PAGE
PAGE 1
000 A000000 09/30/98
000 C000000 919893
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 DRAGON FUND, INC.
001 B000000 811-8874
001 C000000 9545277591
002 A000000 500 E. 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
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007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 TEMPLETON ASSET MANAGEMENT LIMITED
008 B000001 A
008 C000001 801-0005
008 D010001 HONG KONG
008 D050001 HONG KONG
010 A000001 FRANKLIN TEMPLETON SERVICES, INC
010 B000001 8-31192
010 C010001 FORT LAUDERDALE
010 C020001 FL
010 C030001 33394
010 C040001 3091
011 A000002
012 A000001 CHASEMELLON SHAREHOLDER SERVICES
012 B000001 85-0000
012 C010001 RIDGEFIELD PARK
012 C020001 NJ
PAGE
PAGE 2
012 C030001 07660
012 A000002 NOMURA CAPITAL MANAGEMENT
012 B000002 85-0000
012 C010002 NEW YORK
012 C020002 NY
012 C030002 10038
013 A000001 MCGLADREY & PULLEN, LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10017
013 B040001 2416
015 A000001 THE CHASE MANHATTAN BANK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10081
015 E010001 X
015 A000002 THE CHASE MANHATTAN BANK
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 D020002 1061
015 E040002 X
015 A000003 THE CHASE MANHATTAN BANK
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015 D010003 AUSTRALIA
015 D020003 2000
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015 A000004 CREDITANSTALT AG
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PAGE
PAGE 3
015 D020007 M5J 2J5
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015 D010014 GERMANY
015 E040014 X
015 A000015 BARCLAYS BANK PLC
015 B000015 S
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015 A000016 THE CHASE MANHATTAN BANK
015 B000016 S
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015 D010016 HONG KONG
015 E040016 X
015 A000017 THE HONGKONG AND SHANGHAI BANKING CORP. LTD.
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PAGE
PAGE 4
015 D010017 INDONESIA
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015 A000019 BANK LEUMI LE-ISRAEL B.M.
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015 E040019 X
015 A000020 BANQUE PARIBAS
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015 E040020 X
015 A000021 THE FUJI BANK LTD
015 B000021 S
015 C010021 TOKYO
015 D010021 JAPAN
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015 A000022 THE CHASE MANHATTAN BANK
015 B000022 S
015 C010022 KUALA LUMPUR
015 D010022 MALAYSIA
015 D020022 50250
015 E040022 X
015 A000023 THE CHASE MANHATTAN BANK, S.A.
015 B000023 S
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015 E040023 X
015 A000024 BANQUE COMMERCIALE DU MAROC
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015 B000025 S
015 C010025 DE BREDA
015 D010025 NETHERLANDS
015 D020025 4800
015 E040025 X
015 A000026 NATIONAL NOMINEES LIMITED
PAGE
PAGE 5
015 B000026 S
015 C010026 AUCKLAND
015 D010026 NEW ZEALAND
015 E040026 X
015 A000027 DEN NORSKE BANK AS
015 B000027 S
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015 A000028 THE HONGKONG AND SHANGHAI BANKING CORP. LTD.
015 B000028 S
015 C010028 PASIG CITY
015 D010028 PHILIPPINES
015 E040028 X
015 A000029 BANCO ESPIRITO SANTO E COMERCIAL DE LISBOA S.
015 B000029 S
015 C010029 LISBON
015 D010029 PORTUGAL
015 D020029 1250
015 E040029 X
015 A000030 THE HONGKONG AND SHANGHAI BANKING CORP. LTD.
015 B000030 S
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015 D010030 CHINA
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015 A000031 THE HONGKONG AND SHANGHAI BANKING CORP. LTD.
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015 C010031 SHENZHEN
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015 A000032 STANDARD CHARTERED BANK
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015 C010032 SINGAPORE
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015 A000033 THE STANDARD BANK OF SOUTH AFRICA LIMITED
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015 A000034 THE CHASE MANHATTAN BANK
015 B000034 S
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015 D010034 SPAIN
015 D020034 28046
015 E040034 X
015 A000035 SKANDINAVISKA ENSKILDA BANKEN
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PAGE
PAGE 6
015 C010035 STOCKHOLM
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015 A000036 UNION BANK OF SWITZERLAND AG
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015 A000037 THE CHASE MANHATTAN BANK
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015 D010037 THAILAND
015 D020037 10500
015 E040037 X
015 A000038 THE CHASE MANHATTAN BANK
015 B000038 S
015 C010038 LONDON
015 D010038 UNITED KINGDOM
015 D020038 EC2N 4AJ
015 E040038 X
015 A000039 THE FIRST NATIONAL BANK OF BOSTON
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015 A000040 BARCLAYS BANK OF ZIMBABWE
015 B000040 S
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015 A000043 BANQUE GENERALE DU LUXEMBOURG S.A.
015 B000043 S
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015 D010043 LUXEMBOURG
015 D020043 L-2951
015 E040043 X
015 A000044 HONG KONG BANK SECURITIES CUSTODIAL SVS DEPT.
015 B000044 S
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015 A000045 CITIBANK BUDAPEST RT.
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015 D010045 HUNGARY
015 D020045 H-1051
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PAGE
PAGE 7
015 A000046 BARCLAYS BANK OF GHANA LTD
015 B000046 S
015 C010046 ACCRA
015 D010046 GHANA
015 E040046 X
015 A000048 THE HONGKONG AND SHANGHAI BANKING CORP. LTD.
015 B000048 S
015 C010048 SEOUL
015 D010048 SOUTH KOREA
015 E040048 X
015 A000049 BARCLAYS BANK OF BOTSWANA LIMITED
015 B000049 S
015 C010049 GABORONE
015 D010049 BOTSWANA
015 E040049 X
015 A000050 CESKOSLOVENSKA OBCHODNI BANKA, A.S.
015 B000050 S
015 C010050 BRATISLAVA
015 D010050 SLOVAK REPUBLIC
015 D020050 815 63
015 E040050 X
015 A000051 BARCLAYS BANK OF KENYA
015 B000051 S
015 C010051 NAIROBI
015 D010051 KENYA
015 E040051 X
015 A000052 BARCLAYS BANK OF ZAMBIA
015 B000052 S
015 C010052 LUSAKA
015 D010052 ZAMBIA
015 D020052 31936
015 E040052 X
015 A000054 BANK HANDLOWY W. WARSZAWIE S.A.
015 B000054 S
015 C010054 WARSAW
015 D010054 POLAND
015 D020054 00-950
015 E040054 X
015 A000056 BARCLAYS BANK PLC
015 B000056 S
015 C010056 NICOSIA
015 D010056 CYPRUS
015 D020056 1644
015 E040056 X
015 A000057 CITIBANK, N.A.
015 B000057 S
015 C010057 QUITO
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PAGE
PAGE 8
015 E040057 X
015 A000059 STANDARD BANK NAMIBIA LTD
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015 C010059 WINDHOEK
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015 D020059 3327
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015 A000060 THE BRITISH BANK OF THE MIDDLE EAST
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015 A000063 BANQUE GENERALE DU LUXEMBOURG S.A.
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PAGE
PAGE 9
020 A000007 CAZENOVE
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PAGE
PAGE 10
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PAGE
PAGE 11
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PAGE
PAGE 12
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PAGE
PAGE 13
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PAGE
PAGE 14
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PAGE
PAGE 15
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SIGNATURE /s/JAMES R. BAIO
James R. Baio
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
The schedule contains summary financial information extracted from the
Templeton Dragon Fund, Inc. September 30, 1998 semi-annual report and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000919893
<NAME> TEMPLETON DRAGON FUND, INC.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> MAR-31-1999
<INVESTMENTS-AT-COST> 639171382
<INVESTMENTS-AT-VALUE> 450696993
<RECEIVABLES> 2101888
<ASSETS-OTHER> 0
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<TOTAL-ASSETS> 452798881
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1209638
<TOTAL-LIABILITIES> 1209638
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 748428003
<SHARES-COMMON-STOCK> 52859893
<SHARES-COMMON-PRIOR> 54007093
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (713605)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (107650766)
<ACCUM-APPREC-OR-DEPREC> (188474389)
<NET-ASSETS> 451589243
<DIVIDEND-INCOME> 14446701
<INTEREST-INCOME> 2581766
<OTHER-INCOME> 0
<EXPENSES-NET> 4532508
<NET-INVESTMENT-INCOME> 12495959
<REALIZED-GAINS-CURRENT> (85644813)
<APPREC-INCREASE-CURRENT> (182876789)
<NET-CHANGE-FROM-OPS> (256025643)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (15050771)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (1147200)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (281943370)
<ACCUMULATED-NII-PRIOR> 1841207
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (22005953)
<GROSS-ADVISORY-FEES> (3403571)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (4532508)
<AVERAGE-NET-ASSETS> 539595966
<PER-SHARE-NAV-BEGIN> 13.58
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> (4.99)
<PER-SHARE-DIVIDEND> (.29)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.54
<EXPENSE-RATIO> 1.68<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Expense ratio is annualized.
</FN>
</TABLE>
