188 P-1

                        SUPPLEMENT DATED NOVEMBER 7, 2003
                              TO THE PROSPECTUS OF
                           TEMPLETON CHINA WORLD FUND
                              DATED AUGUST 11, 2003

The prospectus is amended as follows:

I. The "Dealer Compensation" section on page 40 is replaced with the following:

 DEALER COMPENSATION

 Qualifying dealers who sell Fund shares may receive sales commissions and other
 payments. These are paid by Franklin Templeton Distributors, Inc.
 (Distributors) from sales charges, distribution and service (12b-1) fees and
 its other resources.
                                                    CLASS A  CLASS B   CLASS C
- -------------------------------------------------------------------------------
 COMMISSION (%)                                       --      4.00     2.00/4
 Investment under $50,000                            5.00      --       --
 $50,000 but under $100,000                          3.75      --       --
 $100,000 but under $250,000                         2.80      --       --
 $250,000 but under $500,000                         2.00      --       --
 $500,000 but under $1 million                       1.60      --       --
 $1 million or more                           up to 1.00/1     --       --
 12B-1 FEE TO DEALER                             0.25/1,/2   0.25/3   1.00/5

A dealer  commission of up to 1% may be paid on Class A NAV purchases by certain
retirement  plans/1 and on Class C NAV purchases.  A dealer  commission of up to
0.25% may be paid on Class A NAV purchases by certain  trust  companies and bank
trust  departments,  eligible  governmental  authorities,  and broker-dealers or
others on behalf of clients participating in comprehensive fee programs.

MARKET  TIMERS.  Please note that for Class A NAV  purchases  by Market  Timers,
including  purchases of $1 million or more,  dealers are not eligible to receive
the dealer commission.  Dealers,  however,  may be eligible to receive the 12b-1
fee from the date of purchase.

 1. For purchases at NAV where Distributors paid a prepaid commission, dealers
 may start to receive the 12b-1 fee in the 13th month after purchase. For
 purchases at NAV where Distributors did not pay a prepaid commission, dealers
 may start to receive the 12b-1 fee at the time of purchase.

 2. The Fund may pay up to 0.35% to Distributors or others, out of which 0.10%
 generally will be retained by Distributors for its distribution expenses.

 3. Dealers may be eligible to receive up to 0.25% from the date of purchase.
 After eight years, Class B shares convert to Class A shares and dealers may
 then receive the 12b-1 fee applicable to Class A.

 4. Commission includes advance of the first year's 0.25% 12b-1 service fee. For
 purchases at NAV, Distributors may pay a prepaid commission.

 5. Dealers may be eligible to receive up to 0.25% at the time of purchase and
 may be eligible to receive 1% starting in the 13th month. During the first 12
 months, the full 12b-1 fee will be paid to Distributors to partially offset
 commission and the prepaid service fee paid at the time of purchase. For
 purchases at NAV where Distributors did not pay a prepaid commission, dealers
 may start to receive the 12b-1 fee at the time of purchase.

               Please keep this supplement for future reference