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

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06336
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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)

Craig S. Tyle, 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
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Date of reporting period: 4/30/09
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ITEM 1. REPORTS TO STOCKHOLDERS.

APRIL 30, 2009

SEMIANNUAL REPORT AND SHAREHOLDER LETTER

A series of Franklin Templeton International Trust

(GRAPHIC)

INTERNATIONAL

TEMPLETON
FOREIGN SMALLER COMPANIES FUND

(FRANKLIN TEMPLETON INVESTMENTS(R) LOGO)

Franklin - TEMPLETON - Mutual Series

Franklin Templeton Investments

GAIN FROM OUR PERSPECTIVE(R)

Franklin Templeton's distinct multi-manager
structure combines the specialized expertise of
three world-class investment management
groups--Franklin, Templeton and Mutual Series.

SPECIALIZED EXPERTISE Each of our portfolio management groups operates
autonomously, relying on its own research and
staying true to the unique investment disciplines
that underlie its success.

FRANKLIN. Founded in 1947, Franklin is a recognized
leader in fixed income investing and also brings
expertise in growth- and value-style U.S. equity
investing.

TEMPLETON. Founded in 1940, Templeton pioneered
international investing and, in 1954, launched what
has become the industry's oldest global fund. Today,
with offices in over 25 countries, Templeton offers
investors a truly global perspective.

MUTUAL SERIES. Founded in 1949, Mutual Series is
dedicated to a unique style of value investing,
searching aggressively for opportunity among what it
believes are undervalued stocks, as well as
arbitrage situations and distressed securities.

TRUE DIVERSIFICATION Because our management groups work independently and
adhere to different investment approaches, Franklin,
Templeton and Mutual Series funds typically have
distinct portfolios. That's why our funds can be
used to build truly diversified allocation plans
covering every major asset class.

RELIABILITY YOU CAN TRUST At Franklin Templeton Investments, we seek to
consistently provide investors with exceptional
risk-adjusted returns over the long term, as well as
the reliable, accurate and personal service that has
helped us become one of the most trusted names in
financial services.

MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS

(GRAPHIC)

Not part of the semiannual report

Contents

SHAREHOLDER LETTER ........................................................ 1
SEMIANNUAL REPORT
Templeton Foreign Smaller Companies Fund .................................. 3
Performance Summary ....................................................... 8
Your Fund's Expenses ...................................................... 11
Financial Highlights and Statement of Investments ......................... 13
Financial Statements ...................................................... 21
Notes to Financial Statements ............................................. 25
Shareholder Information ................................................... 35

Shareholder Letter

Dear Shareholder:

During the six months ended April 30, 2009, global economies experienced a
significant slowdown that began in 2008 with the U.S. subprime mortgage and
credit crises. Despite coordinated efforts by many governments to address
spreading liquidity and credit problems, deteriorating economic conditions and
mounting uncertainty contributed to significant market volatility. Although they
rebounded to some extent near period-end, many major equity indexes suffered
losses for the reporting period. This difficult environment is bound to provoke
great concern; however, we believe it is important to put short-term market
developments in perspective. Keep in mind that as daunting as current conditions
may be, we have navigated through other periods of high market volatility,
including the global stock markets' severe declines of 1987 and the bursting of
the technology bubble in 2000. We remain committed to our long-term perspective
and our disciplined investment philosophy. Therefore, we view recent declines as
potential opportunities to find bargains that we believe may be well positioned
to become eventual winners. Although conditions remain challenging, our
experience gives us reason to be optimistic about future market stabilization
and recovery.

Templeton Foreign Smaller Companies Fund's semiannual report goes into greater
detail about prevailing conditions during the period under review. In addition,
you will find performance data, financial information and a discussion about
investment management decisions. Please remember that all securities markets
fluctuate, as do mutual fund share prices.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Not part of the semiannual report | 1

If you would like more frequent updates, FRANKLINTEMPLETON.COM provides daily
prices, monthly performance figures, portfolio holdings and other information.
You can also access your account, buy and sell shares, read timely articles, and
find helpful financial planning tools. We hope you will take advantage of these
online services.

Historically, patient investors have achieved rewarding results by evaluating
their goals, diversifying their assets globally and maintaining a disciplined
investment program, all hallmarks of the Templeton investment philosophy
developed more than 50 years ago. As always, we encourage you to discuss your
goals with your financial advisor who can address concerns about volatility and
diversification, periodically review your overall portfolio and help you stay
focused on the long term. We firmly believe that most people benefit from
professional advice, and that advice is invaluable as investors navigate current
market conditions.

We thank you for investing with Franklin Templeton, welcome your questions and
comments, and look forward to serving your investment needs in the years ahead.

Sincerely,

/s/ Rupert H. Johnson, Jr.

Rupert H. Johnson, Jr.
President and Chief Executive Officer - Investment Management
Franklin Templeton International Trust

THIS LETTER REFLECTS OUR ANALYSIS AND OPINIONS AS OF APRIL 30, 2009. THE
INFORMATION IS NOT A COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET, COUNTRY,
INDUSTRY, SECURITY OR FUND. STATEMENTS OF FACT ARE FROM SOURCES CONSIDERED
RELIABLE.

2 | Not part of the semiannual report

Semiannual Report

Templeton Foreign Smaller Companies Fund

YOUR FUND'S GOAL AND MAIN 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 investments of smaller companies
located outside the U.S., including emerging markets.

GEOGRAPHIC BREAKDOWN
Based on Total Net Assets as of 4/30/09

(PIE CHART)

Asia........................................ 50.9%
Europe...................................... 26.8%
North America............................... 8.8%
Australia & New Zealand..................... 8.0%
Latin America & Caribbean................... 1.3%
Short-Term Investments & Other Net Assets... 4.2%

PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS.

INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE A GAIN OR
LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM FIGURES
SHOWN. PLEASE VISIT FRANKLINTEMPLETON.COM OR CALL (800) 342-5236 FOR MOST RECENT
MONTH-END PERFORMANCE.

This semiannual report for Templeton Foreign Smaller Companies Fund covers the
period ended April 30, 2009.

PERFORMANCE OVERVIEW

For the six months under review, Templeton Foreign Smaller Companies Fund -
Class A had a +6.66% cumulative total return. The Fund outperformed its
benchmark, the Morgan Stanley Capital International (MSCI) Europe, Australasia,
Far East (EAFE) Index, which had a -2.35% total

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL AMOUNT, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 17.

Semiannual Report | 3

return for the same period.(1) The Fund underperformed the Standard & Poor's
(S&P) Global ex-U.S. less than $2 Billion Index, another relevant measure of
Fund performance, which had a +12.60% cumulative total return for the reporting
period.(2) Please note that index performance information is provided for
reference and that we do not attempt to track an index but rather undertake
investments on the basis of fundamental research. You can find the Fund's
long-term performance data in the Performance Summary beginning on page 8.

ECONOMIC AND MARKET OVERVIEW

The six months under review encompassed the highs and the lows of recent equity
market fluctuations. Stocks plummeted at the beginning of the period in the
aftermath of Lehman Brothers' failure and American International Group's
effective nationalization, and volatility neared its highest levels ever. The
fallout in credit markets from the collapse of Wall Street's investment banks
was severe, and the global credit crisis took its toll on the real economy. The
Baltic Exchange Dry Index, a key measure of global trade activity, at one point
had fallen by a staggering 94% from its all-time high, unemployment in the U.S.
hit a 26-year high, home prices and manufacturing volumes contracted sharply,
and the world economy entered its first global recession since World War II.(3)
In response, global monetary authorities aggressively intervened in the
marketplace, pledging essentially unlimited amounts of capital to stabilize
faltering economies and shore up equity markets. By the end of 2008, most major
economies had entered, or stood on the brink of, recession, and most major
markets had delivered their worst annual returns since the Great Depression.

(1.) Source: (C) 2009 Morningstar. All Rights Reserved. The information
contained herein: (1) is proprietary to Morningstar and/or its content
providers; (2) may not be copied or distributed; and (3) is not warranted
to be accurate, complete or timely. Neither Morningstar nor its content
providers are responsible for any damages or losses arising from any use of
this information. The MSCI EAFE Index is a free float-adjusted, market
capitalization-weighted index designed to measure equity market performance
in global developed markets excluding the U.S. and Canada.

(2.) Source: (C) 2009 Morningstar. The S&P Global ex-U.S. less than $2 Billion
Index is a free float-adjusted, market capitalization-weighted index
designed to measure the performance of global developed market equity
securities excluding the U.S., with market capitalizations less than $2
billion. Formerly, the index was called S&P/Citigroup Global Equity ex-U.S.
less than $2 Billion Index.

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.

(3.) Sources: Baltic Exchange Information Services, Ltd.; Bureau of Labor
Statistics. The Baltic Exchange Dry Index is a measure of the cost to ship
bulk goods by sea. The index is considered a leading indicator of global
economic and trade activity, as demand to move commodities foreshadows the
production of finished goods.

4 | Semiannual Report

in April global stocks posted their steepest monthly gains in two decades as
corporate earnings came in better than lowered expectations and investors seemed
to believe the worst of the credit crisis was behind them. The rally was led by
some of the market's hardest hit, most indebted and most economically sensitive
sectors, including financials, materials, industrials and consumer
discretionary. Technology stocks were also strong performers, and by period-end
the NASDAQ Composite Index posted gains for eight consecutive weeks, its longest
winning streak since 1999.(4) In currency markets, the dollar weakened against
the euro, but strengthened slightly against the yen amid volatile trading.

INVESTMENT STRATEGY

We take a bottom-up, value-oriented, long-term approach to investing. We focus
our analysis on the market price of a company's securities relative to our
evaluation of the company's long-term earnings, asset value and cash flow
potential. We also consider a company's price/earnings ratio, profit margins and
liquidation value. We are patient investors and may hold a security for several
years as we wait for the market to recognize a company's true worth.

MANAGER'S DISCUSSION

Several holdings performed well during the six months under review. Biovail is a
North American pharmaceutical company focused primarily on its drug delivery
technology platform, which is used to develop better formulations of established
drugs. The company achieved this objective by developing multiple reformulations
for partners such as GlaxoSmithKline, Johnson & Johnson and Sanofi-Aventis.
According to our analysis, the company has strong research and development
capabilities and proven cost controls. Biovail's free cash flow yield also was
solid, and it has had a successful track record of developing and
commercializing new products. During the period, Biovail's share price
appreciated on indications of good initial demand for a newly released central
nervous system drug.

Youngone, based in South Korea, was also a top contributor. The company is a
leading original equipment manufacturer (OEM) of high-end sportswear and casual
outerwear such as skiwear, anoraks, and hiking and mountain climbing apparel. We
believed Youngone's stock was attractive due to its geographically diversified
production base, competitive pricing, high product quality and strong customer
relationships. The company, which has been

TOP 10 SECTORS/INDUSTRIES
4/30/09

% OF TOTAL
NET ASSETS
----------

Textiles, Apparel & Luxury Goods 9.9%
Commercial Banks 9.7%
Capital Markets 6.8%
Electronic Equipment, Instruments &
Components 5.6%
Commercial Services & Supplies 4.6%
Leisure Equipment & Products 3.8%
Communications Equipment 3.7%
Specialty Retail 3.6%
Machinery 3.6%
Food Products 3.1%

(4.) Source: (C) 2009 Morningstar. The NASDAQ Composite Index measures all
NASDAQ domestic and international based common type stocks listed on The
NASDAQ Stock Market. The index is market value weighted and includes more
than 3,000 companies.

Semiannual Report | 5

TOP 10 EQUITY HOLDINGS
4/30/09

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

Canaccord Capital Inc. 2.3%
CAPITAL MARKETS, CANADA

Texwinca Holdings Ltd. 2.2%
TEXTILES, APPAREL & LUXURY GOODS,
HONG KONG

Henderson Group PLC 2.2%
CAPITAL MARKETS, U.K.

Steiner Leisure Ltd. 2.0%
DIVERSIFIED CONSUMER SERVICES,
BAHAMAS

Bank of Ayudhya Public Co. Ltd., fgn. 2.0%
COMMERCIAL BANKS, THAILAND

Busan Bank 1.9%
COMMERCIAL BANKS, SOUTH KOREA

Billabong International Ltd. 1.8%
TEXTILES, APPAREL & LUXURY GOODS,
AUSTRALIA

Dah Sing Financial Group 1.8%
COMMERCIAL BANKS, HONG KONG

Barco NV 1.8%
ELECTRONIC EQUIPMENT, INSTRUMENTS &
COMPONENTS, BELGIUM

Sol Melia SA 1.8%
HOTELS, RESTAURANTS & LEISURE, SPAIN

expanding its production base in lower-cost countries, holds the potential to
generate strong cash flows and, in our view, should benefit from a growing
consolidation trend in the industry.

Finland's Amer Sports is a sporting goods company that produces and markets
golf, racquet and team sports equipment under the Wilson brand, and skis and
snowboards under the Atomic and Oxygen brands. The company has strong cash flows
and a solid balance sheet. In addition, we believe recent acquisitions in the
fitness, team sports and winter sports areas complement the company's existing
product portfolio and should strengthen its long-term competitive position.

It is important to recognize the effect of currency movements on the Fund's
performance. In general, if the value of the U.S. dollar goes up compared with a
foreign currency, an investment traded in that foreign currency will go down in
value because it will be worth fewer U.S. dollars. This can have a negative
effect on Fund performance. Conversely, when the U.S. dollar weakens in relation
to a foreign currency, an investment traded in that foreign currency will
increase in value, which can contribute to Fund performance. For the six months
ended April 30, 2009, the U.S. dollar fell in value relative to many Asian and
European currencies. As a result, the Fund's performance was positively affected
by the portfolio's predominant investment in securities with non-U.S. currency
exposure. However, one cannot expect the same result in future periods.

Despite its gain during the period under review, the Fund had some detractors
from performance. Mediq (formerly, OPG Groep) is a Netherlands-based
pharmaceutical distribution company. Regulatory changes in the Netherlands and
uncertainties on how they may impact future profitability for the pharmaceutical
industry weighed on stock performance during the period. However, we believe
potential upside may come from the restructuring of the Dutch pharmaceutical
industry. As a dominant and highly efficient company in the Netherlands, Mediq
appeared well positioned, in our view, to benefit from this restructuring
process. We believe that after the initial impact on earnings, the company could
grow its earnings again if it achieves efficiency gains and increased
over-the-counter product penetration. We believe the company's performance can
improve if earnings growth returns and perceived risks recede.

6 | Semiannual Report

U.K.-based Yule Catto is a leader in the chemicals industry. The company serves
various niche markets and, as a result, is a specialty chemical company that has
historically earned relatively high profit margins. Yule is focused on
controlling costs and asset utilization, but it underperformed its peers in the
chemicals sector during the period. At period-end, we believed the company could
improve performance due to plant closures and restructuring efforts.

Yell Group (sold by period-end) is a leading publisher of telephone directories,
including the U.K.'s Yellow Pages and Business Pages and the Yellow Book
directories in America. The Fund's position in Yell suffered primarily from a
challenging economic environment that led to lower advertising revenues.

Thank you for your continued participation in Templeton Foreign Smaller
Companies Fund. We look forward to serving your future investment needs.

(PHOTO OF Bradley Radin)

/s/ Bradley Radin

Bradley Radin, CFA

(PHOTO OF Harlan B. Hodes)

/s/ Harlan B. Hodes

Harlan B. Hodes, CPA

Portfolio Management Team
Templeton Foreign Smaller Companies Fund

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF APRIL 30, 2009, THE END OF THE REPORTING PERIOD. THE WAY WE IMPLEMENT OUR
MAIN INVESTMENT STRATEGIES AND THE RESULTING PORTFOLIO HOLDINGS MAY CHANGE
DEPENDING ON FACTORS SUCH AS 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 INVESTMENT MANAGER 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.

Semiannual Report | 7

Performance Summary as of 4/30/09

Your dividend income will vary depending on dividends or interest paid by
securities in the Fund's portfolio, adjusted for operating expenses of each
class. Capital gain distributions are net profits realized from the sale of
portfolio securities. The performance table does not reflect any taxes that a
shareholder would pay on Fund dividends, capital gain distributions, if any, or
any realized gains on the sale of Fund shares. Total return reflects
reinvestment of the Fund's dividends and capital gain distributions, if any, and
any unrealized gains or losses.

PRICE AND DISTRIBUTION INFORMATION

CLASS A (SYMBOL: FINEX) CHANGE 4/30/09 10/31/08
- ----------------------- ------ ------- --------

Net Asset Value (NAV) +$0.02 $8.60 $8.58
DISTRIBUTIONS (11/1/08-4/30/09)
Dividend Income $0.4470
Long-Term Capital Gain $0.0523
TOTAL $0.4993

CLASS B (SYMBOL: N/A) CHANGE 4/30/09 10/31/08
- --------------------- ------ ------- --------

Net Asset Value (NAV) +$0.08 $8.32 $8.24
DISTRIBUTIONS (11/1/08-4/30/09)
Dividend Income $0.3487
Long-Term Capital Gain $0.0523
TOTAL $0.4010

CLASS C (SYMBOL: FCFSX) CHANGE 4/30/09 10/31/08
- ----------------------- ------ ------- --------

Net Asset Value (NAV) +$0.09 $8.35 $8.26
DISTRIBUTIONS (11/1/08-4/30/09)
Dividend Income $0.3384
Long-Term Capital Gain $0.0523
TOTAL $0.3907

ADVISOR CLASS (SYMBOL: FTFAX) CHANGE 4/30/09 10/31/08
- ----------------------------- ------ ------- --------

Net Asset Value (NAV) -$0.03 $8.59 $8.62
DISTRIBUTIONS (11/1/08-4/30/09)
Dividend Income $0.5082
Long-Term Capital Gain $0.0523
TOTAL $0.5605

8 | Semiannual Report

Performance Summary (CONTINUED)

PERFORMANCE

CUMULATIVE TOTAL RETURN EXCLUDES SALES CHARGES. AVERAGE ANNUAL TOTAL RETURNS AND
VALUE OF $10,000 INVESTMENT INCLUDE MAXIMUM SALES CHARGES. CLASS A: 5.75%
MAXIMUM INITIAL SALES CHARGE; CLASS B: CONTINGENT DEFERRED SALES CHARGE (CDSC)
DECLINING FROM 4% TO 1% OVER SIX YEARS, AND ELIMINATED THEREAFTER; CLASS C: 1%
CDSC IN FIRST YEAR ONLY; ADVISOR CLASS: NO SALES CHARGES.

CLASS A 6-MONTH 1-YEAR 5-YEAR 10-YEAR
- ------- -------- ------- ------- -------

Cumulative Total Return(1) +6.66% -44.24% -7.89% +34.43%
Average Annual Total Return(2) +0.56% -47.44% -2.79% +2.40%
Value of $10,000 Investment(3) $10,056 $ 5,256 $ 8,682 $12,672
Avg. Ann. Total Return (3/31/09)(4) -54.36% -7.02% +1.43%
Total Annual Operating Expenses(5) 1.53%

CLASS B 6-MONTH 1-YEAR 5-YEAR 10-YEAR
- ------- -------- ------- ------- -------

Cumulative Total Return(1) +6.21% -44.69% -11.36% +26.43%
Average Annual Total Return(2) +2.21% -46.52% -2.58% +2.37%
Value of $10,000 Investment(3) $10,221 $ 5,348 $ 8,773 $12,643
Avg. Ann. Total Return (3/31/09)(4) -53.57% -6.82% +1.39%
Total Annual Operating Expenses(5) 2.28%

CLASS C 6-MONTH 1-YEAR 5-YEAR 10-YEAR
- ------- -------- ------- ------- -------

Cumulative Total Return(1) +6.30% -44.65% -11.29% +24.43%
Average Annual Total Return(2) +5.30% -45.11% -2.37% +2.21%
Value of $10,000 Investment(3) $10,530 $ 5,489 $ 8,871 $12,443
Avg. Ann. Total Return (3/31/09)(4) -52.36% -6.63% +1.24%
Total Annual Operating Expenses(5) 2.28%

ADVISOR CLASS 6-MONTH 1-YEAR 5-YEAR 10-YEAR
- ------------- -------- ------- ------- -------

Cumulative Total Return(1) +6.84% -44.04% -6.67% +37.94%
Average Annual Total Return(2) +6.84% -44.04% -1.37% +3.27%
Value of $10,000 Investment(3) $10,684 $ 5,596 $ 9,333 $13,794
Avg. Ann. Total Return (3/31/09)(4) -51.48% -5.67% +2.28%
Total Annual Operating Expenses(5) 1.28%

PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. FOR MOST RECENT MONTH-END PERFORMANCE, SEE "FUNDS AND
PERFORMANCE" AT FRANKLINTEMPLETON.COM OR CALL (800) 342-5236.

Semiannual Report | 9

Performance Summary (CONTINUED)

ENDNOTES

SPECIAL RISKS ARE ASSOCIATED WITH FOREIGN INVESTING, INCLUDING CURRENCY
FLUCTUATIONS, ECONOMIC INSTABILITY AND POLITICAL DEVELOPMENTS. INVESTMENTS IN
EMERGING MARKETS INVOLVE HEIGHTENED RISKS RELATED TO THE SAME FACTORS, IN
ADDITION TO THOSE ASSOCIATED WITH THESE MARKETS' SMALLER SIZE AND LESSER
LIQUIDITY. IN ADDITION, SMALLER COMPANY STOCKS HAVE HISTORICALLY EXHIBITED
GREATER PRICE VOLATILITY THAN LARGE COMPANY STOCKS, PARTICULARLY OVER THE SHORT
TERM. THE FUND'S PROSPECTUS ALSO INCLUDES A DESCRIPTION OF THE MAIN INVESTMENT
RISKS.

CLASS B: These shares have higher annual fees and expenses than Class A
shares.

CLASS C: Prior to 1/1/04, these shares were offered with an initial
sales charge; thus actual total returns would have differed.
These shares have higher annual fees and expenses than Class A
shares.

ADVISOR CLASS: Shares are available to certain eligible investors as described
in the prospectus.

(1.) Cumulative total return represents the change in value of an investment
over the periods indicated.

(2.) Average annual total return represents the average annual change in value
of an investment over the periods indicated. 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.

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

(5.) Figures are as stated in the Fund's prospectus current as of the date of
this report. In periods of market volatility, assets may decline
significantly, causing total annual Fund operating expenses to become
higher than the figures shown.

10 | Semiannual Report

Your Fund's Expenses

As a Fund shareholder, you can incur two types of costs:

- - Transaction costs, including sales charges (loads) on Fund purchases; and

- - Ongoing Fund costs, including management fees, distribution and service
(12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs,
sometimes referred to as operating expenses.

The following table shows ongoing costs of investing in the Fund and can help
you understand these costs and compare them with those of other mutual funds.
The table assumes a $1,000 investment held for the six months indicated.

ACTUAL FUND EXPENSES

The first line (Actual) for each share class listed in the table provides actual
account values and expenses. The "Ending Account Value" is derived from the
Fund's actual return, which includes the effect of Fund expenses.

You can estimate the expenses you paid during the period by following these
steps. OF COURSE, YOUR ACCOUNT VALUE AND EXPENSES WILL DIFFER FROM THOSE IN THIS
ILLUSTRATION:

1. Divide your account value by $1,000.

IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."

IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

In this illustration, the estimated expenses paid this period are $64.50.

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

Information in the second line (Hypothetical) for each class in the table can
help you compare ongoing costs of investing in the Fund with those of other
mutual funds. This information may not be used to estimate the actual ending
account balance or expenses you paid during the period. The hypothetical "Ending
Account Value" is based on the actual expense ratio for each class and an
assumed 5% annual rate of return before expenses, which does not represent the
Fund's actual return. The figure under the heading "Expenses Paid During Period"
shows the hypothetical expenses your account would have incurred under this
scenario. You can compare this figure with the 5% hypothetical examples that
appear in shareholder reports of other funds.

Semiannual Report | 11

Your Fund's Expenses (CONTINUED)

PLEASE NOTE THAT EXPENSES SHOWN IN THE TABLE ARE MEANT TO HIGHLIGHT ONGOING
COSTS AND DO NOT REFLECT ANY TRANSACTION COSTS, SUCH AS SALES CHARGES.
Therefore, the second line for each class is useful in comparing ongoing costs
only, and will not help you compare total costs of owning different funds. In
addition, if transaction costs were included, your total costs would have been
higher. Please refer to the Fund prospectus for additional information on
operating expenses.

BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 11/1/08 VALUE 4/30/09 PERIOD* 11/1/08-4/30/09
----------------- -------------- -----------------------

CLASS A
Actual $1,000 $1,066.60 $ 9.94
Hypothetical (5% return before expenses) $1,000 $1,015.17 $ 9.69

CLASS B
Actual $1,000 $1,062.10 $13.75
Hypothetical (5% return before expenses) $1,000 $1,011.46 $13.42

CLASS C
Actual $1,000 $1,063.00 $13.86
Hypothetical (5% return before expenses) $1,000 $1,011.36 $13.51

ADVISOR CLASS
Actual $1,000 $1,068.40 $ 8.72
Hypothetical (5% return before expenses) $1,000 $1,016.36 $ 8.50

* Expenses are calculated using the most recent six-month expense ratio,
annualized for each class (A: 1.94%; B: 2.69%; C: 2.71%; and Advisor:
1.70%), multiplied by the average account value over the period, multiplied
by 181/365 to reflect the one-half year period.

12 | Semiannual Report

Franklin Templeton International Trust

FINANCIAL HIGHLIGHTS

TEMPLETON FOREIGN SMALLER COMPANIES FUND

SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2009 -----------------------------------------------------------
CLASS A (UNAUDITED) 2008 2007 2006 2005 2004
- ------- ---------------- ------- -------- -------- -------- --------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the
period)
Net asset value, beginning of period .......... $ 8.58 $ 25.36 $ 23.20 $ 19.60 $ 19.40 $ 17.01
------- ------- -------- -------- -------- --------
Income from investment operations(a):
Net investment income(b) ................... 0.04 0.32 0.27 0.27 0.27 0.20
Net realized and unrealized gains
(losses) ................................ 0.48 (13.11) 6.07 4.07 2.61 2.40
------- ------- -------- -------- -------- --------
Total from investment operations .............. 0.52 (12.79) 6.34 4.34 2.88 2.60
------- ------- -------- -------- -------- --------
Less distributions from:
Net investment income ...................... (0.45) (0.28) (0.46) (0.51) (0.24) (0.21)
Net realized gains ......................... (0.05) (3.71) (3.72) (0.23) (2.44) --
------- ------- -------- -------- -------- --------
Total distributions ........................... (0.50) (3.99) (4.18) (0.74) (2.68) (0.21)
------- ------- -------- -------- -------- --------
Redemption fees(c) ............................ -- --(d) --(d) --(d) --(d) --(d)
------- ------- -------- -------- -------- --------
Net asset value, end of period ................ $ 8.60 $ 8.58 $ 25.36 $ 23.20 $ 19.60 $ 19.40
======= ======= ======== ======== ======== ========
Total return(e) ............................... 6.66% (55.75)% 31.50% 22.80% 15.00% 15.40%
RATIOS TO AVERAGE NET ASSETS(f)
Expenses ...................................... 1.95% 1.53% 1.40% 1.50% 1.57% 1.63%
Expenses net of expense reduction ............. 1.94% 1.53%(g) 1.40%(g) 1.50%(g) 1.57%(g) 1.63%(g)
Net investment income ......................... 1.10% 1.78% 1.15% 1.24% 1.27% 1.06%
SUPPLEMENTAL DATA
Net assets, end of period (000's) ............. $84,261 $99,546 $503,289 $356,785 $288,564 $474,742
Portfolio turnover rate ....................... 6.91% 12.68%(h) 27.72% 33.92% 36.91%(h) 14.22%

(a) The amount shown for a share outstanding throughout the period may not
correlate with the Statement of Operations for the period due to the timing
of sales and repurchases of the Fund shares in relation to income earned
and/or fluctuating market value of the investments of the Fund.

(b) Based on average daily shares outstanding.

(d) Amount rounds to less than $0.01 per share.

(e) Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable, and is not annualized for periods less than
one year.

(f) Ratios are annualized for periods less than one year.

(g) Benefit of expense reduction rounds to less than 0.01%.

(h) Excludes the value of portfolio securities delivered as a result of a
redemption in-kind. See Note 9.

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 13

Franklin Templeton International Trust

FINANCIAL HIGHLIGHTS (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2009 ---------------------------------------------------
CLASS B (UNAUDITED) 2008 2007 2006 2005 2004
- ------- ---------------- ------- ------ ------ ------ ------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the
period)
Net asset value, beginning of period .......... $ 8.24 $ 24.60 $22.63 $19.21 $19.07 $16.75
------ ------- ------ ------ ------ ------
Income from investment operations(a):
Net investment income(b) ................... 0.01 0.18 0.08 0.09 0.12 0.08
Net realized and unrealized gains
(losses) ................................ 0.47 (12.68) 5.91 4.00 2.56 2.35
------ ------- ------ ------ ------ ------
Total from investment operations .............. 0.48 (12.50) 5.99 4.09 2.68 2.43
------ ------- ------ ------ ------ ------
Less distributions from:
Net investment income ...................... (0.35) (0.15) (0.30) (0.44) (0.10) (0.11)
Net realized gains ......................... (0.05) (3.71) (3.72) (0.23) (2.44) --
------ ------- ------ ------ ------ ------
Total distributions ........................... (0.40) (3.86) (4.02) (0.67) (2.54) (0.11)
------ ------- ------ ------ ------ ------
Redemption fees(c) ............................ -- --(d) --(d) --(d) --(d) --(d)
------ ------- ------ ------ ------ ------
Net asset value, end of period ................ $ 8.32 $ 8.24 $24.60 $22.63 $19.21 $19.07
====== ======= ====== ====== ====== ======
Total return(e) ............................... 6.21% (56.07)% 30.49% 21.93% 14.10% 14.54%
RATIOS TO AVERAGE NET ASSETS(f)
Expenses ...................................... 2.70% 2.28% 2.15% 2.24% 2.32% 2.38%
Expenses net of expense reduction ............. 2.69% 2.28%(g) 2.15%(g) 2.24%(g) 2.32%(g) 2.38%(g)
Net investment income ......................... 0.35% 1.03% 0.40% 0.50% 0.52% 0.31%
SUPPLEMENTAL DATA
Net assets, end of period (000's) ............. $2,039 $ 2,479 $8,505 $7,758 $7,576 $6,539
Portfolio turnover rate ....................... 6.91% 12.68%(h) 27.72% 33.92% 36.91%(h) 14.22%

(b) Based on average daily shares outstanding.

(d) Amount rounds to less than $0.01 per share.

(e) Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable, and is not annualized for periods less than
one year.

(f) Ratios are annualized for periods less than one year.

(g) Benefit of expense reduction rounds to less than 0.01%.

(h) Excludes the value of portfolio securities delivered as a result of a
redemption in-kind. See Note 9.

The accompanying notes are an integral part of these financial statements.

14 | Semiannual Report

Franklin Templeton International Trust

FINANCIAL HIGHLIGHTS (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2009 -------------------------------------------------------
CLASS C (UNAUDITED) 2008 2007 2006 2005 2004
- ------- ---------------- ------- ------- ------- ------- -------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the
period)
Net asset value, beginning of period .......... $ 8.26 $ 24.66 $ 22.68 $ 19.25 $ 19.12 $ 16.79
------ ------- ------- ------- ------- -------
Income from investment operations(a):
Net investment income(b) ................... 0.01 0.19 0.08 0.11 0.13 0.06
Net realized and unrealized gains
(losses) ................................ 0.47 (12.72) 5.93 4.00 2.55 2.37
------ ------- ------- ------- ------- -------
Total from investment operations .............. 0.48 (12.53) 6.01 4.11 2.68 2.43
------ ------- ------- ------- ------- -------
Less distributions from:
Net investment income ...................... (0.34) (0.16) (0.31) (0.45) (0.11) (0.10)
Net realized gains ......................... (0.05) (3.71) (3.72) (0.23) (2.44) --
------ ------- ------- ------- ------- -------
Total distributions ........................... (0.39) (3.87) (4.03) (0.68) (2.55) (0.10)
------ ------- ------- ------- ------- -------
Redemption fees(c) ............................ -- --(d) --(d) --(d) --(d) --(d)
------ ------- ------- ------- ------- -------
Net asset value, end of period ................ $ 8.35 $ 8.26 $ 24.66 $ 22.68 $ 19.25 $ 19.12
====== ======= ======= ======= ======= =======
Total return(e) ............................... 6.30% (56.07)% 30.52% 21.91% 14.12% 14.54%
RATIOS TO AVERAGE NET ASSETS(f)
Expenses ...................................... 2.72% 2.26% 2.14% 2.25% 2.32% 2.38%
Expenses net of expense reduction ............. 2.71% 2.26%(g) 2.14%(g) 2.25%(g) 2.32%(g) 2.38%(g)
Net investment income ......................... 0.33% 1.05% 0.41% 0.49% 0.52% 0.31%
SUPPLEMENTAL DATA
Net assets, end of period (000's) ............. $9,634 $11,220 $38,434 $30,988 $23,519 $16,579
Portfolio turnover rate ....................... 6.91% 12.68%(h) 27.72% 33.92% 36.91%(h) 14.22%

(b) Based on average daily shares outstanding.

(d) Amount rounds to less than $0.01 per share.

(e) Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable, and is not annualized for periods less than
one year.

(f) Ratios are annualized for periods less than one year.

(g) Benefit of expense reduction rounds to less than 0.01%.

(h) Excludes the value of portfolio securities delivered as a result of a
redemption in-kind. See Note 9.

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 15

Franklin Templeton International Trust

FINANCIAL HIGHLIGHTS (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2009 -------------------------------------------------------
ADVISOR CLASS (UNAUDITED) 2008 2007 2006 2005 2004
- ------------- ---------------- ------- ------- ------- ------- -------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the
period)
Net asset value, beginning of period .......... $ 8.62 $ 25.43 $ 23.26 $ 19.67 $ 19.46 $ 17.04
------ ------- ------- ------- ------- -------
Income from investment operations(a):
Net investment income(b) ................... 0.05 0.36 0.34 0.32 0.36 0.21
Net realized and unrealized gains
(losses) ................................ 0.48 (13.14) 6.06 4.09 2.57 2.46
------ ------- ------- ------- ------- -------
Total from investment operations .............. 0.53 (12.78) 6.40 4.41 2.93 2.67
------ ------- ------- ------- ------- -------
Less distributions from:
Net investment income ...................... (0.51) (0.32) (0.51) (0.59) (0.28) (0.25)
Net realized gains ......................... (0.05) (3.71) (3.72) (0.23) (2.44) --
------ ------- ------- ------- ------- -------
Total distributions ........................... (0.56) (4.03) (4.23) (0.82) (2.72) (0.25)
------ ------- ------- ------- ------- -------
Redemption fees(c) ............................ -- --(d) --(d) --(d) --(d) --(d)
------ ------- ------- ------- ------- -------
Net asset value, end of period ................ $ 8.59 $ 8.62 $ 25.43 $ 23.26 $ 19.67 $ 19.46
====== ======= ======= ======= ======= =======
Total return(e) ............................... 6.84% (55.61)% 31.78% 23.14% 15.26% 15.73%
RATIOS TO AVERAGE NET ASSETS(f)
Expenses ...................................... 1.71% 1.28% 1.15% 1.25% 1.32% 1.38%
Expenses net of expense reduction ............. 1.70% 1.28%(g) 1.15%(g) 1.25%(g) 1.32%(g) 1.38%(g)
Net investment income ......................... 1.34% 2.03% 1.40% 1.49% 1.52% 1.31%
SUPPLEMENTAL DATA
Net assets, end of period (000's) ............. $8,028 $ 7,849 $63,042 $40,270 $31,695 $16,195
Portfolio turnover rate ....................... 6.91% 12.68%(h) 27.72% 33.92% 36.91%(h) 14.22%

(b) Based on average daily shares outstanding.

(d) Amount rounds to less than $0.01 per share.

(e) Total return is not annualized for periods less than one year.

(f) Ratios are annualized for periods less than one year.

(g) Benefit of expense reduction rounds to less than 0.01%.

(h) Excludes the value of portfolio securities delivered as a result of a
redemption in-kind. See Note 9.

The accompanying notes are an integral part of these financial statements.

16 | Semiannual Report

Franklin Templeton International Trust

STATEMENT OF INVESTMENTS, APRIL 30, 2009 (UNAUDITED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND INDUSTRY SHARES VALUE
---------------------------------------- ---------------------------------------------- ---------- --------------

COMMON STOCKS 95.8%
AUSTRALIA 8.0%
Billabong International Ltd. ................. Textiles, Apparel & Luxury Goods 251,491 $ 1,918,172
Downer EDI Ltd. .............................. Commercial Services & Supplies 497,849 1,819,037
Emeco Holdings Ltd. .......................... Trading Companies & Distributors 4,136,350 1,186,835
(a) Iluka Resources Ltd. ......................... Metals & Mining 609,311 1,460,591
Pacific Brands Ltd. .......................... Distributors 1,924,709 978,676
PaperlinX Ltd. ............................... Paper & Forest Products 2,315,514 975,554
--------------
8,338,865
--------------
BAHAMAS 2.0%
(a) Steiner Leisure Ltd. ......................... Diversified Consumer Services 65,669 2,077,767
--------------
BELGIUM 1.8%
Barco NV ..................................... Electronic Equipment, Instruments & Components 82,854 1,908,425
--------------
CANADA 6.8%
(a) ATS Automation Tooling Systems Inc. .......... Machinery 359,759 1,236,493
Biovail Corp. ................................ Pharmaceuticals 149,727 1,637,972
Canaccord Capital Inc. ....................... Capital Markets 399,073 2,348,472
Dorel Industries Inc., B ..................... Household Durables 46,315 883,281
(a) GSI Group Inc. ............................... Electronic Equipment, Instruments & Components 305,872 345,635
(a) MDS Inc. ..................................... Life Sciences Tools & Services 99,556 575,854
(a) Mega Brands Inc. ............................. Leisure Equipment & Products 37,326 12,360
--------------
7,040,067
--------------
CAYMAN ISLANDS 1.3%
Stella International Holdings Ltd. ........... Textiles, Apparel & Luxury Goods 1,009,500 1,341,649
--------------
CHINA 5.8%
(a) AAC Acoustic Technologies Holdings Inc. ...... Communications Equipment 2,300,000 1,252,379
(a) Bio-Treat Technology Ltd. .................... Commercial Services & Supplies 4,721,875 143,522
People's Food Holdings Ltd. .................. Food Products 5,399,101 1,805,171
Sinotrans Ltd., H ............................ Air Freight & Logistics 9,716,000 1,805,284
(a) Travelsky Technology Ltd., H ................. IT Services 1,980,150 1,047,556
--------------
6,053,912
--------------
FINLAND 3.6%
Amer Sports OYJ .............................. Leisure Equipment & Products 185,062 1,803,426
(a) Elcoteq SE, A ................................ Communications Equipment 154,142 181,395
Huhtamaki OYJ ................................ Containers & Packaging 180,053 1,745,090
--------------
3,729,911
--------------
GERMANY 1.2%
(a) Jenoptik AG .................................. Electronic Equipment, Instruments & Components 271,600 1,238,975
--------------
HONG KONG 8.6%
Asia Satellite Telecommunications Holdings
Ltd. ...................................... Diversified Telecommunication Services 744,402 850,054
Dah Sing Financial Group ..................... Commercial Banks 650,069 1,912,449
Fountain Set (Holdings) Ltd. ................. Textiles, Apparel & Luxury Goods 6,512,566 386,550
Giordano International Ltd. .................. Specialty Retail 7,329,910 1,503,804
Hung Hing Printing Group Ltd. ................ Containers & Packaging 1,030,260 152,876

Semiannual Report | 17

Franklin Templeton International Trust

STATEMENT OF INVESTMENTS, APRIL 30, 2009 (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND INDUSTRY SHARES VALUE
---------------------------------------- ---------------------------------------------- ---------- --------------

COMMON STOCKS (CONTINUED)
HONG KONG (CONTINUED)
Lerado Group (Holding) Co. Ltd. .............. Leisure Equipment & Products 6,686,706 $ 483,165
Texwinca Holdings Ltd. ....................... Textiles, Apparel & Luxury Goods 3,792,808 2,324,609
Yue Yuen Industrial Holdings Ltd. ............ Textiles, Apparel & Luxury Goods 573,545 1,278,812
--------------
8,892,319
--------------
JAPAN 5.9%
Aiful Corp. .................................. Consumer Finance 221,800 434,064
Asics Corp. .................................. Textiles, Apparel & Luxury Goods 6,000 38,633
Descente Ltd. ................................ Textiles, Apparel & Luxury Goods 418,000 1,674,204
MEITEC Corp. ................................. Professional Services 41,048 554,410
Nichii Gakkan Co. ............................ Health Care Providers & Services 87,500 745,285
Sohgo Security Services Co. Ltd. ............. Commercial Services & Supplies 95,701 861,717
(a) Takuma Co. Ltd. .............................. Machinery 755,000 1,156,003
USS Co. Ltd. ................................. Specialty Retail 15,110 681,804
--------------
6,146,120
--------------
NETHERLANDS 5.7%
Aalberts Industries NV ....................... Machinery 82,155 633,310
(a, b) Draka Holding NV ............................. Electrical Equipment 82,035 882,518
Mediq NV ..................................... Health Care Providers & Services 142,725 1,413,499
SBM Offshore NV .............................. Energy Equipment & Services 66,480 1,081,209
(b) Twentsche Kabel Holdings NV .................. Communications Equipment 32,750 413,550
USG People NV ................................ Professional Services 155,415 1,472,803
--------------
5,896,889
--------------
NORWAY 0.7%
Tomra Systems ASA ............................ Commercial Services & Supplies 185,200 690,782
--------------
PHILIPPINES 0.8%
(a) First Gen Corp. .............................. Independent Power Producers & Energy Traders 2,261,000 881,367
--------------
SINGAPORE 0.3%
Huan Hsin Holdings Ltd. ...................... Electronic Equipment, Instruments & Components 1,985,075 261,459
--------------
SOUTH KOREA 12.2%
Binggrae Co. Ltd. ............................ Food Products 44,770 1,411,761
Busan Bank ................................... Commercial Banks 359,845 1,979,429
Daeduck Electronics Co. Ltd. ................. Electronic Equipment, Instruments & Components 163,043 535,822
Daegu Bank Co. Ltd. .......................... Commercial Banks 247,985 1,709,506
Halla Climate Control Corp. .................. Auto Components 236,390 1,624,025
INTOPS Co. Ltd. .............................. Electronic Equipment, Instruments & Components 77,936 1,518,471
People & Telecommunication Inc. .............. Communications Equipment 132,557 1,037,222
Sindo Ricoh Co. .............................. Office Electronics 35,020 1,561,925
Youngone Corp. ............................... Textiles, Apparel & Luxury Goods 171,499 1,319,120
--------------
12,697,281
--------------
SPAIN 1.8%
Sol Melia SA ................................. Hotels, Restaurants & Leisure 376,985 1,864,272
--------------
SWEDEN 1.2%
(a, c) D. Carnegie & Co. AB ......................... Capital Markets 456,515 --
Niscayah Group AB ............................ Commercial Services & Supplies 924,190 1,228,442
--------------
1,228,442
--------------

18 | Semiannual Report

Franklin Templeton International Trust

STATEMENT OF INVESTMENTS, APRIL 30, 2009 (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND INDUSTRY SHARES VALUE
---------------------------------------- ---------------------------------------------- ---------- --------------

COMMON STOCKS (CONTINUED)
SWITZERLAND 2.8%
(b) Panalpina Welttransport Holding AG ........... Air Freight & Logistics 9,007 $ 493,156
Verwaltungs- und Privat-Bank AG .............. Capital Markets 20,343 1,603,916
Vontobel Holding AG .......................... Capital Markets 37,896 846,560
--------------
2,943,632
--------------
TAIWAN 12.0%
AcBel Polytech Inc. .......................... Electrical Equipment 2,486,268 1,517,987
D-Link Corp. ................................. Communications Equipment 1,257,949 910,621
Giant Manufacturing Co. Ltd. ................. Leisure Equipment & Products 682,050 1,612,100
KYE Systems Corp. ............................ Computers & Peripherals 1,973,678 1,556,990
Pihsiang Machinery Manufacturing Co. Ltd. .... Health Care Equipment & Supplies 623,000 1,013,069
Simplo Technology Co. Ltd. ................... Computers & Peripherals 273,573 1,046,002
(a) Ta Chong Bank Ltd. ........................... Commercial Banks 12,249,000 1,803,011
Taiwan Fu Hsing .............................. Building Products 2,649,980 1,397,677
Test-Rite International Co. Ltd. ............. Distributors 3,235,183 1,623,214
--------------
12,480,671
--------------
THAILAND 5.3%
Bank of Ayudhya Public Co. Ltd., fgn. ........ Commercial Banks 6,366,400 2,056,879
Glow Energy Public Co. Ltd., fgn. ............ Independent Power Producers & Energy Traders 2,430,154 1,632,270
Siam City Bank Public Co. Ltd., fgn. ......... Commercial Banks 2,156,300 608,054
(a) Total Access Communication Public Co. Ltd.,
fgn. ...................................... Wireless Telecommunication Services 1,710,650 1,214,561
--------------
5,511,764
--------------
UNITED KINGDOM 8.0%
Bodycote PLC ................................. Machinery 319,087 675,719
Fiberweb PLC ................................. Personal Products 2,209,286 1,690,149
Future PLC ................................... Media 3,140,311 731,166
GAME Group PLC ............................... Specialty Retail 546,262 1,600,946
Henderson Group PLC .......................... Capital Markets 1,756,471 2,278,509
Yule Catto & Co. PLC ......................... Chemicals 1,512,452 1,391,821
--------------
8,368,310
--------------
TOTAL COMMON STOCKS
(COST $167,192,823) ....................... 99,592,879
--------------
MUTUAL FUNDS (COST $5,291) 0.0%(d)
CANADA 0.0%(d)
Mullen Group Income Fund ..................... Diversified Financial Services 600 6,066
--------------
TOTAL INVESTMENTS BEFORE SHORT TERM
INVESTMENTS (COST $167,198,114) ........... 99,598,945
--------------

PRINCIPAL
AMOUNT
----------
SHORT TERM INVESTMENTS
(COST $3,404,991) 3.3%
U.S. GOVERNMENT AND AGENCY SECURITIES 3.3%
(e) FHLB, 5/01/09 ................................ $3,405,000 3,404,991
--------------

Semiannual Report | 19

Franklin Templeton International Trust

STATEMENT OF INVESTMENTS, APRIL 30, 2009 (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND VALUE
---------------------------------------- --------------

TOTAL INVESTMENTS
(COST $170,603,105) 99.1% ................. $ 103,003,936
OTHER ASSETS, LESS LIABILITIES 0.9% .......... 959,171
--------------
NET ASSETS 100.0% ............................ $ 103,963,107
==============

See Abbreviations on page 34.

(a) Non-income producing.

(b) A portion or all of the security purchased on a delayed delivery basis. See
Note 1(c).

(c) Security has been deemed illiquid because it may not be able to be sold
within seven days. At April 30, 2009, the value of this security was $0.

(d) Rounds to less than 0.1% of net assets.

(e) The security is traded on a discount basis with no stated coupon rate.

The accompanying notes are an integral part of these financial statements.

20 | Semiannual Report

Franklin Templeton International Trust

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
April 30, 2009 (unaudited)

TEMPLETON
FOREIGN SMALLER
COMPANIES FUND
---------------

Assets:
Investments in securities:
Cost ..................................... $170,603,105
------------
Value .................................... $103,003,936
Cash ........................................ 28,605
Receivables:
Investment securities sold ............... 1,207,535
Capital shares sold ...................... 65,228
Dividends ................................ 457,960
Other assets ................................ 190
------------
Total assets .......................... 104,763,454
------------
Liabilities:
Payables:
Investment securities purchased .......... 213,695
Capital shares redeemed .................. 277,548
Affiliates ............................... 124,646
Custodian fees (Note 4) .................. 65,563
Unaffiliated transfer agent fees ......... 70,538
Accrued expenses and other liabilities ...... 48,357
------------
Total liabilities ..................... 800,347
------------
Net assets, at value ............... $103,963,107
============
Net assets consist of:
Paid-in capital ............................. $199,740,154
Undistributed net investment income ......... 128,628
Net unrealized appreciation (depreciation) .. (67,591,859)
Accumulated net realized gain (loss) ........ (28,313,816)
------------
Net assets, at value ............... $103,963,107
============

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 21

Franklin Templeton International Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
April 30, 2009 (unaudited)

TEMPLETON
FOREIGN SMALLER
COMPANIES FUND
---------------

CLASS A:
Net assets, at value ................................................... $84,261,043
-----------
Shares outstanding ..................................................... 9,793,768
-----------
Net asset value per share(a) ........................................... $ 8.60
-----------
Maximum offering price per share (net asset value per share / 94.25%) .. $ 9.12
-----------
CLASS B:
Net assets, at value ................................................... $ 2,039,420
-----------
Shares outstanding ..................................................... 245,240
-----------
Net asset value and maximum offering price per share(a) ................ $ 8.32
-----------
CLASS C:
Net assets, at value ................................................... $ 9,634,195
-----------
Shares outstanding ..................................................... 1,153,687
-----------
Net asset value and maximum offering price per share(a) ................ $ 8.35
-----------
ADVISOR CLASS:
Net assets, at value ................................................... $ 8,028,449
-----------
Shares outstanding ..................................................... 934,947
-----------
Net asset value and maximum offering price per share ................... $ 8.59
-----------

(a) Redemption price is equal to net asset value less contingent deferred sales
charges, if applicable.

The accompanying notes are an integral part of these financial statements.

22 | Semiannual Report

Franklin Templeton International Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the six months ended April 30, 2009 (unaudited)

TEMPLETON
FOREIGN SMALLER
COMPANIES FUND
---------------

Investment income:
Dividends (net of foreign taxes of $186,968) ................................... $ 1,489,166
Interest ....................................................................... 332
------------
Total investment income .................................................. 1,489,498
------------
Expenses:
Management fees (Note 3a) ...................................................... 488,543
Distribution fees: (Note 3c)
Class A ..................................................................... 95,738
Class B ..................................................................... 9,689
Class C ..................................................................... 45,029
Transfer agent fees (Note 3e) .................................................. 215,747
Custodian fees (Note 4) ........................................................ 50,508
Reports to shareholders ........................................................ 31,879
Registration and filing fees ................................................... 24,646
Professional fees .............................................................. 11,339
Trustees' fees and expenses .................................................... 8,630
Other .......................................................................... 4,867
------------
Total expenses ........................................................... 986,615
Expense reductions (Note 4) .............................................. (2,443)
------------
Net expenses .......................................................... 984,172
------------
Net investment income .............................................. 505,326
------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments ................................................................. (28,259,163)
Foreign currency transactions ............................................... (53,940)
------------
Net realized gain (loss) .............................................. (28,313,103)
------------
Net change in unrealized appreciation (depreciation) on:
Investments ................................................................. 31,944,329
Translation of other assets and liabilities denominated in foreign
currencies ............................................................... 28,953
------------
Net change in unrealized appreciation (depreciation) .................. 31,973,282
------------
Net realized and unrealized gain (loss) ........................................... 3,660,179
------------
Net increase (decrease) in net assets resulting from operations ................... $ 4,165,505
============

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 23

Franklin Templeton International Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

TEMPLETON FOREIGN
SMALLER COMPANIES FUND
-----------------------------------
SIX MONTHS ENDED
APRIL 30, 2009 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2008
---------------- ----------------

Increase (decrease) in net assets:
Operations:
Net investment income ........................................................ $ 505,326 $ 6,693,547
Net realized gain (loss) from investments and foreign currency transactions .. (28,313,103) (9,604,018)
Net change in unrealized appreciation (depreciation) on investments and
translation of other assets and liabilities denominated in foreign
currencies ................................................................ 31,973,282 (263,444,323)
------------ -------------
Net increase (decrease) in net assets resulting from operations ........ 4,165,505 (266,354,794)
------------ -------------
Distributions to shareholders from:
Net investment income:
Class A ................................................................... (4,845,849) (5,292,667)
Class B ................................................................... (99,664) (50,034)
Class C ................................................................... (419,438) (242,410)
Advisor Class ............................................................. (456,682) (743,293)
Net realized gains:
Class A ................................................................... (566,949) (65,546,764)
Class B ................................................................... (14,948) (1,146,983)
Class C ................................................................... (64,824) (5,256,034)
Advisor Class ............................................................. (46,998) (6,710,991)
------------ -------------
Total distributions to shareholders ............................................. (6,515,352) (84,989,176)
------------ -------------
Capital share transactions: (Note 2)
Class A ................................................................... (13,136,202) (106,819,602)
Class B ................................................................... (394,974) (1,023,571)
Class C ................................................................... (1,479,191) (4,108,713)
Advisor Class ............................................................. 229,380 (28,889,116)
------------ -------------
Total capital share transactions ................................................ (14,780,987) (140,841,002)
------------ -------------
Redemption fees ................................................................. -- 9,660
Net increase (decrease) in net assets .................................. (17,130,834) (492,175,312)
------------ -------------
Net assets:
Beginning of period ............................................................. 121,093,941 613,269,253
------------ -------------
End of period ................................................................... $103,963,107 $ 121,093,941
============ =============
Undistributed net investment income included in net assets:
End of period ................................................................... $ 128,628 $ 5,444,935
============ =============

The accompanying notes are an integral part of these financial statements.

24 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Templeton International Trust (Trust) is registered under the
Investment Company Act of 1940, as amended, (1940 Act) as an open-end investment
company, consisting of three separate funds. The Templeton Foreign Smaller
Companies Fund (Fund) is included in this report. The financial statements of
the remaining funds in the Trust are presented separately. 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.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

Securities listed on a securities exchange or on the NASDAQ National Market
System are valued at the last quoted sale price or the official closing price of
the day, respectively. Over-the-counter securities and listed securities for
which there is no reported sale are valued within the range of the most recent
quoted bid and ask prices. Securities that trade in multiple markets or on
multiple exchanges are valued according to the broadest and most representative
market. Investments in open-end mutual funds are valued at the closing net asset
value.

Government securities generally trade in the over-the-counter market rather than
on a securities exchange. The Trust may utilize independent pricing services,
quotations from bond dealers, and information with respect to bond and note
transactions, to assist in determining a current market value for each security.
The Trust's pricing services may use valuation models or matrix pricing which
considers information with respect to comparable bond and note transactions,
quotations from bond dealers, or by reference to other securities that are
considered comparable in such characteristics as rating, interest rate and
maturity date, option adjusted spread models, prepayment projections, interest
rate spreads and yield curves, to determine current value.

Foreign securities are valued as of the close of trading on the foreign stock
exchange on which the security is primarily traded, or the NYSE, whichever is
earlier. If no sale is reported at that time, the foreign security will be
valued within the range of the most recent quoted bid and ask prices. The value
is then converted into its U.S. dollar equivalent at the foreign exchange rate
in effect at the close of the NYSE on the day that the value of the foreign
security is determined.

Semiannual Report | 25

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. SECURITY VALUATION (CONTINUED)

market for such investments existed. Occasionally, events occur between the time
at which trading in a security is completed and the close of the NYSE that might
call into question the availability (including the reliability) of the value of
a portfolio security held by the Fund. The investment manager monitors price
movements following the close of trading in foreign stock markets through a
series of country specific market proxies (such as baskets of American
Depository Receipts, futures contracts and exchange traded funds). These price
movements are measured against established trigger thresholds for each specific
market proxy to assist in determining if an event has occurred. If such an event
occurs, the securities may be valued using fair value procedures, which may
include the use of independent pricing services. All security valuation
procedures are approved by the Trust's 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, income and expense items denominated in foreign currencies are
translated into U.S. dollars at the exchange rate in effect on the transaction
date. Occasionally, events may impact the availability or reliability of foreign
exchange rates used to convert the U.S. dollar equivalent value. If such an
event occurs, the foreign exchange rate will be valued at fair value using
procedures established and approved by the Trust's Board of Trustees.

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 on the
Statement of Operations.

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. SECURITIES PURCHASED ON A DELAYED DELIVERY BASIS

The Fund may purchase securities on a delayed delivery basis, with payment and
delivery scheduled for a future date. These transactions are subject to market
fluctuations and are subject to the risk that the value at delivery may be more
or less than the trade date purchase price. Although the Fund will generally
purchase these securities with the intention of holding the securities, it may
sell the securities before the settlement date. Sufficient assets have been
segregated for these securities.

26 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 at a future date. Realized and unrealized gains and losses on these
contracts 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, which may be in
excess of the amount reflected in the Statement of Assets and Liabilities.

E. INCOME TAXES

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

The Fund has reviewed the tax positions, taken on federal income tax returns,
for each of the three open tax years and as of April 30, 2009, and has
determined that no provision for income tax is required in the Fund's financial
statements.

Foreign securities held by the Fund may be subject to foreign taxation on
dividend income received. Foreign taxes, if any, are recorded based on the tax
regulations and rates that exist in the foreign markets in which the Fund
invests.

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.
Interest income and estimated expenses are accrued daily. Dividend income is
recorded on the ex-dividend date except that certain dividends from foreign
securities are recognized as soon as the Fund is notified of the ex-dividend
date. Distributions to shareholders are recorded on the ex-dividend date and are
determined according to income tax regulations (tax basis). Distributable
earnings determined on a tax basis may differ from earnings recorded in
accordance with accounting principles generally accepted in the United States of
America. These differences may be permanent or temporary. Permanent differences
are reclassified among capital accounts to reflect their tax character. These
reclassifications have no impact on net assets or the results of operations.
Temporary differences are not reclassified, as they may reverse in subsequent
periods.

Semiannual Report | 27

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
(CONTINUED)

Common expenses incurred by the Trust are allocated among the funds based on the
ratio of net assets of each fund to the combined net assets of the Trust. Fund
specific expenses are charged directly to the fund that incurred the expense.

Realized and unrealized gains and losses and net investment income, not
including class specific expenses, are allocated daily to each class of shares
based upon the relative proportion of net assets of each class. Differences in
per share distributions, by class, are generally due to differences in class
specific expenses.

G. 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 expenses during the reporting period. Actual results could differ from those
estimates.

H. REDEMPTION FEES

A short term trading redemption fee was imposed, with some exceptions, on any
fund shares that were redeemed or exchanged within seven calendar days following
their purchase date. The redemption fee was 2% of the amount redeemed. Such fees
were retained by the fund and accounted for as an addition to paid-in capital.
Effective September 1, 2008, the redemption fee was eliminated.

I. GUARANTEES AND INDEMNIFICATIONS

Under the Trust's organizational documents, its officers and trustees are
indemnified by the Trust against certain liabilities arising out of the
performance of their duties to the Trust. Additionally, in the normal course of
business, the Trust enters into contracts with service providers that contain
general indemnification clauses. The Trust's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against the Trust that have not yet occurred. Currently, the Trust expects the
risk of loss to be remote.

28 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

2. SHARES OF BENEFICIAL INTEREST

At April 30, 2009, there were an unlimited number of shares authorized (without
par value). Transactions in the Fund's shares were as follows:

SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2009 OCTOBER 31, 2008
------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -------------

CLASS A SHARES:
Shares sold .................. 1,059,000 $ 8,026,955 1,823,529 $ 31,706,684
Shares issued in reinvestment
of distributions .......... 614,237 4,784,904 4,471,146 64,417,854
Shares redeemed in-kind
(Note 9) .................. -- -- (5,209,769) (42,459,620)
Shares redeemed .............. (3,477,535) (25,948,061) (9,336,038) (160,484,520)
---------- ------------ ---------- -------------
Net increase (decrease) ...... (1,804,298) $(13,136,202) (8,251,132) $(106,819,602)
---------- ------------ ---------- -------------
CLASS B SHARES:
Shares sold .................. 1,773 $ 12,568 2,820 $ 43,796
Shares issued in reinvestment
of distributions .......... 13,115 98,592 79,042 1,093,373
Shares redeemed .............. (70,356) (506,134) (126,854) (2,160,740)
---------- ------------ ---------- -------------
Net increase (decrease) ...... (55,468) $ (394,974) (44,992) $ (1,023,571)
---------- ------------ ---------- -------------
CLASS C SHARES:
Shares sold .................. 43,178 $ 317,646 64,589 $ 1,063,911
Shares issued in reinvestment
of distributions .......... 54,826 415,579 338,255 4,671,042
Shares redeemed .............. (302,128) (2,212,416) (603,703) (9,843,666)
---------- ------------ ---------- -------------
Net increase (decrease) ...... (204,124) $ (1,479,191) (200,859) $ (4,108,713)
---------- ------------ ---------- -------------
ADVISOR CLASS SHARES:
Shares sold .................. 147,754 $ 1,140,126 628,960 $ 11,924,463
Shares issued in reinvestment
of distributions .......... 55,345 430,030 221,163 3,184,067
Shares redeemed .............. (178,617) (1,340,776) (2,418,833) (43,997,646)
---------- ------------ ---------- -------------
Net increase (decrease) ...... 24,482 $ 229,380 (1,568,710) $ (28,889,116)
---------- ------------ ---------- -------------

3. TRANSACTIONS WITH AFFILIATES

Franklin Resources, Inc. is the holding company for various subsidiaries that
together are referred to as Franklin Templeton Investments. Certain officers and
trustees of the Trust are also officers and/or directors of the following
subsidiaries:

SUBSIDIARY AFFILIATION
- ---------- ----------------------

Franklin Templeton Investments Corp. (FTIC) Investment manager
Templeton Investment Counsel, LLC (TIC) Investment manager
Franklin Templeton Services, LLC (FT Services) Administrative manager
Franklin Templeton Distributors, Inc. (Distributors) Principal underwriter
Franklin Templeton Investor Services, LLC (Investor Services) Transfer agent

Semiannual Report | 29

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

A. MANAGEMENT FEES

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

ANNUALIZED FEE RATE NET ASSETS
- ------------------- ----------

1.000% Up to and including $100 million
0.900% Over $100 million, up to and including $250 million
0.800% Over $250 million, up to and including $500 million
0.750% In excess of $500 million

Under a subadvisory agreement, TIC, an affiliate of FTIC, provides subadvisory
services to the Fund and receives from FTIC fees based on the average daily net
assets of the Fund.

B. ADMINISTRATIVE FEES

Under an agreement with FTIC, FT Services provides administrative services to
the Fund. The fee is paid by FTIC based on average daily net assets, and is not
an additional expense of the Fund.

C. DISTRIBUTION FEES

The Trust's Board of Trustees has adopted distribution plans for each share
class, with the exception of Advisor Class shares, pursuant to Rule 12b-1 under
the 1940 Act. Under the Fund's Class A reimbursement distribution plan, the Fund
reimburses Distributors for costs incurred in connection with the servicing,
sale and distribution of the Fund's shares up to the maximum annual plan rate.
Under the Class A reimbursement distribution plan, costs exceeding the maximum
for the current plan year cannot be reimbursed in subsequent periods.

In addition, under the Fund's Class B and C compensation distribution plans, the
Fund pays Distributors for costs incurred in connection with the servicing, sale
and distribution of the Fund's shares up to the maximum annual plan rate for
each class.

The maximum annual plan rates, based on the average daily net assets, for each
class, are as follows:

Class A ..... 0.25%
Class B ..... 1.00%
Class C ..... 1.00%

D. SALES CHARGES/UNDERWRITING AGREEMENTS

Distributors has advised the Fund of the following commission transactions
related to the sales and redemptions of the Fund's shares for the period:

Sales charges retained net of commissions paid
to unaffiliated broker/dealers.............. $3,946
Contingent deferred sales charges retained..... $ 163

30 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

E. TRANSFER AGENT FEES

For the period ended April 30, 2009, the Fund paid transfer agent fees of
$215,747, of which $128,777 was retained by Investor Services.

4. EXPENSE OFFSET ARRANGEMENT

The Fund has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Fund's custodian expenses. During the period ended April 30, 2009, the
custodian fees were reduced as noted in the Statement of Operations.

5. INCOME TAXES

At April 30, 2009, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:

Cost of investments ......................... $170,628,715
============
Unrealized appreciation ..................... $ 8,102,476
Unrealized depreciation ..................... (75,727,255)
------------
Net unrealized appreciation (depreciation) .. $(67,624,779)
============

Net investment income (loss) differs for financial statement and tax purposes
primarily due to differing treatment of foreign currency transactions and
passive foreign investment company shares.

Net realized gains (losses) differ for financial statement and tax purposes
primarily due to differing treatments of wash sales, foreign currency
transactions and passive foreign investment company shares.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the
period ended April 30, 2009, aggregated $6,827,287 and $26,670,796,
respectively.

7. CONCENTRATION OF RISK

Investing in foreign securities may include certain risks and considerations not
typically associated with investing in U.S. securities, such as fluctuating
currency values and changing local and regional economic, political and social
conditions, which may result in greater market volatility. In addition, certain
foreign securities may not be as liquid as U.S. securities.

Semiannual Report | 31

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

8. CREDIT FACILITY

Effective January 23, 2009, the Fund, together with other U.S. registered and
foreign investment funds managed by Franklin Templeton Investments
(individually, "Borrower"; collectively "Borrowers"), entered into a joint
syndicated senior unsecured credit facility totaling $725 million (Global Credit
Facility) to provide a source of funds to the Borrowers for temporary and
emergency purposes, including the ability to meet future unanticipated or
unusually large redemption requests.

Under the terms of the Global Credit Facility, the Fund shall, in addition to
interest charged on any borrowings made by the Fund and other costs incurred by
the Fund, pay its share of fees and expenses incurred in connection with the
implementation and maintenance of the Global Credit Facility, based upon its
relative share of the aggregate net assets of all of the Borrowers, including an
annual commitment fee based upon the unused portion of the Global Credit
Facility. During the period, the Fund incurred commitment fees of $71 of its pro
rata portion of the Global Credit Facility, which is reflected in Other expenses
on the Statement of Operations. During the period ended April 30, 2009, the Fund
did not utilize the Global Credit Facility.

9. REDEMPTION IN-KIND

During the year ended October 31, 2008, the Fund realized $30,969,416 of net
losses resulting from a redemption in-kind in which a shareholder redeemed fund
shares for securities held by the Fund rather than for cash. Because such losses
are not taxable to the Fund and losses are not netted with capital gains that
are distributed to remaining shareholders, they have been reclassified from
accumulated net realized losses to paid-in capital.

10. FAIR VALUE MEASUREMENTS

The Fund adopted Financial Accounting Standards Board (FASB) Statement No. 157,
"Fair Value Measurement" (SFAS 157), on November 1, 2008. SFAS 157 defines fair
value, establishes a framework for measuring fair value, and expands disclosures
about fair value measurements. The Fund has determined that the implementation
of SFAS 157 did not have a material impact on the Fund's financial statements.

32 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

10. FAIR VALUE MEASUREMENTS (CONTINUED)

SFAS 157 establishes a fair value hierarchy that distinguishes between market
data obtained from independent sources (observable inputs) and the Fund's own
market assumptions (unobservable inputs). These inputs are used in determining
the value of the Fund's investments and are summarized in the following fair
value hierarchy:

- Level 1 - quoted prices in active markets for identical securities

- Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speed, credit risk,
etc.)

- Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.

The following is a summary of the inputs used as of April 30, 2009, in valuing
the Fund's assets carried at fair value:

LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------- ------------ --------- -------------

ASSETS:
Investments in Securities ... $ 99,598,945 $ 3,404,991 $ -- $ 103,003,936

11. NEW ACCOUNTING PRONOUNCEMENTS

In March 2008, FASB issued FASB Statement No. 161, "Disclosures about Derivative
Instruments and Hedging Activities, an amendment of FASB Statement No. 133"
(SFAS 161), which expands disclosures about derivative investments and hedging
activities. SFAS 161 is effective for fiscal years and interim periods beginning
after November 15, 2008. The Fund believes applying the various provisions of
SFAS 161 will not have a material impact on its financial statements.

In April 2009, FASB issued FASB Staff Position FSP FAS 157-4, "Determining Fair
Value When the Volume and Level of Activity for the Asset or Liability Have
Significantly Decreased and Identifying Transactions That Are Not Orderly" (FSP
FAS 157-4), which provides additional guidance when the volume and level of
activity for the asset or liability measured at fair value have significantly
decreased. Additionally, FSP FAS 157-4 amends SFAS 157, expanding disclosure
requirements by reporting entities surrounding the major categories of assets
and liabilities carried at fair value. FSP FAS 157-4 is effective for interim
and annual periods ending after June 15, 2009. The Fund is currently evaluating
the impact, if any, of applying FSP FAS 157-4.

Semiannual Report | 33

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

11. NEW ACCOUNTING PRONOUNCEMENTS (CONTINUED)

In May 2009, FASB issued Statement No. 165, "Subsequent Events", which is
intended to establish general standards of accounting for and disclosure of
events that occur after the balance sheet date but before the statements are
issued or are available to be issued. FASB 165 is effective for interim or
annual financial periods ending after June 15, 2009, the adoption of FASB 165
will not have a material impact on the financial statements.

ABBREVIATIONS

SELECTED PORTFOLIO

FHLB - Federal Home Loan Bank

34 | Semiannual Report

Franklin Templeton International Trust

SHAREHOLDER INFORMATION

TEMPLETON FOREIGN SMALLER COMPANIES FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT

At a meeting held April 14, 2009, the Board of Trustees (Board), including a
majority of non-interested or independent Trustees, approved renewal of the
investment management agreement for Templeton Foreign Smaller Companies Fund,
one of the Funds within the Trust (Fund(s)). In reaching this decision, the
Board took into account information furnished throughout the year at regular
Board meetings, as well as information prepared specifically in connection with
the annual renewal review process. Information furnished and discussed
throughout the year included investment performance reports and related
financial information for each Fund, as well as periodic reports on shareholder
services, legal, compliance, pricing, brokerage commissions and execution and
other services provided by the Investment Manager (Manager) and its affiliates.
Information furnished specifically in connection with the renewal process
included a report for each Fund prepared by Lipper, Inc. (Lipper), an
independent organization, as well as additional material, including a Fund
profitability analysis report prepared by management. The Lipper reports
compared each Fund's investment performance and expenses with those of other
mutual funds deemed comparable to the Fund as selected by Lipper. The Fund
profitability analysis report discussed the profitability to Franklin Templeton
Investments from its overall U.S. fund operations, as well as on an individual
fund-by-fund basis. Included with such profitability analysis report was
information on a fund-by-fund basis listing portfolio managers and other
accounts they manage, as well as information on management fees charged by the
Manager and its affiliates including management's explanation of differences
where relevant and a three-year expense analysis with an explanation for any
increase in expense ratios. Additional material accompanying such report was a
memorandum prepared by management describing project initiatives and capital
investments relating to the services provided to the Funds by the Franklin
Templeton Investments organization, as well as a memorandum relating to
economies of scale and a comparative analysis concerning transfer agent fees
charged each Fund. Such material also discussed some of the actions taken by
management in coping with problems arising out of the past year's financial
upheaval.

In considering such materials, the independent Trustees received assistance and
advice from and met separately with independent counsel. While the investment
management agreements for all Funds were considered at the same Board meeting,
the Board dealt with each Fund separately. In approving continuance of the
investment management agreement for each Fund, the Board, including a majority
of independent Trustees, determined that the existing management fee structure
was fair and reasonable and that continuance of the investment management
agreement was in the best interests of each Fund and its shareholders. While
attention was given to all information furnished, the following discusses some
primary factors relevant to the Board's decision.

NATURE, EXTENT AND QUALITY OF SERVICE. The Board was satisfied with the nature
and quality of the overall services provided by the Manager and its affiliates
to the Fund and its shareholders. In addition to investment performance and
expenses discussed later, the Board's opinion was based, in part, upon periodic
reports furnished it showing that the investment policies and

Semiannual Report | 35

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

restrictions for the Fund were consistently complied with as well as other
reports periodically furnished the Board covering matters such as the compliance
of portfolio managers and other management personnel with the code of ethics
adopted throughout the Franklin Templeton fund complex, the adherence to fair
value pricing procedures established by the Board, and the accuracy of net asset
value calculations. The Board also noted the extent of benefits provided Fund
shareholders from being part of the Franklin Templeton family of funds,
including the right to exchange investments between the same class of funds
without a sales charge, the ability to reinvest Fund dividends into other funds
and the right to combine holdings in other funds to obtain a reduced sales
charge. Favorable consideration was given to management's continuous efforts and
expenditures in establishing back-up systems and recovery procedures to function
in the event of a natural disaster, it being noted that such systems and
procedures had functioned smoothly during the Florida hurricanes and blackouts
experienced in recent years. Among other factors taken into account by the Board
were the Manager's best execution trading policies, including a favorable report
by an independent portfolio trading analytical firm. Consideration was also
given to the experience of the Fund's portfolio management team, the number of
accounts managed and general method of compensation. In this latter respect, the
Board noted that a primary factor in management's determination of a portfolio
manager's bonus compensation was the relative investment performance of the
funds he or she managed and that a portion of such bonus was required to be
invested in a predesignated list of funds within such person's fund management
area so as to be aligned with the interests of Fund shareholders. The Board also
took into account the quality of transfer agent and shareholder services
provided Fund shareholders by an affiliate of the Manager, noting continuing
expenditures by management to increase and improve the scope of such services,
periodic favorable reports on such service conducted by third parties, and the
continuous enhancements to and high industry ranking given the Franklin
Templeton website. Particular attention was given to the overall performance and
actions taken by the Manager and its affiliates in response to problems arising
out of the market turmoil and financial crisis experienced during the past year.
In this respect, the Board noted that management's independent credit analysis
and diligent risk management procedures had minimized exposure of funds within
the Franklin Templeton complex to subprime mortgages and that its continuous
monitoring of counterparty credit risk had limited fund exposure to firms
experiencing financial difficulties like Bear Stearns and AIG. The same type of
conservative approach and attention to risk had also prevented any structured
investment products or other volatile instruments from being held in the
portfolios of any of the money market funds within the Franklin Templeton
complex, including the sweep money fund utilized by many of the funds as part of
their cash management. The Board also took into account, among other things,
management's efforts in establishing a $725 million global credit facility for
the benefit of the funds and other accounts managed by Franklin Templeton
Investments to provide a source of cash for temporary and emergency purposes or
to meet unusual redemption requests as well as the strong financial position of
the Manager's parent company and its commitment to

36 | Semiannual Report

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

the mutual fund business. The Board also noted that during the past year
Franklin Templeton Investments, like many other fund managers, had announced a
hiring freeze and implemented employee reductions, and the Board discussed with
management the nature of such reductions and steps being taken to minimize any
negative impact on the nature and quality of services being provided the Fund.

INVESTMENT PERFORMANCE. The Board placed significant emphasis on the investment
performance of the Fund in view of its importance to shareholders. While
consideration was given to performance reports and discussions with portfolio
managers at Board meetings throughout the year, particular attention in
assessing performance was given to the Lipper reports furnished for the
agreement renewals. The Lipper report prepared for the Fund showed the
investment performance of its Class A shares in comparison to a performance
universe selected by Lipper. The following summarizes the performance results
for the Fund and the Board's view of such performance.

The performance universe for the Fund consisted of the Fund and all retail and
institutional international small/midcap core funds as selected by Lipper.
Comparative performance within such universe was shown for the one-year period
ended January 31, 2009, and the previous 10 years ended that date. Consistent
with the market sell-off that occurred during such period, the Fund and all
other funds within such performance universe experienced losses for the one-year
period ended January 31, 2009. On a comparative basis, the Lipper report showed
the Fund's total return for the one-year period to be in the lowest quintile of
such performance universe, and on an annualized basis to be in the lowest or
next to lowest quintile of such universe for each of the previous three-, five-
and 10-year periods. The Board was not satisfied with such performance, but
noted that recent changes had been made in the Fund's portfolio management team
and intends to monitor future developments. The Board also noted that the Fund
had experienced positive annual total returns in five of the previous six
one-year periods ranging from 17.96% to 96.77% as shown in the Lipper report and
had been closed to new investors from May 1, 2007, to December 15, 2008.

Semiannual Report | 37

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

costs, Lipper provides information on the Fund's contractual investment
management fee in comparison with the investment management fee that would have
been charged by other funds within its Lipper expense group assuming they were
similar in size to the Fund, as well as the actual total expenses of the Fund in
comparison with those of its Lipper expense group. The Lipper contractual
investment management fee analysis includes administrative charges as being part
of the investment management fee, and actual total expenses, for comparative
consistency, are shown by Lipper for Fund Class A shares. The results of such
comparisons showed the contractual investment management fee rate of Templeton
Foreign Smaller Companies Fund to be at the median of its Lipper expense group
and its actual total expense rate to be in the second least expensive quintile
of its expense group. The Board was satisfied with the investment management
fees and total expenses of this Fund in comparison to its respective Lipper
expense group.

MANAGEMENT PROFITABILITY. The Board also considered the level of profits
realized by the Manager and its affiliates in connection with the operation of
the Fund. In this respect, the Board reviewed the Fund profitability analysis
that addresses the overall profitability of Franklin Templeton's U.S. fund
business, as well as its profits in providing management and other services to
the Fund during the 12-month period ended September 30, 2008, being the most
recent fiscal year-end for Franklin Resources, Inc., the Manager's parent.
During such period, the assets of the Franklin Templeton U.S. fund business were
significantly higher than currently existing, and to such extent the
profitability analysis does not reflect current fund operations. While taking
this into account in assessing the significance of the Fund profitability
analysis, the Board recognized such analysis was made at a given point in time
and that the decline in assets and effect on profitability would be reflected in
the profitability analysis covering Franklin Resources' 2009 fiscal year period.
In reviewing the analysis, attention was given to the methodology followed in
allocating costs to the Fund, it being recognized that allocation methodologies
are inherently subjective and various allocation methodologies may each be
reasonable while producing different results. In this respect, the Board noted
that, while being continuously refined and reflecting changes in the Manager's
own cost accounting, the allocation methodology was consistent with that
followed in profitability report presentations for the Fund made in prior years
and that the Fund's independent registered public accounting firm had been
engaged by the Manager to perform certain procedures on a biennial basis,
specified and approved by the Manager and the Fund's Board solely for their
purposes and use in reference to the profitability analysis. In reviewing and
discussing such analysis, management discussed with the Board its belief that
costs incurred in establishing the infrastructure necessary for the type of
mutual fund operations conducted by the Manager and its affiliates may not be
fully reflected in the expenses allocated to the Fund in determining its
profitability, as well as the fact that the level of profits, to a certain
extent, reflected operational cost savings and efficiencies initiated by
management. The Board also took into account management's expenditures in
improving shareholder services provided the Fund, as well as the need to meet
additional regulatory and compliance requirements resulting from the
Sarbanes-Oxley Act and

38 | Semiannual Report

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

recent SEC and other regulatory requirements. In addition, the Board considered
a third-party study comparing the profitability of the Manager's parent on an
overall basis as compared to other publicly held managers broken down to show
profitability from management operations exclusive of distribution expenses, as
well as profitability including distribution expenses. The Board also considered
the extent to which the Manager and its affiliates might derive ancillary
benefits from fund operations, including its interest in a joint venture entity
that financed up-front commissions paid to brokers/dealers who sold fund Class B
shares prior to February 2005 when the offering of such shares was discontinued,
as well as potential benefits resulting from allocation of fund brokerage and
the use of commission dollars to pay for research. Based upon its consideration
of all these factors, the Board determined that the level of profits realized by
the Manager and its affiliates from providing services to the Fund was not
excessive in view of the nature, quality and extent of services provided.

ECONOMIES OF SCALE. The Board also considered whether economies of scale are
realized by the Manager as the Fund grows larger and the extent to which this is
reflected in the level of management fees charged. While recognizing that any
precise determination is inherently subjective, the Board noted that based upon
the Fund profitability analysis, it appears that as some funds get larger, at
some point economies of scale do result in the Manager realizing a larger profit
margin on management services provided such a fund. The Board also noted that
economies of scale are shared with the Fund and its shareholders through
management fee breakpoints so that as a fund grows in size, its effective
management fee rate declines. The fee schedule under the investment management
agreement for Templeton Foreign Smaller Companies Fund provides an initial fee
of 1% on the first $100 million of net assets; 0.90% on the next $150 million;
0.80% on the next $250 million; and 0.75% on net assets in excess of $500
million. This Fund's assets were approximately $104 million at December 31,
2008. The Board believed that to the extent economies of scale may be realized
by the manager and its affiliates, the schedule of fees under the investment
management agreement for such Fund provides for a sharing of benefits with this
Fund and its shareholders and noted the Fund's relatively favorable expense
comparison within its Lipper expense group.

PROXY VOTING POLICIES AND PROCEDURES

The Trust's investment manager has established Proxy Voting Policies and
Procedures (Policies) that the Trust uses to determine how to vote proxies
relating to portfolio securities. Shareholders may view the Trust's complete
Policies online at franklintempleton.com. Alternatively, shareholders may
request copies of the Policies free of charge by calling the Proxy Group collect
at (954) 527-7678 or by sending a written request to: Franklin Templeton
Companies, LLC, 500 East Broward Boulevard, Suite 1500, Fort Lauderdale, FL
33394, Attention: Proxy Group. Copies of the Trust's proxy voting records are
also made available online at franklintempleton.com and posted on the U.S.
Securities and Exchange Commission's website at sec.gov and reflect the most
recent 12-month period ended June 30.

Semiannual Report | 39

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

TEMPLETON FOREIGN SMALLER COMPANIES FUND

QUARTERLY STATEMENT OF INVESTMENTS

The Trust files a complete statement of investments with the U.S. Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
website at sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling (800)
SEC-0330.

40 | Semiannual Report

Franklin Templeton Funds

LITERATURE REQUEST. TO RECEIVE A PROSPECTUS, PLEASE CALL US AT (800) DIAL
BEN/(800) 342-5236 OR VISIT FRANKLINTEMPLETON.COM. INVESTORS SHOULD CAREFULLY
CONSIDER A FUND'S INVESTMENT GOALS, RISKS, CHARGES AND EXPENSES BEFORE
INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER INFORMATION. PLEASE CAREFULLY
READ THE PROSPECTUS BEFORE INVESTING. TO ENSURE THE HIGHEST QUALITY OF SERVICE,
WE MAY MONITOR, RECORD AND ACCESS TELEPHONE CALLS TO OR FROM OUR SERVICE
DEPARTMENTS. THESE CALLS CAN BE IDENTIFIED BY THE PRESENCE OF A REGULAR BEEPING
TONE.

VALUE
Franklin All Cap Value Fund
Franklin Balance Sheet Investment Fund
Franklin Large Cap Value Fund
Franklin MicroCap Value Fund(1)
Franklin MidCap Value Fund
Franklin Small Cap Value Fund
Mutual Beacon Fund
Mutual Quest Fund
Mutual Recovery Fund(2)
Mutual Shares Fund

BLEND
Franklin Focused Core Equity Fund
Franklin Large Cap Equity Fund
Franklin Rising Dividends Fund

GROWTH
Franklin Flex Cap Growth Fund
Franklin Growth Fund
Franklin Growth Opportunities Fund
Franklin Small Cap Growth Fund
Franklin Small-Mid Cap Growth Fund

SECTOR
Franklin Biotechnology Discovery Fund
Franklin DynaTech Fund
Franklin Global Real Estate Fund
Franklin Gold & Precious Metals Fund
Franklin Natural Resources Fund
Franklin Real Estate Securities Fund
Franklin Utilities Fund
Mutual Financial Services Fund

GLOBAL
Mutual Global Discovery Fund
Templeton Global Long-Short Fund
Templeton Global Opportunities Trust
Templeton Global Smaller Companies Fund
Templeton Growth Fund
Templeton World Fund

INTERNATIONAL
Franklin India Growth Fund
Franklin International Growth Fund
Franklin International Small Cap Growth Fund
Mutual European Fund
Mutual International Fund
Templeton BRIC Fund
Templeton China World Fund
Templeton Developing Markets Trust
Templeton Emerging Markets Small Cap Fund
Templeton Foreign Fund
Templeton Foreign Smaller Companies Fund
Templeton Frontier Markets Fund

HYBRID
Franklin Balanced Fund
Franklin Convertible Securities Fund
Franklin Equity Income Fund
Franklin Income Fund
Templeton Income Fund

ASSET ALLOCATION
Franklin Templeton Corefolio(R) Allocation Fund
Franklin Templeton Founding Funds Allocation Fund
Franklin Templeton Perspectives Allocation Fund
Franklin Templeton Conservative Target Fund
Franklin Templeton Growth Target Fund
Franklin Templeton Moderate Target Fund
Franklin Templeton 2015 Retirement Target Fund
Franklin Templeton 2025 Retirement Target Fund
Franklin Templeton 2035 Retirement Target Fund
Franklin Templeton 2045 Retirement Target Fund

FIXED INCOME
Franklin Adjustable U.S. Government Securities Fund(3)
Franklin Floating Rate Daily Access Fund
Franklin High Income Fund
Franklin Limited Maturity U.S. Government Securities Fund(3)
Franklin Low Duration Total Return Fund
Franklin Real Return Fund
Franklin Strategic Income Fund
Franklin Strategic Mortgage Portfolio
Franklin Templeton Hard Currency Fund
Franklin Total Return Fund
Franklin U.S. Government Securities Fund(3)
Templeton Global Bond Fund
Templeton Global Total Return Fund
Templeton International Bond Fund

TAX-FREE INCOME(4)
NATIONAL
Double Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund(5)

LIMITED-/INTERMEDIATE-TERM
California Intermediate-Term Tax-Free Income Fund
Federal Intermediate-Term Tax-Free Income Fund
Federal Limited-Term Tax-Free Income Fund
New York Intermediate-Term Tax-Free Income Fund

STATE-SPECIFIC
Alabama
Arizona
California(6)
Colorado
Connecticut
Florida
Georgia
Kentucky
Louisiana
Maryland
Massachusetts(7)
Michigan(7)
Minnesota(7)
Missouri
New Jersey
New York(6)
North Carolina
Ohio(7)
Oregon
Pennsylvania
Tennessee
Virginia

INSURANCE FUNDS
Franklin Templeton Variable Insurance Products Trust(8)

(1.) The fund is closed to new investors. Existing shareholders and select
retirement plans can continue adding to their accounts.

(2.) 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.

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

(4.) For investors subject to the alternative minimum tax, a small portion of
fund dividends may be taxable. Distributions of capital gains are generally
taxable.

(5.) The fund invests primarily in insured municipal securities.

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

(7.) The Board of Trustees approved the elimination of the non-fundamental
policy requiring the fund to invest at least 80% of net assets in insured
municipal securities and the removal of the word "Insured" from the fund
name. The changes became effective 2/17/09.

(8.) The funds of the Franklin Templeton Variable Insurance Products Trust are
generally available only through insurance company variable contracts.

04/09 Not part of the semiannual report

(FRANKLIN TEMPLETON INVESTMENTS(R) LOGO) One Franklin Parkway
San Mateo, CA 94403-1906

SEMIANNUAL REPORT AND SHAREHOLDER LETTERR

TEMPLETON FOREIGN SMALLER COMPANIES FUND

INVESTMENT MANAGER
Franklin Templeton Investments Corp.

SUBADVISOR
Templeton Investment Counsel, LLC

DISTRIBUTOR
Franklin Templeton Distributors, Inc.
(800) DIAL BEN(R)
franklintempleton.com

SHAREHOLDER SERVICES
(800) 632-2301

Authorized for distribution only when accompanied or preceded by a prospectus.
Investors should carefully consider a fund's investment goals, risks, charges
and expenses before investing. Like any investment in securities, the value of
the Fund's portfolio will be subject to the risk of loss from market, currency,
economic, political and other factors. The Fund and its investors are not
protected from such losses by the investment manager or the subadvisor.
Therefore, investors who cannot accept this risk should not invest in shares of
the Fund. The prospectus contains this and other information; please read it
carefully before investing.

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 S2009 06/09

APRIL 30, 2009

SEMIANNUAL REPORT AND SHAREHOLDER LETTER

A series of Franklin Templeton International Trust

(GRAPHIC)

GLOBAL

TEMPLETON GLOBAL LONG-SHORT FUND

(FRANKLIN TEMPLETON INVESTMENTS(R) LOGO)

Franklin - TEMPLETON - Mutual Series

Franklin Templeton Investments

GAIN FROM OUR PERSPECTIVE(R)

Franklin Templeton's distinct multi-manager
structure combines the specialized expertise of
three world-class investment management groups--
Franklin, Templeton and Mutual Series.

SPECIALIZED EXPERTISE Each of our portfolio management groups operates
autonomously, relying on its own research and
staying true to the unique investment disciplines
that underlie its success.

FRANKLIN. Founded in 1947, Franklin is a recognized
leader in fixed income investing and also brings
expertise in growth- and value-style U.S. equity
investing.

MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS

(GRAPHIC)

Not part of the semiannual report

Contents

SHAREHOLDER LETTER ........................................................ 1
SEMIANNUAL REPORT
Templeton Global Long-Short Fund .......................................... 3
Performance Summary ....................................................... 9
Your Fund's Expenses ...................................................... 12
Financial Highlights and Statement of Investments ......................... 14
Financial Statements ...................................................... 22
Notes to Financial Statements ............................................. 25
Shareholder Information ................................................... 36

Shareholder Letter

Dear Shareholder:

Templeton Global Long-Short Fund's semiannual report goes into greater detail
about prevailing conditions during the period under review. In addition, you
will find performance data, financial information and a discussion about
investment management decisions. Please remember that all securities markets
fluctuate, as do mutual fund share prices.

If you would like more frequent updates, franklintempleton.com provides daily
prices, monthly performance figures, portfolio holdings and other information.
You can also access your account, buy and sell shares, read timely articles, and
find helpful financial planning tools. We hope you will take advantage of these
online services.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Not part of the semiannual report | 1

We thank you for investing with Franklin Templeton, welcome your questions and
comments, and look forward to serving your investment needs in the years ahead.

Sincerely,

/s/ Rupert H. Johnson, Jr.

Rupert H. Johnson, Jr.
President and Chief Executive Officer - Investment Management
Franklin Templeton International Trust

2 | Not part of the semiannual report

Semiannual Report

Templeton Global Long-Short Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Templeton Global Long-Short Fund seeks
long-term capital appreciation in both up and down (bull and bear) markets with
less volatility than the overall global stock market through a combination of
long and short positions in equity securities, primarily common stocks of
companies located anywhere in the world, including developing or emerging
markets.

PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE VISIT franklintempleton.com OR CALL (800) 342-5236 FOR
MOST RECENT MONTH-END PERFORMANCE.

This semiannual report for Templeton Global Long-Short Fund covers the period
ended April 30, 2009.

PERFORMANCE OVERVIEW

Templeton Global Long-Short Fund - Class A had a -3.82% cumulative total return
for the six months under review. The Fund performed better than its benchmark,
the Morgan Stanley Capital International (MSCI) World Index, which had a -5.09%
total return for the same period.(1) Since inception on July 31, 2001, the
Fund's Class A shares had a cumulative total return of -7.80% compared with
- -0.25% for the index.(2) The Fund's relative volatility, as measured by the
annualized standard deviation of monthly returns, was low at just 11.55% since
inception.(3) In comparison, the index's standard deviation during this time was
16.55%.(1) You can find the Fund's long-term performance data in the Performance
Summary beginning on page 9.

(1.) Source: (C) 2009 Morningstar. All Rights Reserved. The information
contained herein: (1) is proprietary to Morningstar and/or its content
providers; (2) may not be copied or distributed; and (3) is not warranted
to be accurate, complete or timely. Neither Morningstar nor its content
providers are responsible for any damages or losses arising from any use of
this information. The MSCI World Index is a free float-adjusted, market
capitalization-weighted index designed to measure equity market performance
in global developed markets. The index is unmanaged and includes reinvested
dividends. One cannot invest directly in an index, nor is an index
representative of the Fund's portfolio.

(2.) Source: (C) 2009 Morningstar. As of 4/30/09, the Fund's Class A average
annual total return not including sales charges was -1.04% since inception
on 7/31/01, compared with the -0.03% average annual total return for the
MSCI World Index for the same period. The index is unmanaged and includes
reinvested dividends. One cannot invest directly in an index, nor is an
index representative of the Fund's portfolio.

(3.) Standard deviation is a statistical measure of the range of a fund's total
return. In general, a high standard deviation means greater volatility.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL AMOUNT, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 17.

Semiannual Report | 3

PORTFOLIO BREAKDOWN
4/30/09

% OF TOTAL
NET ASSETS
----------

Long Positions 98.3%
Short Positions -23.7%
Short-Term Investments 2.0%
Other Assets, Less Liabilities 23.4%

EQUITY EXPOSURE
4/30/09

% OF TOTAL # OF
NET ASSETS POSITIONS
---------- ---------

Long Equity Securities 98.3% 83
Short Equity Securities -23.7% 18
NET EQUITY EXPOSURE 74.6% (LONG)

ECONOMIC AND MARKET OVERVIEW

The six months under review encompassed the highs and the lows of recent equity
market fluctuations. Stocks plummeted at the beginning of the period in the
aftermath of Lehman Brothers' failure and American International Group's
effective nationalization, and volatility neared its highest levels ever. The
fallout in credit markets from the collapse of Wall Street's investment banks
was severe, and the global credit crisis took its toll on the economy. The
Baltic Exchange Dry Index, a key measure of global trade activity, at one point
had fallen by a staggering 94% from its all-time high, unemployment in the U.S.
hit a 26-year high, home prices and manufacturing volumes contracted sharply,
and the world economy entered its first global recession since World War II.(4)
In response, global monetary authorities aggressively intervened in the
marketplace, pledging essentially unlimited amounts of capital to stabilize
faltering economies and shore up equity markets. By the end of 2008, most major
economies had entered, or stood on the brink of, recession, and most major
markets had delivered their worst annual returns since the Great Depression.

The situation worsened at the beginning of 2009, as equity markets broke through
November's lows in early March due to disappointing corporate earnings results,
additional bank write-downs and the further deterioration of economic
conditions. Yet, sentiment shifted in the latter part of March, and in April
global stocks posted their steepest monthly gains in two decades as corporate
earnings came in better than lowered expectations and investors seemed to
believe the worst of the credit crisis was behind them. The rally was led by
some of the market's hardest hit, most indebted and most economically sensitive
sectors, including financials, materials, industrials and consumer
discretionary. Technology stocks were also strong performers, and by period-end
the NASDAQ Composite Index posted gains for eight consecutive weeks, its

(4.) Sources: Baltic Exchange Information Services Ltd.; Bureau of Labor
Statistics. The Baltic Exchange Dry Index is a measure of the cost to ship
bulk goods by sea. The index is considered a leading indicator of global
economic and trade activity, as demand to move commodities foreshadows the
production of finished goods.

4 | Semiannual Report

longest winning streak since 1999.(5) In currency markets, the dollar weakened
against the euro, but strengthened slightly against the yen amid volatile
trading.

INVESTMENT STRATEGY

Our investment philosophy is the belief that a combination of long and short
equity positions can reduce overall volatility and has the potential to provide
positive returns in either up or down markets. We apply a bottom-up,
value-oriented, long-term approach, focusing on the market price of a company's
securities relative to our evaluation of its long-term earnings, asset value and
cash flow potential. We also consider a company's price/earnings ratio, profit
margins and liquidation value. For our long positions, we seek stock from
companies we believe have strong fundamentals or valuable assets that we think
are overlooked by the market. Among our short positions, our strategy is to
short the stocks of companies we believe are overvalued by the market where we
see the potential for share price decline.

MANAGER'S DISCUSSION

During the reporting period, among the worst performing stocks were the Fund's
long positions in chipmaker Infineon Technologies, diversified manufacturer
General Electric (GE) and information technology (IT) services provider Satyam
Computer Services.

Germany's Infineon Technologies, one of Europe's largest chip producers, makes
semiconductors for myriad automotive, computing, communications and industrial
applications. The stock weakened after Infineon missed earnings guidance and
exposed potential vulnerabilities in the company's balance sheet. We sold the
Fund's position in Infineon by period-end.

GE is an industrial conglomerate that produces a wide range of products from
household appliances to wind turbines. Demand for big-ticket infrastructure
products waned as the global economic recession took hold, and GE was negatively
impacted by its economically sensitive revenue stream. Losses at GE Capital, the
company's finance business, further pressured the stock and necessitated an
FDIC-insured debt issuance.

India's Satyam Computer Services provides on-site, off-site and offshore IT
services mostly to customers in North America and Europe. The stock plummeted
during the period after Satyam's chairman confessed to falsifying earnings and
assets and promptly resigned, uncovering one of India's biggest ever corporate
frauds.

TOP 10 LONG POSITIONS
4/30/09

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

Taiwan Semiconductor Manufacturing
Co. Ltd., ADR 2.3%
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT, TAIWAN
Cisco Systems Inc. 2.2%
COMMUNICATIONS EQUIPMENT, U.S.
Comcast Corp., A 2.2%
MEDIA, U.S.
Vodafone Group PLC 2.1%
WIRELESS TELECOMMUNICATION SERVICES,
U.K.
BP PLC 2.1%
OIL, GAS & CONSUMABLE FUELS, U.K.
Kingfisher PLC 2.0%
SPECIALTY RETAIL, U.K.
Flextronics International Ltd. 2.0%
ELECTRONIC EQUIPMENT, INSTRUMENTS &
COMPONENTS, SINGAPORE
Samsung Electronics Co. Ltd. 2.0%
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT, SOUTH KOREA
Adecco SA 1.9%
PROFESSIONAL SERVICES, SWITZERLAND
Microsoft Corp. 1.9%
SOFTWARE, U.S.

(5.) Source: (C) 2009 Morningstar. The NASDAQ Composite Index measures all
NASDAQ domestic and international based common type stocks listed on The
NASDAQ Stock Market. The index is market value weighted and includes more
than 3,000 companies.

Semiannual Report | 5

SECTOR/INDUSTRY BREAKDOWN
Based on Total Net Assets as of 4/30/09

NET EQUITY
LONG % SHORT % EXPOSURE %
------ ------- ----------

Diversified Telecommunication Services 8.0% 0.0% 8.0%
Oil, Gas & Consumable Fuels 7.9% 0.0% 7.9%
Pharmaceuticals 7.0% 0.0% 7.0%
Media 8.7% -1.8% 6.9%
Commercial Banks 5.9% 0.0% 5.9%
Wireless Telecommunication Services 4.7% 0.0% 4.7%
Insurance 4.4% 0.0% 4.4%
Software 4.4% 0.0% 4.4%
Semiconductors & Semiconductor Equipment 4.2% 0.0% 4.2%
Electronic Equipment, Instruments & Components 4.0% 0.0% 4.0%
Specialty Retail 3.4% 0.0% 3.4%
Industrial Conglomerates 3.3% 0.0% 3.3%
Automobiles 3.2% 0.0% 3.2%
Communications Equipment 2.2% 0.0% 2.2%
Commercial Services & Supplies 1.8% 0.0% 1.8%
Food Products 1.6% 0.0% 1.6%
IT Services 1.6% 0.0% 1.6%
Computers & Peripherals 1.5% 0.0% 1.5%
Health Care Equipment & Supplies 1.5% 0.0% 1.5%
Aerospace & Defense 1.4% 0.0% 1.4%
Auto Components 1.4% 0.0% 1.4%
Chemicals 1.3% 0.0% 1.3%
Multiline Retail 1.3% 0.0% 1.3%
Professional Services 3.6% -2.2% 1.4%
Metals & Mining 1.2% 0.0% 1.2%
Air Freight & Logistics 1.1% 0.0% 1.1%
Biotechnology 1.1% 0.0% 1.1%
Capital Markets 1.1% 0.0% 1.1%
Consumer Finance 0.9% 0.0% 0.9%
Food & Staples Retailing 0.9% 0.0% 0.9%
Energy Equipment & Services 0.8% 0.0% 0.8%
Electric Utilities 0.7% 0.0% 0.7%
Airlines 0.5% 0.0% 0.5%
Hotels, Restaurant & Leisure 0.5% -0.5% 0.0%
Construction & Engineering 0.0% -0.5% -0.5%
Real Estate Investment Trusts 0.0% -0.9% -0.9%
Construction Materials 0.0% -1.0% -1.0%
Household Durables 0.0% -1.4% -1.4%
Machinery 0.0% -1.8% -1.8%
Diversified Financial Services 1.2% -13.6% -12.4%
TOTAL 98.3% -23.7% 74.6%

6 | Semiannual Report

GEOGRAPHIC BREAKDOWN
Based on Total Net Assets as of 4/30/09

NET EQUITY
REGION LONG % SHORT % EXPOSURE %
- ------ ------ ------- ----------

Europe 47.4% -6.4% 41.0%
North America 32.7% -15.2% 17.5%
Asia 15.0% -2.1% 12.9%
Australia & New Zealand 1.5% 0.0% 1.5%
Latin America & Caribbean 0.9% 0.0% 0.9%
Middle East & Africa 0.8% 0.0% 0.8%
Short-Term Investments & Other Net Assets 25.4% 0.0% 25.4%

It is important to recognize the effect of currency movements on the Fund's
performance. In general, if the value of the U.S. dollar goes up compared with a
foreign currency, an investment traded in that foreign currency will go down in
value because it will be worth fewer U.S. dollars. This can have a negative
effect on Fund performance. Conversely, when the U.S. dollar weakens in relation
to a foreign currency, an investment traded in that foreign currency will
increase in value, which can contribute to Fund performance. For the six months
ended April 30, 2009, the U.S. dollar rose in value relative to most currencies.
As a result, the Fund's performance was negatively affected by the portfolio's
significant investment in securities with non-U.S. currency exposure.

Major contributors to Fund performance during the period included long positions
in home improvement company Kingfisher and dedicated silicon foundry Taiwan
Semiconductor Manufacturing and a short position in home and family media
company Meredith.

The U.K.'s Kingfisher operates one of the world's largest home improvement
retail groups. The stock rallied toward the end of the period as economic data
revealed a slowing pace of contraction in the housing market and investors
appeared to regain their appetite for risk.

Taiwan Semiconductor Manufacturing is the first and largest dedicated silicon
foundry (contract semiconductor manufacturer) in the world. Technology stocks
have led the market so far in 2009, with the ultra-depressed semiconductor and
hardware industries rebounding considerably from historically low valuations.

Semiannual Report | 7

U.S.-based Meredith publishes magazines, special interest publications and
books. The Fund's short position in the company delivered strong returns as the
advertising downturn severely impacted operating conditions in the publishing
industry.

Thank you for your continued participation in Templeton Global Long-Short Fund.
We look forward to serving your future investment needs.

(PHOTO OF MATTHEW R. NAGLE)

/s/ Matthew R. Nagle

Matthew R. Nagle, CFA
Portfolio Manager
Templeton Global Long-Short Fund

8 | Semiannual Report

Performance Summary as of 4/30/09

PRICE AND DISTRIBUTION INFORMATION

CLASS A (SYMBOL: TLSAX) CHANGE 4/30/09 10/31/08
- ----------------------- ------ ------- --------

Net Asset Value (NAV) -$2.43 $6.61 $9.04
DISTRIBUTIONS (11/1/08-4/30/09)
Short-Term Capital Gain $0.5161
Long-Term Capital Gain $1.6635
TOTAL $2.1796

CLASS B (SYMBOL: TLSBX) CHANGE 4/30/09 10/31/08
- ----------------------- ------ ------- --------

Net Asset Value (NAV) -$2.45 $6.44 $8.89
DISTRIBUTIONS (11/1/08-4/30/09)
Short-Term Capital Gain $0.5161
Long-Term Capital Gain $1.6635
TOTAL $2.1796

ADVISOR CLASS (SYMBOL: N/A) CHANGE 4/30/09 10/31/08
- --------------------------- ------ ------- --------

Net Asset Value (NAV) -$2.43 $6.63 $9.06
DISTRIBUTIONS (11/1/08-4/30/09)
Short-Term Capital Gain $0.5161
Long-Term Capital Gain $1.6635
TOTAL $2.1796

Semiannual Report | 9

Performance Summary (CONTINUED)

PERFORMANCE(1)

CUMULATIVE TOTAL RETURN EXCLUDES SALES CHARGES. AVERAGE ANNUAL TOTAL RETURNS AND
VALUE OF $10,000 INVESTMENT INCLUDE MAXIMUM SALES CHARGES. CLASS A: 5.75%
MAXIMUM INITIAL SALES CHARGE; CLASS B: CONTINGENT DEFERRED SALES CHARGE
DECLINING FROM 4% TO 1% OVER SIX YEARS, AND ELIMINATED THEREAFTER; ADVISOR
CLASS: NO SALES CHARGES.

INCEPTION
CLASS A 6-MONTH 1-YEAR 5-YEAR (7/31/01)
- ------- ------- ------- ------- ---------

Cumulative Total Return(2) -3.82% -33.78% -17.54% -7.80%
Average Annual Total Return(3) -9.32% -37.58% -4.91% -1.80%
Value of $10,000 Investment(4) $9,068 $ 6,242 $ 7,774 $8,689
Avg. Ann. Total Return (3/31/09)(5) -39.84% -6.85% -2.82%
Total Annual Operating Expenses(6) 2.46%

INCEPTION
CLASS B 6-MONTH 1-YEAR 5-YEAR (7/31/01)
- ------- ------- ------- ------- ---------

Cumulative Total Return(2) -4.06% -34.27% -20.27% -12.45%
Average Annual Total Return(3) -6.95% -36.25% -4.71% -1.70%
Value of $10,000 Investment(4) $9,305 $ 6,375 $ 7,856 $ 8,755
Avg. Ann. Total Return (3/31/09)(5) -38.64% -6.68% -2.73%
Total Annual Operating Expenses(6) 3.16%

INCEPTION
ADVISOR CLASS(7) 6-MONTH 1-YEAR 5-YEAR (7/31/01)
- ---------------- ------- ------- ------- ---------

Cumulative Total Return(2) -3.70% -33.68% -16.37% -6.50%
Average Annual Total Return(3) -3.70% -33.68% -3.51% -0.86%
Value of $10,000 Investment(4) $9,630 $ 6,632 $ 8,363 $9,350
Avg. Ann. Total Return (3/31/09)(5) -36.06% -5.47% -1.88%
Total Annual Operating Expenses(6) 2.16%

10 | Semiannual Report

Performance Summary (CONTINUED)

ENDNOTES

THE FUND'S INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE WITH THE FUND'S
LONG-SHORT INVESTMENT STRATEGY, MARKET CONDITIONS, CURRENCY EXCHANGE RATES AND
ECONOMIC, SOCIAL AND POLITICAL CLIMATES OF COUNTRIES WHERE THE FUND INVESTS.
INVESTMENTS IN DEVELOPING MARKETS INVOLVE HEIGHTENED RISKS RELATED TO THE SAME
FACTORS. IN ADDITION, HISTORICALLY, SMALL-CAP STOCKS HAVE PROVEN MORE VOLATILE
THAN LARGE-CAP SECURITIES, ESPECIALLY OVER THE SHORT TERM. 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; LOSSES FROM SHORT SALES MAY BE UNLIMITED. THE FUND'S
PROSPECTUS ALSO INCLUDES A DESCRIPTION OF THE MAIN INVESTMENT RISKS.

CLASS B: These shares have higher annual fees and expenses than Class A shares.

ADVISOR CLASS: Shares are available to certain eligible investors as described
in the prospectus.

(1.) Past expense reductions by the Fund's manager increased the Fund's total
returns. If the manager had not taken this action, the Fund's total returns
would have been lower.

(2.) Cumulative total return represents the change in value of an investment
over the periods indicated.

(3.) Average annual total return represents the average annual change in value
of an investment over the periods indicated. Six-month return has not been
annualized.

(4.) These figures represent the value of a hypothetical $10,000 investment in
the Fund over the periods indicated.

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

(6.) Figures are as stated in the Fund's prospectus current as of the date of
this report. In periods of market volatility, assets may decline
significantly, causing total annual Fund operating expenses to become
higher than the figures shown.

(7.) Effective 8/2/04, 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 8/2/04, 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 8/1/04, actual Advisor Class performance is used
reflecting all charges and fees applicable to that class. Since 8/2/04
(commencement of sales), the cumulative and average annual total returns of
Advisor Class shares were -14.14% and -3.16%.

Semiannual Report | 11

Your Fund's Expenses

As a Fund shareholder, you can incur two types of costs:

- - Transaction costs, including sales charges (loads) on Fund purchases; and

- - Ongoing Fund costs, including management fees, distribution and service
(12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs,
sometimes referred to as operating expenses.

ACTUAL FUND EXPENSES

You can estimate the expenses you paid during the period, by following these
steps. OF COURSE, YOUR ACCOUNT VALUE AND EXPENSES WILL DIFFER FROM THOSE IN THIS
ILLUSTRATION:

1. Divide your account value by $1,000.

IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."

IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

In this illustration, the estimated expenses paid this period are $64.50.

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

12 | Semiannual Report

Your Fund's Expenses (CONTINUED)

BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 11/1/08 VALUE 4/30/09 PERIOD* 11/1/08-4/30/09
----------------- -------------- -----------------------

CLASS A
Actual $1,000 $ 961.80 $19.75
Hypothetical (5% return before expenses) $1,000 $1,004.66 $20.18
CLASS B
Actual $1,000 $ 959.40 $23.42
Hypothetical (5% return before expenses) $1,000 $1,000.89 $23.91
ADVISOR CLASS
Actual $1,000 $ 963.00 $18.54
Hypothetical (5% return before expenses) $1,000 $1,005.90 $18.95

* Expenses are calculated using the most recent six-month expense ratio,
annualized for each class (A: 4.06%; B: 4.82%; and Advisor: 3.81%),
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one-half year period.

Semiannual Report | 13

Franklin Templeton International Trust

FINANCIAL HIGHLIGHTS

TEMPLETON GLOBAL LONG-SHORT FUND

SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
2009 ---------------------------------------------------------
CLASS A (UNAUDITED) 2008 2007 2006 2005 2004
- ------- ----------- ------- -------- -------- ------- --------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ............... $ 9.04 $ 14.48 $ 12.99 $ 11.36 $ 11.21 $ 10.70
------- ------- -------- -------- ------- --------
Income from investment operations(a):
Net investment income (loss)(b) ................. (0.05) 0.04 0.18 0.22 0.12 0.11
Net realized and unrealized gains (losses) ...... (0.20) (5.34) 1.61 1.56 0.15 0.40
------- ------- -------- -------- ------- --------
Total from investment operations ................... (0.25) (5.30) 1.79 1.78 0.27 0.51
------- ------- -------- -------- ------- --------
Less distributions from:
Net investment income ........................... -- (0.14) (0.18) (0.15) (0.12) --
Net realized gains .............................. (2.18) --(c) (0.12) -- -- --
------- ------- -------- -------- ------- --------
Total distributions ................................ (2.18) (0.14) (0.30) (0.15) (0.12) --
------- ------- -------- -------- ------- --------
Redemption fees(d) ................................. -- --(c) --(c) --(c) --(c) --(c)
------- ------- -------- -------- ------- --------
Net asset value, end of period ..................... $ 6.61 $ 9.04 $ 14.48 $ 12.99 $ 11.36 $ 11.21
======= ======= ======== ======== ======= ========
Total return(e) .................................... (3.82)% (36.80)% 13.99% 15.93% 2.37% 4.77%
RATIOS TO AVERAGE NET ASSETS(f)
Expenses before waiver and payments by affiliates
and expense reduction ........................... 4.06% 3.12% 2.25% 1.63% 1.58% 1.52%
Expenses net of waiver and payments by affiliates
and expense reduction ........................... 4.06%(g) 3.11% 2.25%(g) 1.63%(g) 1.58%(g) 1.33%(g)
Ratios to average net assets, excluding dividend
expense on securities sold short:
Expenses before waiver and payments by affiliates
and expense reduction ........................ 3.69% 2.48% 1.84% 1.36% 1.23% 1.30%
Expenses net of waiver and payments by affiliates
and expense reduction ........................ 3.69%(g) 2.47% 1.84%(g) 1.36%(g) 1.23%(g) 1.11%(g)
Net investment income (loss) ....................... (1.36)% 0.28% 1.30% 1.80% 1.09% 0.98%
SUPPLEMENTAL DATA
Net assets, end of period (000's) .................. $51,750 $98,877 $276,342 $141,335 $92,835 $113,850
Portfolio turnover rate ............................ 29.81% 86.47% 93.83% 133.06% 111.52% 200.64%
Portfolio turnover rate excluding short sales ...... 13.80% 36.45% 33.18% 66.20% 71.34% 74.62%

(b) Based on average daily shares outstanding.

(d) Effective September 1, 2008, the redemption fee was eliminated.

(e) Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable, and is not annualized for periods less than
one year.

(f) Ratios are annualized for periods less than one year.

(g) Benefit of expense reduction rounds to less than 0.01%.

The accompanying notes are an integral part of these financial statements.

14 | Semiannual Report

Franklin Templeton International Trust

FINANCIAL HIGHLIGHTS (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
2009 ------------------------------------------------------
CLASS B (UNAUDITED) 2008 2007 2006 2005 2004
- ------- ----------- ------- -------- -------- ------- -------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ............... $ 8.89 $ 14.22 $ 12.75 $ 11.14 $ 10.98 $ 10.55
------ ------- ------- ------- ------- -------
Income from investment operations(a):
Net investment income (loss)(b) ................. (0.07) (0.05) 0.08 0.14 0.04 0.03
Net realized and unrealized gains (losses) ...... (0.20) (5.26) 1.59 1.53 0.14 0.40
------ ------- ------- ------- ------- -------
Total from investment operations ................... (0.27) (5.31) 1.67 1.67 0.18 0.43
------ ------- ------- ------- ------- -------
Less distributions from:
Net investment income ........................... -- (0.02) (0.08) (0.06) (0.02) --
Net realized gains .............................. (2.18) --(c) (0.12) -- -- --
------ ------- ------- ------- ------- -------
Total distributions ................................ (2.18) (0.02) (0.20) (0.06) (0.02) --
------ ------- ------- ------- ------- -------
Redemption fees(d) ................................. -- --(c) --(c) --(c) --(c) --(c)
------ ------- ------- ------- ------- -------
Net asset value, end of period ..................... $ 6.44 $ 8.89 $ 14.22 $ 12.75 $ 11.14 $ 10.98
====== ======= ======= ======= ======= =======
Total return(e) .................................... (4.06)% (37.28)% 13.29% 14.95% 1.76% 4.08%
RATIOS TO AVERAGE NET ASSETS(f)
Expenses before waiver and payments by affiliates
and expense reduction ........................... 4.82% 3.81% 2.91% 2.35% 2.28% 2.19%
Expenses net of waiver and payments by affiliates
and expense reduction ........................... 4.82%(g) 3.80% 2.91%(g) 2.35%(g) 2.28%(g) 2.00%(g)
Ratios to average net assets, excluding dividend
expense on securities sold short:
Expenses before waiver and payments by affiliates
and expense reduction ........................ 4.45% 3.17% 2.50% 2.08% 1.93% 1.97%
Expenses net of waiver and payments by affiliates
and expense reduction ........................ 4.45%(g) 3.16% 2.50%(g) 2.08%(g) 1.93%(g) 1.78%(g)
Net investment income (loss) ....................... (2.12)% (0.41)% 0.64% 1.08% 0.39% 0.31%
SUPPLEMENTAL DATA
Net assets, end of period (000's) .................. $9,071 $15,483 $32,184 $34,799 $36,590 $44,202
Portfolio turnover rate ............................ 29.81% 86.47% 93.83% 133.06% 111.52% 200.64%
Portfolio turnover rate excluding short sales ...... 13.80% 36.45% 33.18% 66.20% 71.34% 74.62%

(b) Based on average daily shares outstanding.

(d) Effective September 1, 2008, the redemption fee was eliminated.

(e) Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable, and is not annualized for periods less than
one year.

(f) Ratios are annualized for periods less than one year.

(g) Benefit of expense reduction rounds to less than 0.01%.

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 15

Franklin Templeton International Trust

FINANCIAL HIGHLIGHTS (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
2009 -----------------------------------------------------
ADVISOR CLASS (UNAUDITED) 2008 2007 2006 2005 2004(a)
- ------------- ----------- ------- ------ ------- ------- -------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ............... $ 9.06 $ 14.50 $13.00 $ 11.37 $ 11.22 $ 10.89
------ ------- ------ ------- ------- -------
Income from investment operations(b):
Net investment income (loss)(c) ................. (0.06) 0.07 0.22 0.26 0.19 0.03
Net realized and unrealized gains (losses) ...... (0.19) (5.34) 1.61 1.56 0.12 0.30
------ ------- ------ ------- ------- -------
Total from investment operations ................... (0.25) (5.27) 1.83 1.82 0.31 0.33
------ ------- ------ ------- ------- -------
Less distributions from:
Net investment income ........................... -- (0.17) (0.21) (0.19) (0.16) --
Net realized gains .............................. (2.18) --(d) (0.12) -- -- --
------ ------- ------ ------- ------- -------
Total distributions ................................ (2.18) (0.17) (0.33) (0.19) (0.16) --
------ ------- ------ ------- ------- -------
Redemption fees(e) ................................. -- --(d) --(d) --(d) --(d) --(d)
------ ------- ------ ------- ------- -------
Net asset value, end of period ..................... $ 6.63 $ 9.06 $14.50 $ 13.00 $ 11.37 $ 11.22
====== ======= ====== ======= ======= =======
Total return(f) .................................... (3.70)% (36.65)% 14.41% 16.19% 2.75% 3.03%
RATIOS TO AVERAGE NET ASSETS(g)
Expenses before waiver and payments by affiliates
and expense reduction ........................... 3.81% 2.81% 1.91% 1.35% 1.28% 1.20%
Expenses net of waiver and payments by affiliates
and expense reduction ........................... 3.81%(h) 2.80% 1.91%(h) 1.35%(h) 1.28%(h) 1.01%(h)
Ratios to average net assets, excluding dividend
expense on securities sold short:
Expenses before waiver and payments by affiliates
and expense reduction ........................ 3.44% 2.17% 1.50% 1.08% 0.93% 0.98%
Expenses net of waiver and payments by affiliates
and expense reduction ........................ 3.44%(h) 2.16% 1.50%(h) 1.08%(h) 0.93%(h) 0.79%(h)
Net investment income (loss) ....................... (1.11)% 0.59% 1.64% 2.08% 1.39% 1.30%
SUPPLEMENTAL DATA
Net assets, end of period (000's) .................. $1,655 $ 3,282 $7,440 $ 3,654 $ 3,096 $ 366
Portfolio turnover rate ............................ 29.81% 86.47% 93.83% 133.06% 111.52% 200.64%
Portfolio turnover rate excluding short sales ...... 13.80% 36.45% 33.18% 66.20% 71.34% 74.62%

(a) For the period August 2, 2004 (effective date) to October 31, 2004.

(b) The amount shown for a share outstanding throughout the period may not
correlate with the Statement of Operations for the period due to the timing
of sales and repurchases of the Fund shares in relation to income earned
and/or fluctuating market value of the investments of the Fund.

(d) Amount rounds to less than $0.01 per share.

(e) Effective September 1, 2008, the redemption fee was eliminated.

(f) Total return is not annualized for periods less than one year.

(g) Ratios are annualized for periods less than one year.

(h) Benefit of expense reduction rounds to less than 0.01%.

The accompanying notes are an integral part of these financial statements.

16 | Semiannual Report

Franklin Templeton International Trust

STATEMENT OF INVESTMENTS, APRIL 30, 2009 (UNAUDITED)

TEMPLETON GLOBAL LONG-SHORT FUND INDUSTRY SHARES VALUE
---------------------------------------------------- --------------------------------- ---------------- -----------

COMMON STOCKS 97.7%
AUSTRALIA 1.5%
Alumina Ltd. ....................................... Metals & Mining 378,300 $ 409,448
Brambles Ltd. ...................................... Commercial Services & Supplies 43,340 186,374
Qantas Airways Ltd. ................................ Airlines 231,000 332,241
-----------
928,063
-----------
AUSTRIA 1.8%
Telekom Austria AG ................................. Diversified Telecommunication
Services 84,210 1,114,580
-----------
BRAZIL 0.3%
Embraer-Empresa Brasileira de Aeronautica SA, ADR .. Aerospace & Defense 11,982 194,348
-----------
FRANCE 6.6%
Compagnie Generale des Etablissements Michelin, B .. Auto Components 17,320 893,039
France Telecom SA .................................. Diversified Telecommunication
Services 45,650 1,018,285
Sanofi-Aventis ..................................... Pharmaceuticals 16,350 946,254
Total SA, B ........................................ Oil, Gas & Consumable Fuels 13,450 681,938
Vivendi SA ......................................... Media 22,070 597,357
-----------
4,136,873
-----------
GERMANY 3.8%
Bayerische Motoren Werke AG ........................ Automobiles 24,950 863,352
E.ON AG ............................................ Electric Utilities 12,330 414,920
Muenchener Rueckversicherungs-Gesellschaft AG ...... Insurance 1,180 161,018
Siemens AG ......................................... Industrial Conglomerates 14,020 937,464
-----------
2,376,754
-----------
INDIA 0.2%
Satyam Computer Services Ltd. ...................... IT Services 167,100 156,599
-----------
ISRAEL 0.8%
(a) Check Point Software Technologies Ltd. ............. Software 20,746 480,685
-----------
ITALY 3.7%
Eni SpA ............................................ Oil, Gas & Consumable Fuels 28,468 619,208
Intesa Sanpaolo SpA ................................ Commercial Banks 262,880 847,258
UniCredit SpA ...................................... Commercial Banks 343,820 849,677
-----------
2,316,143
-----------
JAPAN 3.8%
FUJIFILM Holdings Corp. ............................ Electronic Equipment, Instruments
& Components 24,400 618,536
Olympus Corp. ...................................... Health Care Equipment & Supplies 19,450 315,752
Sohgo Security Services Co. Ltd. ................... Commercial Services & Supplies 32,720 294,619
Toyota Motor Corp. ................................. Automobiles 28,855 1,126,463
-----------
2,355,370
-----------
NETHERLANDS 2.9%
ING Groep NV ....................................... Diversified Financial Services 82,000 768,296
Randstad Holding NV ................................ Professional Services 44,720 1,031,245
-----------
1,799,541
-----------

Semiannual Report | 17

Franklin Templeton International Trust

STATEMENT OF INVESTMENTS, APRIL 30, 2009 (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND INDUSTRY SHARES VALUE
---------------------------------------------------- --------------------------------- ---------------- -----------

COMMON STOCKS (CONTINUED)
NORWAY 2.1%
Aker Solutions ASA ................................. Energy Equipment & Services 60,570 $ 372,079
Telenor ASA ........................................ Diversified Telecommunication
Services 151,760 951,893
-----------
1,323,972
-----------
PORTUGAL 1.1%
Banco Espirito Santo SA ............................ Commercial Banks 143,103 703,891
-----------
RUSSIA 1.8%
Gazprom, ADR ....................................... Oil, Gas & Consumable Fuels 65,020 1,150,854
-----------
SINGAPORE 3.2%
(a) Flextronics International Ltd. ..................... Electronic Equipment, Instruments
& Components 319,800 1,240,824
Singapore Telecommunications Ltd. .................. Diversified Telecommunication
Services 436,000 753,907
-----------
1,994,731
-----------
SOUTH KOREA 3.2%
Hana Financial Group Inc. .......................... Commercial Banks 18,911 327,021
Samsung Electronics Co. Ltd. ....................... Semiconductors & Semiconductor
Equipment 2,670 1,236,808
(a) Shinhan Financial Group Co. Ltd. ................... Commercial Banks 16,750 415,473
-----------
1,979,302
-----------
SPAIN 1.9%
Telefonica SA ...................................... Diversified Telecommunication
Services 61,020 1,162,652
-----------
SWITZERLAND 3.3%
Adecco SA .......................................... Professional Services 29,730 1,177,741
Roche Holding AG ................................... Pharmaceuticals 7,222 914,217
-----------
2,091,958
-----------
TAIWAN 4.6%
(b) Compal Electronics Inc., GDR, Reg S ................ Computers & Peripherals 215,375 911,036
Mega Financial Holding Co. Ltd. .................... Commercial Banks 1,374,000 556,494
(c) Taiwan Semiconductor Manufacturing Co. Ltd., ADR ... Semiconductors & Semiconductor
Equipment 133,724 1,413,463
-----------
2,880,993
-----------
TURKEY 1.5%
Turkcell Iletisim Hizmetleri AS, ADR ............... Wireless Telecommunication
Services 73,480 933,196
-----------
UNITED KINGDOM 16.9%
Aviva PLC .......................................... Insurance 140,320 654,458
BAE Systems PLC .................................... Aerospace & Defense 123,103 651,955
(c) BP PLC ............................................. Oil, Gas & Consumable Fuels 179,928 1,283,390
British Sky Broadcasting Group PLC ................. Media 142,965 1,028,723

18 | Semiannual Report

Franklin Templeton International Trust

STATEMENT OF INVESTMENTS, APRIL 30, 2009 (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND INDUSTRY SHARES VALUE
---------------------------------------------------- --------------------------------- ---------------- -----------

COMMON STOCKS (CONTINUED)
UNITED KINGDOM (CONTINUED)
G4S PLC ............................................ Commercial Services & Supplies 231,149 $ 645,486
GlaxoSmithKline PLC ................................ Pharmaceuticals 40,839 633,305
Kingfisher PLC ..................................... Specialty Retail 461,576 1,269,849
Pearson PLC ........................................ Media 53,843 562,346
Premier Foods PLC .................................. Food Products 1,468,597 781,570
(d) Premier Foods PLC, 144A ............................ Food Products 461,591 245,653
Royal Dutch Shell PLC, B ........................... Oil, Gas & Consumable Fuels 42,558 980,192
Vodafone Group PLC ................................. Wireless Telecommunication
Services 698,036 1,286,787
William Morrison Supermarkets PLC .................. Food & Staples Retailing 151,429 552,368
-----------
10,576,082
-----------
UNITED STATES 32.7%
Accenture Ltd., A .................................. IT Services 28,660 843,464
American Express Co. ............................... Consumer Finance 21,680 546,770
(a, c) Amgen Inc. ......................................... Biotechnology 14,570 706,208
(c) Aon Corp. .......................................... Insurance 11,200 472,640
Carnival Corp. ..................................... Hotels, Restaurants & Leisure 11,436 307,400
(a, c) Cisco Systems Inc. ................................. Communications Equipment 72,570 1,402,052
(e) Comcast Corp., A ................................... Media 89,160 1,378,413
Covidien Ltd. ...................................... Health Care Equipment & Supplies 18,850 621,673
E. I. du Pont de Nemours and Co. ................... Chemicals 28,400 792,360
(c) El Paso Corp. ...................................... Oil, Gas & Consumable Fuels 26,770 184,713
FedEx Corp. ........................................ Air Freight & Logistics 12,649 707,838
The Gap Inc. ....................................... Specialty Retail 56,690 880,963
(c) General Electric Co. ............................... Industrial Conglomerates 36,720 464,508
Halliburton Co. .................................... Energy Equipment & Services 6,000 121,320
Invesco Ltd. ....................................... Capital Markets 48,280 710,682
(c) Merck & Co. Inc. ................................... Pharmaceuticals 44,370 1,075,529
(c) Microsoft Corp. .................................... Software 57,420 1,163,329
(c) News Corp., A ...................................... Media 117,500 970,550
(e) Oracle Corp. ....................................... Software 57,030 1,102,960
(c) Pfizer Inc. ........................................ Pharmaceuticals 59,340 792,782
(a, c) Progressive Corp. .................................. Insurance 66,270 1,012,606
(a) Sprint Nextel Corp. ................................ Wireless Telecommunication
Services 166,590 726,332
(c) Target Corp. ....................................... Multiline Retail 19,095 787,860
Time Warner Cable Inc. ............................. Media 16,973 547,040
Torchmark Corp. .................................... Insurance 14,400 422,352
Tyco Electronics Ltd. .............................. Electronic Equipment, Instruments
& Components 35,750 623,480
Tyco International Ltd. ............................ Industrial Conglomerates 28,590 679,298
The Walt Disney Co. ................................ Media 17,050 373,395
-----------
20,418,517
-----------
TOTAL COMMON STOCKS (COST $85,684,437) ............. 61,075,104
-----------

Semiannual Report | 19

Franklin Templeton International Trust

STATEMENT OF INVESTMENTS, APRIL 30, 2009 (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND INDUSTRY SHARES VALUE
---------------------------------------------------- --------------------------------- ---------------- -----------

PREFERRED STOCKS (COST $297,113) 0.6%
BRAZIL 0.6%
Companhia Vale do Rio Doce, ADR, pfd., A ........... Metals & Mining 26,640 $ 365,767
-----------
TOTAL INVESTMENTS BEFORE SHORT TERM INVESTMENTS
(COST $85,981,550) .............................. 61,440,871
-----------

PRINCIPAL AMOUNT
----------------
SHORT TERM INVESTMENTS (COST $1,250,000) 2.0%
TIME DEPOSITS 2.0%
UNITED STATES 2.0%
Dresdner Bank AG, 0.21%, 5/01/09 ................... $ 1,250,000 1,250,000
-----------
TOTAL INVESTMENTS
(COST $87,231,550) 100.3% ....................... 62,690,871
OPTIONS WRITTEN (0.1)% ............................. (55,250)
SECURITIES SOLD SHORT (23.6)% ...................... (14,764,714)
OTHER ASSETS, LESS LIABILITIES 23.4% ............... 14,605,862
-----------
NET ASSETS 100.0% .................................. $62,476,769
===========

CONTRACTS
----------------
(f) OPTIONS WRITTEN 0.1%
CALL OPTIONS 0.1%
UNITED STATES 0.1%
Comcast Corp., Oct. 17.5 Calls, 10/17/09 ........... Media 250 $ 27,500
Oracle Corp., Jun. 18 Calls, 6/20/09 ............... Software 150 27,750
-----------
TOTAL OPTIONS WRITTEN
(PREMIUMS RECEIVED $41,100) ..................... 55,250
-----------

SHARES
----------------
(g) SECURITIES SOLD SHORT 23.6%
GERMANY 1.5%
iShares MSCI Germany Index Fund .................... Diversified Financial Services 52,549 908,572
-----------
ITALY 1.4%
iShares MSCI Italy Index Fund ...................... Diversified Financial Services 57,390 861,998
-----------
SOUTH KOREA 2.1%
iShares MSCI South Korea Index Fund ................ Diversified Financial Services 38,630 1,321,919
-----------
SPAIN 0.8%
Antena 3 de Television SA .......................... Media 87,160 477,124
-----------
SWITZERLAND 1.9%
iShares MSCI Switzerland Index Fund ................ Diversified Financial Services 74,440 1,207,417
-----------
UNITED KINGDOM 0.8%
iShares MSCI United Kingdom Index Fund ............. Diversified Financial Services 44,640 523,627
-----------
UNITED STATES 15.1%
AMB Property Corp. ................................. Real Estate Investment Trusts 28,980 553,228
CoStar Group Inc. .................................. Professional Services 36,340 1,346,397
Granite Construction Inc. .......................... Construction & Engineering 8,190 323,095

20 | Semiannual Report

Franklin Templeton International Trust

STATEMENT OF INVESTMENTS, APRIL 30, 2009 (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND INDUSTRY SHARES VALUE
---------------------------------------------------- --------------------------------- ---------------- -----------

(g) SECURITIES SOLD SHORT (CONTINUED)
UNITED STATES (CONTINUED)
Harman International Industries Inc. ............... Household Durables 46,040 $ 837,467
Marriott International Inc., A ..................... Hotels, Restaurants & Leisure 13,910 327,720
Meredith Corp. ..................................... Media 25,490 639,289
PACCAR Inc. ........................................ Machinery 31,800 1,126,992
PowerShares QQQ Nasdaq 100 ......................... Diversified Financial Services 53,728 1,841,796
SPDR Trust Series 1 ................................ Diversified Financial Services 21,043 1,842,315
Vulcan Materials Co. (Holding Co) .................. Construction Materials 13,160 625,758
-----------
9,464,057
-----------
TOTAL SECURITIES SOLD SHORT
(PROCEEDS $13,578,239) .......................... $14,764,714
-----------

See Abbreviations on page 35.

(a) Non-income producing.

(b) Security was purchased pursuant to Regulation S under the Securities Act of
1933, which exempts from registration securities offered and sold outside
of the United States. Such a security cannot be sold in the United States
without either an effective registration statement filed pursuant to the
Securities Act of 1933, or pursuant to an exemption from registration. This
security has been deemed liquid under guidelines approved by the Trust's
Board of Trustees. At April 30, 2009, the value of this security was
$911,036, representing 1.46% of net assets.

(c) Security or a portion of the security has been segregated as collateral for
securities sold short. At April 30, 2009, the value of securities and/or
cash pledged amounted to $11,729,630.

(d) Security was purchased pursuant to Rule 144A under the Securities Act of
1933 and may be sold in transactions exempt from registration only to
qualified institutional buyers or in a public offering registered under the
Securities Act of 1933. This security has been deemed liquid under
guidelines approved by the Trust's Board of Trustees. At April 30, 2009,
the value of this security was $245,653, representing 0.39% of net assets.

(e) A portion or all of the security is held in connection with written option
contracts open at period end.

(f) See Note 1(d) regarding written options.

(g) See Note 1(e) regarding securities sold short.

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 21

Franklin Templeton International Trust

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
April 30, 2009 (unaudited)

TEMPLETON GLOBAL
LONG-SHORT FUND
----------------

Assets:
Investments in securities:
Cost ................................................................ $ 87,231,550
============
Value ............................................................... $ 62,690,871
Cash ................................................................... 13,656
Cash on deposit with brokers ........................................... 15,199,910
Foreign currency, at value (cost $58,045) .............................. 67,416
Receivables:
Investment securities sold .......................................... 855,200
Capital shares sold ................................................. 1,064
Dividends ........................................................... 282,287
Other assets ........................................................... 156
------------
Total assets ..................................................... 79,110,560
------------
Liabilities:
Payables:
Investment securities purchased ..................................... 1,065,711
Capital shares redeemed ............................................. 495,779
Affiliates .......................................................... 167,756
Options written, at value (premiums received $41,100) .................. 55,250
Securities sold short, at value (proceeds $13,578,239) ................. 14,764,714
Accrued expenses and other liabilities ................................. 84,581
------------
Total liabilities ................................................ 16,633,791
------------
Net assets, at value .......................................... $ 62,476,769
============
Net assets consist of:
Paid-in capital ........................................................ $141,879,840
Undistributed net investment income (loss) ............................. (566,866)
Net unrealized appreciation (depreciation) ............................. (25,738,712)
Accumulated net realized gain (loss) ................................... (53,097,493)
------------
Net assets, at value .......................................... $ 62,476,769
------------
CLASS A:
Net assets, at value ................................................... $ 51,750,450
------------
Shares outstanding ..................................................... 7,830,827
------------
Net asset value per share(a) ........................................... $ 6.61
------------
Maximum offering price per share (net asset value per share / 94.25%) .. $ 7.01
------------
CLASS B:
Net assets, at value ................................................... $ 9,071,142
------------
Shares outstanding ..................................................... 1,409,394
------------
Net asset value and maximum offering price per share(a) ................ $ 6.44
------------
ADVISOR CLASS:
Net assets, at value ................................................... $ 1,655,177
------------
Shares outstanding ..................................................... 249,527
------------
Net asset value and maximum offering price per share ................... $ 6.63
------------

(a) Redemption price is equal to net asset value less contingent deferred sales
charges, if applicable.

The accompanying notes are an integral part of these financial statements.

22 | Semiannual Report

Franklin Templeton International Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the six months ended April 30, 2009 (unaudited)

TEMPLETON GLOBAL
LONG-SHORT FUND
----------------

Investment income:
Dividends ......................................................................... $ 1,025,821
Interest .......................................................................... 24,698
------------
Total investment income ..................................................... 1,050,519
------------
Expenses:
Management fees (Note 3a) ......................................................... 975,123
Administrative fees (Note 3b) ..................................................... 78,228
Interest expense .................................................................. 66,363
Distribution fees: (Note 3c)
Class A ........................................................................ 80,229
Class B ........................................................................ 53,846
Transfer agent fees (Note 3e) ..................................................... 117,337
Custodian fees (Note 4) ........................................................... 16,085
Reports to shareholders ........................................................... 26,557
Registration and filing fees ...................................................... 27,908
Professional fees ................................................................. 17,750
Trustees' fees and expenses ....................................................... 4,974
Dividends on securities sold short ................................................ 142,710
Other ............................................................................. 10,300
------------
Total expenses .............................................................. 1,617,410
Expense reductions (Note 4) ................................................. (25)
------------
Net expenses ............................................................. 1,617,385
------------
Net investment income (loss) .......................................... (566,866)
------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments .................................................................... (42,762,299)
Written options ................................................................ 113,710
Foreign currency transactions .................................................. (246,915)
Securities sold short .......................................................... (197,718)
------------
Net realized gain (loss) .............................................. (43,093,222)
------------
Net change in unrealized appreciation (depreciation) on:
Investments .................................................................... 37,153,759
Translation of other assets and liabilities denominated in foreign currencies .. 180,216
------------
Net change in unrealized appreciation (depreciation) .................. 37,333,975
------------
Net realized and unrealized gain (loss) .............................................. (5,759,247)
------------
Net increase (decrease) in net assets resulting from operations ...................... $ (6,326,113)
============

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 23

Franklin Templeton International Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

TEMPLETON
GLOBAL LONG-SHORT FUND
-----------------------------------
SIX MONTHS ENDED
APRIL 30, 2009 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2008
---------------- ----------------

Increase (decrease) in net assets:
Operations:
Net investment income (loss) ........................................... $ (566,866) $ 589,484
Net realized gain (loss) from investments, written options, foreign
currency transactions, and securities sold short .................... (43,093,222) 28,436,406
Net change in unrealized appreciation (depreciation) on investments and
translation of other assets and liabilities denominated in foreign
currencies ............................................................. 37,333,975 (126,878,865)
------------ -------------
Net increase (decrease) in net assets resulting from operations .. (6,326,113) (97,852,975)
------------ -------------
Distributions to shareholders from:
Net investment income:
Class A ............................................................. -- (2,781,512)
Class B ............................................................. -- (52,174)
Advisor Class ....................................................... -- (93,245)
Net realized gains:
Class A ............................................................. (19,126,260) (97,526)
Class B ............................................................. (3,313,425) (10,567)
Advisor Class ....................................................... (1,055,448) (2,584)
------------ -------------
Total distributions to shareholders ....................................... (23,495,133) (3,037,608)
------------ -------------
Capital share transactions: (Note 2)
Class A ............................................................. (22,853,261) (89,456,657)
Class B ............................................................. (2,276,914) (6,224,898)
Advisor Class ....................................................... (212,950) (1,755,807)
------------ -------------
Total capital share transactions .......................................... (25,343,125) (97,437,362)
------------ -------------
Redemption fees ........................................................... -- 3,430
------------ -------------
Net increase (decrease) in net assets ............................ (55,164,371) (198,324,515)
Net assets:
Beginning of period ....................................................... 117,641,140 315,965,655
------------ -------------
End of period ............................................................. $ 62,476,769 $ 117,641,140
============ =============
Undistributed net investment income (loss):
End of period ............................................................. $ (566,866) $ --
============ =============

The accompanying notes are an integral part of these financial statements.

24 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

TEMPLETON GLOBAL LONG-SHORT FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Templeton International Trust (Trust) is registered under the
Investment Company Act of 1940, as amended, (1940 Act) as an open-end investment
company, consisting of three separate funds. The Templeton Global Long-Short
Fund (Fund) is included in this report. The financial statements of the
remaining funds in the Trust are presented separately. The Fund offers three
classes of shares: Class A, Class B, 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.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

The Trust has procedures to determine the fair value of individual securities
and other assets for which market prices are not readily available or which may
not be reliably priced. Methods for valuing these securities may include:
fundamental analysis, matrix pricing, discounts from market prices of similar
securities, or discounts applied due to the nature and duration of restrictions
on the disposition of the securities. Due to the inherent uncertainty of
valuations of such securities, the fair values may differ significantly from the
values that would have been used had a ready market for such investments
existed. Occasionally, events occur between the time at which trading in a
security is completed and the close of the NYSE that might call into question
the availability (including the reliability) of the value of a portfolio
security held by the Fund. The investment manager monitors price movements
following the close of trading in foreign stock markets through a series of
country specific market proxies (such as baskets of American Depository
Receipts, futures contracts and exchange traded funds). These price movements
are measured against established trigger thresholds for each specific market
proxy to assist in determining if an event has occurred. If such an event
occurs, the securities may be valued using fair

Semiannual Report | 25

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. SECURITY VALUATION (CONTINUED)

value procedures, which may include the use of independent pricing services. All
security valuation procedures are approved by the Trust's Board of Trustees.

B. FOREIGN CURRENCY TRANSLATION

C. FOREIGN CURRENCY CONTRACTS

26 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. OPTIONS

The Fund may purchase or write options. Options are contracts entitling the
holder to purchase or sell securities or other financial instruments at a
specified price or, in the case of index options, to receive or pay the
difference between the index value and the strike price of the index option.
Options purchased are recorded as investments; options written (sold) are
recorded as liabilities. Upon closing of an option which 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 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 incurs 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 realizes a gain if the price of the security declines between those
dates. Gains are limited to the price at which the fund sold the security short,
while losses are potentially unlimited in size.

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 with broker
consisting of cash and securities having a value equal to a specified percentage
of the value of the securities sold short. The fund is obligated to pay the
counterparty any dividends or interest due on securities sold short. Such
dividends and interest are recorded as an expense to the fund.

F. INCOME TAXES

Semiannual Report | 27

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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.
Interest income and estimated expenses are accrued daily. Dividend income, and
dividends declared on securities sold short, are recorded on the ex-dividend
date except that certain dividends from foreign securities are recognized as
soon as the Fund is notified of the ex-dividend date. Distributions to
shareholders are recorded on the ex-dividend date and are determined according
to income tax regulations (tax basis). Distributable earnings determined on a
tax basis may differ from earnings recorded in accordance with accounting
principles generally accepted in the United States of America. These differences
may be permanent or temporary. Permanent differences are reclassified among
capital accounts to reflect their tax character. These reclassifications have no
impact on net assets or the results of operations. Temporary differences are not
reclassified, as they may reverse in subsequent periods.

H. ACCOUNTING ESTIMATES

I. REDEMPTION FEES

A short term trading redemption fee was imposed, with some exceptions, on any
fund shares that were redeemed or exchanged within seven calendar days following
their purchase date. The redemption fee was 2% of the amount redeemed. Such fees
were retained by the funds and accounted for as an addition to paid-in capital.
Effective September 1, 2008, the redemption fee was eliminated.

28 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

J. GUARANTEES AND INDEMNIFICATIONS

Under the Trust's organizational documents, its officers and trustees are
indemnified by the Trust against certain liabilities arising out of the
performance of their duties to the Trust. Additionally, in the normal course of
business, the Trust, on behalf of the Fund, enters into contracts with service
providers that contain general indemnification clauses. The Trust's maximum
exposure under these arrangements is unknown as this would involve future claims
that may be made against the Trust that have not yet occurred. Currently, the
Trust expects the risk of loss to be remote.

2. SHARES OF BENEFICIAL INTEREST

At April 30, 2009, there were an unlimited number of shares authorized (without
par value). Transactions in the Fund's shares were as follows:

SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2009 OCTOBER 31, 2008
------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- -------------

CLASS A SHARES:
Shares sold ..................................... 451,828 $ 3,144,959 8,797,477 $ 118,091,602
Shares issued in reinvestment of distributions .. 2,421,328 16,759,668 151,562 2,115,800
Shares redeemed ................................. (5,983,608) (42,757,888) (17,098,580) (209,664,059)
---------- ------------ ----------- -------------
Net increase (decrease) ......................... (3,110,452) $(22,853,261) (8,149,541) $ (89,456,657)
========== ============ =========== =============
CLASS B SHARES:
Shares sold ..................................... 40,924 $ 274,669 76,210 $ 1,003,311
Shares issued in reinvestment of distributions .. 370,541 2,505,520 3,424 47,279
Shares redeemed ................................. (744,485) (5,057,103) (600,758) (7,275,488)
---------- ------------ ----------- -------------
Net increase (decrease) ......................... (333,020) $ (2,276,914) (521,124) $ (6,224,898)
========== ============ =========== =============
ADVISOR CLASS SHARES:
Shares sold ..................................... 218,268 $ 1,950,943 228,803 $ 3,051,028
Shares issued in reinvestment of distributions .. 130,332 904,758 3,282 45,789
Shares redeemed ................................. (461,450) (3,068,651) (382,857) (4,852,624)
---------- ------------ ----------- -------------
Net increase (decrease) ......................... (112,850) $ (212,950) (150,772) $ (1,755,807)
========== ============ =========== =============

Semiannual Report | 29

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

3. TRANSACTIONS WITH AFFILIATES

SUBSIDIARY AFFILIATION
- ---------- -----------

Franklin Advisers, Inc. (Advisers) Investment manager
Templeton Global Advisors Limited (TGAL) Investment manager
Franklin Templeton Services, LLC (FT Services) Administrative manager
Franklin Templeton Distributors, Inc. (Distributors) Principal underwriter
Franklin Templeton Investor Services, LLC (Investor Services) Transfer agent

A. MANAGEMENT FEES

The Fund pays Advisers an investment management fee comprised of a "base fee"
and a "performance adjustment". The base fee is calculated at the beginning of
each month using an annual rate of 1.50% of the prior month's average daily net
assets. The performance adjustment is calculated at the beginning of each month
based on how much the Fund's total return exceeded or lagged its benchmark, the
Morgan Stanley Capital International World Index, (Fund performance
differential), over the preceding twelve-month period (performance period). A
performance adjustment is applicable if the Fund performance differential
exceeds 2.00%, either upwards (an increase to the base fee) or downwards (a
decrease to the base fee). The performance adjustment rate is equal to 0.01% for
each additional 0.05% that the Fund performance differential exceeds 2.00%. The
performance adjustment amount is determined by multiplying the performance
adjustment rate by the average daily net assets of the performance period. The
performance adjustment rate may not exceed 1.00% annualized, either upwards or
downwards. At the end of each month, an annualized investment management fee
ratio is calculated (total investment management fees divided by fiscal year to
date average daily net assets). In accordance with the Investment Management
Agreement, the investment management fee ratio may not exceed 2.50% or fall
below 0.50% for the fiscal year. For the period, the total annualized management
fee rate, including the performance adjustment, was 2.50% of the average daily
net assets of the Fund.

Under a subadvisory agreement, TGAL, an affiliate of Advisers, provides
subadvisory services to the Fund and receives from Advisers fees based on the
average daily net assets of the Fund.

B. ADMINISTRATIVE FEES

The Fund pays an administrative fee to FT Services of 0.20% per year of the
average daily net assets of the Fund.

30 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

C. DISTRIBUTION FEES

In addition, under the Fund's Class B compensation distribution plans, the Fund
pays Distributors for costs incurred in connection with the servicing, sale and
distribution of the Fund's shares up to the maximum annual plan rate for each
class.

The maximum annual plan rates, based on the average daily net assets, for each
class, are as follows:

Class A ............. 0.35%
Class B ............. 1.00%

Effective February 1, 2009, the Board of Trustees has set the current rate at
0.30% per year for Class A shares until further notice and approval by the
Board.

D. SALES CHARGES/UNDERWRITING AGREEMENTS

Distributors has advised the Fund of the following commission transactions
related to the sales and redemptions of the Fund's shares for the period:

Sales charges retained net of commissions paid to unaffiliated
broker/dealers ............................................ $ 836
Contingent deferred sales charges retained ................... $32,178

E. TRANSFER AGENT FEES

For the period ended April 30, 2009, the Fund paid transfer agent fees of
$117,337, of which $79,909 was retained by Investor Services.

4. EXPENSE OFFSET ARRANGEMENT

Semiannual Report | 31

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

5. INCOME TAXES

For tax purposes, capital losses may be carried over to offset future capital
gains, if any. At October 31, 2008, the capital loss carryforwards were as
follows:

Capital loss carryforwards expiring in:
2012 ............................... $10,046,335
2014 ............................... 19,501
-----------
$10,065,836(a)
===========

(a) Includes $10,065,836 from the merged Franklin U.S. Long-Short Fund, which
may be carried over to offset future capital gains, subject to certain
limitations.

At April 30, 2009, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:

Cost of investments ......................... $ 89,558,458
============
Unrealized appreciation ..................... $ 2,752,227
Unrealized depreciation ..................... (29,619,814)
------------
Net unrealized appreciation (depreciation) .. $(26,867,587)
============

Net investment income (loss) differs for financial statement and tax purposes
primarily due to differing treatments of foreign currency transactions and
certain dividends on securities sold short.

Net realized gains (losses) differ for financial statement and tax purposes
primarily due to differing treatments of wash sales, foreign currency
transactions and certain dividends on securities sold short.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments and securities sold short (excluding short
term securities) for the period ended April 30, 2009, aggregated $22,385,087 and
$60,541,647, respectively.

Transactions in options written during the period ended April 30, 2009, were as
follows:

NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- ---------

Options outstanding at October 31, 2008 .. -- $ --
Options written .......................... 2,419 160,205
Options expired .......................... (1,936) (113,710)
Options exercised ........................ (83) (5,395)
Options closed ........................... -- --
------ ---------
Options outstanding at April 30, 2009 .... 400 $ 41,100
====== =========

32 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

7. CONCENTRATION OF RISK

8. CREDIT FACILITY

Under the terms of the Global Credit Facility, the Fund shall, in addition to
interest charged on any borrowings made by the Fund and other costs incurred by
the Fund, pay its share of fees and expenses incurred in connection with the
implementation and maintenance of the Global Credit Facility, based upon its
relative share of the aggregate net assets of all of the Borrowers, including an
annual commitment fee based upon the unused portion of the Global Credit
Facility. During the period, the Fund incurred commitment fees of $58 of its pro
rata portion of the Global Credit Facility, which is reflected in Other expenses
on the Statement of Operations. During the period ended April 30, 2009, the Fund
did not utilize the Global Credit Facility.

9. FAIR VALUE MEASUREMENTS

Semiannual Report | 33

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

9. FAIR VALUE MEASUREMENTS (CONTINUED)

- Level 1 - quoted prices in active markets for identical securities

- Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speed, credit risk,
etc.)

- Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.

The following is a summary of the inputs used as of April 30, 2009, in valuing
the Fund's assets and liabilities carried at fair value:

LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
----------- ---------- ------- -----------

ASSETS:
Investments in Securities $61,031,423 $1,659,448 $-- $62,690,871
LIABILITIES:
Options Written 55,250 -- -- 55,250
Securities Sold Short 14,764,714 -- -- 14,764,714

10. NEW ACCOUNTING PRONOUNCEMENTS

34 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

10. NEW ACCOUNTING PRONOUNCEMENTS (CONTINUED)

In May 2009, the Financial Accounting Standards Board (FASB) issued Statement
No. 165, "Subsequent Events", which is intended to establish general standards
of accounting for and disclosure of events that occur after the balance sheet
date but before the statements are issued or are available to be issued. FASB
165 is effective for interim or annual financial periods ending after June 15,
2009, the adoption of FASB 165 will not have a material impact on the financial
statements.

ABBREVIATIONS

SELECTED PORTFOLIO

ADR - American Depository Receipt
GDR - Global Depository Receipt

Semiannual Report | 35

Franklin Templeton International Trust

SHAREHOLDER INFORMATION

TEMPLETON GLOBAL LONG-SHORT FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT

At a meeting held April 14, 2009, the Board of Trustees (Board), including a
majority of non-interested or independent Trustees, approved renewal of the
investment management agreement for Templeton Global Long-Short Fund, one of the
Funds within the Trust (Fund(s)). In reaching this decision, the Board took into
account information furnished throughout the year at regular Board meetings, as
well as information prepared specifically in connection with the annual renewal
review process. Information furnished and discussed throughout the year included
investment performance reports and related financial information for each Fund,
as well as periodic reports on shareholder services, legal, compliance, pricing,
brokerage commissions and execution and other services provided by the
Investment Manager (Manager) and its affiliates. Information furnished
specifically in connection with the renewal process included a report for each
Fund prepared by Lipper, Inc. (Lipper), an independent organization, as well as
additional material, including a Fund profitability analysis report prepared by
management. The Lipper reports compared each Fund's investment performance and
expenses with those of other mutual funds deemed comparable to the Fund as
selected by Lipper. The Fund profitability analysis report discussed the
profitability to Franklin Templeton Investments from its overall U.S. fund
operations, as well as on an individual fund-by-fund basis. Included with such
profitability analysis report was information on a fund-by-fund basis listing
portfolio managers and other accounts they manage, as well as information on
management fees charged by the Manager and its affiliates including management's
explanation of differences where relevant and a three-year expense analysis with
an explanation for any increase in expense ratios. Additional material
accompanying such report was a memorandum prepared by management describing
project initiatives and capital investments relating to the services provided to
the Funds by the Franklin Templeton Investments organization, as well as a
memorandum relating to economies of scale and a comparative analysis concerning
transfer agent fees charged each Fund. Such material also discussed some of the
actions taken by management in coping with problems arising out of the past
year's financial upheaval.

36 | Semiannual Report

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

Semiannual Report | 37

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

many other fund managers, had announced a hiring freeze and implemented employee
reductions, and the Board discussed with management the nature of such
reductions and steps being taken to minimize any negative impact on the nature
and quality of services being provided the Fund.

The performance universe for the Fund consisted of the Fund and all retail and
institutional long-short equity funds as selected by Lipper. The Fund has not
been in existence for a full 10-year period and the Lipper report showed its
total return for the one-year period ended January 31, 2009, to be in the
second-lowest quintile of such performance universe and on an annualized basis
to be in the second-lowest and lowest quintiles of such universe for the
previous three- and five-year periods, respectively. The Board was not satisfied
with such comparative performance, but noted that it largely reflected poor
one-year performance and that the Fund's total return was in the upper half of
the performance universe for each of the previous two-year periods and had
outperformed its benchmark MSCI World Index during the one-year period, as well
as the previous two-year period. In view of such facts, the Board did not
believe that any immediate change in portfolio management was necessary, but
intends to monitor future developments.

COMPARATIVE EXPENSES. Consideration was given to a comparative analysis of the
management fee and total expense ratios of the Fund compared with those of a
group of other funds selected by Lipper as constituting its appropriate Lipper
expense group. Lipper expense data is based upon historical information taken
from each fund's most recent annual report and, as a result of the severe
decline in mutual fund industry assets during the last quarter of 2008, is based
on asset levels that are higher than the level currently existing for most
funds. While recognizing the limitations inherent in Lipper's methodology and
recognizing that current expense ratios may increase as assets decline, the
Board believed that the independent analysis conducted by Lipper remained an
appropriate measure of comparative expenses. In reviewing comparative costs,
Lipper provides information on the Fund's contractual investment management fee
in comparison with the investment management fee that would have been charged by
other funds within its Lipper expense group assuming they were similar in size
to the Fund, as well as the actual total expenses of the Fund in comparison with
those of its Lipper expense group. The Lipper contractual investment management
fee analysis includes administrative charges as being part of the investment

38 | Semiannual Report

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

management fee, and actual total expenses, for comparative consistency, are
shown by Lipper for Fund Class A shares. The contractual investment management
fee rate for Templeton Global Long-Short Fund (which excludes adjustments
reflecting the performance feature of its investment management fee) was the
highest in its expense group and its actual total expense rate was also the
highest in its expense group. The Board noted that the Fund's comparatively high
actual total expense rate largely reflected the level of its investment
management fee rate as established upon inception of the Fund and that such
Fund's asset size, which was approximately $86 million at December 31, 2008, did
not suggest economies of scale warranting reductions in such rate through
establishment of fee breakpoints, which was the Board's normal way of reducing
established fee rates.

Semiannual Report | 39

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

from the Sarbanes-Oxley Act and recent SEC and other regulatory requirements. In
addition, the Board considered a third-party study comparing the profitability
of the Manager's parent on an overall basis as compared to other publicly held
managers broken down to show profitability from management operations exclusive
of distribution expenses, as well as profitability including distribution
expenses. The Board also considered the extent to which the Manager and its
affiliates might derive ancillary benefits from fund operations, including its
interest in a joint venture entity that financed up-front commissions paid to
brokers/dealers who sold fund Class B shares prior to February 2005 when the
offering of such shares was discontinued, as well as potential benefits
resulting from allocation of fund brokerage and the use of commission dollars to
pay for research. Based upon its consideration of all these factors, the Board
determined that the level of profits realized by the Manager and its affiliates
from providing services to the Fund was not excessive in view of the nature,
quality and extent of services provided.

ECONOMIES OF SCALE. The Board also considered whether economies of scale are
realized by the Manager as the Fund grows larger and the extent to which this is
reflected in the level of management fees charged. While recognizing that any
precise determination is inherently subjective, the Board noted that based upon
the Fund profitability analysis, it appears that as some funds get larger, at
some point economies of scale do result in the Manager realizing a larger profit
margin on management services provided such a fund. The Board also noted that
economies of scale are shared with the Fund and its shareholders through
management fee breakpoints so that as a fund grows in size, its effective
management fee rate declines. Templeton Global Long-Short Fund has a fixed 1.7%
management fee subject to adjustment based on performance. In view of that
Fund's asset size of approximately $86 million on December 31, 2008, the Board
did not believe that management was benefiting from any meaningful economies of
scale in its management of the Fund.

PROXY VOTING POLICIES AND PROCEDURES

40 | Semiannual Report

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

TEMPLETON GLOBAL LONG-SHORT FUND

QUARTERLY STATEMENT OF INVESTMENTS

Semiannual Report | 41

This page intentionally left blank.

Franklin Templeton Funds

LITERATURE REQUEST. TO RECEIVE A PROSPECTUS, PLEASE CALL US AT (800) DIAL
BEN/(800) 342-5236 OR VISIT franklintempleton.com. INVESTORS SHOULD CAREFULLY
CONSIDER A FUND'S INVESTMENT GOALS, RISKS, CHARGES AND EXPENSES BEFORE
INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER INFORMATION. PLEASE CAREFULLY
READ THE PROSPECTUS BEFORE INVESTING. TO ENSURE THE HIGHEST QUALITY OF SERVICE,
WE MAY MONITOR, RECORD AND ACCESS TELEPHONE CALLS TO OR FROM OUR SERVICE
DEPARTMENTS. THESE CALLS CAN BE IDENTIFIED BY THE PRESENCE OF A REGULAR BEEPING
TONE.

BLEND
Franklin Focused Core Equity Fund
Franklin Large Cap Equity Fund
Franklin Rising Dividends Fund

GROWTH
Franklin Flex Cap Growth Fund
Franklin Growth Fund
Franklin Growth Opportunities Fund
Franklin Small Cap Growth Fund
Franklin Small-Mid Cap Growth Fund

GLOBAL
Mutual Global Discovery Fund
Templeton Global Long-Short Fund
Templeton Global Opportunities Trust
Templeton Global Smaller Companies Fund
Templeton Growth Fund
Templeton World Fund

HYBRID
Franklin Balanced Fund
Franklin Convertible Securities Fund
Franklin Equity Income Fund
Franklin Income Fund
Templeton Income Fund

FIXED INCOME
Franklin Adjustable U.S. Government Securities Fund (3)
Franklin Floating Rate Daily Access Fund
Franklin High Income Fund
Franklin Limited Maturity U.S. Government Securities Fund(3)
Franklin Low Duration Total Return Fund
Franklin Real Return Fund
Franklin Strategic Income Fund
Franklin Strategic Mortgage Portfolio
Franklin Templeton Hard Currency Fund
Franklin Total Return Fund
Franklin U.S. Government Securities Fund (3)
Templeton Global Bond Fund
Templeton Global Total Return Fund
Templeton International Bond Fund

TAX-FREE INCOME (4)
NATIONAL
Double Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund (5)

INSURANCE FUNDS

Franklin Templeton Variable Insurance Products Trust(8)

(1.) The fund is closed to new investors. Existing shareholders and select
retirement plans can continue adding to their accounts.

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

(4.) For investors subject to the alternative minimum tax, a small portion of
fund dividends may be taxable. Distributions of capital gains are generally
taxable.

(5.) The fund invests primarily in insured municipal securities.

(8.) The funds of the Franklin Templeton Variable Insurance Products Trust are
generally available only through insurance company variable contracts.

04/09 Not part of the semiannual report

(FRANKLIN TEMPLETON INVESTMENTS(R) LOGO) One Franklin Parkway
San Mateo, CA 94403-1906

SEMIANNUAL REPORT AND SHAREHOLDER LETTER

TEMPLETON GLOBAL LONG-SHORT FUND

INVESTMENT MANAGER
Franklin Advisers, Inc.

SUBADVISOR
Templeton Global Advisors Limited

DISTRIBUTOR
Franklin Templeton Distributors, Inc.
(800) DIAL BEN(R)
franklintempleton.com

SHAREHOLDER SERVICES
(800) 632-2301

467 S2009 06/09

APRIL 30, 2009

SEMIANNUAL REPORT
AND SHAREHOLDER LETTER

A series of Franklin Templeton
International Trust

(GRAPHIC)

INTERNATIONAL

FRANKLIN INDIA GROWTH FUND

(FRANKLIN TEMPLETON INVESTMENTS(R) LOGO)

FRANKLIN - Templeton - Mutual Series

Franklin Templeton Investments

GAIN FROM OUR PERSPECTIVE(R)

Franklin Templeton's distinct multi-manager
structure combines the specialized expertise of
three world-class investment management
groups--Franklin, Templeton and Mutual Series.

SPECIALIZED EXPERTISE Each of our portfolio management groups operates
autonomously, relying on its own research and
staying true to the unique investment disciplines
that underlie its success.

FRANKLIN. Founded in 1947, Franklin is a recognized
leader in fixed income investing and also brings
expertise in growth- and value-style U.S. equity
investing.

MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS

(GRAPHIC)

Not part of the semiannual report

Contents

SHAREHOLDER LETTER ....................................................... 1
SEMIANNUAL REPORT
Franklin India Growth Fund ............................................... 3
Performance Summary ...................................................... 7
Your Fund's Expenses ..................................................... 10
Financial Highlights ..................................................... 12
Financial Statements ..................................................... 15
Notes to Financial Statements ............................................ 18
FT (Mauritius) Offshore Investments Limited .............................. 27
Shareholder Information .................................................. 39

Shareholder Letter

Dear Shareholder:

Franklin India Growth Fund's semiannual report goes into greater detail about
prevailing conditions during the period under review. In addition, the portfolio
managers discuss Fund performance and you will also find performance data and
financial information. Please remember that all securities markets fluctuate, as
do mutual fund share prices. As always, we encourage you to discuss your goals
with your financial advisor who can address concerns about volatility and
diversification, periodically review your overall portfolio and help you stay
focused on the long term.

If you would like more frequent updates, franklintempleton.com provides daily
prices, monthly performance figures, portfolio holdings and other information.
You can also access your account, buy and sell shares, read timely articles and
find helpful financial planning tools. We hope you will take advantage of these
online services.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Not part of the semiannual report | 1

Although market conditions are constantly changing, we remain committed to our
disciplined strategy as we manage the Fund, keeping in mind the trust you have
placed in us. As always, we recommend investors consult their financial advisors
and review their portfolios to design a long-term strategy and portfolio
allocation that meet their individual needs, goals and risk tolerance. We firmly
believe that most people benefit from professional advice, and that advice is
invaluable as investors navigate changing market conditions.

We thank you for investing with Franklin Templeton, welcome your questions and
comments, and look forward to serving your investment needs in the years ahead.

Sincerely,

/s/ Rupert H. Johnson, Jr.
Rupert H. Johnson, Jr.
President and Chief Executive Officer - Investment Management
Franklin Templeton International Trust

2 | Not part of the semiannual report

Semiannual Report

Franklin India Growth Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Franklin India Growth Fund seeks
long-term capital appreciation by investing under normal market conditions at
least 80% of its net assets in securities of "Indian companies," which are
defined as those organized under the laws of, with a principal office in, or for
which the principal trading market for their securities is in India, that derive
50% or more of total revenue or profit from goods or services produced or sales
made in India, or that have 50% or more of their assets in India.(1)

PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE VISIT franklintempleton.com OR CALL (800) 342-5236 FOR
MOST RECENT MONTH-END PERFORMANCE.

This semiannual report for Franklin India Growth Fund covers the period ended
April 30, 2009.

PERFORMANCE OVERVIEW

For the six months under review, Franklin India Growth Fund - Class A had a
cumulative total return of +11.85%. The Fund underperformed its benchmark, the
Morgan Stanley Capital International (MSCI) India Index, which had a +15.40%
total return for the same period.(2) You can find more of the Fund's performance
data in the Performance Summary beginning on page 7.

ECONOMIC AND MARKET OVERVIEW

Volatility increased sharply across global markets during the initial part of
the period under review as the credit crisis intensified and resulted in
dramatic global financial sector changes. Although India had marginal exposure
to the credit crisis, developed markets' deleveraging resulted in capital
outflows by foreign investors. Tight liquidity conditions also impacted Indian
companies looking to raise capital in overseas markets. This, along with a
cyclical domestic

(1.) The Fund currently invests indirectly in Indian companies through FT
(Mauritius) Offshore Investments Limited, a wholly owned, collective
investment vehicle registered in the Republic of Mauritius.

(2.) Source: (C) 2009 Morningstar. All Rights Reserved. The information
contained herein: (1) is proprietary to Morningstar and/or its content
providers; (2) may not be copied or distributed; and (3) is not warranted
to be accurate, complete or timely. Neither Morningstar nor its content
providers are responsible for any damages or losses arising from any use of
this information. The MSCI India Index is a broad-based index of the Indian
stock market with an inception of 12/31/92. The index is unmanaged and
includes reinvested dividends. One cannot invest directly in an index, nor
is an index representative of the Fund's portfolio.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL AMOUNT, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 28.

Semiannual Report | 3

WHAT IS BALANCE OF PAYMENTS?

Balance of payments is a record of all of a country's exports and imports of
goods and services, borrowing and lending with the rest of the world during a
particular time period. It helps a country evaluate its competitive strengths
and weaknesses and forecast the strength of its currency.

demand decline, affected India's economic growth and financial market
performance. The nation's economic growth slowed to 5.3% year-over-year in the
fourth quarter of 2008, compared with 8.9% for the same period a year ago, as
manufacturing slowed and farm output contracted. Growth in the services segment,
which accounts for a major portion of India's economic output, remained healthy.

A concerted monetary policy action by the Indian government and the Reserve Bank
of India helped minimize the global contagion's impact. Key fiscal and monetary
measures included a decline in indirect taxes, sharp cuts in benchmark interest
rates and an increase in infrastructure spending. As these stimulus efforts
spread across the economy, a few sectors started showing initial signs of
stabilization and liquidity conditions improved. However, the additional burden
on government finances due to these fiscal measures raised some concerns.
India's balance of payments was negatively impacted by global investor outflows
but benefited from lower commodity prices and a larger drop in imports compared
with exports.

Improving domestic economic growth, combined with positive foreign inflows in
March and April, helped Indian equity markets rally and reverse losses incurred
in the first half of the period. Metals, auto and energy stocks were the top
gainers during the period while gains in consumer goods, health care and
information technology lagged the broader market.

From a fundamental perspective, compared with other developing countries the
Indian economy has been relatively less vulnerable to a sharp slowdown in
developed economies due to lower dependence on exports and a high percentage of
the services sector in the country's gross domestic product. Additionally, a
high savings rate and a sustained rise in per-capita income over the past five
years have led to strong domestic consumption. Although the recent slowdown
dampened investment growth, recent fiscal stimulus and steady rural consumption
could boost investor interest.

INVESTMENT STRATEGY

We are research-driven, fundamental investors pursuing a growth strategy. As
bottom-up investors focusing primarily on individual securities, we seek to
invest in companies whose current market price, in our opinion, does not reflect
future growth prospects. We choose companies that have identifiable drivers of
future earnings growth and that present, in our opinion, the best trade-off
between earnings growth potential, business and financial risk, and

4 | Semiannual Report

valuation. We rely on a team of analysts to help provide in-depth industry
expertise and use both qualitative and quantitative analyses to evaluate
companies for distinct and sustainable competitive advantages through
leading-edge products, intellectual property, product positioning, unique market
niches, brand identity, solid management teams, strong balance sheets,
above-average or rising margins, and strong returns on capital invested in the
business. In choosing equity investments, we also consider such factors as the
company's financial strength, management's expertise, the company's growth
potential within the industry, and the industry's growth potential.

MANAGER'S DISCUSSION

We maintained a bias toward large, well-established companies that we felt could
capitalize on opportunities arising from two underlying themes -- infrastructure
and consumption. We focused on businesses we believed were well placed to
navigate through the economic slowdown and global deleveraging. At the same
time, we also sought to take advantage of what we considered attractive
valuations across sectors.

Key detractors from absolute performance included commercial banks ICICI Bank
and Axis Bank, and top mortgage firm Housing Development Finance Corp. (HDFC).
Investor concerns about the economic slowdown's impact on bank balance sheets
and lower credit demand from corporate borrowers negatively affected banking
stocks including ICICI Bank and Axis Bank. Declining real estate prices led to
less demand for home loans, hurting HDFC shares.

The Fund benefited from higher energy and construction materials stock prices.
Individual stocks that contributed most to absolute performance included our top
holding Reliance Industries, Hero Honda Motors and Grasim Industries. Reliance
Industries is one of the biggest Indian conglomerates, with interests in
upstream (exploration, development and production) oil and gas, refining and
related petrochemicals. The stock received a boost from the commencement of gas
flows from its discovery in the KG basin and the commissioning of its petroleum
refining capacity. According to our analysis, the large oil and gas exploration
acreage, coupled with the company's scale and capabilities to execute projects,
could provide opportunities for further growth over the long term. One of
India's largest two-wheeler manufacturers, Hero Honda Motors, was able to
maintain volume growth by leveraging its extensive distribution network and
strong brand equity, which helped the stock perform well. Materials leader
Grasim Industries benefited from the demand spurt for building materials from
semi-urban and rural areas.

PORTFOLIO BREAKDOWN
Based on Total Net Assets as of 4/30/09

(BAR CHART)

Commercial Banks 11.1%
Oil, Gas & Consumable Fuels 10.6%
Wireless Telecommunication Services 8.7%
Pharmaceuticals 6.9%
IT Services 6.2%
Food Products 5.7%
Diversified Financial Services 5.4%
Personal Products 5.3%
Electrical Equipment 5.2%
Household Products 4.7%
Construction Materials 4.1%
Automobiles 3.7%
Thrifts & Mortgage Finance 3.7%
Construction & Engineering 2.6%
Machinery 2.6%
Chemicals 2.0%
Other 4.2%
Short-Term Investments & Other Net Assets 7.3%

Semiannual Report | 5

TOP 10 EQUITY HOLDINGS
4/30/09

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

Reliance Industries Ltd. 7.7%
OIL, GAS & CONSUMABLE FUELS
Bharti Airtel Ltd. 6.9%
WIRELESS TELECOMMUNICATION SERVICES
HDFC Bank Ltd. 5.7%
COMMERCIAL BANKS
Infosys Technologies Ltd. 5.2%
IT SERVICES
Nestle India Ltd. 5.2%
FOOD PRODUCTS
Hindustan Unilever Ltd. 4.7%
HOUSEHOLD PRODUCTS
Kotak Mahindra Bank Ltd. 4.0%
DIVERSIFIED FINANCIAL SERVICES
Hero Honda Motors Ltd. 3.7%
AUTOMOBILES
Marico Ltd. 3.7%
PERSONAL PRODUCTS
Housing Development Finance Corp. Ltd. 3.7%
THRIFTS & MORTGAGE FINANCE

Thank you for your participation in Franklin India Growth Fund. We look forward
to serving your future investment needs.

(PHOTO OF STEPHEN H. DOVER)

/s/ Stephen H. Dover
Stephen H. Dover, CFA

(PHOTO OF PURAV A. JHAVERI)

/s/ Purav A. Jhaveri
Purav A. Jhaveri, CFA, FRM

Portfolio Management Team
Franklin India Growth Fund

6 | Semiannual Report

Performance Summary as of 4/30/09

PRICE AND DISTRIBUTION INFORMATION

CLASS A (SYMBOL: N/A) CHANGE 4/30/09 10/31/08
- --------------------- ------ ------- --------

Net Asset Value (NAV) +$0.59 $5.57 $4.98

CLASS C (SYMBOL: N/A) CHANGE 4/30/09 10/31/08
- --------------------- ------ ------- --------

Net Asset Value (NAV) +$0.56 $5.52 $4.96

ADVISOR CLASS (SYMBOL: FIGZX) CHANGE 4/30/09 10/31/08
- ----------------------------- ------ ------- --------

Net Asset Value (NAV) +$0.60 $5.59 $4.99
DISTRIBUTIONS (11/1/08-4/30/09)
Dividend Income $0.0013

Semiannual Report | 7

Performance Summary (CONTINUED)

PERFORMANCE(1)

CUMULATIVE TOTAL RETURN EXCLUDES SALES CHARGES. AVERAGE ANNUAL TOTAL RETURNS AND
VALUE OF $10,000 INVESTMENT INCLUDE MAXIMUM SALES CHARGES. CLASS A: 5.75%
MAXIMUM INITIAL SALES CHARGE; CLASS C: 1% CONTINGENT DEFERRED SALES CHARGE IN
FIRST YEAR ONLY; ADVISOR CLASS: NO SALES CHARGES.

CLASS A 6-MONTH 1-YEAR INCEPTION (1/31/08)
- ------- ------- ------- -------------------

Cumulative Total Return(2) +11.85% -39.91% -44.30%
Average Annual Total Return(3) +5.49% -43.39% -40.37%
Value of $10,000 Investment(4) $10,549 $ 5,661 $ 5,250
Avg. Ann. Total Return (3/31/09)(5) -47.02% -49.40%
Total Annual Operating Expenses(6)
Without Waiver 2.78%
With Waiver 1.70%

CLASS C 6-MONTH 1-YEAR INCEPTION (1/31/08)
- ------- ------- ------- -------------------

Cumulative Total Return(2) +11.29% -40.32% -44.80%
Average Annual Total Return(3) +10.29% -40.92% -37.92%
Value of $10,000 Investment(4) $11,029 $ 5,908 $ 5,520
Avg. Ann. Total Return (3/31/09)(5) -44.75% -47.14%
Total Annual Operating Expenses(6)
Without Waiver 3.48%
With Waiver 2.40%

ADVISOR CLASS 6-MONTH 1-YEAR INCEPTION (1/31/08)
- ------------- ------- ------- -------------------

Cumulative Total Return(2) +12.05% -39.75% -44.09%
Average Annual Total Return(3) +12.05% -39.75% -37.27%
Value of $10,000 Investment(4) $11,205 $ 6,025 $ 5,591
Avg. Ann. Total Return (3/31/09)(5) -43.55% -46.56%
Total Annual Operating Expenses(6)
Without Waiver 2.48%
With Waiver 1.40%

THE INVESTMENT MANAGER AND ADMINISTRATOR HAVE CONTRACTUALLY AGREED TO WAIVE OR
LIMIT THEIR RESPECTIVE FEES AND TO ASSUME AS THEIR OWN EXPENSE CERTAIN EXPENSES
OTHERWISE PAYABLE BY THE FUND SO THAT COMMON EXPENSES (I.E., A COMBINATION OF
INVESTMENT MANAGEMENT FEES, FUND ADMINISTRATION FEES, AND OTHER EXPENSES, BUT
EXCLUDING RULE 12B-1 FEES) FOR EACH CLASS OF THE FUND DO NOT EXCEED 1.40% (OTHER
THAN CERTAIN NON-ROUTINE EXPENSES OR COSTS, INCLUDING THOSE RELATING TO
LITIGATION, INDEMNIFICATION, REORGANIZATIONS AND LIQUIDATIONS) UNTIL 2/28/10.

8 | Semiannual Report

Performance Summary (CONTINUED)

ENDNOTES

SPECIAL RISKS ARE ASSOCIATED WITH FOREIGN INVESTING, INCLUDING CURRENCY
FLUCTUATIONS, ECONOMIC INSTABILITY AND POLITICAL DEVELOPMENTS. INVESTMENTS IN
DEVELOPING MARKETS INVOLVE HEIGHTENED RISKS RELATED TO THE SAME FACTORS, IN
ADDITION TO RISKS ASSOCIATED WITH THESE COMPANIES' SMALLER SIZE, LESSER
LIQUIDITY AND THE POTENTIAL LACK OF ESTABLISHED LEGAL, POLITICAL, BUSINESS AND
SOCIAL FRAMEWORKS TO SUPPORT SECURITIES MARKETS IN THE COUNTRIES IN WHICH THEY
OPERATE. THE FUND MAY ALSO EXPERIENCE GREATER VOLATILITY THAN A FUND THAT IS
MORE BROADLY DIVERSIFIED GEOGRAPHICALLY. THE FUND IS DESIGNED FOR THE AGGRESSIVE
PORTION OF A WELL-DIVERSIFIED PORTFOLIO. THE FUND'S PROSPECTUS ALSO INCLUDES A
DESCRIPTION OF THE MAIN INVESTMENT RISKS.

CLASS C: These shares have higher annual fees and expenses than Class A
shares.

ADVISOR CLASS: Shares are available to certain eligible investors as described
in the prospectus.

(1.) If the manager and administrator had not waived fees, the Fund's total
returns would have been lower.

(2.) Cumulative total return represents the change in value of an investment
over the periods indicated.

(3.) Average annual total return represents the average annual change in value
of an investment over the periods indicated. Six-month return has not been
annualized.

(4.) These figures represent the value of a hypothetical $10,000 investment in
the Fund over the periods indicated.

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

Semiannual Report | 9

Your Fund's Expenses

As a Fund shareholder, you can incur two types of costs:

- - Transaction costs, including sales charges (loads) on Fund purchases; and

- - Ongoing Fund costs, including management fees, distribution and service
(12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs,
sometimes referred to as operating expenses.

ACTUAL FUND EXPENSES

You can estimate the expenses you paid during the period by following these
steps. OF COURSE, YOUR ACCOUNT VALUE AND EXPENSES WILL DIFFER FROM THOSE IN THIS
ILLUSTRATION:

1. Divide your account value by $1,000.

IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."

IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

In this illustration, the estimated expenses paid this period are $64.50.

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

10 | Semiannual Report

Your Fund's Expenses (CONTINUED)

BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 11/1/08 VALUE 4/30/09 PERIOD* 11/1/08-4/30/09
----------------- -------------- -----------------------

CLASS A
Actual $1,000 $1,118.50 $ 8.93
Hypothetical (5% return before expenses) $1,000 $1,016.36 $ 8.50
CLASS C
Actual $1,000 $1,112.90 $12.57
Hypothetical (5% return before expenses) $1,000 $1,012.89 $11.98
ADVISOR CLASS
Actual $1,000 $1,120.50 $ 7.36
Hypothetical (5% return before expenses) $1,000 $1,017.85 $ 7.00

* Expenses are calculated using the most recent expense ratio, net of expense
waivers, annualized for each class (A: 1.70%; C: 2.40%; and Advisor:
1.40%), multiplied by the average account value over the period, multiplied
by 181/365 to reflect the one-half year period.

Semiannual Report | 11

Franklin Templeton International Trust

FINANCIAL HIGHLIGHTS

FRANKLIN INDIA GROWTH FUND

SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 2009 OCTOBER 31,
CLASS A (UNAUDITED) 2008(a)
- ------- ---------------- ------------

PER SHARE OPERATING PERFORMANCE(b)
(for a share outstanding throughout the period)
Net asset value, beginning of period ............... $ 4.98 $10.00
------ ------
Income from investment operations(c):
Net investment income (loss)(d) ................. (0.02) (0.01)
Net realized and unrealized gains (losses) ...... 0.61 (5.01)
------ ------
Total from investment operations ................... 0.59 (5.02)
------ ------
Redemption fees(e) ................................. -- --(f)
------ ------
Net asset value, end of period ..................... $ 5.57 $ 4.98
====== ======
Total return(g) .................................... 11.85% (50.20)%
RATIOS TO AVERAGE NET ASSETS(b, h)
Expenses before waiver and payments by affiliates .. 2.57% 2.78%
Expenses net of waiver and payments by
affiliates(i) ................................... 1.70% 1.70%
Net investment income (loss) ....................... (0.89)% (0.15)%
SUPPLEMENTAL DATA
Net assets, end of period (000's) .................. $4,051 $3,596
Portfolio turnover rate(j) ......................... 25.92% 45.10%

(a) For the period January 31, 2008 (commencement of operations) to October 31,
2008.

(b) The per share amounts and ratios reflect income and expenses of the
Portfolio.

(c) The amount shown for a share outstanding throughout the period may not
correlate with the Statement of Operations for the period due to the timing
of sales and repurchases of the Fund shares in relation to income earned
and/or fluctuating market value of the investments of the Fund.

(d) Based on average daily shares outstanding.

(e) Effective September 1, 2008, the redemption fee was eliminated.

(f) Amount rounds to less than $0.01 per share.

(g) Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable, and is not annualized for periods less than
one year.

(h) Ratios are annualized for periods less than one year.

(i) Benefit of expense reduction rounds to less than 0.01%.

(j) Represents the Portfolio's rate of turnover.

The accompanying notes are an integral part of these financial statements.

12 | Semiannual Report

Franklin Templeton International Trust

FINANCIAL HIGHLIGHTS (CONTINUED)

FRANKLIN INDIA GROWTH FUND

SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 2009 OCTOBER 31,
CLASS C (UNAUDITED) 2008(a)
- ------- ---------------- ------------

PER SHARE OPERATING PERFORMANCE(b)
(for a share outstanding throughout the period)
Net asset value, beginning of period ............... $ 4.96 $ 10.00
------ -------
Income from investment operations(c):
Net investment income (loss)(d) ................. (0.04) (0.04)
Net realized and unrealized gains (losses) ...... 0.60 (5.00)
------ -------
Total from investment operations ................... 0.56 (5.04)
------ -------
Redemption fees(e) ................................. -- --(f)
------ -------
Net asset value, end of period ..................... $ 5.52 $ 4.96
====== =======
Total return(g) .................................... 11.29% (50.40)%
RATIOS TO AVERAGE NET ASSETS(b, h)
Expenses before waiver and payments by affiliates .. 3.27% 3.48%
Expenses net of waiver and payments by
affiliates(i) ................................... 2.40% 2.40%
Net investment income (loss) ....................... (1.59)% (0.85)%
SUPPLEMENTAL DATA
Net assets, end of period (000's) .................. $1,295 $ 947
Portfolio turnover rate(j) ......................... 25.92% 45.10%

(a) For the period January 31, 2008 (commencement of operations) to October 31,
2008.

(b) The per share amounts and ratios reflect income and expenses of the
Portfolio.

(d) Based on average daily shares outstanding.

(e) Effective September 1, 2008, the redemption fee was eliminated.

(f) Amount rounds to less than $0.01 per share.

(g) Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable, and is not annualized for periods less than
one year.

(h) Ratios are annualized for periods less than one year.

(i) Benefit of expense reduction rounds to less than 0.01%.

(j) Represents the Portfolio's rate of turnover.

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 13

Franklin Templeton International Trust

FINANCIAL HIGHLIGHTS (CONTINUED)

FRANKLIN INDIA GROWTH FUND

SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 2009 OCTOBER 31,
ADVISOR CLASS (UNAUDITED) 2008(a)
- ------------- ---------------- ------------

PER SHARE OPERATING PERFORMANCE(b)
(for a share outstanding throughout the period)
Net asset value, beginning of period ............... $ 4.99 $ 10.00
------- -------
Income from investment operations(c):
Net investment income (loss)(d) ................. (0.01) 0.010
Net realized and unrealized gains (losses) ...... 0.61 (5.02)
------- -------
Total from investment operations ................... 0.60 (5.01)
------- -------
Less distributions from net investment income ...... --(e) --
------- -------
Redemption fees(f) ................................. -- --(e)
------- -------
Net asset value, end of period ..................... $ 5.59 $ 4.99
======= =======
Total return(g) .................................... 12.05% (50.10)%
RATIOS TO AVERAGE NET ASSETS(b, h)
Expenses before waiver and payments by affiliates .. 2.27% 2.48%
Expenses net of waiver and payments by
affiliates(i) ................................... 1.40% 1.40%
Net investment income (loss) ....................... (0.59)% 0.15%
SUPPLEMENTAL DATA
Net assets, end of period (000's) .................. $33,707 $29,931
Portfolio turnover rate(j) ......................... 25.92% 45.10%

(a) For the period January 31, 2008 (commencement of operations) to October 31,
2008.

(b) The per share amounts and ratios reflect income and expenses of the
Portfolio.

(d) Based on average daily shares outstanding.

(e) Amount rounds to less than $0.01 per share.

(f) Effective September 1, 2008, the redemption fee was eliminated.

(g) Total return is not annualized for periods less than one year.

(h) Ratios are annualized for periods less than one year.

(i) Benefit of expense reduction rounds to less than 0.01%.

(j) Represents the Portfolio's rate of turnover.

The accompanying notes are an integral part of these financial statements.

14 | Semiannual Report

Franklin Templeton International Trust

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
April 30, 2009 (unaudited)

FRANKLIN
INDIA GROWTH
FUND
------------

Assets:
Investments in FT (Mauritius) Offshore Investments Limited (Note 1) .... $ 39,048,938
Sweep Money Fund (Cost $53,148) (Note 6) ............................... 53,148
Receivables:
Capital shares sold ................................................. 10,547
Affiliates .......................................................... 4,809
Prepaid expenses ....................................................... 23,974
------------
Total assets ..................................................... 39,141,416
------------
Liabilities:
Payables:
Capital shares redeemed ............................................. 56,279
Reports to shareholders ............................................. 8,054
Professional fees ................................................... 21,777
Accrued expenses and other liabilities ................................. 1,370
------------
Total liabilities ................................................ 87,480
------------
Net assets, at value .......................................... $ 39,053,936
============
Net assets consist of:
Paid-in capital ........................................................ $ 60,993,294
Undistributed net investment income (loss) ............................. (159,453)
Net unrealized appreciation (depreciation) ............................. (8,267,927)
Accumulated net realized gain (loss) ................................... (13,511,978)
------------
Net assets, at value .......................................... $ 39,053,936
============
CLASS A:
Net assets, at value ................................................... $ 4,051,351
============
Shares outstanding ..................................................... 727,290
============
Net asset value per share(a) ........................................... $ 5.57
============
Maximum offering price per share (net asset value per share / 94.25%)... $ 5.91
============
CLASS C:
Net assets, at value ................................................... $ 1,295,241
============
Shares outstanding ..................................................... 234,473
============
Net asset value and maximum offering price per share(a) ................ $ 5.52
============
ADVISOR CLASS:
Net assets, at value ................................................... $ 33,707,344
============
Shares outstanding ..................................................... 6,027,488
============
Net asset value and maximum offering price per share ................... $ 5.59
============

(a) Redemption price is equal to net asset value less contingent deferred sales
charges, if applicable.

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 15

Franklin Templeton International Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the six months ended April 30, 2009 (unaudited)

FRANKLIN
INDIA GROWTH
FUND
------------

Net investment income allocated from FT (Mauritius) Offshore Investments Limited:
Dividends ............................................................................... $ 134,663
Expenses ................................................................................ (207,181)
-----------
Net investment income allocated from FT (Mauritius) Offshore Investments Limited .. (72,518)
-----------
Expenses:
Management fees (Note 3a) ............................................................... 41,759
Administrative fees (Note 3b) ........................................................... 33,408
Distribution fees: (Note 3c)
Class A .............................................................................. 5,352
Class C .............................................................................. 4,949
Transfer agent fees (Note 3e) ........................................................... 11,725
Custodian fees (Note 4) ................................................................. 184
Reports to shareholders ................................................................. 14,433
Registration and filing fees ............................................................ 12,498
Professional fees ....................................................................... 24,061
Trustees' fees and expenses ............................................................. 1,880
Amortization of offering costs .......................................................... 32,054
Other ................................................................................... 916
-----------
Total expenses .................................................................... 183,219
Expense reductions (Note 4) ....................................................... (219)
Expenses waived/paid by affiliates (Note 3f) ...................................... (146,147)
-----------
Net expenses ................................................................... 36,853
-----------
Net investment income (loss) ................................................ (109,371)
-----------
Realized and unrealized gains (losses) on investments allocated from FT (Mauritius) Offshore
Investments Limited:
Net realized gain (loss) from:
Investments .......................................................................... (8,288,197)
Foreign currency transactions ........................................................ 4,078
-----------
Net realized gain (loss) .................................................... (8,284,119)
-----------
Net change in unrealized appreciation (depreciation) on:
Investments .......................................................................... 12,596,093
Translation of other assets and liabilities denominated in foreign currencies ........ (20,584)
-----------
Net change in unrealized appreciation (depreciation) ........................ 12,575,509
-----------
Net realized and unrealized gain (loss) .................................................... 4,291,390
-----------
Net increase (decrease) in net assets resulting from operations ............................ $ 4,182,019
===========

The accompanying notes are an integral part of these financial statements.

16 | Semiannual Report

Franklin Templeton International Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

FRANKLIN INDIA GROWTH FUND
------------------------------------
SIX MONTHS ENDED
APRIL 30, 2009 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2008(a)
---------------- -------------------

Increase (decrease) in net assets:
Operations:
Net investment income (loss) ................................................. $ (109,371) $ 29,712
Net realized gain (loss) from investments and foreign currency transactions... (8,284,119) (5,401,545)
Net change in unrealized appreciation (depreciation) on investments and
translation of other assets and liabilities denominated in foreign
currencies ................................................................ 12,575,509 (20,843,436)
----------- ------------
Net increase (decrease) in net assets resulting from operations ........... 4,182,019 (26,215,269)
----------- ------------
Distributions to shareholders from net investment income - Advisor Class ........ (7,785) --
----------- ------------
Capital share transactions: (Note 2)
Class A ...................................................................... 45,518 7,060,628
Class C ...................................................................... 205,351 1,644,443
Advisor Class ................................................................ 155,524 51,983,137
----------- ------------
Total capital share transactions ................................................ 406,393 60,688,208
----------- ------------
Redemption fees ................................................................. -- 370
----------- ------------
Net increase (decrease) in net assets ..................................... 4,580,627 34,473,309
Net assets:
Beginning of period ............................................................. 34,473,309 --
----------- ------------
End of period ................................................................... $39,053,936 $ 34,473,309
=========== ============
Undistributed net investment income (loss) included in net assets:
End of period ................................................................... $ (159,453) $ (42,297)
=========== ============

(a) For the period January 31, 2008 (commencement of operations) to October 31,
2008.

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 17

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

FRANKLIN INDIA GROWTH FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Templeton International Trust (Trust) is registered under the
Investment Company Act of 1940, as amended, (1940 Act) as an open-end investment
company, consisting of three separate funds. The Franklin India Growth Fund
(Fund) is included in this report. The financial statements of the remaining
funds in the Trust are presented separately. The Fund offers three classes of
shares: Class A, 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.

The Fund operates using a "master fund/feeder fund" structure and invests
indirectly in the securities of Indian companies through FT (Mauritius) Offshore
Investments Limited (Portfolio), an entity registered with and regulated by the
Mauritius Financial Services Commission, which shares the same investment
objective as the Fund. The accounting policies of the Portfolio, including the
Portfolio's security valuation policies, will directly affect the recorded value
of the Fund's investment in the Portfolio. The financial statements of the
Portfolio, including the Statement of Investments, are included elsewhere in
this report and should be read in conjunction with the Fund's financial
statements. At April 30, 2009, the Fund owned 100% of the outstanding shares of
the Portfolio.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

The Fund's investment in the Portfolio shares are valued at the Portfolio's net
asset value per share. Valuation of securities by the Portfolio is discussed in
Note 1(a) of the Portfolio's Notes to Financial Statements, which are included
elsewhere in this report.

B. INCOME AND DEFERRED TAXES

The Fund's investment in the Portfolio may be subject to income and withholding
taxes in Mauritius and/or India which are discussed in Note 1(e) of the
Portfolio's Notes to Financial Statements.

The Fund has reviewed the tax positions, taken on federal income tax returns,
for the open tax year and as of April 30, 2009, and has determined that no
provision for income tax is required in the Fund's financial statements.

18 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

FRANKLIN INDIA GROWTH FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Security transactions, including investments in the Portfolio, are accounted for
on trade date. Realized gains and losses on security transactions are determined
on a specific identification basis. Estimated expenses are accrued daily.
Dividend income is recorded on the ex-dividend date. Distributions to
shareholders are recorded on the ex-dividend date and are determined according
to income tax regulations (tax basis). Distributable earnings determined on a
tax basis may differ from earnings recorded in accordance with accounting
principles generally accepted in the United States of America. These differences
may be permanent or temporary. Permanent differences are reclassified among
capital accounts to reflect their tax character. These reclassifications have no
impact on net assets or the results of operations. Temporary differences are not
reclassified, as they may reverse in subsequent periods.

Realized and unrealized gains and losses and net investment income (loss), other
than class specific expenses, are allocated daily to each class of shares based
upon the relative proportion of net assets of each class. Differences in per
share distributions, by class, are generally due to differences in class
specific expenses.

The Fund records its proportionate share of the Portfolio's income, expenses and
realized and unrealized gains and losses daily. In addition, the Fund accrues
its own expenses.

D. OFFERING COSTS

Offering costs are amortized on a straight line basis over twelve months.

E. ACCOUNTING ESTIMATES

Semiannual Report | 19

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

FRANKLIN INDIA GROWTH FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. REDEMPTION FEES

A short term trading redemption fee was imposed, with some exceptions, on any
fund shares that were redeemed or exchanged within seven calendar days following
their purchase date. The redemption fee was 2% of the amount redeemed. Such fees
were retained by the Fund and accounted for as an addition to paid-in capital.
Effective September 1, 2008, the redemption fee was eliminated.

G. GUARANTEES AND INDEMNIFICATIONS

Under the Trust's organizational documents, its officers and directors are
indemnified by the Trust against certain liabilities arising out of the
performance of their duties to the Trust. Additionally, in the normal course of
business, the Trust, on behalf of the Fund, enters into contracts with service
providers that contain general indemnification clauses. The Trust's maximum
exposure under these arrangements is unknown as this would involve future claims
that may be made against the Trust that have not yet occurred. Currently, the
Trust expects the risk of loss to be remote.

2. CAPITAL STOCK

At April 30, 2009, there were an unlimited number of shares authorized (without
par value). Transactions in the Fund's shares were as follows:

FRANKLIN
INDIA GROWTH FUND
-----------------------
SHARES AMOUNT
--------- -----------

CLASS A SHARES:
Six Months ended April 30, 2009
Shares sold ...................................... 188,177 $ 908,739
Shares redeemed .................................. (182,853) (863,221)
--------- -----------
Net increase (decrease) .......................... 5,324 $ 45,518
========= ===========
Period ended October 31, 2008(a)
Shares sold ...................................... 1,038,756 $ 9,306,612
Shares redeemed .................................. (316,790) (2,245,984)
--------- -----------
Net increase (decrease) .......................... 721,966 $ 7,060,628
========= ===========
CLASS C SHARES:
Six Months ended April 30, 2009
Shares sold ...................................... 60,275 $ 285,900
Shares redeemed .................................. (16,969) (80,549)
--------- -----------
Net increase (decrease) .......................... 43,306 $ 205,351
========= ===========
Period ended October 31, 2008(a)
Shares sold ...................................... 220,318 $ 1,845,970
Shares redeemed .................................. (29,151) (201,527)
--------- -----------
Net increase (decrease) .......................... 191,167 $ 1,644,443
========= ===========

20 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

FRANKLIN INDIA GROWTH FUND

2. CAPITAL STOCK (CONTINUED)

FRANKLIN
INDIA GROWTH FUND
-----------------------
SHARES AMOUNT
--------- -----------

ADVISOR CLASS SHARES:
Six Months ended April 30, 2009
Shares sold .................................. 97,271 $ 474,013
Shares issued in reinvestment of
distributions ............................. 1,476 7,602
Shares redeemed .............................. (65,436) (326,091)
--------- -----------
Net increase (decrease) ...................... 33,311 $ 155,524
========= ===========
Period ended October 31, 2008(a)
Shares sold .................................. 6,028,854 $52,222,290
Shares redeemed .............................. (34,677) (239,153)
--------- -----------
Net increase (decrease) ...................... 5,994,177 $51,983,137
========= ===========

(a) For the period January 31, 2008 (commencement of operations) to October 31,
2008.

3. TRANSACTIONS WITH AFFILIATES

SUBSIDIARY AFFILIATION
- ---------- ----------------------

Franklin Advisers, Inc. (Advisers) Investment manager
Franklin Templeton Asset Management (India) Private Limited (FT India) Investment manager
Franklin Templeton Services, LLC (FT Services) Administrative manager
Franklin Templeton Distributors, Inc. (Distributors) Principal underwriter
Franklin Templeton Investor Services, LLC (Investor Services) Transfer agent

A. MANAGEMENT FEES

The Fund pays an investment management fee to Advisers equal to 20% of the total
management fee with the remainder to be paid by the Portfolio. The total
management fee is paid based on the average daily net assets of the Fund as
follows:

ANNUALIZED FEE RATE NET ASSETS
- ------------------- -------------------------------------------------

1.250% Up to and including $1 billion
1.200% Over $1 billion, up to and including $5 billion
1.150% Over $5 billion, up to and including $10 billion
1.100% Over $10 billion, up to and including $15 billion
1.050% Over $15 billion, up to and including $20 billion
1.000% In excess of $20 billion

Under a subadvisory agreement, FT India, an affiliate of Advisers, provides
subadvisory services to the Fund and receives from Advisers fees based on the
average daily net assets of the Fund.

Semiannual Report | 21

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

FRANKLIN INDIA GROWTH FUND

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

B. ADMINISTRATIVE FEES

The Fund pays an administrative fee to FT Services of 0.20% per year of the
average daily net assets of the Fund.

C. DISTRIBUTION FEES

The Trust's Board of Trustees has adopted distribution plans for each share
class, with the exception of Advisor Class shares, pursuant to Rule 12b-1 under
the 1940 Act.

On December 1, 2008, the Trust's Board of Trustees approved a modification to
the Class A distribution plan, for those funds that had a Class A compensation
plan, changing the form of the plan from a compensation to a reimbursement
distribution plan. Under the distribution plan, the Fund reimburses Distributors
for costs incurred in connection with the servicing, sale and distribution of
the Fund's shares up to the maximum annual plan rate. This change was effective
February 1, 2009. Under the Class A reimbursement distribution plan, costs
exceeding the maximum for the current plan year cannot be reimbursed in
subsequent periods. Prior to February 1, 2009, under the Fund's Class A
compensation distribution plan, the Fund paid Distributors for costs incurred in
connection with the servicing, sale and distribution of the Fund's shares up to
a certain percentage per year of its average daily net assets.

In addition, under the Fund's Class C compensation distribution plan, the Fund
pays Distributors for costs incurred in connection with the servicing, sale and
distribution of the Fund's shares up to the maximum annual plan rate.

The maximum annual plan rates, based on the average daily net assets, for each
class, are as follows:

Class A ... 0.35%
Class C ... 1.00%

The Board of Trustees has set the current rate at 0.30% per year for Class A
shares until further notice and approval by the Board.

D. SALES CHARGES/UNDERWRITING AGREEMENTS

Distributors has advised the Fund of the following commission transactions
related to the sales and redemptions of the Fund's shares for the period:

Sales charges retained net of commissions paid to unaffiliated
broker/dealers ............................................ $1,038
Contingent deferred sales charges retained ................... $ 448

22 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

FRANKLIN INDIA GROWTH FUND

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

E. TRANSFER AGENT FEES

For the period ended April 30, 2009, the Fund paid transfer agent fees of
$11,725, of which $10,160 was retained by Investor Services.

F. WAIVER AND EXPENSE REIMBURSEMENTS

FT Services and Advisers have agreed in advance to waive all or a portion of
their respective fees and to assume payment of other expenses, through February
28, 2010. Total expenses waived or paid are not subject to reimbursement by the
Fund subsequent to the Fund's fiscal year end. After February 28, 2010, FT
Services and Advisers may discontinue this waiver at any time upon notice to the
Fund's Board of Trustees.

4. EXPENSE OFFSET ARRANGEMENT

5. INCOME TAXES

For tax purposes, capital losses may be carried over to offset future capital
gains, if any. At October 31, 2008, the Fund had tax basis capital losses of
$4,571,985 expiring in 2016.

At April 30, 2009, the cost of investments and net unrealized appreciation
(depreciation) including the holdings of the Portfolio for income tax purposes
were as follows:

Cost of investments .......................... $ 45,938,561
============
Unrealized appreciation ...................... $ 1,033,061
Unrealized depreciation ...................... (10,718,991)
------------
Net unrealized appreciation (depreciation) ... $ (9,685,930)
============

The Portfolio is a disregarded entity for United States federal income tax
purposes.

Net investment income (loss) differs for financial statement and tax purposes
primarily due to differing treatments of foreign currency transactions and
offering costs.

Net realized gains (losses) differ for financial statement and tax purposes
primarily due to differing treatments of wash sales and foreign currency
transactions.

Semiannual Report | 23

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

FRANKLIN INDIA GROWTH FUND

6. INVESTMENTS IN FRANKLIN INSTITUTIONAL FIDUCIARY TRUST MONEY MARKET PORTFOLIO

The Fund may invest in the Franklin Institutional Fiduciary Trust Money Market
Portfolio (Sweep Money Fund), an open-end investment company managed by
Advisers. Management fees paid by the Fund are reduced on assets invested in the
Sweep Money Fund, in an amount not to exceed the management and administrative
fees paid by the Sweep Money Fund.

7. SHAREHOLDER CONCENTRATIONS

The Fund has a concentration of a shareholder holding a significant percentage
of shares outstanding. Investment activities of this shareholder could have a
material impact on the Fund. At April 30, 2009, there was one unaffiliated
shareholder holding 82% of the Fund's outstanding shares.

8. CONCENTRATION OF RISK

Investing in Indian equity securities through the Portfolio may include certain
risks and considerations not typically associated with investing in U.S.
securities, such as fluctuating currency values, less liquidity, expropriation,
confiscatory taxation, nationalization, exchange control regulations (including
currency blockage), differing legal standards and changing local and regional
economic, political and social conditions, which may result in greater market
volatility.

9. CREDIT FACILITY

Under the terms of the Global Credit Facility, the Fund shall, in addition to
interest charged on any borrowings made by the Fund and other costs incurred by
the Fund, pay its share of fees and expenses incurred in connection with the
implementation and maintenance of the Global Credit Facility, based upon its
relative share of the aggregate net assets of all of the Borrowers, including an
annual commitment fee based upon the unused portion of the Global Credit
Facility. During the period, the Fund incurred commitment fees of $23 of its pro
rata portion of the Global Credit Facility, which is reflected in Other expenses
on the Statement of Operations. During the period ended April 30, 2009, the Fund
did not utilize the Global Credit Facility.

24 | Semiannual Report

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

FRANKLIN INDIA GROWTH FUND

10. FAIR VALUE MEASUREMENTS

- Level 1 - quoted prices in active markets for identical securities

- Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speed, credit risk,
etc.)

- Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.

At April 30, 2009, all of the Fund's investments in securities carried at fair
value were in Level 1 inputs.

11. NEW ACCOUNTING PRONOUNCEMENTS

Semiannual Report | 25

Franklin Templeton International Trust

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

FRANKLIN INDIA GROWTH FUND

11. NEW ACCOUNTING PRONOUNCEMENTS (CONTINUED)

carried at fair value. FSP FAS 157-4 is effective for interim and annual periods
ending after June 15, 2009. The Fund is currently evaluating the impact, if any,
of applying FSP FAS 157-4.

In May 2009, the FASB issued Statement No. 165, "Subsequent Events", which is
intended to establish general standards of accounting for and disclosure of
events that occur after the balance sheet date but before the statements are
issued or are available to be issued. FASB 165 is effective for interim or
annual financial periods ending after June 15, 2009, the adoption of FASB 165
will not have a material impact on the financial statements.

26 | Semiannual Report

FT (Mauritius) Offshore Investments Limited

FINANCIAL HIGHLIGHTS
(Expressed in U.S. Dollars)

SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 2009 OCTOBER 31,
(UNAUDITED) 2008(a)
---------------- ------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period .................. $ 4.97 $ 10.00
------- -------
Income from investment operations(b):
Net investment income (loss)(c) .................... (0.01) 0.01
Net realized and unrealized gains (losses) ......... 0.61 (5.04)
------- -------
Total from investment operations ...................... 0.60 (5.03)
------- -------
Net asset value, end of period ........................ $ 5.57 $ 4.97
======= =======
Total return(d) ....................................... 12.07% (50.30)%
RATIOS TO AVERAGE NET ASSETS(e)
Expenses .............................................. 1.24% 1.40%
Net investment income (loss) .......................... (0.43)% 0.15%
SUPPLEMENTAL DATA
Net assets, end of period (000's) ..................... $39,049 $34,371
Portfolio turnover rate ............................... 25.92% 45.10%

(a) For the period January 31, 2008 (commencement of operations) to October 31,
2008.

(d) Total return is not annualized for periods less than one year.

(e) Ratios are annualized for periods less than one year.

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 27

FT (Mauritius) Offshore Investments Limited

STATEMENT OF INVESTMENTS, APRIL 30, 2009 (UNAUDITED)
(Expressed in U.S. Dollars)

SHARES VALUE
------- ----------

COMMON STOCKS 92.7%
INDIA 92.7%
AEROSPACE & DEFENSE 1.2%
Bharat Electronics Ltd. ................................. 24,948 $ 478,364
----------
AUTO COMPONENTS 0.4%
Bosch Ltd. .............................................. 2,863 173,389
----------
AUTOMOBILES 3.7%
Hero Honda Motors Ltd. .................................. 60,640 1,444,202
----------
CHEMICALS 2.0%
Asian Paints Ltd. ....................................... 43,146 769,686
----------
COMMERCIAL BANKS 11.1%
Axis Bank Ltd. .......................................... 116,462 1,301,400
HDFC Bank Ltd. .......................................... 100,361 2,221,566
ICICI Bank Ltd. ......................................... 84,910 815,802
----------
4,338,768
----------
CONSTRUCTION & ENGINEERING 2.6%
Hindustan Construction Ltd. ............................. 217,011 243,960
Larsen & Toubro Ltd. .................................... 42,871 758,315
----------
1,002,275
----------
CONSTRUCTION MATERIALS 4.1%
Grasim Industries Ltd. .................................. 25,030 895,191
Ultra Tech Cement Ltd. .................................. 62,896 717,944
----------
1,613,135
----------
DIVERSIFIED FINANCIAL SERVICES 5.4%
Crisil Ltd. ............................................. 8,552 516,964
Kotak Mahindra Bank Ltd. ................................ 203,862 1,580,673
----------
2,097,637
----------
ELECTRICAL EQUIPMENT 5.2%
ABB Ltd. India .......................................... 105,472 1,033,721
Bharat Heavy Electricals Ltd. ........................... 29,452 978,328
----------
2,012,049
----------
FOOD PRODUCTS 5.7%
GlaxoSmithkline Consumer Healthcare Ltd. ................ 12,441 207,200
Nestle India Ltd. ....................................... 58,883 2,029,495
----------
2,236,695
----------
HOUSEHOLD PRODUCTS 4.7%
Hindustan Unilever Ltd. ................................. 386,150 1,821,448
----------
IT SERVICES 6.2%
Infosys Technologies Ltd. ............................... 67,325 2,040,804
Tata Consultancy Services Ltd. .......................... 30,000 375,988
----------
2,416,792
----------

28 | Semiannual Report

FT (Mauritius) Offshore Investments Limited

STATEMENT OF INVESTMENTS, APRIL 30, 2009 (UNAUDITED) (CONTINUED)
(Expressed in U.S. Dollars)

SHARES VALUE
--------- -----------

COMMON STOCKS (CONTINUED)
INDIA (CONTINUED)
MACHINERY 2.6%
Ashok Leyland Ltd. ...................................... 261,881 $ 112,705
Cummins India Ltd. ...................................... 218,475 889,058
-----------
1,001,763
-----------
MEDIA 1.5%
(a, b) IBN18 Broadcast Ltd. .................................... 211,043 372,641
New Delhi Television Ltd. ............................... 6,750 13,785
Television Eighteen India Ltd. .......................... 125,596 211,537
-----------
597,963
-----------
METALS & MINING 1.1%
Hindalco Industries Ltd. ................................ 151,542 164,113
JSW Steel Ltd. .......................................... 38,412 259,981
National Aluminium Co. Ltd. ............................. 2,083 8,864
-----------
432,958
-----------
OIL, GAS & CONSUMABLE FUELS 10.6%
Bharat Petroleum Corp. Ltd. ............................. 106,047 825,876
Great Eastern Shipping Co. Ltd. ......................... 3,000 12,383
Indian Oil Corp. Ltd. ................................... 35,312 314,985
Reliance Industries Ltd. ................................ 82,550 2,992,718
-----------
4,145,962
-----------
PERSONAL PRODUCTS 5.3%
Dabur India Ltd. ........................................ 313,547 652,947
Marico Ltd. ............................................. 1,036,553 1,434,185
-----------
2,087,132
-----------
PHARMACEUTICALS 6.9%
Cipla Ltd. .............................................. 61,112 295,820
Glaxosmithkline Pharmaceuticals Ltd. .................... 26,480 625,162
Lupin Laboratories Ltd. ................................. 62,101 895,516
Pfizer Ltd. ............................................. 34,800 505,921
Sun Pharmaceutical Industries Ltd. ...................... 14,779 379,023
-----------
2,701,442
-----------
THRIFTS & MORTGAGE FINANCE 3.7%
Housing Development Finance Corp. Ltd. .................. 41,146 1,432,766
-----------
WIRELESS TELECOMMUNICATION SERVICES 8.7%
(a) Bharti Airtel Ltd. ...................................... 179,909 2,711,027
(a) Idea Cellular Ltd. ...................................... 585,933 684,030
-----------
3,395,057
-----------
TOTAL COMMON STOCKS (COST $44,010,701) .................. 36,199,483
-----------
OTHER ASSETS, LESS LIABILITIES 7.3% ..................... 2,849,455
-----------
NET ASSETS 100.0% ....................................... $39,048,938
===========

(a) Non-income producing.

(b) A portion or all of the security purchased on a delayed delivery basis. See
Note 1(c).

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 29

FT (Mauritius) Offshore Investments Limited

FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)

STATEMENT OF ASSETS AND LIABILITIES
April 30, 2009 (unaudited)

Assets:
Investments in securities:
Cost ....................................................... $44,010,701
===========
Value ...................................................... $36,199,483
Cash .......................................................... 8,904
Foreign currency, at value (cost $3,039,274) .................. 2,578,756
Receivables:
Investment securities sold ................................. 279,007
Dividends .................................................. 47,452
-----------
Total assets ............................................ 39,113,602
-----------
Liabilities:
Payables:
Investment securities purchased ............................ 17,410
Affiliates ................................................. 25,528
Custodian fees ............................................. 13,905
Accrued expenses and other liabilities ........................ 7,821
-----------
Total liabilities ....................................... 64,664
-----------
Net assets, at value ................................. $39,048,938
===========
Shares outstanding ............................................... 7,007,674
===========
Net asset value per share ........................................ $ 5.57
===========

The accompanying notes are an integral part of these financial statements.

30 | Semiannual Report

FT (Mauritius) Offshore Investments Limited

FINANCIAL STATEMENTS (CONTINUED)
(Expressed in U.S. Dollars)

STATEMENT OF OPERATIONS
for the period ended April 30, 2009 (unaudited)

Investment income:
Dividends .................................................... $ 134,663
------------
Expenses:
Management fees (Note 3a) .................................... 167,024
Administrative fees (Note 3b) ................................ 16,041
Custodian fees ............................................... 6,029
Professional fees ............................................ 10,091
Directors' fees and expenses ................................. 5,031
Other ........................................................ 2,965
------------
Total expenses ......................................... 207,181
------------
Net investment income (loss) ........................ (72,518)
------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments ............................................... (8,288,197)
Foreign currency transactions ............................. 4,078
------------
Net realized gain (loss) ............................ (8,284,119)
------------
Net change in unrealized appreciation (depreciation) on:
Investments ............................................... 12,596,093
Translation of other assets and liabilities
denominated in foreign currencies ...................... (20,584)
------------
Net change in unrealized appreciation
(depreciation) ................................... 12,575,509
------------
Net realized and unrealized gain (loss) ......................... 4,291,390
------------
Net increase (decrease) in net assets resulting from
operations ................................................... $ 4,218,872
============

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 31

FT (Mauritius) Offshore Investments Limited

FINANCIAL STATEMENTS (CONTINUED)
(Expressed in U.S. Dollars)

STATEMENTS OF CHANGES IN NET ASSETS

SIX MONTHS ENDED
APRIL 30, 2009 PERIOD ENDED
(UNAUDITED) OCTOBER 31, 2008(a)
---------------- -------------------

Increase (decrease) in net assets:
Operations:
Net investment income (loss) ..................................................... $ (72,518) $ 47,226
Net realized gain (loss) from investments and foreign currency transactions ...... (8,284,119) (5,401,545)
Net change in unrealized appreciation (depreciation) on investments and
translation of other assets and liabilities denominated in foreign
currencies .................................................................... 12,575,509 (20,843,436)
----------- ------------
Net increase (decrease) in net assets resulting from operations ............... 4,218,872 (26,197,755)
----------- ------------
Capital share transactions (Note 2) ................................................. 458,720 60,569,101
----------- ------------
Net increase (decrease) in net assets ......................................... 4,677,592 34,371,346
Net assets:
Beginning of period ................................................................. 34,371,346 --
----------- ------------
End of period ....................................................................... $39,048,938 $ 34,371,346
=========== ============

(a) For the period January 31, 2008 (commencement of operations) to October 31,
2008.

The accompanying notes are an integral part of these financial statements.

32 | Semiannual Report

FT (Mauritius) Offshore Investments Limited

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(Expressed in U.S. Dollars)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

FT (Mauritius) Offshore Investments Limited (Portfolio) is registered with and
regulated by the Mauritius Financial Services Commission. The Portfolio was
formed for the purpose of facilitating the Franklin India Growth Fund's (Fund)
purchase of securities of a wide selection of Indian companies, consistent with
the Fund's investment strategies and has elected to be treated as a disregarded
entity for United States federal income tax purposes.

At April 30, 2009, the Fund owned 100% of the Portfolio.

The following summarizes the Portfolio's significant accounting policies.

A. SECURITY VALUATION

The Portfolio follows the Fund's procedures to determine the fair value of
individual securities and other assets for which market prices are not readily
available or which may not be reliably priced. Methods for valuing these
securities may include: fundamental analysis, matrix pricing, discounts from
market prices of similar securities, or discounts applied due to the nature and
duration of restrictions on the disposition of the securities. Due to the
inherent uncertainty of valuations of such securities, the fair values may
differ significantly from the values that would have been used had a ready
market for such investments existed. Occasionally, events occur between the time
at which trading in a security is completed and the close of the NYSE that might
call into question the availability (including the reliability) of the value of
a portfolio security held by the Portfolio. The investment manager monitors
price movements following the close of trading in foreign stock markets through
a series of country specific market proxies (such as baskets of American
Depository Receipts, futures contracts and exchange traded funds). These price
movements are measured against established trigger thresholds for each specific
market proxy to assist in determining if an event has occurred. If such an event
occurs, the securities may be valued using fair value procedures, which may
include the use of independent pricing services. All security valuation
procedures are approved by the Fund's Board of Trustees.

Semiannual Report | 33

FT (Mauritius) Offshore Investments Limited

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(Expressed in U.S. Dollars)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

B. FOREIGN CURRENCY TRANSLATION

The Portfolio 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 on the
Statement of Operations.

C. SECURITIES PURCHASED ON A DELAYED DELIVERY BASIS

The Portfolio may purchase securities on a delayed delivery basis, with payment
and delivery scheduled for a future date. These transactions are subject to
market fluctuations and are subject to the risk that the value at delivery may
be more or less than the trade date purchase price. Although the Portfolio will
generally purchase these securities with the intention of holding the
securities, it may sell the securities before the settlement date. Sufficient
assets have been segregated for these securities.

D. FOREIGN CURRENCY CONTRACTS

When the Portfolio 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 at a future date. Realized and unrealized gains and losses on
these contracts are included in the Statement of Operations.

34 | Semiannual Report

FT (Mauritius) Offshore Investments Limited

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(Expressed in U.S. Dollars)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. FOREIGN CURRENCY CONTRACTS (CONTINUED)

E. INCOME TAXES

The Portfolio conducts its investment activities in India as a tax resident of
Mauritius and expects to obtain benefits under the double taxation treaty
between Mauritius and India (Treaty). To obtain benefits under the Treaty, the
Portfolio must meet certain tests and conditions, including the establishment of
Mauritius tax residence and related requirements. The Portfolio has obtained a
certificate from the Mauritius tax authorities and believes that such
certification is evidence that it is a resident of Mauritius under the Treaty. A
company which is a tax resident in Mauritius under the Treaty and has no branch
or permanent establishment in India, will not be subject to capital gains tax in
India on the sale of Indian securities but is subject to Indian withholding tax
on interest earned on Indian securities at the rate of 20.50%. There is no
withholding tax in India in respect of dividends paid by Indian companies and
such dividends are exempt in the hands of the shareholders.

The Portfolio holds a Category 1 Global Business License for the purpose of the
Financial Services Act 2007 and under current laws and regulations, is subject
to tax in Mauritius at the rate of 15% on its net income. However, the Portfolio
is entitled to a deemed tax credit equivalent to the higher of actual foreign
tax suffered or a presumed foreign tax equivalent of 80% of the Mauritian tax on
its foreign source income. Thus, the effective tax rate in Mauritius should not
exceed 3% (i.e. 15% less 80% of 15%). A company holding at least 5% of the share
capital of an Indian company and receiving dividends from that Indian company
may claim a credit for tax paid by the Indian company on its profits out of
which the dividends were distributed including the dividend distribution tax. No
Mauritian capital gains tax is payable on profits arising from sale of
securities, and any dividends and redemption proceeds paid by the Portfolio to
its shareholders will be exempt from withholding or other tax.

The Portfolio continues to: (i) comply with the requirements of the Treaty; (ii)
be a tax resident of Mauritius; and (iii) maintain that its central management
and control resides in Mauritius, and therefore management believes that the
Portfolio will be able to obtain the benefits of the Treaty. Accordingly, no
provision for Indian income taxes has been made in the accompanying financial
statements of the Portfolio for taxes related to capital gains or dividends.

The foregoing is based upon current interpretation and practice and is subject
to future changes in Indian or Mauritian tax laws and in the Treaty.

Semiannual Report | 35

FT (Mauritius) Offshore Investments Limited

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(Expressed in U.S. Dollars)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES

Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Estimated expenses are accrued daily. Dividend income is recorded on the
ex-dividend date or as soon as the Portfolio is notified of the ex-dividend
date.

G. ACCOUNTING ESTIMATES

H. GUARANTEES AND INDEMNIFICATIONS

The Portfolio's officers and directors are indemnified by the Portfolio against
certain liabilities arising out of the performance of their duties to the
Portfolio. Additionally, in the normal course of business, the Portfolio enters
into contracts with service providers that contain general indemnification
clauses. The Portfolio's maximum exposure under these arrangements is unknown as
this would involve future claims that may be made against the Portfolio that
have not yet occurred. Currently, the Portfolio expects the risk of loss to be
remote.

2. CAPITAL STOCK

At April 30, 2009, there were an unlimited number of shares authorized (without
par value). Transactions in the Portfolio's shares were as follows:

SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2009 OCTOBER 31, 2008(a)
-------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
-------- --------- --------- -----------

Shares sold ............ 196,959 $ 962,043 7,130,902 $61,995,063
Shares redeemed ........ (105,148) (503,323) (215,039) (1,425,962)
-------- --------- --------- -----------
Net increase
(decrease) .......... 91,811 $ 458,720 6,915,863 $60,569,101
-------- --------- --------- -----------

(a) For the period January 31, 2008 (commencement of operations) to October 31,
2008

3. TRANSACTIONS WITH AFFILIATES

Franklin Resources, Inc. is the holding company of Franklin Advisers, Inc.
(Advisers) which is the investment manager of the Portfolio.

36 | Semiannual Report

FT (Mauritius) Offshore Investments Limited

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(Expressed in U.S. Dollars)

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

A. MANAGEMENT FEES

The Portfolio pays an investment management fee to Advisers equal to 80% of the
total management fee with the remainder to be paid by the Fund based on the
average daily net assets of the Fund as follows:

ANNUALIZED FEE RATE NET ASSETS
- ------------------- --------------------------------------------------

B. ADMINISTRATIVE FEES

The Portfolio pays an administrative fee to International Financial Services
Limited (IFS), a Mauritius company, an annual fee of $30,000 plus reimbursement
of certain expenses. Certain directors of the Portfolio are also directors of
IFS.

4. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the
period ended April 30, 2009, aggregated $8,365,102 and $9,355,460, respectively.

5. CONCENTRATION OF RISK

6. FAIR VALUE MEASUREMENTS

The Portfolio adopted Financial Accounting Standards Board (FASB) Statement No.
157, "Fair Value Measurement" (SFAS 157), on November 1, 2008. SFAS 157 defines
fair value, establishes a framework for measuring fair value, and expands
disclosures about fair value measurements. The Portfolio has determined that the
implementation of SFAS 157 did not have a material impact on the Portfolio's
financial statements.

Semiannual Report | 37

FT (Mauritius) Offshore Investments Limited

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(Expressed in U.S. Dollars)

6. FAIR VALUE MEASUREMENTS (CONTINUED)

SFAS 157 establishes a fair value hierarchy that distinguishes between market
data obtained from independent sources (observable inputs) and the Portfolio's
own market assumptions (unobservable inputs). These inputs are used in
determining the value of the Portfolio's investments and are summarized in the
following fair value hierarchy:

- Level 1 - quoted prices in active markets for identical securities

- Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speed, credit risk,
etc.)

- Level 3 - significant unobservable inputs (including the Portfolio's
own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.

At April 30, 2009, all of the Portfolio's investments in securities carried at
fair value were in Level 1 inputs.

7. NEW ACCOUNTING PRONOUNCEMENTS

In March 2008, FASB issued FASB Statement No. 161, "Disclosures about Derivative
Instruments and Hedging Activities, an amendment of FASB Statement No. 133"
(SFAS 161), which expands disclosures about derivative investments and hedging
activities. SFAS 161 is effective for fiscal years and interim periods beginning
after November 15, 2008. The Portfolio believes applying the various provisions
of SFAS 161 will not have a material impact on its financial statements.

In April 2009, FASB issued FASB Staff Position FSP FAS 157-4, "Determining Fair
Value When the Volume and Level of Activity for the Asset or Liability Have
Significantly Decreased and Identifying Transactions That Are Not Orderly" (FSP
FAS 157-4), which provides additional guidance when the volume and level of
activity for the asset or liability measured at fair value have significantly
decreased. Additionally, FSP FAS 157-4 amends SFAS 157, expanding disclosure
requirements by reporting entities surrounding the major categories of assets
and liabilities carried at fair value. FSP FAS 157-4 is effective for interim
and annual periods ending after June 15, 2009. The Portfolio is currently
evaluating the impact, if any, of applying FSP FAS 157-4.

38 | Semiannual Report

Franklin Templeton International Trust

SHAREHOLDER INFORMATION

FRANKLIN INDIA GROWTH FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT

At a meeting held April 14, 2009, the Board of Trustees (Board), including a
majority of non-interested or independent Trustees, approved renewal of the
investment management agreement for Franklin India Growth Fund, one of the Funds
within the Trust (Fund(s)). In reaching this decision, the Board took into
account information furnished throughout the year at regular Board meetings, as
well as information prepared specifically in connection with the annual renewal
review process. Information furnished and discussed throughout the year included
investment performance reports and related financial information for each Fund,
as well as periodic reports on shareholder services, legal, compliance, pricing,
brokerage commissions and execution and other services provided by the
Investment Manager (Manager) and its affiliates. Information furnished
specifically in connection with the renewal process included a report for each
Fund prepared by Lipper, Inc. (Lipper), an independent organization, as well as
additional material, including a Fund profitability analysis report prepared by
management. The Lipper reports compared each Fund's investment performance and
expenses with those of other mutual funds deemed comparable to the Fund as
selected by Lipper. The Fund profitability analysis report discussed the
profitability to Franklin Templeton Investments from its overall U.S. fund
operations, as well as on an individual fund-by-fund basis. Included with such
profitability analysis report was information on a fund-by-fund basis listing
portfolio managers and other accounts they manage, as well as information on
management fees charged by the Manager and its affiliates including management's
explanation of differences where relevant and a three-year expense analysis with
an explanation for any increase in expense ratios. Additional material
accompanying such report was a memorandum prepared by management describing
project initiatives and capital investments relating to the services provided to
the Funds by the Franklin Templeton Investments organization, as well as a
memorandum relating to economies of scale and a comparative analysis concerning
transfer agent fees charged each Fund. Such material also discussed some of the
actions taken by management in coping with problems arising out of the past
year's financial upheaval.

Semiannual Report | 39

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

FRANKLIN INDIA GROWTH FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

40 | Semiannual Report

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

FRANKLIN INDIA GROWTH FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

other fund managers, had announced a hiring freeze and implemented employee
reductions, and the Board discussed with management the nature of such
reductions and steps being taken to minimize any negative impact on the nature
and quality of services being provided the Fund.

The performance universe for the Fund consisted of the Fund and all retail and
institutional emerging markets funds as selected by Lipper. Consistent with the
market sell-off that occurred during such period, the Fund and all other funds
within such performance universe experienced losses for the one-year period
ended January 31, 2009. The Lipper report comparison showed the Fund's total
return during such period, being its initial year of operation as covered by
Lipper, to be in the second-highest quintile of such performance universe. While
noting such favorable comparative performance, the Board did not find it
particularly meaningful in view of the Fund's short period of operation.

Semiannual Report | 41

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

FRANKLIN INDIA GROWTH FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

MANAGEMENT PROFITABILITY. The Board also considered the level of profits
realized by the Manager and its affiliates in connection with the operation of
each Fund. In this respect, the Board reviewed the Fund profitability analysis
that addresses the overall profitability of Franklin Templeton's U.S. fund
business, as well as its profits in providing management and other services to
the Fund during the 12-month period ended September 30, 2008, being the most
recent fiscal year-end for Franklin Resources, Inc., the Manager's parent.
During such period, the assets of the Franklin Templeton U.S. fund business were
significantly higher than currently existing, and to such extent the
profitability analysis does not reflect current fund operations. While taking
this into account in assessing the significance of the Fund profitability
analysis, the Board recognized such analysis was made at a given point in time
and that the decline in assets and effect on profitability would be reflected in
the profitability analysis covering Franklin Resources' 2009 fiscal year period.
In reviewing the analysis, attention was given to the methodology followed in
allocating costs to the Fund, it being recognized that allocation methodologies
are inherently subjective and various allocation methodologies may each be
reasonable while producing different results. In this respect, the Board noted
that, while being continuously refined and reflecting changes in the Manager's
own cost accounting, the allocation methodology was consistent with that
followed in profitability report presentations for the Fund made in prior years
and that the Fund's independent registered public accounting firm had been
engaged by the Manager to perform certain procedures on a biennial basis,
specified and approved by the Manager and the Fund's Board solely for their
purposes and use in reference to the profitability analysis. In reviewing and
discussing such analysis, management discussed with the Board its belief that
costs incurred in establishing the infrastructure necessary for the type of
mutual fund operations conducted by the Manager and its affiliates may not be
fully reflected in the expenses allocated to the Fund in determining its
profitability, as well as the fact that the level of profits, to a certain
extent, reflected operational cost savings and efficiencies initiated by
management. The Board also took into account management's expenditures in
improving shareholder services provided the Fund, as well as the need to meet
additional regulatory and compliance requirements resulting from the
Sarbanes-Oxley Act and recent SEC and other regulatory requirements. In
addition, the Board considered a third-party study comparing the profitability
of the Manager's parent on an overall basis as compared to other publicly held
managers broken down to show profitability from management operations exclusive
of distribution expenses, as well as profitability including distribution
expenses. The Board also considered the extent to which the Manager and its
affiliates might derive ancillary benefits from fund operations, including its
interest in a joint venture entity that financed up-front commissions paid to
brokers/dealers who sold fund Class B shares prior to February 2005 when the
offering of such shares was discontinued, as well as potential benefits
resulting from allocation of fund brokerage and the use of commission dollars to
pay for research. Based upon its consideration of all these factors, the Board
determined that the level of profits realized by the Manager and its affiliates
from providing services to the Fund was not excessive in view of the nature,
quality and extent of services provided.

42 | Semiannual Report

Franklin Templeton International Trust

SHAREHOLDER INFORMATION (CONTINUED)

FRANKLIN INDIA GROWTH FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

PROXY VOTING POLICIES AND PROCEDURES

QUARTERLY STATEMENT OF INVESTMENTS

Semiannual Report | 43

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Franklin Templeton Funds

BLEND
Franklin Focused Core Equity Fund
Franklin Large Cap Equity Fund
Franklin Rising Dividends Fund

GROWTH
Franklin Flex Cap Growth Fund
Franklin Growth Fund
Franklin Growth Opportunities Fund
Franklin Small Cap Growth Fund
Franklin Small-Mid Cap Growth Fund

GLOBAL
Mutual Global Discovery Fund
Templeton Global Long-Short Fund
Templeton Global Opportunities Trust
Templeton Global Smaller Companies Fund
Templeton Growth Fund
Templeton World Fund

HYBRID
Franklin Balanced Fund
Franklin Convertible Securities Fund
Franklin Equity Income Fund
Franklin Income Fund
Templeton Income Fund

TAX-FREE INCOME(4)

NATIONAL
Double Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund(5)

INSURANCE FUNDS
Franklin Templeton Variable Insurance Products Trust(8)

(1.) The fund is closed to new investors. Existing shareholders and select
retirement plans can continue adding to their accounts.

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

(4.) For investors subject to the alternative minimum tax, a small portion of
fund dividends may be taxable. Distributions of capital gains are generally
taxable.

(5.) The fund invests primarily in insured municipal securities.

(8.) The funds of the Franklin Templeton Variable Insurance Products Trust are
generally available only through insurance company variable contracts.

04/09 Not part of the semiannual report

(FRANKLIN TEMPLETON INVESTMENTS(R) LOGO) One Franklin Parkway
San Mateo, CA 94403-1906

SEMIANNUAL REPORT AND SHAREHOLDER LETTER
FRANKLIN INDIA GROWTH FUND

INVESTMENT MANAGER
Franklin Advisers, Inc.

SUBADVISOR
Franklin Templeton Asset Management (India)
Private Limited

DISTRIBUTOR
Franklin Templeton Distributors, Inc.
(800) DIAL BEN(R)
franklintempleton.com

SHAREHOLDER SERVICES
(800) 632-2301

141 S2009 06/09

ITEM 2. CODE OF ETHICS.

(a) The Registrant has adopted a code of ethics that applies to its principal
executive officers and principal financial and accounting officer.

(d) N/A

(f) Pursuant to Item 12(a)(1), the Registrant is attaching as an exhibit a copy
of its code of ethics that applies to its principal executive officers and
principal financial and accounting officer.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

(a)(1) The Registrant has an audit committee financial expert serving on its
audit committee.

(2) The audit committee financial expert is John B. Wilson and he is
"independent" as defined under the relevant Securities and Exchange Commission
Rules and Releases.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. N/A

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. N/A

ITEM 6. SCHEDULE OF INVESTMENTS. N/A

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES. N/A

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT
COMPANIES. N/A

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS. N/A

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have
been no changes to the procedures by which shareholders may recommend nominees
to the Registrant's Board of Trustees that would require disclosure herein.

ITEM 11. 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 12. EXHIBITS.

(a)(1) Code of Ethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
of Laura F. Fergerson, Chief Executive Officer - Finance and Administration, and
Gaston Gardey, Chief Financial Officer and Chief Accounting Officer

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of
Laura F. Fergerson, Chief Executive Officer - Finance and Administration, and
Gaston Gardy, Chief Financial Officer and Chief Accounting 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/Laura F. Fergerson
------------------
Laura F. Fergerson
Chief Executive Officer - Finance and Administration
Date June 25, 2009

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/Laura F. Fergerson
------------------
Laura F. Fergerson
Chief Executive Officer - Finance and Administration
Date June 25, 2009

By /S/Gaston Gardey
---------------------
Gaston Gardey
Chief Financial Officer and Chief Accounting Officer
Date June 25, 2009