UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-6336
--------

FRANKLIN TEMPLETON INTERNATIONAL TRUST
--------------------------------------
(Exact name of registrant as specified in charter)

ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
(Address of principal executive offices) (Zip code)

MURRAY L. SIMPSON, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
-----------------------------------------------------------------
(Name and address of agent for service)

Registrant's telephone number, including area code: (650) 312-2000
--------------

Date of fiscal year end: 10/31
------

Date of reporting period: 4/30/03
-------

ITEM 1. REPORTS TO STOCKHOLDERS.

SEMIANNUAL REPORT

TEMPLETON FOREIGN
SMALLER COMPANIES FUND

- --------------------------------------------------------------------------------
YOUR FUND'S GOAL AND PRIMARY INVESTMENTS: TEMPLETON FOREIGN SMALLER COMPANIES
FUND SEEKS TO PROVIDE LONG-TERM CAPITAL GROWTH. UNDER NORMAL MARKET CONDITIONS,
THE FUND INVESTS AT LEAST 80% OF ITS NET ASSETS IN EQUITY SECURITIES OF SMALLER
COMPANIES -- THOSE WITH MARKET CAPITALIZATIONS OF LESS THAN $2 BILLION --
LOCATED OUTSIDE THE UNITED STATES.
- --------------------------------------------------------------------------------

Global equity markets were particularly volatile during the six months under
review. Stock markets were alternately shaken and reassured by unfolding
geopolitical issues such as with Iraq and North Korea. At the same time, we saw
no conclusive evidence that the world's leading economies have yet worked out
the excesses of the last economic cycle. Last, and more recently, health
concerns over severe acute respiratory syndrome (SARS) had a detrimental impact
over investor sentiment and the performance of stock markets, notably in Asia.

Within this difficult environment, Templeton Foreign Smaller Companies Fund -
Class A posted a +3.33% cumulative total return for the six months ended April
30, 2003, as shown in the Performance Summary on page 7. In comparison, the
Fund's most relevant benchmark, the Salomon Brothers ex-U.S.

[SIDEBAR]

GEOGRAPHIC DISTRIBUTION
BASED ON TOTAL NET ASSETS
4/30/03

[PIE CHART OMTITED]
EDGAR REPRESENTATION OF DATA POINTS:

ASIA 38.8%
EUROPE 33.7%
CANADA 11.0%
AUSTRALIA & NEW ZEALAND 6.7%
LATIN AMERICA 5.0%
MIDDLE EAST & AFRICA 0.7%
SHORT-TERM INVESTMENTS & OTHER NET ASSETS 4.1%

The dollar value, number of shares or principal amount, and complete legal
titles of all portfolio holdings are listed in the Fund's Statement of
Investments (SOI). The SOI begins on page 13.

4 SEMIANNUAL REPORT

less than $2 Billion Index, had an 8.25% cumulative total return for the same
period, while the Morgan Stanley Capital International (MSCI) Europe Australasia
Far East (EAFE) Index returned 2.04%. 1

Within the Fund, a number of stocks performed particularly well over the
reporting period. These included Canada's North West Company Fund; Hong Kong's
Techtronic Industries and Fountain Set Holdings; Australia's APN News & Media;
South Korea's Halla Climate Control; and Italy's Italdesign-Giugiaro.
Unfortunately, the Fund was not immune to stock market volatility and a number
of holdings performed poorly, namely, Japan's Tokyo Individualized Educational
Institute, Switzerland's Swisslog Holding and India's Satyam Computers Services.

In keeping with our investment strategy, we will continue to focus on company
fundamentals as the basis for stock selection. We believe that this is the
correct approach in the current economic environment and in volatile markets.
Additionally, given the still significant divergence in valuations between the
small and large cap sectors, we believe foreign small cap stocks have
significant upside potential. We will concentrate our search on

[SIDEBAR]

TOP 10 SECTORS/INDUSTRIES
4/30/03

% OF TOTAL
NET ASSETS
- -----------------------------
Banks 7.7%

Commercial Services
& Supplies 7.3%

Textiles & Apparel 6.8%

Diversified Financials 6.5%

Health Care Providers
& Services 4.7%

Electronic Equipment
& Instruments 4.1%

Household Durables 4.0%

Electrical Equipment 3.7%

Machinery 3.7%

Media 3.3%

1. Source: Standard & Poor's Micropal. The Salomon Brothers Global ex-U.S. less
than $2 Billion Index measures the small stock component of the Salomon Global
Equity Index, which includes developed and emerging markets countries globally
excluding the U.S. Within each country, those stocks falling under a $2 billion
market capitalization of the available market capital in each country forms the
universe. The securities in the index are capitalization weighted. The MSCI EAFE
Index is market capitalization-weighted and measures the total returns of equity
securities in the developed markets in Europe, Australasia and the Far East. The
indexes are unmanaged and include reinvested dividends. One cannot invest
directly in an index, nor is an index representative of the Fund's portfolio.

SEMIANNUAL REPORT 5

companies that we think may be able to avert the threat of pricing pressure to
the small business by focusing on value-added rather than commodity products.

/S/SIGNATURE
Simon Rudolph
Portfolio Manager
Templeton Foreign Smaller Companies Fund

[SIDEBAR]

TOP 10 EQUITY HOLDINGS
4/30/03

COMPANY
SECTOR/INDUSTRY, % OF TOTAL
COUNTRY NET ASSETS
- --------------------------------------

Techtronic Industries Co. Ltd. 2.9%
HOUSEHOLD DURABLES,
HONG KONG

North West Company Fund 2.8%
DIVERSIFIED FINANCIALS,
CANADA

Transcontinental Inc., B 2.5%
COMMERCIAL SERVICES
& SUPPLIES, CANADA

Housing Development
Finance Corp. Ltd. 2.5%
DIVERSIFIED FINANCIALS, INDIA

APN News & Media Ltd. 2.2%
MEDIA, AUSTRALIA

Gehe AG 2.0%
HEALTH CARE PROVIDERS
& SERVICES, GERMANY

Halla Climate
Control Co. Ltd. 1.9%
ELECTRICAL EQUIPMENT,
SOUTH KOREA

Fountain Set Holdings Ltd. 1.9%
TEXTILES & APPAREL,
HONG KONG

Banca Popolare di
Verona e Novara SCRL 1.8%
BANKS, ITALY

Arcadis NV 1.8%
COMMERCIAL SERVICES
& SUPPLIES, NETHERLANDS

- --------------------------------------------------------------------------------
This discussion reflects our analysis, opinions and portfolio holdings as of
April 30, 2003, the end of the reporting period. Our strategies and the Fund's
portfolio composition will change depending on market and economic conditions.
These opinions may not be relied upon as investment advice or an offer for a
particular security. The information is not a complete analysis of every aspect
of any market, country, industry, security or the Fund. Statements of fact are
from sources considered reliable, but the advisor makes no representation or
warranty as to their completeness or accuracy. Although historical performance
is no guarantee of future results, these insights may help you understand our
investment management philosophy.
- --------------------------------------------------------------------------------

6 SEMIANNUAL REPORT

PERFORMANCE SUMMARY AS OF 4/30/03

DISTRIBUTIONS AND RETURNS WILL VARY BASED ON EARNINGS OF THE FUND'S PORTFOLIO
AND ANY PROFITS REALIZED FROM THE SALE OF THE PORTFOLIO'S SECURITIES, AS WELL AS
THE LEVEL OF OPERATING EXPENSES FOR EACH CLASS. THE PERFORMANCE TABLE DOES NOT
REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.

PRICE AND DISTRIBUTION INFORMATION

CLASS A CHANGE 4/30/03 10/31/02
- ----------------------------------------------------------------
Net Asset Value (NAV) +$0.32 $12.59 $12.27
DISTRIBUTIONS (11/1/02-4/30/03)
Dividend Income $0.0880

CLASS B CHANGE 4/30/03 10/31/02
- ----------------------------------------------------------------
Net Asset Value (NAV) +$0.30 $12.41 $12.11
DISTRIBUTIONS (11/1/02-4/30/03)
Dividend Income $0.0427

CLASS C CHANGE 4/30/03 10/31/02
- ----------------------------------------------------------------
Net Asset Value (NAV) +$0.27 $12.44 $12.17
DISTRIBUTIONS (11/1/02-4/30/03)
Dividend Income $0.0494

ADVISOR CLASS CHANGE 4/30/03 10/31/02
- ----------------------------------------------------------------
Net Asset Value (NAV) +$0.31 $12.60 $12.29
DISTRIBUTIONS (11/1/02-4/30/03)
Dividend Income $0.1104

- --------------------------------------------------------------------------------
CLASS A: Subject to the current, maximum 5.75% initial sales charge. Prior to
1/1/97, Fund shares were offered at a lower initial sales charge; thus actual
total returns may differ.*

CLASS B: Subject to no initial sales charge, but subject to a contingent
deferred sales charge (CDSC) declining from 4% to 0% over six years. These
shares have higher annual fees and expenses than Class A shares.

CLASS C: Subject to 1% initial sales charge and 1% CDSC for shares redeemed
within 18 months of investment. These shares have higher annual fees and
expenses than Class A shares.

ADVISOR CLASS: No initial sales charge or Rule 12b-1 fees and are available to a
limited class of investors.*

*Past expense reductions by the Fund's manager increased the Fund's total
returns. Without these reductions, the Fund's total returns would have been
lower.
- --------------------------------------------------------------------------------

Past performance does not guarantee future results.

SEMIANNUAL REPORT 7

PERFORMANCE SUMMARY (CONT.)

PERFORMANCE

SINCE
CHANGES IN
INVESTMENT
POLICIES
CLASS A 6-MONTH 1-YEAR 5-YEAR 10-YEAR (10/1/96) 5
- --------------------------------------------------------------------------------
Cumulative Total Return 1 +3.33% -14.32% -7.58% +81.94% +15.43%

Average Annual
Total Return 2 -2.62% -19.22% -2.72% +5.54% +1.28%

Value of $10,000
Investment 3 $9,738 $8,078 $8,713 $17,153 $10,876

Avg. Ann. Total
Return (3/31/03) 4 -24.03% -4.26% +4.95% -0.13%

INCEPTION
CLASS B 6-MONTH 1-YEAR 3-YEAR (1/1/99)
- --------------------------------------------------------------------------------
Cumulative Total Return 1 +2.83% -15.02% -15.00% +6.38%

Average Annual Total Return 2 -1.17% -18.41% -6.18% +1.00%

Value of $10,000 Investment 3 $9,883 $8,159 $8,257 $10,439

Avg. Ann. Total Return (3/31/03) 4 -23.20% -9.97% -1.13%

INCEPTION
CLASS C 6-MONTH 1-YEAR 3-YEAR (7/1/98)
- --------------------------------------------------------------------------------
Cumulative Total Return 1 +2.62% -15.17% -15.05% -5.79%

Average Annual Total Return 2 +0.63% -16.86% -5.62% -1.43%

Value of $10,000 Investment 3 $10,063 $8,314 $8,407 $9,329

Avg. Ann. Total Return (3/31/03) 4 -21.52% -9.38% -3.28%

SINCE
CHANGES IN
INVESTMENT
POLICIES
ADVISOR CLASS 6 6-MONTH 1-YEAR 5-YEAR 10-YEAR (10/1/96) 5
- --------------------------------------------------------------------------------
Cumulative Total Return 1 +3.43% -14.08% -6.52% +85.87% +17.92%

Average Annual
Total Return 2 +3.43% -14.08% -1.34% +6.39% +2.54%

Value of $10,000
Investment 3 $10,343 $8,592 $9,348 $18,587 $11,792

Avg. Ann. Total
Return (3/31/03) 4 -19.15% -2.90% +5.80% +1.12%

1. Cumulative total return represents the change in value of an investment over
the periods indicated and does not include sales charges.

2. Average annual total return represents the average annual change in value of
an investment over the periods indicated and includes any current, applicable,
maximum sales charge(s). Six-month return has not been annualized.

3. These figures represent the value of a hypothetical $10,000 investment in the
Fund over the periods indicated and include any current, applicable, maximum
sales charge(s).

4. In accordance with SEC rules, we provide standardized average annual total
return information through the latest calendar quarter.

5. Effective 10/1/96, the Fund's name was changed from Franklin International
Equity Fund to Templeton Foreign Smaller Companies Fund, and the Fund, which
until that date invested predominantly in large capitalization foreign equity
securities, shifted its emphasis to smaller capitalization foreign equity
securities.

6. Effective 1/2/97, the Fund began offering Advisor Class shares, which do not
have sales charges or a Rule 12b-1 plan. Performance quotations for this class
reflect the following methods of calculation: (a) For periods prior to 1/2/97, a
restated figure is used based upon the Fund's Class A performance, excluding the
effect of Class A's maximum initial sales charge, but reflecting the effect of
the Class A Rule 12b-1 fees; and (b) for periods after 1/1/97, actual Advisor
Class performance is used reflecting all charges and fees applicable to that
class. Since 1/2/97 (commencement of sales), the cumulative and average annual
total returns of Advisor Class shares were +8.32% and +1.27%.

- --------------------------------------------------------------------------------
Ongoing market volatility can significantly affect short-term performance; more
recent returns may differ from those shown. Investment return and principal
value will fluctuate with market conditions, and you may have a gain or loss
when you sell your shares. Special risks are associated with foreign investing,
especially in emerging markets, including currency fluctuations, economic
instability, regulatory and political developments. In addition, small-company
stocks have historically exhibited greater price volatility than larger-company
stocks, particularly over the short term. These and other risks are discussed
more fully in the Fund's prospectus.
- --------------------------------------------------------------------------------

For more current performance, see "Funds and Performance" at
franklintempleton.com or call 1-800/342-5236.

Past performance does not guarantee future results.

8 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Financial Highlights

CLASS A
---------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 -----------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
---------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period ........ $12.27 $11.91 $14.42 $14.43 $12.33 $15.06
---------------------------------------------------------------
Income from investment operations:
Net investment income a .................... .09 .15 .21 .31 .24 .26
Net realized and unrealized gains (losses) . .32 .45 (2.18) (.05) 2.13 (2.08)
---------------------------------------------------------------
Total from investment operations ............ .41 .60 (1.97) .26 2.37 (1.82)
---------------------------------------------------------------
Less distributions from:
Net investment income ...................... (.09) (.24) (.45) (.27) (.27) (.24)
Net realized gains ......................... -- -- (.09) -- -- (.67)
---------------------------------------------------------------
Total distributions ......................... (.09) (.24) (.54) (.27) (.27) (.91)
---------------------------------------------------------------
Net asset value, end of period .............. $12.59 $12.27 $11.91 $14.42 $14.43 $12.33
---------------------------------------------------------------

Total return b .............................. 3.33% 4.98% (14.28)% 1.71% 19.51% (12.64)%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ........... $74,634 $71,070 $60,579 $99,179 $102,684 $113,964
Ratios to average net assets:
Expenses ................................... 1.65%c 1.63% 1.67% 1.58% 1.65% 1.48%
Expenses, excluding waiver and payments
by affiliate ............................. 1.65%c 1.63% 1.67% 1.58% 1.65% 1.50%
Net investment income ...................... 1.41%c 1.15% 1.50% 1.99% 1.78% 1.23%
Portfolio turnover rate ..................... 6.16% 27.23% 28.93% 37.22% 18.76% 22.82%

<FN>
a Based on average weighted shares outstanding effective year ended October 31,
1999.
b Total return does not reflect sales commissions or the contingent deferred
sales charge, and is not annualized for periods less than one year.
c Annualized.
</FN>

SEMIANNUAL REPORT 9

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Financial Highlights (CONTINUED)

CLASS B
-------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 --------------------------------------
(UNAUDITED) 2002 2001 2000 1999 D
-------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period ................... $12.11 $11.77 $14.28 $14.35 $12.44
-------------------------------------------------------
Income from investment operations:
Net investment income a ............................... .04 .03 .10 .22 .08
Net realized and unrealized gains (losses) ............ .30 .46 (2.17) (.08) 1.89
-------------------------------------------------------
Total from investment operations ....................... .34 .49 (2.07) .14 1.97
-------------------------------------------------------
Less distributions from:
Net investment income ................................. (.04) (.15) (.35) (.21) (.06)
Net realized gains .................................... -- -- (.09) -- --
-------------------------------------------------------
Total distributions .................................... (.04) (.15) (.44) (.21) (.06)
-------------------------------------------------------
Net asset value, end of period ......................... $12.41 $12.11 $11.77 $14.28 $14.35
-------------------------------------------------------
Total return b ......................................... 2.83% 4.09% (14.95)% .91% 15.81%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ...................... $2,018 $1,691 $550 $482 $201
Ratios to average net assets:
Expenses .............................................. 2.39%c 2.38% 2.46% 2.37% 1.99%c
Net investment income ................................. .67%c .40% .74% 1.42% .59%c
Portfolio turnover rate ................................ 6.16% 27.23% 28.93% 37.22% 18.76%

<FN>
a Based on average weighted shares outstanding.
b Total return does not reflect the contingent deferred sales charge, and is not
annualized for periods less than one year.
c Annualized.
d For the period January 1, 1999 (effective date) to October 31, 1999.
</FN>

10 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Financial Highlights (CONTINUED)

CLASS C
----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 ------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998 D
----------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period ....... $12.17 $11.82 $14.33 $14.36 $12.32 $14.23
----------------------------------------------------------------
Income from investment operations:
Net investment income a ................... .05 .05 .09 .18 .13 .01
Net realized and unrealized gains (losses) .27 .47 (2.17) (.04) 2.11 (1.92)
----------------------------------------------------------------
Total from investment operations ........... .32 .52 (2.08) .14 2.24 (1.91)
----------------------------------------------------------------
Less distributions from:
Net investment income ..................... (.05) (.17) (.34) (.17) (.20) --
Net realized gains ........................ -- -- (.09) -- -- --
----------------------------------------------------------------
Total distributions ........................ (.05) (.17) (.43) (.17) (.20) --
----------------------------------------------------------------
Net asset value, end of period ............. $12.44 $12.17 $11.82 $14.33 $14.36 $12.32
----------------------------------------------------------------

Total return b ............................. 2.62% 4.28% (14.97)% .94% 18.46% (13.42)%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) .......... $5,640 $3,904 $1,135 $894 $631 $450
Ratios to average net assets:
Expenses .................................. 2.44%c 2.31% 2.46% 2.36% 2.40% 2.54%c
Net investment income ..................... .62%c .47% .69% 1.18% .94% 1.08%c
Portfolio turnover rate .................... 6.16% 27.23% 28.93% 37.22% 18.76% 22.82%

<FN>
a Based on average weighted shares outstanding effective year ended October 31,
1999.
b Total return does not reflect sales commission or the contingent deferred
sales charge and is not annualized for periods less than one year.
c Annualized.
d For the period July 1, 1998 (effective date) to October 31, 1998.
</FN>

SEMIANNUAL REPORT 11

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Financial Highlights (CONTINUED)

ADVISOR CLASS
----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 ------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
----------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period ....... $12.29 $11.92 $14.45 $14.45 $12.34 $15.09
----------------------------------------------------------------
Income from investment operations:
Net investment income a ................... .10 .20 .23 .35 .26 .32
Net realized and unrealized gains (losses) .32 .44 (2.19) (.05) 2.14 (2.13)
----------------------------------------------------------------
Total from investment operations ........... .42 .64 (1.96) .30 2.40 (1.81)
----------------------------------------------------------------
Less distributions from:
Net investment income ..................... (.11) (.27) (.48) (.30) (.29) (.27)
Net realized gains ........................ -- -- (.09) -- -- (.67)
----------------------------------------------------------------
Total distributions ........................ (.11) (.27) (.57) (.30) (.29) (.94)
----------------------------------------------------------------
Net asset value, end of period ............. $12.60 $12.29 $11.92 $14.45 $14.45 $12.34
----------------------------------------------------------------

Total return b ............................. 3.43% 5.24% (14.11)% 2.01% 19.81% (12.55)%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) .......... $17,513 $16,937 $5,059 $10,708 $9,841 $12,402
Ratios to average net assets:
Expenses .................................. 1.40%c 1.35% 1.46% 1.38% 1.43% 1.31%
Expenses, excluding waiver and payments
by affiliate ............................ 1.40%c 1.35% 1.46% 1.38% 1.43% 1.33%
Net investment income ..................... 1.66%c 1.43% 1.67% 2.31% 1.94% 1.43%
Portfolio turnover rate .................... 6.16% 27.23% 28.93% 37.22% 18.76% 22.82%

<FN>
a Based on average weighted shares outstanding effective year ended October 31,
1999.
b Total return is not annualized for periods less than one year.
c Annualized.
</FN>

See notes to financial statements.

12 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED)

COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------
COMMON STOCKS 92.7%
AUTO COMPONENTS 2.4%

Italdesign-Giugiaro SpA ........................................ Italy 243,255 $ 1,224,338
Linamar Corp. .................................................. Canada 185,435 1,150,405
-----------
2,374,743
-----------
AUTOMOBILES 1.0%
aTata Engineering & Locomotive Co. .............................. India 320,650 1,021,989
-----------
BANKS 7.7%
Banca Popolare di Verona e Novara SCRL ......................... Italy 134,365 1,824,902
Bank of East Asia, Ltd. ........................................ Hong Kong 508,852 942,796
Bank of Pusan .................................................. South Korea 161,580 648,980
Daegu Bank Co. Ltd. ............................................ South Korea 180,740 676,102
Dah Sing Financial Holdings Ltd. ............................... Hong Kong 295,200 1,347,487
Laurentian Bank of Canada ...................................... Canada 92,100 1,733,375
Wing Lung Bank Ltd. ............................................ Hong Kong 140,201 511,436
-----------
7,685,078
-----------
BEVERAGES 1.5%
Grupo Continental SA ........................................... Mexico 954,710 1,466,573
-----------
BUILDING PRODUCTS .6%
Novar PLC ...................................................... United Kingdom 348,484 604,311
-----------
CHEMICALS .8%
Yule Catto & Company PLC ....................................... United Kingdom 156,980 825,445
-----------
COMMERCIAL SERVICES & SUPPLIES 7.3%
Arcadis NV ..................................................... Netherlands 194,545 1,758,604
Chubb PLC ...................................................... United Kingdom 486,255 518,756
Observer AB .................................................... Sweden 197,655 459,118
Tokyo Individualized Educational Institute Inc. ................ Japan 120,500 953,815
Transcontinental Inc., B ....................................... Canada 200,000 2,509,410
Vedior NV ...................................................... Netherlands 165,890 1,094,134
-----------
7,293,837
-----------
COMPUTERS & PERIPHERALS 2.9%
aATI Technologies Inc. .......................................... Canada 254,770 1,605,410
Compal Electronics Inc. ........................................ Taiwan 1,189,200 1,282,671
-----------
2,888,081
-----------
CONSTRUCTION MATERIALS 1.6%
Associated Cement Cos. Ltd. .................................... India 315,070 871,109
Gujarat Ambuja Cements Ltd. .................................... India 214,580 754,395
-----------
1,625,504
-----------
DISTRIBUTORS 1.1%
Li & Fung Ltd. ................................................. Hong Kong 970,000 1,088,273
-----------

SEMIANNUAL REPORT 13

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED) (CONT.)

COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
DIVERSIFIED FINANCIALS 6.5%

D. Carnegie & Co. AB ........................................... Sweden 135,800 $ 743,773
Housing Development Finance Corp. Ltd. ......................... India 342,142 2,464,983
North West Company Fund ........................................ Canada 174,920 2,767,799
Vontobel Holding AG ............................................ Switzerland 39,675 542,632
-----------
6,519,187
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES 1.5%
Asia Satellite Telecommunications Holdings Ltd. ................ Hong Kong 594,500 823,254
aPhilippine Long Distance Telephone Co. ......................... Philippines 96,300 697,361
-----------
1,520,615
-----------
ELECTRICAL EQUIPMENT 3.7%
Draka Holding NV ............................................... Netherlands 24,640 212,286
Halla Climate Control Co. Ltd. ................................. South Korea 53,700 1,904,913
Kidde PLC ...................................................... United Kingdom 669,035 769,891
Vestas Wind Systems AS ......................................... Denmark 103,310 807,516
-----------
3,694,606
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 4.1%
Dae Duck Electronics Co. Ltd. .................................. South Korea 173,313 1,206,772
aGSI Lumonics Inc. .............................................. Canada 117,105 510,998
Laird Group PLC ................................................ United Kingdom 270,560 719,988
aOrbotech Ltd. .................................................. Israel 49,885 685,420
Samsung Electro-Mechanics Co. .................................. South Korea 33,885 999,817
-----------
4,122,995
-----------
ENERGY EQUIPMENT & SERVICES .9%
IHC Caland NV .................................................. Netherlands 16,900 872,291
-----------
FOOD PRODUCTS 2.7%
Geest PLC ...................................................... United Kingdom 141,975 1,049,473
Lindt & Spruengli Chocolate Works Ltd. ......................... Switzerland 1,450 898,032
Want Want Holdings Ltd. ........................................ Singapore 1,104,000 728,640
-----------
2,676,145
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 2.3%
Fisher & Paykel Healthcare Corp. Ltd. .......................... New Zealand 200,590 1,206,150
Moulin International Holdings Ltd. ............................. Hong Kong 2,457,000 1,039,626
-----------
2,245,776
-----------
HEALTH CARE PROVIDERS & SERVICES 4.7%
Gehe AG ........................................................ Germany 51,310 2,044,246
Mayne Group Ltd. ............................................... Australia 480,450 889,617
OPG Groep NV ................................................... Netherlands 55,550 1,735,821
-----------
4,669,684
-----------

14 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED) (CONT.)

COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
HOTELS RESTAURANTS & LEISURE .8%

Sol Melia SA ................................................... Spain 201,445 $ 791,338
-----------
HOUSEHOLD DURABLES 4.0%
Sangetsu Co. Ltd. .............................................. Japan 63,000 1,104,059
Techtronic Industries Co. Ltd. ................................. Hong Kong 2,296,000 2,885,069
-----------
3,989,128
-----------
INDUSTRIAL CONGLOMERATES 1.4%
Aalberts Industries NV ......................................... Netherlands 90,682 1,343,947
aAalberts Industries NV, trading cpn., 07/22/03 ................. Netherlands 90,682 50,600
-----------
1,394,547
-----------
IT CONSULTING & SERVICES 2.0%
Meitec Corp. ................................................... Japan 46,000 1,168,707
Satyam Computers Services Ltd. ................................. India 271,595 874,244
-----------
2,042,951
-----------
LEISURE EQUIPMENT & PRODUCTS 1.0%
Amer Group Ltd., A ............................................. Finland 34,585 1,042,112
-----------
MACHINERY 3.7%
KCI Konecranes International PLC ............................... Finland 24,105 525,110
Kurita Water Industries Ltd. ................................... Japan 75,000 650,260
METSO OYJ ...................................................... Finland 162,660 1,542,988
SIG Holding AG ................................................. Switzerland 6,640 686,618
aSwisslog Holding AG ............................................ Switzerland 80,695 266,544
-----------
3,671,520
-----------
MEDIA 3.3%
APN News & Media Ltd. .......................................... Australia 1,053,445 2,220,776
SCMP Group Ltd. ................................................ Hong Kong 741,540 280,488
Torstar Corp., B ............................................... Canada 45,810 819,381
-----------
3,320,645
-----------
METALS & MINING 2.4%
Iluka Resources Ltd. ........................................... Australia 629,510 1,618,480
Sons of Gwalia Ltd. ............................................ Australia 638,140 738,500
-----------
2,356,980
-----------
MULTILINE RETAIL 2.6%
Debenhams PLC .................................................. United Kingdom 222,305 1,154,730
Galeries Lafayette SA .......................................... France 12,195 1,448,059
-----------
2,602,789
-----------
OFFICE ELECTRONICS .7%
Oce NV ......................................................... Netherlands 72,000 678,169
-----------

SEMIANNUAL REPORT 15

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED) (CONT.)

COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
PAPER & FOREST PRODUCTS 1.7%

Hung Hing Printing Group Ltd. .................................. Hong Kong 2,816,000 $ 1,733,134
-----------
PHARMACEUTICALS 2.5%
Ono Pharmaceutical Co. Ltd. .................................... Japan 32,000 955,224
Orion Yhtyma OYJ, B ............................................ Finland 91,600 1,533,379
-----------
2,488,603
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS 2.0%
ASM Pacific Technology Ltd. .................................... Hong Kong 477,000 1,183,471
Jenoptik AG .................................................... Germany 64,440 775,961
-----------
1,959,432
-----------
SOFTWARE .4%
aThiel Logistik AG .............................................. Luxembourg 115,429 401,913
-----------
SPECIALTY RETAIL 2.9%
Athlon Groep NV ................................................ Netherlands 79,540 653,320
Burberry Group PLC, 144A ....................................... United Kingdom 254,200 1,065,464
Giordano International Ltd. .................................... Hong Kong 4,314,000 1,161,603
-----------
2,880,387
-----------
TEXTILES & APPAREL 5.8%
Fountain Set Holdings Ltd. ..................................... Hong Kong 2,778,000 1,887,845
Lerado Group Holdings Co. Ltd. ................................. Hong Kong 9,154,000 1,373,267
Texwinca Holdings Ltd. ......................................... Hong Kong 1,293,000 994,737
Yue Yuen Industrial Holdings Ltd. .............................. Hong Kong 746,000 1,530,443
-----------
5,786,292
-----------
TRANSPORTATION INFRASTRUCTURE 2.2%
Grupo Aeroportuario del Sureste SA de CV, ADR .................. Mexico 98,310 1,259,351
Japan Airport Terminal Co. Ltd. ................................ Japan 169,000 960,775
-----------
2,220,126
-----------
TOTAL COMMON STOCKS (COST $93,245,353) 92,555,199
-----------
PREFERRED STOCKS 3.2%
PAPER & FOREST PRODUCTS 1.3%
Aracruz Celulose SA, ADR, pfd. ................................. Brazil 61,165 1,284,465
-----------
TEXTILES & APPAREL .9%
Hugo Boss AG, pfd. ............................................. Germany 72,100 965,560
-----------
WIRELESS TELECOMMUNICATION SERVICES 1.0%
Telemig Celular Participacoes SA, ADR, pfd. .................... Brazil 51,478 967,787
-----------
TOTAL PREFERRED STOCKS (COST $3,517,475) ....................... 3,217,812
-----------
TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT (COST $96,762,828) 95,773,011
-----------

16 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED) (CONT.)

PRINCIPAL
COUNTRY AMOUNT VALUE
- -------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT (COST $4,360,000) 4.4%
bDresdner Bank AG, 1.25%, 05/01/02 (Maturity Value $4,360,151)
Collateralized by U.S. Treasury Bills, Notes and Bonds, and

U.S. Government Agency Securities .......................... $4,360,000 $ 4,360,000
-----------

TOTAL INVESTMENTS (COST $101,122,828) 100.3% ................... 100,133,011
OTHER ASSETS, LESS LIABILITIES (.3)% ........................... (328,222)
-----------
NET ASSETS 100.0% .............................................. $99,804,789
-----------

<FN>
a Non-income producing.
b See Note 1(c) regarding repurchase agreement.
</FN>

See notes to financial statements.

SEMIANNUAL REPORT 17

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Financial Statements

STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2003 (UNAUDITED)

Assets:
Investments in securities:
Cost ...................................................... $101,122,828
------------
Value ..................................................... 100,133,011
Cash ....................................................... 48,119
Receivables:
Capital shares sold ....................................... 281,497
Dividends and interest .................................... 572,812
------------
Total assets .......................................... 101,035,439
------------
Liabilities:
Payables:
Investment securities purchased ........................... 219,747
Capital shares redeemed ................................... 782,363
Affiliates ................................................ 160,199
Shareholders .............................................. 28,946
Other liabilities .......................................... 39,395
------------
Total liabilities ..................................... 1,230,650
------------
Net assets, at value ................................. $ 99,804,789
------------
Net assets consist of:
Undistributed net investment income ........................ $ (134,947)
Net unrealized appreciation (depreciation) ................. (941,132)
Accumulated net realized gain (loss) ....................... (4,111,729)
Capital shares ............................................. 104,992,597
------------
Net assets, at value ................................. $ 99,804,789
------------

18 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Financial Statements (CONTINUED)

STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
APRIL 30, 2003 (UNAUDITED)

CLASS A:

Net assets, at value ................................................................... $74,633,865
-----------
Shares outstanding ..................................................................... 5,929,497
-----------
Net asset value per sharea ............................................................. $12.59
-----------
Maximum offering price per share (Net asset value per share / 94.25%) .................. $13.36
-----------

CLASS B:
Net assets, at value ................................................................... $2,017,600
-----------
Shares outstanding ..................................................................... 162,601
-----------
Net asset value and maximum offering price per sharea .................................. $12.41
-----------

CLASS C:
Net assets, at value ................................................................... $5,639,909
-----------
Shares outstanding ..................................................................... 453,279
-----------
Net asset value per sharea ............................................................. $12.44
-----------
Maximum offering price per share (Net asset value per share / 99%) ..................... $12.57
-----------

ADVISOR CLASS:
Net assets, at value ................................................................... $17,513,415
-----------
Shares outstanding ..................................................................... 1,390,248
-----------
Net asset value and maximum offering price per share ................................... $12.60
-----------

<FN>
a Redemption price is equal to net asset value less any applicable contingent
deferred sales charge.
</FN>

See notes to financial statements.

SEMIANNUAL REPORT 19

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Financial Statements (CONTINUED)

STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)

Investment income:
(Net of foreign taxes $173,976)

Dividends ................................................................................ $1,403,240
Interest ................................................................................. 40,079
----------
Total investment income ............................................................. 1,443,319
----------
Expenses:
Management fees (Note 3) ................................................................. 471,160
Distribution fees (Note 3)
Class A ................................................................................. 88,774
Class B ................................................................................. 8,907
Class C ................................................................................. 24,535
Transfer agent fees (Note 3) ............................................................. 109,200
Custodian fees ........................................................................... 25,000
Reports to shareholders .................................................................. 9,800
Registration and filing fees ............................................................. 34,000
Professional fees ........................................................................ 9,200
Trustees' fees and expenses .............................................................. 1,400
Other .................................................................................... 1,300
----------
Total expenses ...................................................................... 783,276
----------
Net investment income .............................................................. 660,043
----------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments ............................................................................. 830,044
Foreign currency transactions ........................................................... 23,166
----------
Net realized gain (loss) ............................................................ 853,210
----------
Net unrealized appreciation (depreciation) on:
Investments ............................................................................. 1,808,954
Translation of assets and liabilities denominated in foreign currencies ................. 141,950
----------
Net unrealized appreciation (depreciation) .......................................... 1,950,904
----------
Net realized and unrealized gain (loss) ................................................... 2,804,114
----------
Net increase (decrease) in net assets resulting from operations ........................... $3,464,157
----------

See notes to financial statements.

20 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Financial Statements (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)
AND THE YEAR ENDED OCTOBER 31, 2002

SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2003 OCTOBER 31, 2002
-------------------------------
Increase (decrease) in net assets:
Operations:

Net investment income (loss) .............................................. $ 660,043 $ 1,050,544
Net realized gain (loss) from investments and foreign currency transactions 853,210 390,605
Net unrealized appreciation (depreciation) on investments, translation of
assets and liabilities denominated in foreign currencies ................. 1,950,904 (1,569,705)
-------------------------------
Net increase (decrease) in net assets resulting
from operations ........................................................ 3,464,157 (128,556)
Distributions to shareholders from:
Net investment income:
Class A ................................................................... (514,120) (1,225,305)
Class B ................................................................... (6,222) (7,650)
Class C ................................................................... (17,878) (18,078)
Advisor Class ............................................................. (168,795) (155,247)
-------------------------------
Total distributions to shareholders ......................................... (707,015) (1,406,280)
Capital share transactions (Note 2):
Class A ................................................................... 1,476,151 9,874,589
Class B ................................................................... 276,963 1,272,353
Class C ................................................................... 1,595,074 3,061,383
Advisor Class ............................................................. 97,239 13,605,034
-------------------------------
Total capital share transactions ............................................ 3,445,427 27,813,359
Net increase (decrease) in net assets ................................... 6,202,569 26,278,523
Net assets:
Beginning of period ......................................................... 93,602,220 67,323,697
-------------------------------
End of period ............................................................... $99,804,789 $93,602,220
-------------------------------
Undistributed net investment income included in net assets:
End of period ............................................................... $ (134,947) $ (87,975)
-------------------------------

See notes to financial statements.

SEMIANNUAL REPORT 21

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Notes to Financial Statements (unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES

Templeton Foreign Smaller Companies Fund (the Fund) is a separate, diversified
series of Franklin Templeton International Trust (the Trust) which is registered
under the Investment Company Act of 1940 as an open-end, diversified investment
company. The Fund seeks to achieve long-term capital growth by investing, under
normal market conditions, at least 80% of its total assets in equity securities
of smaller capitalization companies outside the United States.

The following summarizes the Funds' significant accounting policies.

A. SECURITY VALUATION

Securities listed or traded on a recognized national exchange or NASDAQ are
valued at the last reported sales price. Over-the-counter securities and listed
securities for which no sale is reported are valued within the range of the
latest quoted bid and asked prices. Securities for which market quotations are
not readily available are valued at fair value as determined by management in
accordance with procedures established by the Board of Trustees.

B. FOREIGN CURRENCY TRANSLATION

Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of such
currencies against U.S. dollars on the date of valuation. Purchases and sales of
securities and income items denominated in foreign currencies are translated
into U.S. dollars at the exchange rate in effect on the transaction date.

The Fund does not separately report the effect of changes in foreign exchange
rates from changes in market prices on securities held. Such changes are
included in net realized and unrealized gain or loss from investments.

Realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions and the difference between the recorded amounts
of dividends, interest, and foreign withholding taxes, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in foreign exchange rates on
foreign denominated assets and liabilities other than investments in securities
held at the end of the reporting period.

C. REPURCHASE AGREEMENTS

The Fund may enter into repurchase agreements, which are accounted for as a loan
by the Fund to the seller, collateralized by securities which are delivered to
the Fund's custodian. The market value, including accrued interest, of the
initial collateralization is required to be at least 102% of the dollar amount
invested by the Fund, with the value of the underlying securities marked to
market daily to maintain coverage of at least 100%. At April 30, 2003, all
repurchase agreements held by the Fund had been entered into on the last
business day of the month.

22 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Notes to Financial Statements (unaudited) (CONTINUED)

1. SIGNIFICANT ACCOUNTING POLICIES (CONT.)

D. FOREIGN CURRENCY CONTRACTS

When the Fund purchases or sells foreign securities it may enter into foreign
exchange contracts to minimize foreign exchange risk from the trade date to the
settlement date of the transactions. A foreign exchange contract is an agreement
between two parties to exchange different currencies at an agreed upon exchange
rate on a specified date. Realized and unrealized gains and losses are included
in the Statement of Operations.

The risks of these contracts include movement in the values of the foreign
currencies relative to the U.S. dollar and the possible inability of the
counterparties to fulfill their obligations under the contracts.

E. INCOME TAXES

No provision has been made for income taxes because the Fund's policy is to
qualify as a regulated investment company under the Internal Revenue Code and to
distribute all of its taxable income.

F. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Certain income from foreign securities is recorded as soon as information is
available to the Fund. Interest income and estimated expenses are accrued daily.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date.

Realized and unrealized gains and losses and net investment income, other than
class specific expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class.

Common expenses incurred by the Trust are allocated among the funds comprising
the trust based on the ratio of net assets of each fund to the combined net
assets. Other expenses are charged to the Fund on a specific identification
basis.

G. DEFERRED TAXES

Deferred taxes are recorded for estimated tax liabilities inherent in the Fund's
portfolio securities which may arise from subsequent sales of those securities
and asset repatriations from countries that impose such taxes.

H. ACCOUNTING ESTIMATES

The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the amounts of income
and expense during the reporting period. Actual results could differ from those
estimates.

I. REDEMPTION FEES

The Fund charges a 2% redemption fee to market timers who redeem shares held for
less than 90 days. Such fees are retained by the Fund and accounted for as
additional paid in capital.

SEMIANNUAL REPORT 23

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Notes to Financial Statements (unaudited) (CONTINUED)

1. SIGNIFICANT ACCOUNTING POLICIES (CONT.)

J. GUARANTEES AND INDEMNIFICATIONS

In the normal course of business the Fund enters into contracts with service
providers that contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown as this would involve future claims
that may be made against the Fund that have not yet occurred. However, based on
experience, the Fund expects the risk of loss to be remote.

2. SHARES OF BENEFICIAL INTEREST

The Fund offers four classes of shares: Class A, Class B, Class C and Advisor
Class. Each class of shares differs by its initial sales load, contingent
deferred sales charges, distribution fees, voting rights on matters affecting a
single class and its exchange privilege.

At April 30, 2003, there were an unlimited number of shares authorized ($.01 par
value). Transactions in the Fund's shares were as follows:

SIX MONTHS YEAR ENDED
ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------
CLASS A SHARES:

Shares sold ..................................... 4,710,827 $ 57,056,294 13,012,915 $ 176,286,730
Shares issued on reinvestment of distributions .. 36,502 457,367 81,832 1,074,767
Shares redeemed ................................. (4,608,039) (56,037,510) (12,392,824) (167,486,908)
-------------------------------------------------------
Net increase (decrease) ......................... 139,290 $ 1,476,151 701,923 $ 9,874,589
-------------------------------------------------------

CLASS B SHARES:
Shares sold ..................................... 35,063 $ 422,030 138,655 $ 1,891,891
Shares issued on reinvestment of distributions .. 463 5,744 533 6,955
Shares redeemed ................................. (12,596) (150,811) (46,286) (626,493)
-------------------------------------------------------
Net increase (decrease) ......................... 22,930 $ 276,963 92,902 $ 1,272,353
-------------------------------------------------------

CLASS C SHARES:
Shares sold ..................................... 257,482 $ 3,095,753 369,880 $ 5,026,956
Shares issued on reinvestment of distributions .. 1,174 14,612 1,145 15,013
Shares redeemed ................................. (126,265) (1,515,291) (146,172) (1,980,586)
-------------------------------------------------------
Net increase (decrease) ......................... 132,391 $ 1,595,074 224,853 $ 3,061,383
-------------------------------------------------------

24 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Notes to Financial Statements (unaudited) (CONTINUED)

2. SHARES OF BENEFICIAL INTEREST (CONT.)

Shares sold .................................... 1,227,441 $ 15,031,855 2,315,644 $ 30,715,519
Shares issued on reinvestment of distributions . 3,464 43,403 7,224 94,663
Shares redeemed ................................ (1,218,924) (14,978,019) (1,369,044) (17,205,148)
------------------------------------------------------
Net increase (decrease) ........................ 11,981 $ 97,239 953,824 $ 13,605,034
------------------------------------------------------

3. TRANSACTIONS WITH AFFILIATES

Certain officers of the Trust are also officers and/or directors of Franklin
Advisers, Inc. (Advisers), Franklin/Templeton Distributors, Inc. (Distributors)
and Franklin/Templeton Investor Services, LLC (Investor Services), the Fund's
investment manager, principal underwriter, and transfer agent, respectively.

The Fund pays an investment management fee to Advisers based on the average
daily net assets of the Fund as follows:

ANNUALIZED
FEE RATE AVERAGE DAILY NET ASSETS
--------------------------------------------------------------
1.00% First $100 million
0.90% Over $100 million, up to and including $250 million
0.80% Over $250 million, up to and including $500 million
0.75% Over $500 million

Under a subadvisory agreement, Templeton Investment Counsel, LLC (TIC) provides
subadvisory services to the Fund and receives from Advisers fees based on the
average daily net assets of the Fund. Under an agreement with TIC, Templeton
Asset Management Ltd. (TAML) provides subadvisory services to TIC and receives
from TIC fees based on the average daily net assets of the Fund.

The Fund reimburses Distributors for costs incurred in marketing the Fund's
shares up to 0.25%, 1.00%, and 1.00% per year of the average daily net assets of
Class A, Class B, and Class C shares, respectively.

Distributors paid net commissions on sales of the Fund's shares and received
contingent deferred sales charges for the period of $33,182 and $13,438,
respectively.

SEMIANNUAL REPORT 25

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON FOREIGN SMALLER COMPANIES FUND

Notes to Financial Statements (unaudited) (CONTINUED)

4. INCOME TAXES

At April 30, 2003, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:

Cost of investments ...................... $101,824,183
-------------
Unrealized appreciation .................. $ 15,419,529
Unrealized depreciation .................. (17,110,701)
-------------
Net unrealized appreciation (depreciation) $ (1,691,172)
-------------

Net investment income and net realized losses differ for financial statement and
tax purposes primarily due to differing treatments of passive foreign investment
companies, wash sales, and foreign currency transactions.

At October 31, 2002, the Fund had tax basis capital losses of $4,944,379 which
may be carried over to offset future capital gains. Such losses expire in 2009.

5. INVESTMENT TRANSACTIONS

Purchases and sales of securities (excluding short-term securities) for the
period ended April 30, 2003 aggregated $13,031,835 and $5,529,970, repectively.

26 SEMIANNUAL REPORT

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LITERATURE REQUEST
For a brochure and prospectus, which contain more complete information,
including charges and expenses, call Franklin Templeton Investments at
1-800/DIAL BEN(R) (1-800/342-5236). Please read the prospectus carefully before
investing or sending money. To ensure the highest quality of service, telephone
calls to or from our service departments may be monitored, recorded and
accessed. These calls can be determined by the presence of a regular beeping
tone.

FRANKLIN TEMPLETON INVESTMENTS

GLOBAL GROWTH
Franklin Global Aggressive
Growth Fund
Franklin Global Growth Fund
Franklin Global Health Care Fund
Mutual Discovery Fund
Templeton Developing Markets Trust
Templeton Foreign Fund
Templeton Foreign Smaller
Companies Fund
Templeton Global Opportunities Trust
Templeton Global Smaller
Companies Fund
Templeton Growth Fund
Templeton International (Ex EM) Fund
Templeton World Fund

GLOBAL GROWTH & INCOME
Franklin Global Communications Fund
Mutual European Fund
Templeton Global Bond Fund

GLOBAL INCOME
Franklin Templeton Hard
Currency Fund

GROWTH
Franklin Aggressive Growth Fund
Franklin Biotechnology
Discovery Fund
Franklin Blue Chip Fund
Franklin Capital Growth Fund 1
Franklin DynaTech Fund
Franklin Flex Cap Growth Fund 2
Franklin Gold and Precious
Metals Fund
Franklin Growth Fund
Franklin Large Cap Growth Fund
Franklin Small-Mid Cap
Growth Fund
Franklin Technology Fund
Franklin U.S. Long-Short Fund 3

GROWTH & INCOME
Franklin Balance Sheet Investment Fund4
Franklin Convertible
Securities Fund
Franklin Equity Income Fund
Franklin Income Fund
Franklin Large Cap Value Fund
Franklin MicroCap Value Fund4
Franklin Natural Resources Fund
Franklin Real Estate
Securities Fund
Franklin Rising Dividends Fund
Franklin Small Cap Value Fund
Franklin Utilities Fund
Mutual Beacon Fund
Mutual Financial Services Fund
Mutual Qualified Fund
Mutual Shares Fund

FUND ALLOCATOR SERIES
Franklin Templeton Conservative Target Fund
Franklin Templeton Growth
Target Fund
Franklin Templeton Moderate
Target Fund

INCOME
Franklin Adjustable U.S. Government Securities Fund 5
Franklin's AGE High Income Fund
Franklin Floating Rate Daily
Access Fund
Franklin Floating Rate Trust 6
Franklin Short-Intermediate
U.S. Government Securities Fund 5
Franklin Strategic Income Fund
Franklin Total Return Fund
Franklin U.S. Government
Securities Fund 5
Franklin Federal Money Fund 5,7
Franklin Money Fund 5,7

TAX-FREE INCOME 8
Double Tax-Free Income Fund
Federal Intermediate-Term Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free
Income Fund
Insured Tax-Free Income Fund 9
Tax-Exempt Money Fund 5,7

STATE-SPECIFIC
TAX-FREE INCOME 8
Alabama
Arizona
California 10
Colorado
Connecticut
Florida 10
Georgia
Kentucky
Louisiana
Maryland
Massachusetts 9
Michigan 9
Minnesota 9
Missouri
New Jersey
New York 10
North Carolina
Ohio 9
Oregon
Pennsylvania
Tennessee
Virginia

INSURANCE FUNDS
Franklin Templeton Variable Insurance Products Trust 11

1. Formerly Franklin Growth and Income Fund. Effective 5/1/02, the fund's name
changed; investment goal and strategy remained the same.

2. Formerly Franklin California Growth Fund. Effective 9/1/02, the fund's name
changed and its investment criteria was modified to invest a majority of its net
assets in California companies, as opposed to at least 80% of net assets.

3. Upon reaching approximately $350 million in assets, the fund will close to
all investors.

4. The fund is only open to existing shareholders as well as select retirement
plans.

5. An investment in the fund is neither insured nor guaranteed by the U.S.
government or by any other entity or institution.

6. The fund is a continuously offered, closed-end fund. Shares may be purchased
daily; there is no daily redemption. However, each quarter, pending board
approval, the fund will authorize the repurchase of 5%-25% of the outstanding
number of shares. Investors may tender all or a portion of their shares during
the tender period.

7. No assurance exists that the fund's $1.00 per share price will be maintained.
It is possible to lose money by investing in the fund.

8. For investors subject to the alternative minimum tax, a small portion of
these dividends may be taxable. Distributions of capital gains are generally
taxable.

9. Portfolio of insured municipal securities.

10. These funds are available in two or more variations, including long-term
portfolios, portfolios of insured securities, a high-yield portfolio (CA) and
intermediate-term and money market portfolios (CA and NY).

11. The funds of the Franklin Templeton Variable Insurance Products Trust are
generally only available as investment options in variable annuity or variable
life insurance contracts.

Not part of the semiannual report

12/02

[LOGO OMITTED]
FRANKLIN[R] TEMPLETON[R] One Franklin Parkway
INVESTMENTS San Mateo, CA 94403-1906

WANT TO RECEIVE THIS DOCUMENT FASTER VIA EMAIL?
- -----------------------------------------------
ELIGIBLE SHAREHOLDERS CAN SIGN UP FOR EDELIVERY
AT FRANKLINTEMPLETON.COM. SEE INSIDE FOR DETAILS.

SEMIANNUAL REPORT AND SHAREHOLDER LETTER
TEMPLETON FOREIGN SMALLER COMPANIES FUND

INVESTMENT MANAGER
Franklin Advisers, Inc.

DISTRIBUTOR
Franklin Templeton Distributors, Inc.
1-800/DIALBEN(R)
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SHAREHOLDER SERVICES
1-800/632-2301

This report must be preceded or accompanied by the current Franklin Templeton
International Trust prospectus, which contains more complete information
including charges and expenses.

To ensure the highest quality of service, telephone calls to or from our service
departments may be monitored, recorded and accessed. These calls can be
identified by the presence of a regular beeping tone.

191 S2003 06/03

SEMIANNUAL REPORT
TEMPLETON GLOBAL LONG-SHORT FUND

- --------------------------------------------------------------------------------
YOUR FUND'S GOAL AND PRIMARY INVESTMENTS: TEMPLETON GLOBAL LONG-SHORT FUND SEEKS
CAPITAL APPRECIATION IN UP AND DOWN (BULL AND BEAR) MARKETS WITH LESS VOLATILITY
THAN THE OVERALL GLOBAL STOCK MARKET THROUGH A COMBINATION OF LONG AND SHORT
POSITIONS OF COMPANIES LOCATED THROUGHOUT THE WORLD.
- --------------------------------------------------------------------------------

This semiannual report of Templeton Global Long-Short Fund covers the period
ended April 30, 2003. During the six months under review, the U.S. economy
continued to show only nominal growth as fourth quarter 2002 gross domestic
product (GDP) grew at a 1.4% annualized rate, and then increased slightly to a
1.9% annualized rate in first quarter 2003, with most components of GDP
relatively weak. This was in stark contrast to 2002's first quarter, which
experienced 5.0% annualized GDP growth. During the reporting period, companies
seemed reluctant to invest in capital equipment given low capacity utilization
levels, which were running at only 75% in March 2003, comparable to utilization
rates one year earlier. Government spending picked up in areas like defense, but
President Bush's proposed fiscal stimulus, if approved, will likely not impact
the economy until 2004 and will be spread out over several years. Despite a weak
U.S. dollar, export growth was held back by weak demand in Europe and Japan as
evidenced by December's record monthly trade deficit of $44.2 billion. Overall,
2002's total trade deficit hit an all-time high of $435.2 billion.

The dollar value, number of shares or principal amount, and complete legal
titles of all portfolio holdings are listed in the Fund's Statement of
Investments (SOI). The SOI begins on page 15.

4 SEMIANNUAL REPORT

GEOGRAPHIC DISTRIBUTION

Based on Total Net Assets

4/30/03

REGION LONG % SHORT % NET %
- ----------------------------------------------------------------------

Europe 18.6% -7.4% 11.2%
Asia 15.3% -5.2% 10.1%
North America 19.8% -14.9% 4.9%
Latin America 3.3% 0.0% 3.3%
Australia & New Zealand 2.1% 0.0% 2.1%
Middle East & Africa 3.0% -1.2% 1.8%

Furthermore, although record low interest rates and the easy availability of
financing supported consumer spending, consumer confidence fell to nearly a
10-year low in March 2003, largely due to the Iraq war, high energy prices and
concerns over the sustainability of continued economic growth.

Europe's overall economic malaise continued during the six months under review,
with most problems coming from the region's largest country, Germany. Standard
and Poor's, an independent credit rating agency, stated that Germany was lagging
its AAA-rated peers in terms of fiscal and economic performance. The German
economy has barely grown since falling into recession in 2001 and, in contrast
to the U.S., the German government cut spending and increased taxes to control
the country's budget deficit. Consumers restricted spending in the face of
rising unemployment, which hit a four-year high in March 2003, and corporate
confidence remained weak, with a strong euro hampering export growth. In recent
years, the U.K. economy followed a different economic path than the rest of
Europe, with more economic growth and lower unemployment and inflation. However,
the U.K. economy recently showed signs of stalling, with a nominal 0.4%
annualized growth rate in 2002's fourth quarter.

SEMIANNUAL REPORT 5

PORTFOLIO BREAKDOWN
Based on Total Net Assets
4/30/03
% OF TNA # OF POSITIONS
- -------------------------------------------------------------------------------

Long Equity Securities Net 62.1% 39

Short Equity Securities Net -28.7% 23

- -------------------------------------------------------------------------------
TOTAL NET 33.4% (LONG)

Among emerging markets, Asia recorded the strongest economic
performance, supported by China's staggering 8.1% growth rate in 2002. However,
even in China, recent news was negative, with expectations of a slightly slower
growth rate in 2003 mainly due to the outbreak of the severe acute respiratory
syndrome (SARS) virus at the beginning of the year. This situation had a direct
impact not only on the Asian travel- and tourism-related sectors but also on
manufacturing and consumer spending.

Within this uncertain global environment, Templeton Global Long-Short Fund -
Class A posted a -6.29% cumulative total return for the six months ended April
30, 2003, as shown in the Performance Summary beginning on page 11. In
comparison, the Fund's benchmark, the Morgan Stanley Capital International
(MSCI) World Index, posted a 3.88% cumulative total return during the same
period. 1 We primarily attribute the Fund's underperformance relative to the
index to the Fund's overweighted positions in South Korea, Hong Kong and China,
which were adversely affected in 2003's first quarter by geopolitical concerns
relating to North Korea, as well as the highly publicized SARS virus. For
example, the South Korean index declined significantly in 2003's first quarter,
one of the world's worst performing stock markets during that time. However, we
remain optimistic that the negative issues will be resolved soon

1. Source: Standard & Poor's Micropal. The unmanaged MSCI World Index is market
capitalization-weighted and measures the total returns of equity securities in
the developed markets globally. The index includes reinvested dividends. One
cannot invest directly in an index, nor is an index representative of the Fund's
portfolio.

6 SEMIANNUAL REPORT

SECTOR/INDUSTRY BREAKDOWN
Based on Total Net Assets
4/30/03
LONG % SHORT % NET %
- -------------------------------------------------------------------------
Oil & Gas 5.0% 0.0% 5.0%
Metals & Mining 5.3% -0.9% 4.4%
Diversified Telecommunication Services 4.0% 0.0% 4.0%
Industrial Conglomerates 3.3% 0.0% 3.3%
Insurance 5.6% -2.3% 3.3%
Banks 3.9% -0.9% 3.0%
Software 2.9% 0.0% 2.9%
Construction Materials 2.5% 0.0% 2.5%
Pharmaceuticals 2.3% 0.0% 2.3%
IT Consulting & Services 2.0% 0.0% 2.0%
Electric Utilities 1.9% 0.0% 1.9%
Multiline Retail 1.9% 0.0% 1.9%
Machinery 1.8% 0.0% 1.8%
Paper & Forest Products 1.7% 0.0% 1.7%
Wireless Telecommunication Services 1.4% 0.0% 1.4%
Automobiles 1.3% 0.0% 1.3%
Auto Components 1.5% -0.6% 0.9%
Computers & Peripherals 0.8% 0.0% 0.8%
Hotels Restaurants & Leisure 1.6% -1.5% 0.1%
Semiconductor Equipment & Products 2.3% -2.9% -0.6%
Aerospace & Defense 0.9% -1.9% -1.0%
Media 0.0% -1.0% -1.0%
Beverages 0.0% -1.2% -1.2%
Household Durables 1.8% -3.0% -1.2%
Communications Equipment 0.0% -1.6% -1.6%
Diversified Financials 6.4% -8.4% -2.0%
Specialty Retail 0.0% -2.5% -2.5%

and then investors can return their focus to what we believe are the solid
fundamentals and cheap valuations of companies in the region.

At period-end, the Fund's overall exposure as a percent of total net assets was
62.1% long and 28.7% short, with 33.4% net

SEMIANNUAL REPORT 7

TOP 10 LONG HOLDINGS
4/30/03

COMPANY
SECTOR/INDUSTRY, % OF TOTAL
COUNTRY NET ASSETS
- -------------------------------------------

Eni SpA 3.0%
OIL & GAS, ITALY

Cheung Kong Infrastructure
Holdings Ltd. 2.5%
CONSTRUCTION MATERIALS,
HONG KONG

UBS AG 2.4%
BANKS, SWITZERLAND

Bristol-Myers Squibb Co. 2.3%
PHARMACEUTICALS, U.S.

Samsung Electronics Co. Ltd. 2.3%
SEMICONDUCTOR EQUIPMENT
& PRODUCTS, SOUTH KOREA

Telefonos de Mexico SA
de CV (TELMEX), L, ADR 2.2%
DIVERSIFIED TELECOMMUNICATION
SERVICES, MEXICO

BHP Billiton PLC 2.2%
METALS & MINING, AUSTRALIA

W.R. Berkley Corp. 2.0%
INSURANCE, U.S.

PetroChina Co. Ltd., H 2.0%
OIL & GAS, CHINA

Iberdrola SA, Br. 1.9%
ELECTRIC UTILITIES, SPAIN

long exposure. During the period, the Fund's North American net exposure
increased from -6.8% on October 31, 2002, to 4.9% on April 30, 2003. However, we
were relatively neutral on prospects for U.S. equities due to what we considered
were relatively expensive valuations, weak earnings growth and poor quality
earnings. At the end of the reporting period, the Standard & Poor's 500
Composite Index (S&P 500) traded at 16.3 times Morgan Stanley's 2003 earnings
estimates. In our opinion, the corporate profit outlook remained uncertain with
intense competition and disinflation hindering growth; higher insurance and
employee medical costs pressuring margins; and free cash flow being diverted
away from accretive stock repurchases to pay down debt and bolster underfunded
pension plans.

Our net European exposure declined from 15.2% of total net assets at the
beginning of the period to 11.2% at the end. Although economic fundamentals
remained weak in Europe during the period, we were optimistic due to what we
believed were unjustified valuation discounts compared to U.S. equities. The
Fund was 12.8% net long emerging markets at period-end, with holdings
diversified across China, South Korea, India, Mexico, Brazil, South Africa and
Israel. We are positive on emerging markets for three broad reasons: short-term
cyclical upside, long-term secular growth and attractive valuations. Emerging
market economies generally follow the global economic cycle, and we believe
firms there may perform like early cyclical companies in developed markets.
Long-term growth, in our opinion, is supported by favorable demographics, and we
believe emerging markets are on a higher growth path due to significant
structural changes that have occurred in the past five years, including
competitive, flexible exchange rates, improved fiscal balances, and restructured
and profitable banking systems. However, despite these favorable prospects, at
period-end emerging market equities traded at what we believe are attrac-

8 SEMIANNUAL REPORT

tive valuations, as evidenced by the MSCI Emerging Market Index trading at only
10.3 times 2003 earnings estimates, which many analysts expect to grow by 37%
versus 2002.

Despite reservations about the Japanese economy's overall weakness and high
index valuations (19.7 times 2003 earnings estimates), we identified specific
opportunities in what we believe are high-quality, undervalued stocks with
improving fundamentals. For example, we hold a long position in Denso, a
Japanese manufacturing company that has a dominant domestic market position in a
sector that has increasing volume, is increasing market share in the U.S. by
offering a higher quality product than those of U.S. competitors, and holds net
cash on its balance sheet, but which trades on a price-to-earnings multiple of
only 16 times consensus 2003 earnings forecasts.

At period-end, the Fund's three largest net long sector exposures were oil and
gas, metals and mining, and diversified telecommunication services. In the oil
and gas sector, we hold Eni, a mid-cap European oil and gas company that we
believe is executing its restructuring plan, but that trades at a discount
versus its major competition and has the highest dividend yield in the sector.
We also hold oil and gas company PetroChina, located in China, a country that,
using some estimates, could become the world's second-largest economy in 20
years' time. In the metals and mining sector, core holdings include an emerging
market iron ore company, Cia Vale do Rio Doce, with a dominant market position,
high quality assets, and a strong balance sheet. Our diversified
telecommunication services holdings are primarily in emerging markets such as
South Korea, China and Mexico, countries that tend to have less competition,
higher margins, better free cash flow generation, stronger balance sheets and
lower valuations than their developed market peers.

SEMIANNUAL REPORT 9

We continue to remain cautious regarding many U.S. equities that are trading on
average valuations, but that have what we believe are uncertain earnings growth
prospects. We are optimistic about the prospects for our net long positions in
Europe and emerging markets, which we think offer positive earnings growth
potential at relatively low valuations

We thank you for your interest in Templeton Global Long-Short Fund, welcome your
questions and comments and look forward to serving your investment needs in the
future.

/S/ DALE WINNER, CFA
- --------------------
Dale Winner, CFA

/S/ LISA MYERS, CFA
- -------------------
Lisa Myers, CFA

/S/ JEFFREY A. EVERETT, CFA
- ---------------------------
Jeffrey A. Everett, CFA

Portfolio Management Team
Templeton Global Long-Short Fund

10 SEMIANNUAL REPORT

PERFORMANCE SUMMARY AS OF 4/30/03

PRICE INFORMATION

CLASS A CHANGE 4/30/03 10/31/02
- ---------------------------------------------------------------
Net Asset Value (NAV) -$0.64 $9.53 $10.17

CLASS B CHANGE 4/30/03 10/31/02
- ---------------------------------------------------------------
Net Asset Value (NAV) -$0.67 $9.43 $10.10

- --------------------------------------------------------------------------------
CLASS A: Subject to the maximum 5.75% initial sales charge.

CLASS B: Subject to no initial sales charge, but subject to a contingent
deferred sales charge declining from 4% to 0% over six years. These shares have
higher annual fees and expenses than Class A shares.

Past expense reductions by the Fund's manager increased the Fund's total
returns. Without these reductions, the Fund's total returns would have been
lower.
- --------------------------------------------------------------------------------

Past performance does not guarantee future results.

SEMIANNUAL REPORT 11

PERFORMANCE SUMMARY (CONT.)

1. Cumulative total return represents the change in value of an investment over
the periods indicated and does not include sales charges.

2. Average annual total return represents the average annual change in value of
an investment over the periods indicated and includes any applicable, maximum
sales charge(s). Six-month return has not been annualized.

3. These figures represent the value of a hypothetical $10,000 investment in the
Fund over the periods indicated and include any applicable, maximum sales
charge(s).

4. In accordance with SEC rules, we provide standardized average annual total
return information through the latest calendar quarter.

PERFORMANCE

INCEPTION
CLASS A 6-MONTH 1-YEAR (7/31/01)
- -----------------------------------------------------------------------------
Cumulative Total Return 1 -6.29% -11.76% -4.70%
Average Annual Total Return 2 -11.68% -16.84% -5.96%
Value of $10,000 Investment 3 $8,832 $8,316 $8,982
Avg. Ann. Total Return (3/31/03) 4 -14.96% -5.77%

INCEPTION
CLASS B 6-MONTH 1-YEAR (7/31/01)
- -----------------------------------------------------------------------------
Cumulative Total Return 1 -6.63% -12.44% -5.70%
Average Annual Total Return 2 -10.37% -15.94% -5.53%
Value of $10,000 Investment 3 $8,963 $8,406 $9,053
Avg. Ann. Total Return (3/31/03) 4 -14.03% -5.32%

- --------------------------------------------------------------------------------
Ongoing stock market volatility can significantly affect short-term performance;
more recent returns may differ from those shown. Investment return and principal
value will fluctuate with market conditions, and you may have a gain or loss
when you sell your shares. The Fund may also invest in foreign companies, which
can involve exposure to currency volatility and political, economic and
regulatory uncertainty. Although the Fund intends to reduce risk by having both
long and short positions, it is possible the Fund's long positions will decline
in value at the same time the value of stocks sold short increases, thereby
increasing the potential for loss. Also, the Fund may not always be able to
cover a short position at a particular time or at an acceptable price. These and
other risks are described more fully in the Fund's prospectus.
- --------------------------------------------------------------------------------

For more current performance, see "Funds and Performance" at
franklintempleton.com or call 1-800/342-5236.

Past performance does not guarantee future results.

12 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

Financial Highlights

CLASS A
-----------------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED PERIOD ENDED
(UNAUDITED) OCTOBER 31, 2002 OCTOBER 31, 2001 C
-----------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period .............................. $10.17 $10.14 $10.00
----------------------------------------------
Income from investment operations:
Net investment income (loss) a ................................... (.03) (.02) (.01)
Net realized and unrealized gains (losses) ....................... (.61) .05 .15
----------------------------------------------
Total from investment operations .................................. (.64) .03 .14
----------------------------------------------
Net asset value, end of period .................................... $9.53 $10.17 $10.14
==============================================

Total return b .................................................... (6.29)% .30% 1.40%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ................................. $91,336 $109,790 $32,235
Ratios to average net assets*:
Expenses ......................................................... 3.59% d 2.59% 2.38% d
Expenses, excluding waiver and
payments by affiliate ............................................ 3.59% d 2.83% 5.26% d
Net investment income (loss) ..................................... (1.30)% d (.21)% (.45)% d
Portfolio turnover rate ........................................... 84.10% 196.67% 15.76%

*Ratios to average net assets, excluding dividend expense on
securities sold short:
Expenses ........................................................ 3.13% d 2.39% 2.37% d
Expenses, excluding waiver and
payments by affiliate ............................................ 3.13% d 2.63% 5.25% d

aBased on average weighted shares outstanding.
bTotal return does not reflect sales commissions or the contingent deferred
sales charge, and is not annualized for periods less than one year.
cFor the period July 31, 2001 (inception date) to October 31, 2001.
dAnnualized.

SEMIANNUAL REPORT 13

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

Financial Highlights (CONTINUED)

CLASS B
-----------------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED PERIOD ENDED
(UNAUDITED) OCTOBER 31, 2002OCTOBER 31, 2001 C
-----------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ............................... $10.10 $10.13 $10.00
----------------------------------------------
Income from investment operations:
Net investment income (loss) a .................................... (.07) (.09) -- d
Net realized and unrealized gains (losses) ........................ (.60) .06 .13
----------------------------------------------
Total from investment operations ................................... (.67) (.03) .13
----------------------------------------------
Net asset value, end of period ..................................... $9.43 $10.10 $10.13
==============================================

Total return b ..................................................... (6.63)% (.30)% 1.30%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) .................................. $45,279 $50,190 $10,489
Ratios to average net assets*:
Expenses .......................................................... 4.34% e 3.25% 2.67% e
Expenses, excluding waiver and
payments by affiliate ............................................. 4.34% e 3.49% 5.55% e
Net investment income (loss) ...................................... (2.05)% e (.87)% (.13)% e
Portfolio turnover rate ............................................ 84.10% 196.67% 15.76%

*Ratios to average net assets, excluding dividend expense on
securities sold short:
Expenses ......................................................... 3.88% e 3.05% 2.66% e
Expenses, excluding waiver and
payments by affiliate ............................................. 3.88% e 3.29% 5.54% e

aBased on average weighted shares outstanding.
bTotal return does not reflect sales commissions or the contingent deferred
sales charge and is not annualized for periods less than one year.
cFor the period July 31, 2001 (inception date) to October 31, 2001.
dActual net investment loss per share was $.003.
eAnnualized.

See notes to financial statements.

14 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED)

COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------

cCOMMON STOCKS 62.1%
AEROSPACE & DEFENSE .9%
Boeing Co. ...................................... United States 37,580 $ 1,025,183
Embraer-Empresa Brasileira de
Aeronautica SA, ADR ........................... Brazil 11,800 163,666
------------
1,188,849
------------
AUTO COMPONENTS 1.5%
Denso Corp. ..................................... Japan 145,100 2,068,338
------------
AUTOMOBILES 1.3%
Volkswagen AG ................................... Germany 50,430 1,767,183
------------
BANKS 3.9%
Abbey National PLC .............................. United Kingdom 304,530 2,163,463
UBS AG .......................................... Switzerland 67,866 3,219,920
------------
5,383,383
------------
COMPUTERS & PERIPHERALS .8%
Hewlett-Packard Co. ............................. United States 63,870 1,041,081
------------
CONSTRUCTION MATERIALS 2.5%
Cheung Kong Infrastructure Holdings Ltd. ........ Hong Kong 1,842,000 3,448,266
------------
DIVERSIFIED FINANCIALS 6.4%
ING Groep NV .................................... Netherlands 131,980 2,143,058
Merrill Lynch & Co. Inc. ........................ United States 33,830 1,388,722
Morgan Stanley .................................. United States 54,440 2,436,190
aNasdaq 100 ...................................... United States 52,930 1,453,458
Swire Pacific Ltd., A ........................... Hong Kong 345,500 1,368,878
------------
8,790,306
------------
DIVERSIFIED TELECOMMUNICATION SERVICES 4.0%
KT Corp., ADR ................................... South Korea 122,644 2,482,315
Telefonos de Mexico SA de CV (TELMEX), L, ADR ... Mexico 100,597 3,039,035
------------
5,521,350
------------
ELECTRIC UTILITIES 1.9%
Iberdrola SA, Br. ............................... Spain 161,542 2,601,445
------------
HOTELS RESTAURANTS & LEISURE 1.6%
Accor SA ........................................ France 65,240 2,150,009
------------
HOUSEHOLD DURABLES 1.8%
aBeazer Homes USA Inc. ........................... United States 34,405 2,416,951
------------
INDUSTRIAL CONGLOMERATES 3.3%
Hutchison Whampoa Ltd. .......................... Hong Kong 358,000 1,992,192
Smiths Group PLC ................................ United Kingdom 231,180 2,471,861
------------
4,464,053
------------

SEMIANNUAL REPORT 15

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED) (CONT.)

COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------

cCOMMON STOCKS (CONT.)
INSURANCE 5.6%
Ace Ltd. ........................................ Bermuda 74,575 $ 2,466,941
W.R. Berkley Corp. .............................. United States 59,130 2,745,997
XL Capital Ltd., A .............................. Bermuda 30,100 2,477,230
------------
7,690,168
------------
IT CONSULTING & SERVICES 2.0%
Electronic Data Systems Corp. ................... United States 58,830 1,067,765
Satyam Computers Services Ltd., ADR ............. India 219,366 1,689,118
------------
2,756,883
------------
MACHINERY 1.8%
Weir Group PLC .................................. United Kingdom 679,840 2,412,167
------------
METALS & MINING 5.3%
AngloGold Ltd., ADR ............................. South Africa 52,381 1,478,192
Barrick Gold Corp. .............................. Canada 98,925 1,478,929
BHP Billiton PLC ................................ Australia 578,710 2,959,775
Cia Vale do Rio Doce, ADR ....................... Brazil 47,892 1,339,060
------------
7,255,956
------------
MULTILINE RETAIL 1.9%
Target Corp. .................................... United States 77,647 2,596,516
------------
OIL & GAS 5.0%
Eni SpA ......................................... Italy 286,018 4,076,122
PetroChina Co. Ltd., H .......................... China 11,979,000 2,734,002
------------
6,810,124
------------
PAPER & FOREST PRODUCTS 1.7%
Stora Enso OYJ, R ............................... Finland 218,930 2,379,727
------------
PHARMACEUTICALS 2.3%
Bristol-Myers Squibb Co. ........................ United States 123,530 3,154,956
------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS 2.3%
Samsung Electronics Co. Ltd. .................... South Korea 12,520 3,142,881
------------
SOFTWARE 2.9%
aBMC Software Inc. ............................... United States 91,528 1,365,598
aCheck Point Software Technologies Ltd. .......... Israel 163,766 2,576,039
------------
3,941,637
------------
WIRELESS TELECOMMUNICATION SERVICES 1.4%
China Mobile (Hong Kong) Ltd., fgn. ............. China 952,000 1,910,335
------------
Total Common Stocks (Cost $82,561,553) 84,892,564
------------

16 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED) (CONT.)

PRINCIPAL
COUNTRY AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------
cSHORT TERM INVESTMENTS 35.4%

Den Danske Bank, 1.313%, 5/01/03,
Time Deposit ................................... United States $ 6,375,000 $ 6,375,000
Deutsche Bank AG, 1.32%, 5/01/03,
Time Deposit ................................... United States 6,000,000 6,000,000
U.S. Treasury Bill, 1.080% to 1.148%,
with maturities to 7/17/03 .................... United States 35,975,000 35,928,120
------------
TOTAL SHORT TERM INVESTMENTS (COST $48,299,459) . 48,303,120
------------
TOTAL INVESTMENTS (COST $130,861,012) 97.5% ..... 133,195,684
SECURITIES SOLD SHORT (28.7)% ................... (39,165,635)
OTHER ASSETS, LESS LIABILITIES 31.2% ............ 42,584,899
------------
NET ASSETS 100.0% ............................... $136,614,948
============

bSECURITIES SOLD SHORT

ISSUER COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------

AEROSPACE & DEFENSE 1.9%
Bombardier Inc., B .............................. Canada 136,000 $ 328,956
European Aeronautic Defense & Space Co. ......... Netherlands 243,200 2,260,849
------------
2,589,805
------------
AUTO COMPONENTS .6%
Visteon Corp. ................................... United States 118,300 829,283
------------
BANKS .9%
Northern Rock PLC ............................... United Kingdom 105,330 1,204,507
------------
BEVERAGES 1.2%
SABMiller PLC ................................... South Africa 238,350 1,641,875
------------
COMMUNICATIONS EQUIPMENT 1.6%
Telefonaktiebolaget LM Ericsson, B .............. Sweden 2,415,880 2,200,363
------------
DIVERSIFIED FINANCIALS 8.4%
Charles Schwab Corp. ............................ United States 173,840 1,500,239
Goldman Sachs Group Inc. ........................ United States 17,587 1,334,853
Ishares MSCI Hong Kong Index Fund ............... Hong Kong 419,320 2,905,888
Ishares MSCI Japan Index Fund ................... Japan 442,200 2,834,502
Ishares MSCI South Korea Index Fund South ....... Korea 82,240 1,420,285
Ishares PLC - Iftse 100 ......................... United Kingdom 227,470 1,451,499
------------
11,447,266
------------
HOTELS RESTAURANTS & LEISURE 1.5%
Marriott International Inc., A .................. United States 57,820 2,076,316
------------
HOUSEHOLD DURABLES 3.0%
Barratt Developments PLC ........................ United Kingdom 249,070 1,663,970
Toll Brothers Inc. .............................. United States 105,850 2,461,012
------------
4,124,982
------------

SEMIANNUAL REPORT 17

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED) (CONT.)

bSECURITIES SOLD SHORT (CONT.)
ISSUER COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------

INSURANCE 2.3%
Chubb Corp. ....................................... United States 57,840 $ 3,059,158
------------
MEDIA 1.0%
Walt Disney Co. ................................... United States 75,040 1,400,246
------------
METALS & MINING .9%
Alcoa Inc. ........................................ United States 55,580 1,274,449
------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS 2.9%
Applied Materials Inc. ............................ United States 74,120 1,082,152
ASML Holding NV ................................... Netherlands 148,160 1,279,779
Micron Technology Inc. ............................ United States 181,840 1,545,640
------------
3,907,571
------------
SPECIALTY RETAIL 2.5%
Home Depot Inc. ................................... United States 42,000 1,181,460
Tiffany & Co. ..................................... United States 80,330 2,228,354
------------
3,409,814
------------
TOTAL SECURITIES SOLD SHORT (PROCEEDS $35,816,186) $ 39,165,635
------------

aNon-income producing.
bSee Note 1(e) regarding securities sold short.
cSee Note 1(e) regarding securities segregated with broker for securities
sold short.

See notes to financial statements.

18 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

Financial Statements

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2003 (UNAUDITED)

Assets:
Investments in securities:
Cost ...................................................... $ 130,861,012
=============
Value ..................................................... 133,195,684
Cash ....................................................... 4,796
Receivables:
Investment securities sold ................................ 717,886
Capital shares sold ....................................... 769,095
Dividends and interest .................................... 503,369
Deposits with broker for securities sold short ............. 47,590,729
-------------
Total assets .......................................... 182,781,559
Liabilities:
Payables:
Investment securities purchased ........................... 6,016,903
Capital shares redeemed ................................... 512,685
Affiliates ................................................ 439,993
Securities sold short, at value (proceeds $35,816,186) ..... 39,165,635
Other liabilities .......................................... 31,395
-------------
Total liabilities ..................................... 46,166,611
-------------
Net assets, at value ........................................ $ 136,614,948
-------------
Net assets consist of:
Undistributed net investment income ........................ $ (1,144,466)
Net unrealized appreciation (depreciation) ................. (1,006,560)
Accumulated net realized gain (loss) ....................... (9,746,560)
Capital shares ............................................. 148,512,534
-------------
Net assets, at value ........................................ $ 136,614,948
=============

SEMIANNUAL REPORT 19

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

Financial Statements (CONTINUED)

STATEMENT OF ASSETS AND LIABILITIES (CONT.)
APRIL 30, 2003 (UNAUDITED)

CLASS A:

Net assets, at value ................................................ $91,336,326
-----------
Shares outstanding .................................................. 9,586,537
-----------
Net asset value per share a ......................................... $ 9.53
-----------
Maximum offering price per share (Net asset value per share / 94.25%) $ 10.11
-----------
CLASS B:
Net assets, at value ................................................ $45,278,622
-----------
Shares outstanding .................................................. 4,802,006
-----------
Net asset value and maximum offering price per share a .............. $9.43
-----------

aRedemption price is equal to net asset value less any applicable contingent
deferred sales charge.

See notes to financial statements.

20 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

Financial Statements (CONTINUED)

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)

Investment income:

(net of foreign taxes of $130,032)
Dividends .............................................................. $ 1,184,251
Interest ............................................................... 513,710
------------
Total investment income ........................................... 1,697,961
------------
Expenses:
Management fees (Note 3) ............................................... 1,853,228
Administrative fees (Note 3) ........................................... 148,258
Distribution fees (Note 3)
Class A ............................................................... 121,475
Class B ............................................................... 235,074
Transfer agent fees (Note 3) ........................................... 99,000
Custodian fees ......................................................... 13,500
Reports to shareholders ................................................ 11,100
Professional fees ...................................................... 9,800
Trustees' fees and expenses ............................................ 3,100
Dividends for securities sold short .................................... 341,873
Other .................................................................. 1,200
------------
Total expenses .................................................... 2,837,608
------------
Net investment income (loss) ................................. (1,139,647)
------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments ........................................................... (4,375,416)
Foreign currency transactions ......................................... (241,939)
------------
Net realized gain (loss) .......................................... (4,617,355)
Net unrealized appreciation (depreciation) on:
Investments ........................................................... (4,023,661)
Translation of assets and liabilities denominated in foreign currencies (23,148)
------------
Net unrealized appreciation (depreciation) ........................ (4,046,809)
------------
Net realized and unrealized gain (loss) ................................. (8,664,164)
------------
Net increase (decrease) in net assets resulting from operations ......... $(9,803,811)
============

See notes to financial statements.

SEMIANNUAL REPORT 21

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

Financial Statements (CONTINUED)

STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)
AND THE YEAR ENDED OCTOBER 31, 2002

SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
- -------------------------------------------------------------------------------------------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income (loss) ............................................. $ (1,139,647) $ (447,914)
Net realized gain (loss) from investments and
foreign currency transactions ........................................... (4,617,355) (5,399,467)
Net unrealized appreciation (depreciation) on investments
and translation of assets and liabilities
denominated in foreign currencies ....................................... (4,046,809) 3,037,253
----------------------------------
Net increase (decrease) in net assets resulting
from operations ......................................................... (9,803,811) (2,810,128)

Capital share transactions (Note 2):
Class A .................................................................. (11,906,678) 79,334,391
Class B .................................................................. (1,655,095) 40,732,428
----------------------------------
Total capital share transactions .......................................... (13,561,773) 120,066,819
Net increase (decrease) in net assets ................................ (23,365,584) 117,256,691
Net assets:
Beginning of period ....................................................... 159,980,532 42,723,841
----------------------------------
End of period ............................................................. $136,614,948 $159,980,532
==================================
Undistributed net investment income included in net assets:
End of period ............................................................. $ (1,144,466) $ (4,819)
==================================

See notes to financial statements.

22 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

Notes to Financial Statements (unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES

Templeton Global Long-Short Fund (the Fund) is a separate, diversified series of
Franklin Templeton International Trust (the Trust) which is registered under the
Investment Company Act of 1940 as an open-end, diversified investment company.
The Fund seeks to achieve long-term capital growth by investing in both long and
short positions, in equity securities, primarily common stocks of companies
located anywhere in the world, including developing or emerging markets. The
following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

B. FOREIGN CURRENCY TRANSLATION

C. FOREIGN CURRENCY CONTRACTS

SEMIANNUAL REPORT 23

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

Notes to Financial Statements (unaudited) (CONTINUED)

1. SIGNIFICANT ACCOUNTING POLICIES (CONT.)

D. OPTION CONTRACTS

The Fund may purchase or write options. Options are contracts entitling the
holder to purchase or sell a specified number of shares or units of a particular
security at a specified price at any time until the contract stated expiration
date. Options purchased are recorded as investments; options written (sold) are
recorded as liabilities. When the exercise of an option results in a cash
settlement, the difference between the premium (original option value) and the
settlement proceeds is realized as a gain or loss. When securities are acquired
or delivered upon exercise of an option, the acquisition cost or sale proceeds
are adjusted by the amount of the premium. When an option is closed, the
difference between the premium and the cost to close the position is realized as
a gain or loss. When an option expires, the premium is realized as a gain for
options written or as a loss for options purchased. The risks include the
possibility there may be an illiquid options market or the inability of the
counterparties to fulfill their obligations under the contract. Writing options
involves, to varying degrees, elements of market risk in excess of the amount
recognized in the Statement of Assets and Liabilities.

E. SECURITIES SOLD SHORT

The Fund is engaged in selling securities short, which obligates the Fund to
replace a borrowed security with the same security at current market value. The
Fund would incur a loss if the price of the security increases between the date
of the short sale and the date on which the Fund replaces the borrowed security.
The Fund would realize a gain if the price of the security declines between
those dates. A gain, limited to the price at which the Fund sold the security
short or a loss, unlimited in size, will be recognized upon the termination of a
short sale.

The Fund is required to establish a margin account with the broker lending the
security sold short. While the short sale is outstanding, the broker retains the
proceeds of the short sale and the Fund must maintain a deposit for the broker
consisting of cash and securities having a value equal to a specified percentage
of the value of the securities sold short.

F. INCOME TAXES

No provision has been made for income taxes because the Fund's policy is to
qualify as a regulated investment company under the Internal Revenue Code and to
distribute all of its taxable income.

G. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Certain income from foreign securities is recorded as soon as information is
available to the Fund. Interest income and estimated expenses are accrued daily.
Dividend income, dividends declared on securities sold short, and distributions
to shareholders are recorded on the ex-dividend date.

24 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

Notes to Financial Statements (unaudited) (CONTINUED)

1. SIGNIFICANT ACCOUNTING POLICIES (CONT.)

H. ACCOUNTING ESTIMATES

I. GUARANTEES AND INDEMNIFICATIONS

2. SHARES OF BENEFICIAL INTEREST

The Fund offers two classes of shares: Class A and Class B. Each class of shares
differs by its initial sales load, contingent deferred sales charges,
distribution fees, voting rights on matters affecting a single class and its
exchange privilege.

At April 30, 2003, there were an unlimited number of shares authorized ($.01 par
value). Transactions in the Fund's shares were as follows:

CLASS A SHARES:
Shares sold ..................................... 1,736,390 $ 17,141,353 10,357,789 $107,355,343
Shares redeemed ................................. (2,948,455) (29,048,031) (2,739,229) (28,020,952)
-----------------------------------------------------------------
Net increase (decrease) ......................... (1,212,065) $(11,906,678) 7,618,560 $ 79,334,391
=================================================================

SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
-----------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------
CLASS B SHARES:
Shares sold ..................................... 333,693 $ 3,211,591 4,347,087 $ 44,958,919
Shares redeemed ................................. (501,684) (4,866,686) (412,076) (4,226,491)
-----------------------------------------------------------------
Net increase (decrease) ......................... (167,991) $ (1,655,095) 3,935,011 $ 40,732,428
=================================================================

SEMIANNUAL REPORT 25

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

Notes to Financial Statements (unaudited) (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES

Certain officers of the Trust are also officers and/or directors of Franklin
Advisers, Inc. (Advisers), Franklin Templeton Services, LLC (FT Services),
Franklin/Templeton Distributors, Inc. (Distributors) and Franklin/Templeton
Investor Services, LLC (Investor Services), the Fund's investment manager,
administrative manager, principal underwriter, and transfer agent, respectively.

The Fund pays an investment management fee based on the annual rate of 1.50%
(the "Base Fee") of average daily net assets. The Base Fee will be adjusted, on
a monthly basis either (i) upward at the rate of 0.01% for each 0.05% that the
investment performance of the Fund exceeds the sum of 2.00% plus the investment
record of the Morgan Stanley Capital International World Index (the "Index"), or
(ii) downward at the rate of 0.01% for each 0.05% that the record of the Index
less 2.00% exceeds the investment performance of the Fund. The maximum annual
fee payable to Advisers will be 2.50% of average daily net assets and the
minimum annual fee will be 0.50%. For the period, the total annualized
management fee rate, including the performance adjustment, was 2.50% of average
daily net assets.

The Fund pays an administrative fee to FT Services of .20% per year of the
Fund's average daily net assets.

Under a subadvisory agreement, Templeton Global Advisers, Ltd. (TGAL), provides
subadvisory services to the Fund and receives from Advisers fees based on the
average daily net assets of the Fund.

The Fund reimburses Distributors for costs incurred in marketing the Fund's
shares up to .35% and 1.00% per year of the average daily net assets of Class A
and Class B shares, respectively.

Distributors paid net commissions on sales of Fund's shares and received
contingent deferred sales charges for the year of $99,683 and $92,534,
respectively.

4. INCOME TAXES

At April 30, 2003, the net unrealized appreciation (depreciation) based on the
cost of investments and securities sold short for income tax purposes were as
follows:

Cost of investments ......................... $95,652,306
============
Unrealized appreciation ..................... 4,678,386
Unrealized depreciation ..................... (6,300,643)
------------
Net unrealized appreciation (depreciation) .. $(1,622,257)
============
Net investment income and net realized losses differ for financial statement and
tax purposes primarily due to differing treatments of wash sales and net
operating losses.

26 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON GLOBAL LONG-SHORT FUND

Notes to Financial Statements (unaudited) (CONTINUED)

4. INCOME TAXES (CONT.)

At October 31, 2002, the Fund had tax basis capital losses, which may be carried
over to offset future capital gains as follows:

Capital loss carryovers expiring in:
2009 ............... $ 2,252
2010 ............... 4,269,614
----------
$4,271,866
==========

5. INVESTMENT TRANSACTIONS

Purchases and sales of securities (excluding short-term securities and
securities sold short) for the period ended April 30, 2003 aggregated
$76,252,194 and $82,387,770, respectively.

SEMIANNUAL REPORT 27

This page intentionally left blank.

LITERATURE REQUEST

For a brochure and prospectus, which contain more complete information,
including charges and expenses, call Franklin Templeton Investments at
1-800/DIAL BEN(R) (1-800/342-5236). Please read the prospectus carefully before
investing or sending money. To ensure the highest quality of service, telephone
calls to or from our service departments may be monitored, recorded and
accessed. These calls can be determined by the presence of a regular beeping
tone.

FRANKLIN TEMPLETON INVESTMENTS

GLOBAL GROWTH & INCOME
Franklin Global Communications Fund
Mutual European Fund
Templeton Global Bond Fund

GLOBAL INCOME
Franklin Templeton Hard
Currency Fund

GROWTH & INCOME
Franklin Balance Sheet
Investment Fund 4
Franklin Convertible
Securities Fund
Franklin Equity Income Fund
Franklin Income Fund
Franklin Large Cap Value Fund
Franklin MicroCap Value Fund 4
Franklin Natural Resources Fund
Franklin Real Estate
Securities Fund
Franklin Rising Dividends Fund
Franklin Small Cap Value Fund
Franklin Utilities Fund
Mutual Beacon Fund
Mutual Financial Services Fund
Mutual Qualified Fund
Mutual Shares Fund

FUND ALLOCATOR SERIES
Franklin Templeton Conservative
Target Fund
Franklin Templeton Growth
Target Fund
Franklin Templeton Moderate
Target Fund

INCOME
Franklin Adjustable U.S.
Government Securities Fund 5
Franklin's AGE High Income Fund
Franklin Floating Rate Daily
Access Fund
Franklin Floating Rate Trust 6
Franklin Short-Intermediate
U.S. Government Securities Fund 5
Franklin Strategic Income Fund
Franklin Total Return Fund
Franklin U.S. Government
Securities Fund 5
Franklin Federal Money Fund 5,7
Franklin Money Fund 5,7

TAX-FREE INCOME 8
Double Tax-Free Income Fund
Federal Intermediate-Term
Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free
Income Fund
Insured Tax-Free Income Fund 9
Tax-Exempt Money Fund 5,7

STATE-SPECIFIC
TAX-FREE INCOME 8
Alabama
Arizona
California 10
Colorado
Connecticut
Florida 10
Georgia
Kentucky
Louisiana
Maryland
Massachusetts 9

Michigan 9
Minnesota 9
Missouri
New Jersey
New York 10
North Carolina
Ohio 9
Oregon
Pennsylvania
Tennessee
Virginia

INSURANCE FUNDS
Franklin Templeton Variable Insurance Products Trust 11

1. Formerly Franklin Growth and Income Fund. Effective 5/1/02, the fund's name
changed; investment goal and strategy remained the same.
2. Formerly Franklin California Growth Fund. Effective 9/1/02, the fund's name
changed and its investment criteria was modified to invest a majority of its net
assets in California companies, as opposed to at least 80% of net assets.
3. Upon reaching approximately $350 million in assets, the fund will close to
all investors.
4. The fund is only open to existing shareholders as well as select retirement
plans.
5. An investment in the fund is neither insured nor guaranteed by the U.S.
government or by any other entity or institution.
6. The fund is a continuously offered, closed-end fund. Shares may be purchased
daily; there is no daily redemption. However, each quarter, pending board
approval, the fund will authorize the repurchase of 5%-25% of the outstanding
number of shares. Investors may tender all or a portion of their shares during
the tender period.
7. No assurance exists that the fund's $1.00 per share price will be maintained.
It is possible to lose money by investing in the fund.
8. For investors subject to the alternative minimum tax, a small portion of
these dividends may be taxable. Distributions of capital gains are generally
taxable.
9. Portfolio of insured municipal securities.
10. These funds are available in two or more variations, including long-term
portfolios, portfolios of insured securities, a high-yield portfolio (CA) and
intermediate-term and money market portfolios (CA and NY).
11. The funds of the Franklin Templeton Variable Insurance Products Trust are
generally only available as investment options in variable annuity or variable
life insurance contracts.

12/02

Not part of the semiannual report

[LOGO OMITTED]
FRANKLIN(R) TEMPLETON(R)
INVESTMENTS

One Franklin Parkway
San Mateo, CA 94403-1906

WANT TO RECEIVE THIS DOCUMENT FASTER VIA EMAIL?
- -----------------------------------------------
ELIGIBLE SHAREHOLDERS CAN SIGN UP FOR EDELIVERY
AT FRANKLINTEMPLETON.COM. SEE INSIDE FOR DETAILS.

SEMIANNUAL REPORT AND SHAREHOLDER LETTER
TEMPLETON GLOBAL LONG-SHORT FUND

INVESTMENT MANAGER
Franklin Advisers, Inc.

DISTRIBUTOR
Franklin Templeton Distributors, Inc.
1-800/DIALBEN(R)
franklintempleton.com

SHAREHOLDER SERVICES
1-800/632-2301

This report must be preceded or accompanied by the current Templeton Global
Long-Short Fund prospectus, which contains more complete information including
charges and expenses.

467 S2003 06/03

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Financial Highlights

CLASS A
- - ----------------------------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED OCTOBER 31,
-----------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
----------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ............ $5.29 $5.63 $8.33 $10.20 $ 7.83 $10.88
------------------------------------------------------------
Income from investment operations:
Net investment income (loss) a ................. (.01) (.01) (.01) .03 .01 .13
Net realized and unrealized gains (losses) ..... (.31) (.33) (2.65) (1.90) 2.42 (2.98)
------------------------------------------------------------
Total from investment operations ................ (.32) (.34) (2.66) (1.87) 2.43 (2.85)
------------------------------------------------------------
Less distributions from:
Net investment income .......................... -- -- (.04) -- (.06) (.13)
Net realized gains ............................. -- -- -- -- -- (.07)
------------------------------------------------------------
Total distributions ............................. -- -- (.04) -- (.06) (.20)
------------------------------------------------------------
Net asset value, end of period .................. $4.97 $5.29 $5.63 $ 8.33 $10.20 $ 7.83
------------------------------------------------------------

Total return b .................................. (6.24)% (6.04)% (32.11)% (18.33)% 31.23% (26.37)%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ............... $13,693 $17,242 $19,049 $59,292 $73,160 $42,200
Ratios to average net assets:
Expenses ....................................... 2.38% c 2.22% 2.27% 1.81% 1.92% 1.90%
Net investment income (loss) ................... (.34)% c (.23)% (.16)% .31% .10% 1.43%
Portfolio turnover rate ......................... 0.00% 47.98% 65.33% 36.56% 39.33% 19.61%

aBased on average shares outstanding effective year ended October 31, 1999.
bTotal return does not reflect the sales commissions or the contingent deferred
sales charge, and is not annualized for periods less than one year.
cAnnualized.

2 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Financial Highlights (CONTINUED)

CLASS C
----------------------------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED OCTOBER 31,
-------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
----------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ............ $5.15 $5.54 $8.21 $10.15 $ 7.80 $10.81
------------------------------------------------------------
Income from investment operations:
Net investment income (loss) a ................. (.03) (.06) (.06) (.05) (.07) .08
Net realized and unrealized gains (losses) ..... (.31) (.33) (2.61) (1.89) 2.45 (2.92)
------------------------------------------------------------
Total from investment operations ................ (.34) (.39) (2.67) (1.94) 2.38 (2.84)
------------------------------------------------------------
Less distributions from:
Net investment income .......................... -- -- -- -- (.03) (.10)
Net realized gains ............................. -- -- -- -- -- (.07)
------------------------------------------------------------
Total distributions ............................. -- -- -- -- (.03) (.17)
------------------------------------------------------------
Net asset value, end of period .................. $4.81 $5.15 $5.54 $ 8.21 $10.15 $ 7.80
------------------------------------------------------------

Total return b .................................. (6.60)% (7.04)% (32.52)% (19.11)% 30.61% (26.47)%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ............... $3,426 $4,169 $4,472 $7,605 $11,925 $6,183
Ratios to average net assets:
Expenses ....................................... 3.16% c 2.93% 3.05% 2.60% 2.70% 2.63%
Net investment income (loss) ................... (1.12)% c (.94)% (.92)% (.51)% (.71)% .67%
Portfolio turnover rate ......................... 0.00% 47.98% 65.33% 36.56% 39.33% 19.61%

SEMIANNUAL REPORT 3

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Financial Highlights (CONTINUED)

ADVISOR CLASS
----------------------------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED OCTOBER 31,
------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
----------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ............ $5.33 $5.71 $8.44 $10.31 $ 7.88 $10.88
------------------------------------------------------------
Income from investment operations:
Net investment income (loss) a ................. -- d (.01) -- e .04 .04 .15
Net realized and unrealized gains (losses) ..... (.32) (.37) (2.66) (1.91) 2.46 (2.93)
------------------------------------------------------------
Total from investment operations ................ (.32) (.38) (2.66) (1.87) 2.50 (2.78)
------------------------------------------------------------
Less distributions from:
Net investment income .......................... -- -- (.07) -- (.07) (.15)
Net realized gains ............................. -- -- -- -- -- (.07)
------------------------------------------------------------
Total distributions ............................. -- -- (.07) -- (.07) (.22)
------------------------------------------------------------
Net asset value, end of period .................. $5.01 $5.33 $5.71 $ 8.44 $10.31 $ 7.88
------------------------------------------------------------

Total return b .................................. (6.00)% (6.66)% (31.79)% (18.14)% 32.15% (25.68)%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ............... $250 $260 $715 $1,286 $7,252 $1,454
Ratios to average net assets:
Expenses ....................................... 2.13% c 1.94% 2.06% 1.61% 1.71% 1.62%
Net investment income (loss) ................... (.09)% c .05% .05% .33% .40% 1.78%
Portfolio turnover rate ......................... 0.00% 47.98% 65.33% 36.56% 39.33% 19.61%

aBased on average shares outstanding effective year ended October 31, 1999.
bTotal return is not annualized for periods less than one year.
cAnnualized.
dActual net investment income per share was $.002.
eActual net investment income per share was $.003.

See notes to financial statements.

4 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED)

COUNTRY SHARES VALUE
- ------------------------------------------------------------------------------------------------------------

COMMON STOCKS 75.1%
AUTO COMPONENTS 1.5%
Denso Corp. ....................................................... Japan 18,100 $ 258,008
---------
AUTOMOBILES .2%
aTata Engineering & Locomotive Co. Ltd., GDR ....................... India 10,000 32,200
---------
BANKS 7.3%
aBangkok Bank Public Co. Ltd., fgn. ................................ Thailand 126,400 176,907
DBS Group Holdings Ltd. ........................................... Singapore 45,000 220,489
HSBC Holdings PLC ................................................. Hong Kong 28,320 309,561
United Overseas Bank Ltd. ......................................... Singapore 96,000 562,289
---------
1,269,246
---------
BUILDING PRODUCTS 1.4%
Toto Ltd. ......................................................... Japan 48,000 240,684
---------
COMPUTERS & PERIPHERALS 1.0%
aNEC Corp. ......................................................... Japan 56,000 175,147
---------
CONSTRUCTION MATERIALS 1.5%
Gujarat Ambuja Cements Ltd., GDR, Reg S ........................... India 77,335 262,166
---------
DIVERSIFIED FINANCIALS 3.1%
Acom Co. Ltd. ..................................................... Japan 7,500 210,674
Guoco Group Ltd. .................................................. Hong Kong 16,000 92,524
Nomura Holdings Inc. .............................................. Japan 24,000 237,666
---------
540,864
---------
DIVERSIFIED TELECOMMUNICATION SERVICES 9.3%
Asia Satellite Telecommunications Holdings Ltd. ................... Hong Kong 210,500 291,497
KT Corp., ADR ..................................................... South Korea 11,250 227,700
Nippon Telegraph & Telephone Corp. ................................ Japan 164 574,811
aPhilippine Long Distance Telephone Co. ............................ Philippines 30,100 217,970
Telecom Corp. of New Zealand Ltd. ................................. New Zealand 112,890 302,465
---------
1,614,443
---------
ELECTRONIC EQUIPMENT & INSTRUMENTS 3.2%
aASE Test Ltd. ..................................................... Taiwan 27,120 93,293
Hitachi Ltd. ...................................................... Japan 83,200 277,659
Murata Manufacturing Co. Ltd. ..................................... Japan 5,000 178,182
---------
549,134
---------
FOOD PRODUCTS 1.1%
Want Want Holdings Ltd. ........................................... Singapore 280,000 184,800
---------
GAS UTILITIES 1.8%
Gas India Ltd., GDR, 144A ......................................... India 33,440 319,352
---------

SEMIANNUAL REPORT 5

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED) (CONT.)

COUNTRY SHARES VALUE
- ------------------------------------------------------------------------------------------------------------

COMMON STOCKS (CONT.)
HOUSEHOLD DURABLES 4.9%
Matsushita Electric Industrial Co. Ltd. ........................... Japan 31,000 $ 246,939
Sangetsu Co. Ltd. ................................................. Japan 27,000 473,168
Sony Corp. ........................................................ Japan 5,400 131,310
---------
851,417
---------
INDUSTRIAL CONGLOMERATES .6%
Hutchison Whampoa Ltd. ............................................ Hong Kong 18,000 100,166
---------
INSURANCE 1.7%
Sompo Japan Insurance Inc. ........................................ Japan 66,000 301,610
---------
IT CONSULTING & SERVICES 3.8%
Meitec Corp. ...................................................... Japan 17,000 431,913
Satyam Computers Services Ltd., ADR ............................... India 30,100 231,770
---------
663,683
---------
MACHINERY 1.0%
Kurita Water Industries Ltd. ...................................... Japan 19,600 169,935
---------
MEDIA 2.6%
APN News & Media Ltd. ............................................. Australia 183,500 386,838
SCMP Group Ltd. ................................................... Hong Kong 158,752 60,048
---------
446,886
---------
METALS & MINING 2.8%
Alumina Ltd. ...................................................... Australia 61,470 167,653
BHP Billiton Ltd. ................................................. Australia 31,004 175,327
aWMC Resources Ltd. ................................................ Australia 61,470 153,811
---------
496,791
---------
OIL & GAS 3.4%
CNOOC Ltd. ........................................................ Hong Kong 235,000 308,852
Woodside Petroleum Ltd. ........................................... Australia 38,500 275,999
---------
584,851
---------
PAPER & FOREST PRODUCTS 3.0%
Hung Hing Printing Group Ltd. ..................................... Hong Kong 848,000 521,910
---------
PHARMACEUTICALS 1.2%
Ono Pharmaceutical Co. Ltd. ....................................... Japan 7,000 208,955
---------
REAL ESTATE 4.7%
Ayala Land Inc. ................................................... Philippines 1,090,000 103,859
Cheung Kong Holdings Ltd. ......................................... Hong Kong 43,300 239,289
Hang Lung Properties Ltd. ......................................... Hong Kong 339,500 293,834
Sun Hung Kai Properties Ltd. ...................................... Hong Kong 37,000 173,637
---------
810,619
---------

6 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED) (CONT.)

COUNTRY SHARES VALUE
- ------------------------------------------------------------------------------------------------------------

COMMON STOCKS (CONT.)
ROAD & RAIL 1.2%
East Japan Railway Co. ........................................... Japan 47 $ 212,812
-----------
SPECIALTY RETAIL 1.7%
Giordano International Ltd. ...................................... Hong Kong 1,124,000 302,652
-----------
TEXTILES & APPAREL 6.3%
Fountain Set Holdings Ltd. ....................................... Hong Kong 860,000 584,430
Lerado Group Holdings Co. Ltd. ................................... Hong Kong 2,326,000 348,943
Yue Yuen Industrial Holdings Ltd. ................................ Hong Kong 76,000 155,916
-----------
1,089,289
-----------
TRANSPORTATION INFRASTRUCTURE 3.0%
Japan Airport Terminal Co. Ltd. .................................. Japan 91,000 517,340
-----------
WIRELESS TELECOMMUNICATION SERVICES 1.8%
China Mobile (Hong Kong) Ltd., fgn. .............................. China 155,000 311,031
-----------
TOTAL COMMON STOCKS (COST $17,649,766) ........................... 13,035,991
-----------

PRINCIPAL
AMOUNT
-------------
SHORT TERM INVESTMENTS (COST $2,384,428) 13.7%
U.S. Treasury Bill, 1.08% 5/08/03 ................................ United States $2,385,000 2,384,499
-----------
REPURCHASE AGREEMENT (COST $800,000) 4.6%
bDresdner Bank AG, 1.25%, 5/01/03 (Maturity Value $800,028)
Collateralized by
U.S. Treasury Bills, Notes and Bonds, and U.S. Government
Agency Securities ............................................ United States 800,000 800,000
-----------
TOTAL INVESTMENTS (COST $20,834,194) 93.4% ....................... 16,220,490
OTHER ASSETS, LESS LIABILITIES 6.6% .............................. 1,148,342
-----------
NET ASSETS 100.0% ................................................ $17,368,832
===========

aNon-income producing.
bSee Note 1(c) regarding repurchase agreement.

See notes to financial statements.

SEMIANNUAL REPORT 7

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Financial Statements

STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2003 (UNAUDITED)

Assets:
Investments in securities:
Cost ................................................................................... $20,834,194
===========
Value .................................................................................. 16,220,490
Cash ...................................................................................... 3,512
Foreign currency, at value (cost $ 963,370) ............................................... 963,166
Receivables:
Investment securities sold ............................................................. 257,548
Capital shares sold .................................................................... 1,248
Dividends .............................................................................. 85,549
-----------
Total assets ........................................................................ 17,531,513
-----------
Liabilities:
Payables:
Capital shares redeemed ................................................................ 25,881
Affiliates ............................................................................. 42,909
Shareholders ........................................................................... 18,089
Deferred tax (Note 1g) .................................................................... 45,070
Other liabilities ......................................................................... 30,732
-----------
Total liabilities ................................................................... 162,681
-----------
Net assets, at value ...................................................................... $17,368,832
-----------
Net assets consist of:
Undistributed net investment income ....................................................... $ (50,989)
Net unrealized appreciation (depreciation) ................................................ (4,612,217)
Accumulated net realized gain (loss) ...................................................... (15,862,349)
Capital shares ............................................................................ 37,894,387
-----------
Net assets, at value ...................................................................... $17,368,832
===========

See notes to financial statements.
8 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Financial Statements (CONTINUED)

STATEMENTS OF ASSETS AND LIABILITIES (CONT.)
APRIL 30, 2003 (UNAUDITED)

CLASS A:
Net assets, at value ...................................................................... $13,692,950
===========
Shares outstanding ........................................................................ 2,757,662
===========
Net asset value per share ................................................................. $4.97
===========
Maximum offering price per share (Net asset value per share (DIVIDE) 94.25%) .............. $5.27
===========
CLASS C:
Net assets, at value ...................................................................... $ 3,425,775
===========
Shares outstanding ........................................................................ 711,918
===========
Net asset value per share a ............................................................... $4.81
===========
Maximum offering price per share (Net asset value per share (DIVIDE) 99.00%) .............. $4.86
===========
ADVISOR CLASS:
Net assets, at value ...................................................................... $ 250,107
===========
Shares outstanding ........................................................................ 49,922
===========
Net asset value and maximum offering price per share ...................................... $5.01
===========

aRedemption price is equal to net asset value less any applicable contingent
deferred sales charge.

See notes to financial statements.
SEMIANNUAL REPORT 9

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Financial Statements (CONTINUED)

STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)

Investment income a:
Dividends ................................................................................ $ 184,916
Interest ................................................................................. 12,066
------------
Total investment income .............................................................. 196,982
------------
Expenses:
Management fees (Note 3) .................................................................. 96,450
Distribution fees (Note 3)
Class A .................................................................................. 18,937
Class C .................................................................................. 20,139
Transfer agent fees (Note 3) ............................................................... 59,100
Custodian fees ............................................................................. 17,800
Reports to shareholders .................................................................... 5,000
Registration and filing fees ............................................................... 20,500
Professional fees .......................................................................... 6,500
Trustees' fees and expenses ................................................................ 400
------------
Total expenses .......................................................................... 244,826
------------
Net investment income (loss) .......................................................... (47,844)
------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments .............................................................................. (264,817)
Foreign currency transactions ............................................................ (29,442)
------------
Net realized gain (loss) ................................................................... (294,259)
Net unrealized appreciation (depreciation)
on:
Investments .............................................................................. (704,772)
Translation of assets and liabilities denominated in foreign currencies ................. 686
------------
Net unrealized appreciation (depreciation) ........................................... (704,086)
------------
Net realized and unrealized gain (loss) .................................................... (998,345)
------------
Net increase (decrease) in net assets resulting from operations ............................ $(1,046,189)
============

aNet of foreign taxes of $63,965

See notes to financial statements.

10 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Financial Statements (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)
AND THE YEAR ENDED OCTOBER 31, 2002

SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2003 OCTOBER 31, 2002
--------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income (loss) ................................................ $ (47,844) $ (95,373)
Net realized gain (loss) from investments and foreign currency transactions . (294,259) (1,376,557)
Net unrealized appreciation (depreciation) on investments and translation
of assets and liabilities
denominated in foreign currencies ......................................... (704,086) 1,599,075
------------------------------
Net increase (decrease) in net assets resulting from operations ........ (1,046,189) 127,145
Capital share transactions (Note 2):
Class A ................................................................... (2,720,306) (1,773,542)
Class C ................................................................... (546,708) (262,533)
Advisor Class ............................................................. 5,822 (656,171)
------------------------------
Total capital share transactions ............................................. (3,261,192) (2,692,246)

Redemption fees (Note 1j) .................................................... 4,601 --
Net increase (decrease) in net assets .................................. (4,302,780) (2,565,101)
Net assets:
Beginning of period .......................................................... 21,671,612 24,236,713
------------------------------
End of period ................................................................ $17,368,832 $21,671,612
==============================
Undistributed net investment income included in net assets:
End of period ................................................................ $ (50,989) $ (3,145)
==============================

See notes to financial statements.

SEMIANNUAL REPORT 11

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Notes to Financial Statements (unaudited)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Templeton International Trust (the Trust) is registered under the
Investment Company Act of 1940 as a diversified, open-end, investment company.
The Fund seeks to achieve long-term capital growth by investing, under normal
market conditions, at least 80% of its total assets in equity securities that
trade on Pacific Rim markets as defined in the Fund's prospectus, and are issued
by companies that have their principal activities in the Pacific Rim.

On October 11, 2002, the Board of Trustees for Franklin Templeton International
Trust approved a proposal to merge Templeton Pacific Growth Fund into the
Templeton Foreign Fund. On May 2, 2003, shareholders of the Templeton Pacific
Growth Fund approved the proposal. The fund merged on May 8, 2003.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

B. FOREIGN CURRENCY TRANSLATION

C. REPURCHASE AGREEMENTS

The Fund may enter into repurchase agreements, which are accounted for as a loan
by the Fund to the seller, collateralized by securities which are delivered to
the Fund's custodian. The market value, including accrued interest, of the
initial collateralization is required to be at least 102% of the dollar amount
invested by the Fund with the value of the underlying securities marked to
market daily to maintain coverage of at least 100%. At April 30, 2003, all
repurchase agreements held by the Fund had been entered into on the last
business day of the month.

12 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Notes to Financial Statements (unaudited) (CONTINUED)

1. SIGNIFICANT ACCOUNTING POLICIES (CONT.)

D. FOREIGN CURRENCY CONTRACTS

E. INCOME TAXES

No provision has been made for income taxes because the Fund's policy is to
qualify as a regulated investment company under the Internal Revenue Code and to
distribute all of its taxable income.

F. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Common expenses incurred by the Trust are allocated among the funds comprising
the Trust based on the ratio of net assets of each fund to the combined net
assets. Other expenses are charged to each fund on a specific identification
basis.

G. DEFERRED TAXES

Deferred taxes are recorded for estimated tax liabilities inherent in each
Funds' portfolio securities which may arise from subsequent sales of those
securities and corresponding asset repatriations from countries that impose such
taxes.

H. ACCOUNTING ESTIMATES

SEMIANNUAL REPORT 13

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Notes to Financial Statements (unaudited) (CONTINUED)

1. SIGNIFICANT ACCOUNTING POLICIES (CONT.)

I. GUARANTEES AND INDEMNIFICATIONS

J. REDEMPTION FEES

The Fund charges a 2% redemption fee to market timers who redeem shares held for
less than 90 days. Such fees are retained by the Fund and accounted for as
additional paid in capital.

2. SHARES OF BENEFICIAL INTEREST

The Fund offers three classes of shares: Class A, Class C and Advisor Class
shares. Each class of shares differs by its initial sales load, contingent
deferred sales charges, distribution fees, voting rights on matters affecting a
single class and its exchange privilege.

At April 30, 2003, there were an unlimited number of shares authorized ($.01 par
value). Transactions in the Fund's shares were as follows:

SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
--------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------
CLASS A SHARES:

Shares sold ...................................... 720,781 $ 3,734,114 18,181,054 $ 109,456,761
Shares issued on reinvestment of distributions ... -- -- -- --
Shares redeemed .................................. (1,223,443) (6,454,420) (18,302,976) (111,230,303)
--------------------------------------------------------
Net increase (decrease) .......................... (502,662) $(2,720,306) (121,922) $ (1,773,542)
========================================================

CLASS C SHARES:
Shares sold ...................................... 515,532 $ 2,702,084 3,717,754 $ 21,926,074
Shares issued on reinvestment of distributions ... -- -- -- --
Shares redeemed .................................. (613,245) (3,248,792) (3,715,322) (22,188,607)
--------------------------------------------------------
Net increase (decrease) .......................... (97,713) $ (546,708) 2,432 $ (262,533)
========================================================

ADVISOR CLASS SHARES:
Shares sold ...................................... 1,663 $ 8,300 2,061,032 $ 12,310,152
Shares issued on reinvestment of distributions ... -- -- -- --
Shares redeemed .................................. (478) (2,478) (2,137,587) (12,966,323)
--------------------------------------------------------
Net increase (decrease) .......................... 1,185 $ 5,822 (76,555) $ (656,171)
========================================================

14 SEMIANNUAL REPORT

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Notes to Financial Statements (unaudited) (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES

Certain officers of the Trust are also officers or directors of Franklin
Advisers, Inc. (Advisers), Franklin/Templeton Distributors, Inc. (Distributors)
and Franklin/Templeton Investor Services, LLC (Investor Services), the Fund's
investment manager, principal underwriter, and transfer agent, respectively.

The Fund pays an investment management fee to Advisers based on the average
daily net assets of the Fund as follows:

Under a subadvisory agreement, TAML provides subadvisory services to the
Templeton Pacific Growth Fund and receives from Advisers fees based on the
average daily net assets of the Fund.

The Fund reimburses Distributors for costs incurred in marketing the Fund's
shares up to 0.25% and 1.00% per year of the average daily net assets of Class A
and Class C shares, respectively.

Distributors paid net commissions on sales of the Fund's shares and received
contingent deferred sales charges for the period ended April 30, 2003 of $1,601
and $332, respectively.

4. INCOME TAXES

At April 30, 2003, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:

Cost of investments ....................... $20,839,617
------------
Unrealized appreciation ................... 1,221,217
Unrealized depreciation ................... (5,840,343)
------------
Net unrealized appreciation (depreciation) . $(4,619,126)
------------

SEMIANNUAL REPORT 15

FRANKLIN TEMPLETON INTERNATIONAL TRUST
TEMPLETON PACIFIC GROWTH FUND
Notes to Financial Statements (unaudited) (CONTINUED)

4. INCOME TAXES (CONT.)

At October 31, 2002, the Fund had tax basis capital losses which may be carried
over to offset future capital gains as follows:

Capital loss carryover expiring in:
2006 .......................... $ 5,811,328
2009 .......................... 8,395,998
2010 .......................... 1,355,341
-----------
$15,562,667
===========

5. INVESTMENT TRANSACTIONS

Purchases and sales of securities (excluding short-term securities) for the
period ended April 30, 2003 aggregated $0 and $3,783,141, respectively.

16 SEMIANNUAL REPORT

GLOBAL GROWTH & INCOME
Franklin Global Communications Fund
Mutual European Fund
Templeton Global Bond Fund

GLOBAL INCOME
Franklin Templeton Hard
Currency Fund

GROWTH
Franklin Aggressive Growth Fund
Franklin Biotechnology
Discovery Fund

Franklin Blue Chip Fund
Franklin Capital Growth Fund 1
Franklin DynaTech Fund
Franklin Flex Cap Growth Fund 2
Franklin Gold and Precious
Metals Fund
Franklin Growth Fund
Franklin Large Cap Growth Fund
Franklin Small-Mid Cap
Growth Fund
Franklin Technology Fund
Franklin U.S. Long-Short Fund 3

GROWTH & INCOME
Franklin Balance Sheet Investment Fund 4
Franklin Convertible
Securities Fund
Franklin Equity Income Fund
Franklin Income Fund
Franklin Large Cap Value Fund
Franklin MicroCap Value Fund 4
Franklin Natural Resources Fund
Franklin Real Estate
Securities Fund
Franklin Rising Dividends Fund
Franklin Small Cap Value Fund
Franklin Utilities Fund

Mutual Beacon Fund
Mutual Financial Services Fund
Mutual Qualified Fund
Mutual Shares Fund

FUND ALLOCATOR SERIES
Franklin Templeton Conservative Target Fund
Franklin Templeton Growth
Target Fund
Franklin Templeton Moderate
Target Fund

STATE-SPECIFIC
TAX-FREE

INCOME 8
Alabama
Arizona
California 10
Colorado
Connecticut
Florida 10
Georgia
Kentucky
Louisiana
Maryland
Massachusetts 9

Michigan 9
Minnesota 9
Missouri
New Jersey
New York 10
North Carolina
Ohio 9
Oregon
Pennsylvania
Tennessee
Virginia

INSURANCE FUNDS
Franklin Templeton Variable Insurance Products Trust 11

12/02

Not part of the semiannual report

[LOGO OMITTED]
FRANKLIN(R) TEMPLETON(R)
INVESTMENTS

One Franklin Parkway
San Mateo, CA 94403-1906

SEMIANNUAL REPORT AND SHAREHOLDER LETTER
TEMPLETON PACIFIC GROWTH FUND

INVESTMENT MANAGER
Franklin Advisers, Inc.

DISTRIBUTOR
Franklin Templeton Distributors, Inc.
1-800/DIALBEN(R)
franklintempleton.com

SHAREHOLDER SERVICES
1-800/632-2301

This report must be preceded or accompanied by the current Franklin Templeton
International Trust prospectus, which contains more complete information
including charges and expenses.

190 S2003 06/03

ITEM 2. CODE OF ETHICS. N/A
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. N/A
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. N/A
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS N/A
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES. N/A

ITEM 9. CONTROLS AND PROCEDURES.
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form
N-CSR, the Registrant had carried out an evaluation, under the supervision and
with the participation of the Registrant's management, including the
Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.

(B) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Shareholder Report on Form N-CSR.

ITEM 10. EXHIBITS.
(A) N/A

(B)(1) CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
OF JIMMY D. GAMBILL, CHIEF EXECUTIVE OFFICER - FINANCE AND ADMINISTRATION, AND
KIMBERLEY H. MONASTERIO, CHIEF FINANCIAL OFFICER

(B)(2) CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
OF JIMMY D. GAMBILL, CHIEF EXECUTIVE OFFICER - FINANCE AND ADMINISTRATION, AND
KIMBERLEY H. MONASTERIO, CHIEF FINANCIAL OFFICER

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN TEMPLETON INTERNATIONAL TRUST

By /S/Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date June 30, 2003

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By /S/Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date June 30, 2003

By /S/Kimberley H. Monasterio
Chief Financial Officer
Date June 30, 2003