AMENDMENT TO
                    FRANKLIN TEMPLETON INVESTOR SERVICES, LLC
                TRANSFER AGENT AND SHAREHOLDER SERVICES AGREEMENT

     Effective  as of October 16, 2006,  the  undersigned  parties  hereby amend
Schedule A  (Compensation  for  Servicing)  and  Schedule B  (Reimbursement  for
Out-of-Pocket Expenses) of the Transfer Agent and Shareholder Services Agreement
between Templeton China World Fund and Franklin Templeton Investor Services, LLC
("FTIS").

     IN WITNESS  WHEREOF, the parties hereto have caused this  Agreement to be
executed by their respective duly authorized corporate officers.

TEMPLETON CHINA WORLD FUND                FRANKLIN TEMPLETON INVESTOR
                                          SERVICES, LLC



By: /s/ROBERT C. ROSSELOT                  /s/BASIL K. FOX, JR.
   ------------------------                ----------------------------
Name: Robert C. Rosselot                   Basil K. Fox, Jr.
Title: Secretary                           President









                               AMENDED SCHEDULE A

ANNUAL BASE SERVICING FEE FOR EACH FULL SERVICE ACCOUNT. A "Full Service
Account" is an account maintained by FTIS for a Fund shareholder of record,
other than a Networked Account (as defined in Section 3(c) of this Agreement) or
an account on which Beneficial Owner Servicing Fees (as defined in Section 3(b)
of this Agreement) are paid.

         EQUITY FUND                $24.00 per annum
         FIXED INCOME FUND          $28.00 per annum
         MONEY FUND                 $19.50 per annum
         CLOSED ACCOUNT $ 3.50 per annum (pro-rated beginning with the calendar
month in which the account is closed and continuing through the month of the
following calendar year in which the account is purged from the operative record
system)

ANNUAL BASE SERVICING FEE FOR EACH NETWORKED ACCOUNT (AS DEFINED IN SECTION 3(C)
OF THIS AGREEMENT):

         EQUITY FUND                $12.00 per annum
         FIXED INCOME FUND          $14.00 per annum
         MONEY FUND                 $10.00 per annum
         CLOSED ACCOUNT $ 3.50 per annum (pro-rated beginning with the calendar
month in which the account is closed and continuing through the month of the
following calendar year in which the account is purged from the operative record
system)

ANNUAL BASE SERVICING FEE FOR EACH BENEFICIAL OWNER (AS DEFINED IN SECTION 3(B)
OF THIS AGREEMENT):

         OPEN ACCOUNT               $6.00 per annum

PARTICIPANT LEVEL RECORD KEEPING BY OR ON BEHALF OF FTIS FOR A PARTICIPANT
DIRECTED PLAN (as defined in Section 3(b)(ii) of this Agreement): Fifteen (15)
basis points per annum of the average net asset value of Fund shares held by a
Participant Directed Plan. The average net assets invested by a Participant
Directed Plan shall be computed in the same manner as the Fund uses to compute
its average net assets.




                               AMENDED SCHEDULE B

OUT-OF-POCKET EXPENSES

         In addition to Beneficial Owner Servicing Fees and Networked Account
Servicing Fees paid in accordance with Section 3 of this Agreement, the
Investment Company shall reimburse FTIS monthly for the following out-of-pocket
expenses paid to third parties in connection with the servicing of Accounts as
required under the terms of this Agreement:

     o postage, mailing, freight, forms and stationary expenses associated with
       delivery of shareholder communications such as prospectuses,  reports,
       tax  information,  proxies,  shareholder  statements  and  transaction
       confirmations.
     o telephone costs associated with servicing shareholders in accordance with
       this agreement
     o ACH,  Federal  Reserve and bank charges for check  clearance,  electronic
       funds transfers, and wire transfers
     o Data Storage:  Retention of electronic and paper account  records;  costs
       associated  with data  storage of  account  records  and  transactions
       records via magnetic tape, microfilm and microfiche
     o insurance against loss of Share certificates when in transit
     o terminals, transmitting lines and any expenses incurred in connection
       with such terminals and lines established  and/or maintained by FTIS to
       perform its obligations under this agreement
     o Amounts  paid to  independent  accounting  firms to  perform  independent
       audits of FTIS and the issuance of reports such as a SAS 70
     o Amounts paid in connection with use of national data bases to comply with
       requirements for locating lost shareholders
     o Proxy solicitation and tabulation expenses
     o NSCC  Networking/Commission  Settlement  Expenses. Cost to utilize  NSCC
       system to send commissions to brokerage firms; NSCC Fee, NSCC Year End
       Fee,  NSF Draft Fee Credit
     o IBM Global Services - Cost of sending out eStatements
     o all  other  miscellaneous  expenses  reasonably  incurred  by FTIS in the
       performance of its obligations under the Agreement

     This  Schedule B may be amended by FTIS upon not less than 30 days' written
notice to the Investment Company, subject to approval by the Board.