SUPPLEMENT DATED JANUARY 15, 1997
                              TO THE PROSPECTUS
                                    OF THE
                           FRANKLIN PARTNERS FUNDS(R)
               FRANKLIN TAX-ADVANTAGED INTERNATIONAL BOND FUND
           FRANKLIN TAX-ADVANTAGED U.S. GOVERNMENT SECURITIES FUND
              FRANKLIN TAX-ADVANTAGED HIGH YIELD SECURITIES FUND
                      (THE "FUNDS" OR "PARTNERS FUNDS")
                              DATED MAY 1, 1996

Due to changes in U.S.  tax laws which take  effect as to the Funds at the end
of 1997,  the Managing  General  Partners  voted  yesterday to recommend  that
Partners  approve the  liquidation of the Funds.  In order to permit  Non-U.S.
Partners to continue to receive income free of U.S. taxation,  the liquidation
will enable  Non-U.S.  Partners'  assets to be  invested  in a similar  pooled
investment   vehicle   outside  the  U.S.   (Among  the   alternatives   under
consideration  for Non-U.S.  Partners  will be three  series of the  Templeton
Global Strategy SICAV, each of which parallels the respective  Partners Fund.)
U.S.  Partners who do not exchange into other  Franklin/Templeton  funds prior
to the liquidation  will receive the cash value of their shares at the time of
the liquidation.

New  accounts,  and sales of shares of the Partners  Funds to U.S.  investors,
have been  restricted  for some time.  Non-U.S.  investors  are  permitted  to
establish  new  accounts  and  contribute  to existing  accounts.  If Partners
approve  the  liquidation,  new  accounts  will  not be  accepted  after  such
approval,  and it is expected that additional investments in existing accounts
will no longer be  accepted  starting  approximately  thirty  days  before the
liquidation, which is presently expected to occur by the summer of 1997.