PAGE 1
000 B000000 03/31/98
000 C000000 919166
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008 D050001 HONG KONG
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010 C040001 3091
010 A000002 PRINCETON ADMINISTRATORS, L.P.
PAGE 2
010 B000002 8-00000
010 C010002 PLAINSBORO
010 C020002 NY
010 C030002 08536
010 A000003 PAINE WEBBER INC.
010 C010003 NEW YORK
010 C020003 NY
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012 C040001 0000
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PAGE 3
015 D010006 BANGLADESH
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PAGE 4
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PAGE 5
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PAGE 6
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PAGE 7
015 C010043 PORT LOUIS
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PAGE 8
015 D010052 PERU
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PAGE 9
015 D010061 SOUTH KOREA
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PAGE 10
015 E040070 X
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PAGE 11
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PAGE 12
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PAGE 13
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PAGE 14
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PAGE 15
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PAGE 16
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PAGE 17
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PAGE 18
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SIGNATURE JAMES R. BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON EMERGING MARKETS APPRECIATION FUND, INC. MARCH 31, 1998 ANNUAL
REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000919166
<NAME> TEMPLETON EMERGING MARKETS APPRECIATION FUND, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> MAR-31-1998
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<RECEIVABLES> 1326049
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<TOTAL-ASSETS> 60989921
<PAYABLE-FOR-SECURITIES> 2304903
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<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (834116)
<ACCUM-APPREC-OR-DEPREC> (1694196)
<NET-ASSETS> 58519647
<DIVIDEND-INCOME> 852816
<INTEREST-INCOME> 2753197
<OTHER-INCOME> 0
<EXPENSES-NET> (1203772)
<NET-INVESTMENT-INCOME> 2402241
<REALIZED-GAINS-CURRENT> 3700546
<APPREC-INCREASE-CURRENT> (4601081)
<NET-CHANGE-FROM-OPS> 1501706
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3087904)
<DISTRIBUTIONS-OF-GAINS> (6132921)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 95954
<NET-CHANGE-IN-ASSETS> (6555197)
<ACCUMULATED-NII-PRIOR> 453487
<ACCUMULATED-GAINS-PRIOR> 1880329
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (799588)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (1203772)
<AVERAGE-NET-ASSETS> 63967010
<PER-SHARE-NAV-BEGIN> 15.17
<PER-SHARE-NII> 0.56
<PER-SHARE-GAIN-APPREC> (0.23)
<PER-SHARE-DIVIDEND> (0.72)
<PER-SHARE-DISTRIBUTIONS> (1.43)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.35
<EXPENSE-RATIO> 1.88
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Board of Directors and Shareholders
Templeton Emerging Markets Appreciation Fund, Inc.
In planning and performing our audit of the financial statements of Templeton
Emerging Markets Appreciation Fund, Inc. for the year ended March 31, 1998, we
considered its internal control, including controls over 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 internal control.
The management of Templeton Emerging Markets Appreciation Fund, Inc. is
responsible for establishing and maintaining internal control. In fulfilling
this responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of controls. Generally, controls
that are relevant to an audit pertain to the entity's objective of preparing
financial statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles. Those controls include
safeguarding of assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and may not be detected. Also, projection of any evaluation of internal control
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 internal control would not necessarily disclose all matters
in internal control 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 component does not reduce to a relatively low level
the risk that errors or fraud 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 internal control, including
controls over safeguarding securities, that we consider to be material
weaknesses as defined above as of March 31, 1998.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/MCGLADREY & PULLEN, LLP
New York, New York
April 24, 1998
