DFAN14A 1 ddfan14a.txt DEFINITIVE ADDITIONAL MATERIALS SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant [ ] Filed by a Party other than the Registrant [X] Check the appropriate box: [ ] Preliminary Proxy Statement [ ] Confidential, For Use of the [ ] Definitive Proxy Statement Commission Only (as permitted [X] Definitive Additional Materials by Rule 14a-6(e)(2)) [ ] Soliciting Material Pursuant to Rule 14a-12 TEMPLETON CHINA WORLD FUND, INC. -------------------------------- (Name of Registrant as Specified In Its Charter) PRESIDENT AND FELLOWS OF HARVARD COLLEGE ---------------------------------------- (Name of Person(s) Filing Proxy Statement if Other Than the Registrant) Payment of Filing Fee (check the appropriate box): [X] No fee required. [ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. 1) Title of each class of securities to which transaction applies: 2) Aggregate number of securities to which transaction applies: 3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11: 4) Proposed maximum aggregate value of transaction: 5) Total fee paid: [ ] Fee paid previously with preliminary materials: [ ] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. 1) Amount previously paid: 2) Form, Schedule or Registration Statement No.: 3) Filing Party: 4) Date Filed: HARVARD MANAGEMENT RESPONDS TO TEMPLETON'S BASELESS LITIGATION Boston - January 30, 2003. Harvard Management Company, Inc., through its spokesperson, today released the following statement regarding the litigation commenced against President and Fellows of Harvard College, Harvard Management Company, Inc., and Mr. Steven Alperin by Templeton China World Fund, Inc. (NYSE: TCH), Templeton Dragon Fund, Inc., and Templeton Asset Management Ltd.: "The allegations in the litigation are baseless. We have acted in accordance with applicable law. The litigation is a desperate act by Templeton and the Funds' Boards of Directors to divert attention from the important issues Harvard has raised regarding the management of Templeton China World Fund and Templeton Dragon Fund. "We would note that Templeton, a purported advocate of shareholder rights, is apparently unable to accept for itself the same standards it expects of other corporate managers. In particular, in its complaint, Templeton seeks to take away a fundamental right that we have as a shareholder -- the ability to vote our shares. "Harvard is a long-term investor in both Funds. We have watched as Templeton and the Funds' Boards of Directors have done remarkably little over the years to enhance shareholder value by eliminating the Funds' discounts to net asset value. "Now, finally, the China Fund Board proposes open-ending that Fund. We believe that is a bad idea. We have instead proposed that the Directors consider what we see as a more measured and moderate step -- having the Fund adopt interval-fund status, effectively limiting the amount of shareholder redemptions that will be allowed in any period of time. That should allow the Fund to manage more favorably the liquidation of the Fund's assets to meet redemptions. By contrast, open-ending will likely result in the sale of the Fund's investments at reduced prices to the detriment of all shareholders. "Why are the Boards of these Funds wasting time and, we assume, shareholder money suing a Fund shareholder for publicly expressing its views about the Funds? What are Templeton and the Directors afraid of? We say, let the shareholders vote. The China Fund Board has publicly announced that the Fund's annual meeting is expected to be held on March 14. But they haven't filed -- let alone mailed to shareholders -- any proxy materials or apparently taken any other steps to ensure that shareholders will have the ability to express their views at the meeting. We suspect the Board will now try to postpone the meeting in order to delay a shareholder vote. "If the China Fund Board is genuinely concerned with the welfare of shareholders, it will spend its time and shareholder money holding the annual meeting on time. If the Board wants to influence shareholders' views, it should do so through the lawful proxy process -- not through litigious end-runs designed to thwart shareholder democracy." Harvard owns 4,934,600 shares, or approximately 30%, of the China Fund's common stock. ON JANUARY 16, 2003, HARVARD MAILED PROXY MATERIALS TO ALL SHAREHOLDERS OF THE CHINA FUND. YOU MAY OBTAIN A FREE COPY OF THE PROXY STATEMENT AND OTHER PROXY MATERIALS AT THE SEC'S WEBSITE (WWW.SEC.GOV) OR BY CONTACTING MACKENZIE PARTNERS, INC. AT (800) 322-2885 (TOLL-FREE) OR (212) 929-5500 OR VIA E-MAIL AT PROXY@MACKENZIEPARTNERS.COM.