EX-99.77B ACCT LTTR

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of
Templeton Dragon Fund, Inc.

In planning and performing our audit of the financial statements of Templeton
Dragon Fund, Inc. (the "Fund") as of and for the year ended December 31, 2008,
in accordance with the standards of the Public Company Accounting Oversight
Board (United States), we considered the Fund's internal control over financial
reporting, including controls over safeguarding securities, as a basis for
designing our auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of Form N-SAR, but
not for the purpose of expressing an opinion on the effectiveness of the Fund's
internal control over financial reporting. Accordingly, we do not express an
opinion on the effectiveness of the Fund's internal control over financial
reporting.

The management of the Fund is responsible for establishing and maintaining
effective internal control over financial reporting. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls. A fund's internal control over
financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted
accounting principles. A fund's internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the fund; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the fund are being made only
in accordance with authorizations of management and directors of the fund; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of a fund's assets that could have
a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.

A deficiency in internal control over financial reporting exists when the design
or operation of a control does not allow management or employees, in the normal
course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control over financial reporting, such
that there is a reasonable possibility that a material misstatement of the
Fund's annual or interim financial statements will not be prevented or detected
on a timely basis.

Our consideration of the Fund's internal control over financial reporting was
for the limited purpose described in the first paragraph and would not
necessarily disclose all deficiencies in internal control over financial
reporting that might be material weaknesses under standards established by the
Public Company Accounting Oversight Board (United States). However, we noted no
deficiencies in the Fund's internal control over financial reporting and its
operation, including controls over safeguarding securities, that we consider to
be material weaknesses as defined above as of December 31, 2008.

This report is intended solely for the information and use of management and the
Board of Directors of Templeton Dragon Fund, Inc. and the Securities and
Exchange Commission and is not intended to be and should not be used by anyone
other than these specified parties.

/s/PRICEWATERHOUSECOOPERS, LLP

February 20, 2009

EX-99.77C VOTES

NAME OF REGISTRANT:
TEMPLETON DRAGON FUND, INC.
FILE NO. 811-08394

EXHIBIT ITEM NO. 77(C) MATTER SUBMITTED TO A VOTE OF SECURITY HOLDERS


The Annual  Meeting of  Shareholders  of the  Templeton  Dragon Fund,  Inc. (the
"Fund") was held at the Fund's offices,  500 E. Broward Blvd.,  Fort Lauderdale,
Florida,  on May 30,  2008.  The  purpose of the  meeting  was to elect four (4)
Directors of the Fund and to consider the approval or rejection of a shareholder
proposal  to  request  that  the  Board of  Directors  consider  approving,  and
submitting for shareholder  approval at a future shareholder meeting, a proposal
to convert the Fund from a closed-end  fund to an open-end fund. At the meeting,
the following  persons were elected by the shareholders to serve as Directors of
the Fund: Harris J. Ashton,  Ann Torre Bates,  Frank J. Crothers and Constantine
D. Tseretopoulos.* No other business was transacted at the meetings.

The results of the voting at the Annual Meeting are as follows:

Proposal 1:  The election of four Directors:



                                                % OF          % OF                          % OF        % OF
                                            OUTSTANDING      VOTED                      OUTSTANDING    VOTED
  TERM EXPIRING 2011:             FOR         SHARES        SHARES        WITHHELD        SHARES      SHARES
- --------------------------------------------------------------------------------------------------------------
                                                                                     
  Harris J. Ashton............. 32,250,538     85.15%        96.67%      1,109,860          2.93%      3.33%
  Frank J. Crothers............ 32,264,767     85.19%        96.72%      1,095,531          2.89%      3.28%
  Constantine D. Tseretopoulos. 32,274,885     85.22%        96.75%      1,085,513          2.87%      3.25%




                                                % OF          % OF                          % OF        % OF
                                            OUTSTANDING      VOTED                      OUTSTANDING    VOTED
  TERM EXPIRING 2009:             FOR         SHARES        SHARES        WITHHELD        SHARES      SHARES
- --------------------------------------------------------------------------------------------------------------
                                                                                     
  Ann Torre Bates.............. 32,284,244     85.24%        96.77%      1,076,154          2.84%      3.23%



Proposal 2:  The rejection of a shareholder proposal to request that the Board
             of Directors consider  approving,  and submitting for shareholder
             approval at a future  shareholder  meeting, a proposal to convert
             the Fund from a closed-end fund to an open-end fund.


                                                   % OF          % OF SHARES
                                                OUTSTANDING      PRESENT AND
                                Shares Voted      SHARES           VOTING
- -------------------------------------------------------------------------------
  For                           6,856,747         18.10%           42.03%
  Against                       9,458,807         24.97%           57.97%
  Abstain                         315,071          0.83%            N/A
  Broker Non-Votes             21,242,699         56.09%            N/A



* EDITH E. HOLIDAY,  CHARLES B. JOHNSON,  GREGORY E. JOHNSON,  DAVID W. NIEMIEC,
FRANK A. OLSON,  LARRY D.  THOMPSON AND ROBERT E. WADE ARE DIRECTORS OF THE FUND
WHO ARE CURRENTLY  SERVING AND WHOSE TERMS OF OFFICE  CONTINUED AFTER THE ANNUAL
MEETING OF SHAREHOLDERS.