MATTHEWS INTERNATIONAL FUNDS
Matthews Pacific Tiger Fund
Matthews Korea Fund
Matthews Dragon Century China Fund
Class A Shares

Supplement dated August 13, 1998
to Prospectus dated December 31, 1997

All information relating to purchases, exchanges and redemption of 
shares, as set forth in the Prospectus on the first page, the 
account application and in the sections entitled "PROSPECTUS 
SUMMARY," "EXPENSE INFORMATION," "PURCHASE OF SHARES," "EXCHANGE 
OF SHARES," "REDEMPTION OF SHARES AND REDEMPTION FEE" and 
"SHAREHOLDER SERVICES" is hereby amended as follows:

Effective September 1, 1998:

*  The minimum initial investment for regular accounts increases 
from $1,000 to $2,500.  Subsequent investments will continue to be 
accepted in minimum amounts of $250.

*   The minimum initial investment for IRA, 401(k) and 403(b)(7) 
plans and other retirement plans increases from $250 to $500.  
Subsequent investments to retirement accounts will continue to be 
accepted in minimum amounts of $50.

*  The redemption fee imposed on redemptions made within 90 days 
of purchase  increases from 1% to 2%.

The following paragraphs supplement the information contained in 
the section of the Prospectus entitled "MANAGEMENT OF THE FUNDS - 
The Investment Advisor."

Effective June 3, 1998, Matthews International Capital Management, 
LLC (the "Advisor"), the investment advisor to the Matthews 
International Funds (the "Company"), has entered into a Purchase 
Agreement pursuant to which William Hambrecht, the co-founder and 
former Chairman of the investment bank Hambrecht & Quist, has 
acquired a 24.9% interest in the Advisor with a warrant to 
purchase additional interests in the Advisor.  If the warrant is 
exercised, Mr. Hambrecht's ownership interest in the Advisor will 
increase to 30.4%.

The warrant, if exercised by Mr. Hambrecht, would cause a change 
in control of the Advisor.  Under the Investment Company Act of 
1940, this would cause an automatic termination of the advisory 
agreement between the Advisor and the Company.  In order to allow 
Mr. Hambrecht to exercise the warrant and at the same time allow 
the Advisor to continue to advise the Funds, the Board of Trustees 
of the Company and the shareholders of each Fund must approve a 
new advisory agreement with the Advisor to take effect upon the 
exercise of the warrant.  Currently, there are no changes 
anticipated in the investment approach of the Advisor as a result 
of Mr. Hambrecht's acquisition.  A proxy statement describing Mr. 
Hambrecht's acquisition in greater detail and seeking shareholder 
approval of a new advisory agreement in the event Mr. Hambrecht 
exercises the warrant is expected to be sent to each Fund's 
shareholders in the near future.

INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE.

See reverse side for additional information.




The following paragraph supplements the information contained in 
the section of the Prospectus entitled "ADMINISTRATION OF THE 
FUNDS - The Administrator, Fund Accounting and Pricing Agent":

              Effective February 23, 1998, substantially all of 
the assets of FPS Services, Inc. were acquired by First Data 
Investor Services Group, Inc. ("Investor Services Group") pursuant 
to an Asset Purchase Agreement.  Investor Services Group, a 
wholly-owned subsidiary of First Data Corporation, has its 
principal business address at 4400 Computer Drive, Westboro, MA 
01581.  All references to FPS Services, Inc. or FPS in the 
Prospectus are hereby replaced with "Investor Services Group."



































INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE.

See reverse side for additional information.


MATTHEWS INTERNATIONAL FUNDS
Matthews Pacific Tiger Fund
Matthews Asian Convertible Securities Fund
Matthews Korea Fund
Matthews Dragon Century China Fund
Class I Shares

Supplement dated August 13, 1998
to Prospectus dated December 31, 1997

All information relating to purchases, exchanges and redemption of
 shares, as set forth in the 
Prospectus on the first page, the account application and in the
 sections entitled "PROSPECTUS 
SUMMARY," "EXPENSE INFORMATION," "PURCHASE OF SHARES," "EXCHANGE OF 
SHARES," "REDEMPTION OF SHARES AND REDEMPTION FEE" and "SHAREHOLDER 
SERVICES" is hereby amended as follows:

Effective September 1, 1998:

*  The minimum initial investment for regular accounts increases from 
$1,000 to $2,500.  Subsequent investments will continue to be accepted 
in minimum amounts of $250.

*   The minimum initial investment for IRA, 401(k) and 403(b)(7) plans and
 other 
retirement plans increases from $250 to $500.  Subsequent investments
 to retirement 
accounts will continue to be accepted in minimum amounts of $50.

*  The redemption fee imposed on redemptions made within 90 days of purchase  
increases from 1% to 2%.

The following paragraphs supplement the information contained in the section
 of the Prospectus 
entitled "MANAGEMENT OF THE FUNDS - The Investment Advisor."

Effective June 3, 1998, Matthews International Capital Management, LLC
 (the "Advisor"), 
the investment advisor to the Matthews International Funds (the "Company"),
 has entered into a 
Purchase Agreement pursuant to which William Hambrecht, the co-founder and
 former Chairman 
of the investment bank Hambrecht & Quist, has acquired a 24.9% interest
 in the Advisor with a 
warrant to purchase additional interests in the Advisor.  If the warrant
 is exercised, Mr. 
Hambrecht's ownership interest in the Advisor will increase to 30.4%.

The warrant, if exercised by Mr. Hambrecht, would cause a change in
 control of the 
Advisor.  Under the Investment Company Act of 1940, this would cause
 an automatic termination 
of the advisory agreement between the Advisor and the Company.
  In order to allow Mr. 
Hambrecht to exercise the warrant and at the same time allow the
 Advisor to continue to advise the 
Funds, the Board of Trustees of the Company and the shareholders of
 each Fund must approve a 
new advisory agreement with the Advisor to take effect upon the
 exercise of the warrant.  
Currently, there are no changes anticipated in the investment approach of
 the Advisor as a result of 
Mr. Hambrecht's acquisition.  A proxy statement describing Mr. Hambrecht's
 acquisition in greater 
detail and seeking shareholder approval of a new advisory agreement in
 the event Mr. Hambrecht 
exercises the warrant is expected to be sent to each Fund's shareholders
 in the near future.

INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE. 

See reverse side for additional information.



The following paragraph supplements the information contained in the
 section of the Prospectus 
entitled "ADMINISTRATION OF THE FUNDS - The Administrator,
 Fund Accounting and 
Pricing Agent":

Effective February 23, 1998, substantially all of the assets of
 FPS Services, Inc. were 
acquired by First Data Investor Services Group, Inc.
 ("Investor Services Group") pursuant to an 
Asset Purchase Agreement.  Investor Services Group,
 a wholly-owned subsidiary of First Data 
Corporation, has its principal business address at 4400 Computer Drive,
 Westboro, MA 01581.  All 
references to FPS Services, Inc. or FPS in the Prospectus are hereby
 replaced with "Investor 
Services Group."


































INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE.

See reverse side for additional information.