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                         AIM INTERNATIONAL FUNDS, INC.

                         AIM INTERNATIONAL EQUITY FUND

                       Supplement dated December 16, 1996
                     to the Prospectus dated March 1, 1996
     as supplemented March 29, 1996, October 11, 1996 and November 5, 1996

APPROVAL OF NEW ADVISORY, ADMINISTRATIVE SERVICES AND DISTRIBUTION AGREEMENTS

         On December 11, 1996, the Board of Directors (the "Board") of AIM
International Funds, Inc. (the "Company") approved a new investment advisory
agreement, subject to shareholder approval, between A I M Advisors, Inc.
("AIM") and the Company with respect to AIM International Equity Fund (the
"Fund").  Shareholders will be asked to approve the proposed advisory agreement
at an annual meeting of shareholders to be held on February 7, 1997 (the
"Annual Meeting").  The Board has also approved a new administrative services
agreement with AIM and a new distribution agreement with A I M Distributors,
Inc.  There have been no material changes to the terms of the new agreements,
including the fees payable by the Fund.  No change is anticipated in the
investment advisory or other personnel responsible for the Fund as a result of
these new agreements.

         The Board has approved these new agreements because the Fund's
corresponding existing agreements will terminate upon the consummation of the
proposed merger of A I M Management Group Inc., the parent of AIM, into a
subsidiary of INVESCO plc.  INVESCO plc and its subsidiaries are an independent
investment management group engaged in institutional investment management and
retail mutual fund businesses in the United States, Europe and the Pacific
region.  It is contemplated that the merger will occur on February 28, 1997.
Provided that each Fund's shareholders approve the new advisory agreement at
the Annual Meeting and the merger is consummated, the new advisory agreement
with respect to the Fund, as well as the new administrative services and
distribution agreements, will automatically become effective as of the closing
of the merger.

PROPOSED CHANGES TO FUNDAMENTAL INVESTMENT POLICIES

         The Board has unanimously approved the elimination of and a change to
certain fundamental investment policies of the Fund, subject to shareholder
approval.  Shareholders will be asked to approve these changes at the Annual
Meeting.  If approved, they will become effective on March 1, 1997.

         Investment in Other Investment Companies

         The Fund is currently prohibited from investing more than 5% of its
assets in securities of a single issuer or holding more than 10% of the
outstanding voting securities of an issuer, except that the Fund may invest up
to 25% of all assets without regard to such restrictions.  The Board has
approved the amendment of this fundamental investment policy to permit
investment in other investment companies to the extent permitted by the
Investment Company Act of 1940, and rules and regulations thereunder, and, if
applicable, exemptive orders granted by the Securities and Exchange Commission.

         For additional information regarding the proposed change described
above, see the Fund's Statement of Additional Information dated March 1, 1996,
as supplemented December 16, 1996 (the "Supplemented Statement of Additional
Information").

         Investment in Unseasoned Issuers

         The Fund is currently prohibited from investing in securities of
issuers that, together with their predecessors, have less than three years of
continuous operations.  The Board has approved the elimination of this
prohibition.  The Fund desires to purchase securities of unseasoned issuers
because such securities may provide opportunities for long term capital growth.
Greater risks are associated with investments in securities of unseasoned
issuers than in the securities of more established companies because unseasoned
issuers have only a brief operating history and may have more limited markets
and financial resources.  As a result, securities of unseasoned issuers tend to
be more volatile than securities of more established companies.

         For additional information regarding this proposed change, see the
Supplemented Statement of Additional Information.