- (40-17F2)

U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-17F-2

CERTIFICATE OF ACCOUNTING OF SECURITIES AND SIMILAR INVESTMENTS IN THE
CUSTODY OF MANAGEMENT INVESTMENT COMPANIES

PURSUANT TO RULE N-17F-2

1. Investment Company Act File Number: 811- 08788

Date Examination completed: April 23, 2008

2. State Identification Number:

AL AK AZ AR CA CO
CT DE DC FL GA HI
ID IL IN IA KS KY
LA ME MD MA MI MN
MS MO MT NE NV NH
NJ NM NY NC ND OH
OK OR PA RI SC SD
TN TX UT VT VA WA
WV WI WY PUERTO RICO

3. Exact name of investment company as specified in registration statement:

TEMPLETON RUSSIA AND EAST EUROPEAN FUND, INC.

4. Address of principal executive office: (number, street, city, state, zip code)

One Franklin Parkway San Mateo, CA 94403

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of

Franklin Templeton Limited Duration Income Trust

Templeton Global Investment Trust

Templeton Russia and East European Fund, Inc.

Franklin Real Estate Securities Trust

Franklin Strategic Series

Franklin High Income Trust

Franklin Capital Growth Fund

Franklin Templeton Money Fund Trust

Institutional Fiduciary Trust

Franklin Global Trust

Franklin Gold and Precious Metals Fund

Franklin Universal Trust

Templeton Emerging Markets Fund

Templeton Emerging Markets Income Fund

Templeton Global Income Fund

Templeton Income Trust

Franklin Strategic Mortgage Portfolio

Franklin Investors Securities Trust

Franklin Templeton International Trust

Franklin Value Investors Trust

Franklin Templeton Fund Allocator Series

Franklin Templeton Variable Insurance Products Trust

and the Board of Directors of

Franklin Money Fund

Franklin Custodian Funds, Inc.

Templeton Dragon Fund, Inc.

Templeton Institutional Funds, Inc.

We have examined management's assertion, included in the accompanying Management Statement Regarding Compliance with Certain Provisions of the Investment Company Act of 1940, that the funds (see Attachment I) (hereafter referred to as the “Funds”) complied with the requirements of subsections (b) and (c) of Rule 17f-2 under the Investment Company Act of 1940 (“the Act”) as of February 29, 2008. Management is responsible for the Funds' compliance with those requirements. Our responsibility is to express an opinion on management's assertion about the Funds' compliance based on our examination.

Our examination was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included examining, on a test basis, evidence about the Funds' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. Included among our procedures were the following tests performed as of February 29, 2008, and with respect to agreement of security purchases and sales, for the period indicated in Attachment I:

Confirmation of all securities held by Franklin Templeton Investors Services, Inc. as they pertain to the security positions owned by the Funds and held in book entry form.

Reconciliation of such security positions to the books and records of the Funds and Franklin Templeton Investor Services, Inc.

Agreement of 108 security purchases and 108 security sales or maturities, since our last report, to the books and records of the Funds and Franklin Templeton Investor Services, Inc.

We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Funds' compliance with specified requirements.

In our opinion, management's assertion that the Funds were in compliance with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of February 29, 2008 with respect to securities reflected in the investment accounts of the Funds is fairly stated, in all material respects.

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

/s/ PricewaterhouseCoopers, LLP

San Francisco, California

April 23, 2008

Management Statement Regarding Compliance With Certain
Provisions of the Investment Company Act of 1940

We, as members of management of the Franklin Templeton Funds indicated in Attachment I (the “Funds”), are responsible for complying with the requirements of subsections (b) and (c) of Rule 17f-2, “Custody of Investments by Registered Management Investment Companies,” of the Investment Company Act of 1940. We are also responsible for establishing and maintaining effective internal controls over compliance with those requirements. We have performed an evaluation of the Funds’ compliance with the requirements of subsection (b) of Rule 17f-2, as interpreted in Franklin Investors Securities Trust SEC No-Action Letter (publicly available September 24, 1992), and subsection (c) of Rule 17f-2 of the Investment Company Act of 1940, as of February 29, 2008, and for the period indicated in Attachment I.

Based on this evaluation, we assert that the Funds were in compliance with the requirements of subsection (b) of Rule 17f-2, as interpreted in Franklin Investors Securities Trust SEC No-Action Letter (publicly available September 24, 1992), and subsection (c) of Rule 17f-2 of the Investment Company Act of 1940, as of February 29, 2008, and for the period indicated in Attachment I, with respect to securities reflected in the investment accounts of the Funds.

By:

/s/ Galen G. Vetter

Galen G. Vetter

Chief Executive Officer - Finance and Administration

4/23/08

Date

/s/ Laura F. Fergerson

Laura F. Fergerson

Chief Financial Officer and Chief Accounting Officer

4/23/08

Date

Attachment I

Fund Period

*Franklin Templeton Limited Duration Income Trust*		Nov. 1, 2007 - Feb. 29, 2008

*Templeton Global Investment Trust:*
	Templeton Income Fund		Nov. 1, 2007 - Feb. 29, 2008

*Templeton Russia and East European Fund, Inc.*		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Real Estate Securities Trust:*
	Franklin Real Estate Securities Fund		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Strategic Series:*
	Franklin Biotechnology Discovery Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Flex Cap Growth Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Focused Core Equity Fund		**Dec. 13, 2007 - Feb. 29, 2008
	Franklin Global Communications Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Global Health Care Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Growth Opportunities Fund*		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Natural Resources Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Small Cap Growth Fund II		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Small-Mid Cap Growth Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Strategic Income Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Technology Fund		Nov. 1, 2007 - Feb. 29, 2008

*Franklin High Income Trust:*
	Franklin High Income Fund		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Capital Growth Fund*		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Money Fund*		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Templeton Money Fund Trust:*
	Franklin Templeton Money Fund		Nov. 1, 2007 - Feb. 29, 2008

*Institutional Fiduciary Trust:*
	Franklin Cash Reserves Fund		Nov. 1, 2007 - Feb. 29, 2008
	Money Market Portfolio		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Global Trust:*
	Fiduciary Large Capitalization Growth and Income Fund		Nov. 1, 2007 - Feb. 29, 2008
	Fiduciary Small Capitalization Equity Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton Core Fixed Income Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton Core Plus Fixed Income Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton Emerging Market Debt Opportunities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton High Income Fund		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Gold and Precious Metals Fund*		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Universal Trust*		Nov. 1, 2007 - Feb. 29, 2008

*Templeton Emerging Markets Fund*		Nov. 1, 2007 - Feb. 29, 2008

*Templeton Emerging Markets Income Fund*		Nov. 1, 2007 - Feb. 29, 2008

*Templeton Global Income Fund*		Nov. 1, 2007 - Feb. 29, 2008

*Templeton Income Trust:*
	Templeton International Bond Fund		**Dec. 3, 2007 - Feb. 29, 2008

*Franklin Custodian Funds, Inc.:*
	Franklin DynaTech Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Growth Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Income Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin U.S. Government Securities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Utilities Fund		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Strategic Mortgage Portfolio*		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Investors Securities Trust:*
	Franklin Adjustable U.S. Government Securities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Balanced Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Convertible Securities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Equity Income Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Floating Rate Daily Access Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Limited Maturity U.S. Government Securities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Low Duration Total Return Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Total Return Fund		Nov. 1, 2007 - Feb. 29, 2008

*Franklin* *Templeton International* *Trust:*
	Franklin India Growth Fund		**Jan. 31, 2008 - Feb. 29, 2008

*Franklin Value Investors Trust:*
	Franklin All Cap Value Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Balance Sheet Investment Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Large Cap Value Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin MicroCap Value Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin MidCap Value Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Small Cap Value Fund		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Templeton Fund Allocator Series:*
	Franklin Templeton 2015 Retirement Target Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton 2025 Retirement Target Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton 2035 Retirement Target Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton 2045 Retirement Target Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton Conservative Target Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton Corefolio Allocation Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton Founding Funds Allocation Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton Growth Target Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton Moderate Target Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Templeton Perspectives Allocation Fund		Nov. 1, 2007 - Feb. 29, 2008

*Franklin Templeton Variable Insurance Products Trust:*
	Franklin Flex Cap Growth Securities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Founding Funds Allocation Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Large Cap Value Securities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Rising Dividends Securities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Small Cap Value Securities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Small-Mid Cap Growth Securities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Franklin Strategic Income Securities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Templeton Foreign Securities Fund		Nov. 1, 2007 - Feb. 29, 2008
	Templeton Global Asset Allocation Fund		Nov. 1, 2007 - Feb. 29, 2008

*Templeton Dragon Fund, Inc.*		Nov. 1, 2007 - Feb. 29, 2008

*Templeton Institutional Funds, Inc.:*
	Foreign Equity Series		N ov. 1, 2007 - Feb. 29, 2008