONG
020 C000008 17
020 A000009 CREDIT LYONNAIS
020 B000009 HONG KONG
020 C000009 9
020 A000010 CROSBY SECURITIES
020 B000010 ENGLAND
020 C000010 7
021 000000 385
022 A000001 THE CHASE MANHATTAN BANK NA
022 B000001 13-2633612
022 C000001 193379
022 D000001 105388
022 C000002 0
022 D000002 0
022 C000003 0
022 D000003 0
022 C000004 0
022 D000004 0
022 C000005 0
022 D000005 0
022 C000006 0
022 D000006 0
022 C000007 0
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 193379
023 D000000 105388
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
<PAGE> PAGE 10
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 Y
027 000000 N
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 0
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 0
028 H000000 0
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
035 000000 0
<PAGE> PAGE 11
036 B000000 0
038 000000 0
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 1.250
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
<PAGE> PAGE 12
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 N
060 B000000 N
061 000000 0
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 Y
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 Y
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 Y
070 B020000 N
<PAGE> PAGE 13
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 82638
071 B000000 6032
071 C000000 200420
071 D000000 3
072 A000000 12
072 B000000 2041
072 C000000 8846
072 D000000 0
072 E000000 0
072 F000000 3197
072 G000000 492
072 H000000 0
072 I000000 135
072 J000000 115
072 K000000 11
072 L000000 11
072 M000000 38
072 N000000 6
072 O000000 0
<PAGE> PAGE 14
072 P000000 0
072 Q000000 0
072 R000000 35
072 S000000 14
072 T000000 0
072 U000000 5
072 V000000 0
072 W000000 5
072 X000000 4064
072 Y000000 0
072 Z000000 6823
072AA000000 580
072BB000000 505
072CC010000 0
072CC020000 39054
072DD010000 3932
072DD020000 0
072EE000000 21356
073 A010000 0.1950
073 A020000 0.0000
073 B000000 1.0650
073 C000000 0.0000
074 A000000 12096
074 B000000 0
074 C000000 20898
074 D000000 0
074 E000000 0
074 F000000 215302
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 390
074 M000000 14
074 N000000 248700
074 O000000 1730
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 988
074 S000000 0
074 T000000 245982
074 U010000 20384
074 U020000 0
074 V010000 12.07
074 V020000 0.00
074 W000000 0.0000
074 X000000 1389
<PAGE> PAGE 15
074 Y000000 0
075 A000000 0
075 B000000 245890
076 000000 10.50
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 B000000 NONE
080 C000000 130000
081 A000000 Y
081 B000000 189
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 427
086 B020000 5593
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
087 A010000 COMMON STOCK
087 A020000 88018X102
087 A030000 TCH
088 A000000 N
088 B000000 N
088 C000000 N
088 D000000 N
SIGNATURE JAMES R. BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON CHINA WORLD FUND AUGUST 31, 1995 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000909226
<NAME> TEMPLETON CHINA WORLD FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 280158797
<INVESTMENTS-AT-VALUE> 236200296
<RECEIVABLES> 389884
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 12110013
<TOTAL-ASSETS> 248700193
<PAYABLE-FOR-SECURITIES> 1730109
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 987603
<TOTAL-LIABILITIES> 2717712
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 285713724
<SHARES-COMMON-STOCK> 20383771
<SHARES-COMMON-PRIOR> 19957179
<ACCUMULATED-NII-CURRENT> 4832161
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (173436)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (44389968)
<NET-ASSETS> 245982481
<DIVIDEND-INCOME> 8846207
<INTEREST-INCOME> 2041077
<OTHER-INCOME> 0
<EXPENSES-NET> 4064673
<NET-INVESTMENT-INCOME> 6822611
<REALIZED-GAINS-CURRENT> 75079
<APPREC-INCREASE-CURRENT> (39053880)
<NET-CHANGE-FROM-OPS> (32156190)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3932176
<DISTRIBUTIONS-OF-GAINS> 21356313
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 426592
<NET-CHANGE-IN-ASSETS> (51852058)
<ACCUMULATED-NII-PRIOR> 1941726
<ACCUMULATED-GAINS-PRIOR> 21107798
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3196568
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4064673
<AVERAGE-NET-ASSETS> 200419864
<PER-SHARE-NAV-BEGIN> 14.92
<PER-SHARE-NII> .33
<PER-SHARE-GAIN-APPREC> (1.91)
<PER-SHARE-DIVIDEND> (.20)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> (1.07)
<PER-SHARE-NAV-END> 12.07
<EXPENSE-RATIO> 1.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Board of Directors and Shareholders
Templeton China World Fund, Inc.
In planning and performing our audit of the financial statements of Templeton
China World Fund, Inc. for the year ended August 31, 1995, we considered its
internal control structure, including procedures for safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control structure.
The management of Templeton China World Fund, Inc. is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
August 31, 1995.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/ MCGLADREY & PULLEN, LLP
McGladrey & Pullen, LLP
New York, New York
September 29, 1995
<PAGE>
