NAME OF REGISTRANT:
TEMPLETON GLOBAL INCOME FUND
FILE NO. 811-05459

EXHIBIT ITEM NO. 77(E): LEGAL PROCEEDINGS

REGULATORY MATTERS

MASSACHUSETTS   ADMINISTRATIVE   PROCEEDING
On September 20, 2004, Franklin Resources,  Inc. (Franklin  Resources,  Inc. and
its subsidiaries  are referred to collectively as the "Company")  announced that
an agreement  has been reached by two of its  subsidiaries,  Franklin  Advisers,
Inc. ("Franklin Advisers") and Franklin Templeton Alternative  Strategies,  Inc.
("FTAS"),  with the  Securities  Division of the Office of the  Secretary of the
Commonwealth  of  Massachusetts  (the  "State of  Massachusetts")  related to an
administrative compliant filed on February 4, 2004. The administrative compliant
addressed one instance of market timing that was also a subject of the August 2,
2004 settlement that Franklin Advisers reached with the SEC, as described below.

Under  the  terms  of the  settlement  consent  order  issued  by the  State  of
Massachusetts,  Franklin  Advisers  and FTAS  have  consented  to the entry of a
cease-and-desist order and agreed to pay a $5 million administrative fine to the
State of  Massachusetts.  The consent  order has  multiple  sections,  including
"Statements of Fact" and  "Violations  of  Massachusetts  Securities  Laws." The
Company admitted the "Statements of Fact." The Company did not admit or deny the
"Violations of the  Massachusetts  Securities Laws." While Franklin Advisers and
FTAS did not admit or deny engaging in any wrongdoing, the Company believes that
it is in its best  interest  and the  interests  of its funds'  shareholders  to
settle this issue now and move forward.

U.S. SECURITIES AND EXCHANGE COMMISSION (SEC) SETTLEMENT
On August 2, 2004,  the Company  announced that an agreement had been reached by
Franklin Advisers with the SEC that resolves the issues resulting from the SEC's
investigation of market timing activity and the SEC issued an "Order instituting
administrative and cease-and-desist  proceedings pursuant to sections 203(e) and
203(k) of the Investment  Advisers Act of 1940 and sections 9(b) and 9(f) of the
Investment  Company Act of 1940, making findings and imposing remedial sanctions
and a cease-and-desist  order"  (the  "Order").  The SEC's  Order  concerns  the
activities  of a limited  number of third  parties  that ended in 2000 and those
that are the subject of the  Massachusetts  administrative  compliant  described
above.

Under the terms of the SEC's Order, pursuant to which Franklin Advisers neither
admits nor denies any wrongdoing, Franklin Advisers  has  agreed to pay $50
million,  of which  $20  million  is a  civil  penalty, to be  distributed  to
shareholders of certain funds in  accordance  with a plan to be developed by an
Independent Distribution Consultant.  At this time,  it is unclear which funds
will receive distributions or which  shareholders  of any particular fund will
receive distributions.  The SEC Order also requires Franklin Advisers to, among
other things, enhance and  periodically review compliance   policies  and
procedures.

OTHER GOVERNMENTAL  INVESTIGATIONS
As part of ongoing investigations by the SEC, the U.S. Attorney for the Northern
District of California,  the New York Attorney General,  the California Attorney
General,  the U.S.  Attorney  for the  District  of  Massachusetts,  the Florida
Department of Financial  Services and the  Commissioner of Securities,  the West
Virginia  Attorney  General,  the  Vermont  Department  of  Banking,  Insurance,
Securities,  and Health Care  Administration  and the  National  Association  of
Securities  Dealers,  relating to certain practices in the mutual fund industry,
including  late trading,  market  timing and payments to securities  dealers who
sell fund shares,  the Company and its subsidiaries,  as well as certain current
or former  executives and employees of the Company,  have received  requests for
information  and/or subpoenas to testify or produce  documents.  The Company and
its current employees have been providing  documents and information in response
to these  requests  and  subpoenas.  In addition,  the Company has  responded to
requests for similar kinds of information from regulatory authorities in some of
the foreign  countries  where the Company  conducts its global asset  management
business.

The staff of the SEC has  also  informed  the  Company  that it is  considering
recommending a civil action or proceeding against Franklin Advisers and Franklin
Templeton Distributors,  Inc. ("FTDI") concerning payments to securities dealers
who sell fund shares (commonly referred to as "revenue  sharing").  The staff of
the California  Attorney  General's Office ("CAGO") also has advised the Company
that the  California  Attorney  General is  authorized  to bring a civil  action
against the  Company  and FTDI  arising  from the same  events.  Even though the
Company  currently  believes  that the  charges the SEC staff and CAGO staff are
contemplating are unwarranted,  it also believes that it is in the best interest
of the Company's and funds' shareholders to resolve these issues voluntarily, to
the extent the  Company can  reasonably  do so. The  Company  continues  to have
discussion towards resolving these governmental investigations.

OTHER LEGAL PROCEEDINGS
The Company,  in addition  to other entities  within Franklin Templeton
Investments, including certain of its subsidiaries, other funds, and current and
former officers, employees, and directors have been named in multiple lawsuits
in  different federal  courts in  Nevada, California, Illinois,  New York and
Florida, alleging  violations of various federal securities laws and seeking,
among other things, monetary damages and costs. Specifically, the lawsuits claim
breach of duty with  respect to alleged  arrangements  to permit market timing
and/or late trading activity, or breach of duty with respect to the valuation of
the  portfolio  securities  of certain funds  managed by Company subsidiaries,
resulting in alleged  market timing activity.  The majority of these lawsuits
duplicate,  in whole or in part, the allegations asserted in the  Massachusetts
administrative compliant  detailed  above.  The lawsuits are styled as class
actions  or  derivative  actions  on  behalf of either the named  funds or the
Company.

Various subsidiaries of the Company have also been named in multiple lawsuits
filed in state courts in Illinois alleging breach of duty with respect to
valuation of the portfolio securities of certain funds managed by such
subsidiaries.

In  addition, the Company and certain of its subsidiaries, as well as certain
current and former officers, employees, and directors have been  named in
multiple lawsuits  alleging  violations of various  securities laws and pendent
state law claims  relating  to the  disclosure  of directed  brokerage  payments
and/or payment of allegedly  excessive  advisory,  commissions and  distribution
fees. These lawsuits are styled as class actions and derivative  actions brought
on behalf of certain funds.

The Company's management strongly believes that the claims made in each of these
lawsuits are without merit and intends to vigorously defend against them.

The Company cannot predict with certainty the eventual  outcome of the foregoing
governmental  investigations or class actions or other lawsuits.  If the Company
finds that it bears  responsibility  for any unlawful or  inappropriate  conduct
that  caused  losses  to the Fund,  it is  committed  to making  the Fund or its
shareholders whole, as appropriate.