<PAGE>
PAGE 1
000 B000000 03/31/97
000 C000000 0000930828
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 RUSSIA FUND, INC.
001 B000000 811-08788
001 C000000 9545277591
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 ASSET MANAGEMENT LIMITED
008 B000001 A
008 C000001 801-42967
008 D010001 SINGAPORE
008 D050001 SINGAPORE
010 A000001 FRANKLIN TEMPLETON SERVICES INC.
010 C010001 FT. LAUDERDALE
010 C020001 FL
010 C030001 33394
010 C040001 3091
010 A000002 PRINCETON ADMINISTRATORS, L.P.
010 B000002 8-00000
010 C010002 PLAINSBORO
010 C020002 NJ
010 C030002 08536
012 A000001 CHASEMELLON SHAREHOLDER SERVICES
012 B000001 84-0000
012 C010001 RIDGEFIELD PARK
<PAGE>
PAGE 2
012 C020001 NJ
012 C030001 07660
013 A000001 MCGLADREY & PULLEN, LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10017
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
015 B000003 S
015 C010003 SYDNEY
015 D010003 AUSTRALIA
015 D020003 2000
015 E040003 X
015 A000004 CREDITANSTALT-BANKVEREIN
015 B000004 S
015 C010004 VIENNA
015 D010004 AUSTRIA
015 D020004 A-1011
015 E040004 X
015 A000005 STANDARD CHARTERED BANK
015 B000005 S
015 C010005 DHAKA
015 D010005 BANGLADESH
015 D020005 1000
015 E040005 X
015 A000006 GENERALE BANK
015 B000006 S
015 C010006 BRUXELLES
015 D010006 BELGIUM
015 D020006 1000
015 E040006 X
015 A000007 THE ROYAL BANK OF CANADA
015 B000007 S
015 C010007 TORONTO
015 D010007 CANADA
015 D020007 M5J 2J5
015 E040007 X
015 A000008 CANADA TRUST
015 B000008 S
015 C010008 TORONTO
<PAGE>
PAGE 3
015 D010008 CANADA
015 D020008 M5J 2T2
015 E040008 X
015 A000009 CESKOSLOVENSKA OBCHODNI BANKA, AS
015 B000009 S
015 C010009 PRAGUE
015 D010009 CZECH REPUBLIC
015 D020009 115 20
015 E040009 X
015 A000010 DEN DANSKE BANK
015 B000010 S
015 C010010 COPENHAGEN
015 D010010 DENMARK
015 E040010 X
015 A000011 NATIONAL BANK OF EGYPT
015 B000011 S
015 C010011 CAIRO
015 D010011 EGYPT
015 E040011 X
015 A000012 MERITA BANK LTD
015 B000012 S
015 C010012 HELSINKI
015 D010012 FINLAND
015 E040012 X
015 A000013 BANQUE PARIBAS
015 B000013 S
015 C010013 PARIS
015 D010013 FRANCE
015 D020013 75078
015 E040013 X
015 A000014 CHASE MANHATTAN BANK AG
015 B000014 S
015 C010014 FRANKFURT
015 D010014 GERMANY
015 D020014 60284
015 E040014 X
015 A000015 BARCLAYS BANK OF GHANA LTD.
015 B000015 S
015 C010015 ACCRA
015 D010015 GHANA
015 E040015 X
015 A000016 BARCLAYS BANK PLC
015 B000016 S
015 C010016 ATHENS
015 D010016 GREECE
015 D020016 10562
015 E040016 X
015 A000017 THE CHASE MANHATTAN BANK
015 B000017 S
015 C010017 HONG KONG
015 D010017 HONG KONG
<PAGE>
PAGE 4
015 E040017 X
015 A000018 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000018 S
015 C010018 JAKARTA
015 D010018 INDONESIA
015 D020018 10023
015 E040018 X
015 A000019 BANK OF IRELAND
015 B000019 S
015 C010019 DUBLIN
015 D010019 IRELAND
015 E040019 X
015 A000020 BANK LEUMI LE-ISRAEL B.M.
015 B000020 S
015 C010020 TEL AVIV
015 D010020 ISRAEL
015 D020020 61000
015 E040020 X
015 A000021 THE CHASE MANHATTAN BANK
015 B000021 S
015 C010021 MILAN
015 D010021 ITALY
015 D020021 20121
015 E040021 X
015 A000022 THE FUJI BANK LTD.
015 B000022 S
015 C010022 TOKYO
015 D010022 JAPAN
015 E040022 X
015 A000023 THE CHASE MANHATTAN BANK
015 B000023 S
015 C010023 KUALA LUMPUR
015 D010023 MALAYSIA
015 D020023 50250
015 E040023 X
015 A000024 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000024 S
015 C010024 CUREPIPE
015 D010024 MAURITIUS
015 E040024 X
015 A000025 THE CHASE MANHATTAN BANK
015 B000025 S
015 C010025 MEXICO CITY
015 D010025 MEXICO
015 D020025 01210
015 E040025 X
015 A000026 BANQUE COMMERCIALE DU MAROC
015 B000026 S
015 C010026 CASABLANCA
015 D010026 MOROCCO
015 D020026 20000
<PAGE>
PAGE 5
015 E040026 X
015 A000027 ABN AMRO NV
015 B000027 S
015 C010027 DE BREDA
015 D010027 NETHERLANDS
015 D020027 4800
015 E040027 X
015 A000028 NATIONAL NOMINEES LTD
015 B000028 S
015 C010028 AUCKLAND
015 D010028 NEW ZEALAND
015 E040028 X
015 A000029 DEN NORSKE BANK
015 B000029 S
015 C010029 OSLO
015 D010029 NORWAY
015 D020029 N-0107
015 E040029 X
015 A000030 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000030 S
015 C010030 PASIG CITY
015 D010030 PHILIPPINES
015 E040030 X
015 A000031 BANCO ESPIRITO SANTO & COMMERCIAL DE LISBOA
015 B000031 S
015 C010031 LISBON
015 D010031 PORTUGAL
015 D020031 1200
015 E040031 X
015 A000032 BARCLAYS BANK PLC
015 B000032 S
015 C010032 NICOSIA
015 D010032 CYPRUS
015 D020032 1644
015 E040032 X
015 A000033 CITIBANK, N.A.
015 B000033 S
015 C010033 QUITO
015 D010033 ECUADOR
015 E040033 X
015 A000034 THE BRITISH BANK OF THE MIDDLE EAST
015 B000034 S
015 C010034 BEIRUT
015 D010034 LEBANON
015 D020034 125047
015 E040034 X
015 A000035 THE CHASE MANHATTAN BANK
015 B000035 S
015 C010035 SINGAPORE
015 D010035 SINGAPORE
015 D020035 189720
<PAGE>
PAGE 6
015 E040035 X
015 A000036 CESKOSLOVENSKA OBCHODNI BANKA AS
015 B000036 S
015 C010036 BRATISLAVA
015 D010036 SLOVAKIA
015 D020036 815-63
015 E040036 X
015 A000037 STANDARD CORPORATE AND MERCHANT BANK
015 B000037 S
015 C010037 JOHANNESBURG
015 D010037 SOUTH AFRICA
015 D020037 2001
015 E040037 X
015 A000038 THE CHASE MANHATTAN BANK
015 B000038 S
015 C010038 MADRID
015 D010038 SPAIN
015 D020038 28046
015 E040038 X
015 A000039 SKANDINAVISKA ENSKILDA BANKEN
015 B000039 S
015 C010039 STOCKHOLM
015 D010039 SWEDEN
015 D020039 S-106 40
015 E040039 X
015 A000040 UNION BANK OF SWITZERLAND
015 B000040 S
015 C010040 ZURICH
015 D010040 SWITZERLAND
015 D020040 8021
015 E040040 X
015 A000041 THE CHASE MANHATTAN BANK
015 B000041 S
015 C010041 BANGKOK
015 D010041 THAILAND
015 D020041 10500
015 E040041 X
015 A000042 THE CHASE MANHATTAN BANK
015 B000042 S
015 C010042 LONDON
015 D010042 UNITED KINGDOM
015 D020042 EC2P 2HD
015 E040042 X
015 A000043 FIRST NATIONAL BANK OF BOSTON
015 B000043 S
015 C010043 MONTEVIDEO
015 D010043 URUGUAY
015 E040043 X
015 A000044 BARCLAYS BANK OF ZIMBABWE
015 B000044 S
015 C010044 HARARE
<PAGE>
PAGE 7
015 D010044 ZIMBABWE
015 E040044 X
015 A000045 AUSTRALIA RESERVE BANK
015 B000045 S
015 C010045 SYDNEY
015 D010045 AUSTRALIA
015 E040045 X
015 A000046 BARCLAYS BANK OF ZAMBIA
015 B000046 S
015 C010046 LUSAKA
015 D010046 ZAMBIA
015 E040046 X
015 A000047 CEDEL BANK S.A.
015 B000047 S
015 C010047 LUXEMBOURG
015 D010047 LUXEMBOURG
015 E040047 X
015 A000048 FIRST CHICAGO CLEARING CENTRE
015 B000048 S
015 C010048 LONDON
015 D010048 UNITED KINGDOM
015 D020048 EC3A 1AA
015 E040048 X
015 A000049 BARCLAYS BANK OF BOTSWANA LIMITED
015 B000049 S
015 C010049 GABORONE
015 D010049 BOTSWANA
015 E040049 X
015 A000050 BARCLAYS BANK OF KENYA
015 B000050 S
015 C010050 NAIROBI
015 D010050 KENYA
015 E040050 X
015 A000051 THE BRITISH BANK OF THE MIDDLE EAST
015 B000051 S
015 C010051 MUSCAT
015 D010051 OMAN
015 E040051 X
015 A000052 BANQUE GRENERALE DU LUXEMBOURG S.A.
015 B000052 S
015 C010052 LUXEMBOURG
015 D010052 LUXEMBOURG
015 D020052 L-2951
015 E040052 X
015 A000053 STANDARD BANK OF NAMIBIA LTD
015 B000053 S
015 C010053 WINDHOEK
015 D010053 NAMIBIA
015 E040053 X
015 A000054 STANBIC BANK OF SWAZILAND LTD
015 B000054 S
<PAGE>
PAGE 8
015 C010054 MBABANO
015 D010054 SWAZILAND
015 E040054 X
018 000000 Y
019 A000000 Y
019 B000000 206
019 C000000 FRNKTEMGRP
020 A000001 DLJ CAPITAL MARKETS
020 C000001 1
020 A000002 ING BROKERAGE
020 B000002 NETHERLAND
020 C000002 1
020 A000003 NOMURA SECURITIES INTERNATIONAL
020 B000003 13-2642206
020 C000003 1
020 A000004 RIANCO PHUS MOSCOW
020 B000004 RUSSIA
020 C000004 1
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 4
022 A000001 BANK OF AMERICA
022 B000001 94-1687655
022 C000001 243620
022 D000001 0
022 A000002 AUBREY G. LANSTON & CO.
022 B000002 13-5552129
022 C000002 149769
022 D000002 0
022 A000003 BANKERS TRUST COMPANY
022 B000003 13-4941247
022 C000003 125380
022 D000003 0
022 A000004 MORGAN STANLEY & CO. INC.
022 B000004 13-2655998
022 C000004 121006
022 D000004 1800
022 A000005 UBS SECURITIES
022 B000005 13-2932996
022 C000005 101149
022 D000005 0
022 A000006 LEHMAN BROTHERS INC.
022 B000006 13-2518444
022 C000006 75099
022 D000006 0
022 A000007 DEUTSCHE MORGAN GRENFELL
022 B000007 13-2730828
<PAGE>
PAGE 9
022 C000007 62435
022 D000007 508
022 A000008 CHASE MANHATTAN BANK
022 B000008 13-3112953
022 C000008 51414
022 D000008 0
022 A000009 SWISS BANK CORP
022 B000009 NETHERLAND
022 C000009 50914
022 D000009 0
022 A000010 MERRILL LYNCH, PIERCE, FENNER & SMITH
022 B000010 13-5674085
022 C000010 47755
022 D000010 0
023 C000000 1243222
023 D000000 12525
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
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
<PAGE>
PAGE 10
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
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
<PAGE>
PAGE 11
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 Y
053 B000000 N
053 C000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
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
<PAGE>
PAGE 12
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 Y
070 B010000 Y
070 B020000 N
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 Y
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
<PAGE>
PAGE 13
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 16044
071 B000000 27921
071 C000000 85049
071 D000000 19
072 A000000 12
072 B000000 1405
072 C000000 431
072 D000000 0
072 E000000 0
072 F000000 1274
072 G000000 281
072 H000000 0
072 I000000 15
072 J000000 880
072 K000000 0
072 L000000 27
072 M000000 13
072 N000000 16
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 55
072 S000000 51
072 T000000 0
072 U000000 22
072 V000000 0
072 W000000 5
072 X000000 2639
072 Y000000 0
072 Z000000 -803
072AA000000 16431
072BB000000 10
072CC010000 92329
072CC020000 0
072DD010000 477
072DD020000 0
072EE000000 3556
073 A010000 0.0900
073 A020000 0.0000
073 B000000 0.6700
073 C000000 0.0000
074 A000000 0
074 B000000 6474
074 C000000 27576
074 D000000 0
074 E000000 4723
074 F000000 127063
<PAGE>
PAGE 14
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 125
074 K000000 0
074 L000000 75
074 M000000 0
074 N000000 166036
074 O000000 1192
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 687
074 S000000 0
074 T000000 164157
074 U010000 5316
074 U020000 0
074 V010000 30.88
074 V020000 0.00
074 W000000 0.0000
074 X000000 186
074 Y000000 0
075 A000000 0
075 B000000 111722
076 000000 32.50
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 205
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 13
086 A020000 300
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
<PAGE>
PAGE 15
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
087 A010000 COMMON STOCK
087 A020000 88022F105
087 A030000 TRF
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 RUSSIA FUND MARCH 31, 1997 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK>0000930828
<NAME> TEMPLETON RUSSIA FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 88324619
<INVESTMENTS-AT-VALUE> 165835615
<RECEIVABLES> 130702
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 69900
<TOTAL-ASSETS> 166036217
<PAYABLE-FOR-SECURITIES> 1192018
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 687608
<TOTAL-LIABILITIES> 1879626
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 74603696
<SHARES-COMMON-STOCK> 5315678
<SHARES-COMMON-PRIOR> 5302678
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (823046)
<ACCUMULATED-NET-GAINS> 12864945
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 77510996
<NET-ASSETS> 164156591
<DIVIDEND-INCOME> 430319
<INTEREST-INCOME> 1405312
<OTHER-INCOME> 0
<EXPENSES-NET> 2638751
<NET-INVESTMENT-INCOME> (803120)
<REALIZED-GAINS-CURRENT> 16421485
<APPREC-INCREASE-CURRENT> 92329260
<NET-CHANGE-FROM-OPS> 107947625
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (477320)
<DISTRIBUTIONS-OF-GAINS> (3555773)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 13000
<NET-CHANGE-IN-ASSETS> 104214266
<ACCUMULATED-NII-PRIOR> 457394
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (767)
<GROSS-ADVISORY-FEES> 1273563
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2638751
<AVERAGE-NET-ASSETS> 111721884
<PER-SHARE-NAV-BEGIN> 11.30
<PER-SHARE-NII> (0.15)
<PER-SHARE-GAIN-APPREC> 20.49
<PER-SHARE-DIVIDEND> (0.09)
<PER-SHARE-DISTRIBUTIONS> (0.67)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 30.88
<EXPENSE-RATIO> 2.36<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
INCLUSIVE OF FEE WAIVER.
</FN>
</TABLE>
MCGLADREY & PULLEN, LLP
Certified Public Accountants and Consultants
The Board of Directors and Shareholders
Templeton Russia Fund, Inc.
In planning and performing our audit of the financial statements of Templeton
Russia Fund, Inc. for the year ended March 31, 1997, 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 Russia 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
March 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/MCGLADREY & PULLEN, LLP
McGaldrey & Pullen, LLP
New York, New York
April 25, 1997
