FORM 10-Q

                  SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                (X) QUARTERLY REPORT UNDER SECTION 13 or 15(d)

                    OF THE SECURITIES EXCHANGE ACT OF 1934

              OR ( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d)

                    OF THE SECURITIES EXCHANGE ACT OF 1934


For the Quarter ended March 31, 1997

Commission File Number 0-21588


      SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
            (Exact name of registrant as specified in its charter)


        New York                               13-3616914
(State or other jurisdiction of                       (I.R.S. Employer
 incorporation or organization)                        Identification No.)


                   c/o Smith Barney Futures Management Inc.
                          390 Greenwich St. - 1st. Fl.
                     New York, New York  10013
             (Address and Zip Code of principal executive offices)


                       (212) 723-5424
               (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.
                                    Yes X No


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            SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
                                    FORM 10-Q
                                      INDEX

                                                                    Page
                                                                   Number


PART I - Financial Information:

       Item 1.   Financial Statements:

                 Statement of Financial Condition at
                 March 31, 1997 and December 31, 1996                3

                 Statement of Income and Expenses and
                 Partners' Capital for the Three Months
                 ended March 31, 1997 and 1996                       4

                 Notes to Financial Statements                    5  -  8

       Item 2.   Management's Discussion and Analysis
                 of Financial Condition and Results of
                 Operations                                       9  -  10

PART II - Other Information                                          11



                                      2

<PAGE>

                                     PART I

                          Item 1. Financial Statements


             SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
                        STATEMENT OF FINANCIAL CONDITION



                                                     MARCH 31,      DECEMBER 31,
                                                       1997            1996
                                                    -----------     -----------
                                                    (Unaudited)
ASSETS:

Equity in commodity futures trading account:
  Cash and cash equivalents                         $ 3,639,085     $ 3,525,670

  Net unrealized depreciation on open
    futures contracts                                   (69,677)        (33,306)

                                                    -----------     -----------


                                                      3,569,408       3,492,364

Interest receivable                                      13,112          12,361


                                                    -----------     -----------

                                                    $ 3,582,520     $ 3,504,725

                                                    ===========     ===========


LIABILITIES AND PARTNERS' CAPITAL:

Liabilities:

 Accrued expenses:
  Commissions                                       $    20,898     $    20,444
  Other                                                  33,553          33,891
  Incentive fees                                         46,586          42,819
  Redemptions payable                                    35,665          48,595
                                                    -----------     -----------

Partners' Capital:                                      136,702         145,749
                                                    -----------     -----------

General Partner, 8,000.2096 Unit equivalents
  outstanding in 1997 and 1996                           96,163          91,282
Limited Partners, 278,749.1532 and
  286,344.8991 Units of Limited Partnership
  Interest outstanding in 1997 and 1996,
  respectively                                        3,349,655       3,267,694

                                                    -----------     -----------

                                                      3,445,818       3,358,976

                                                    -----------     -----------

                                                    $ 3,582,520     $ 3,504,725

                                                    ===========     ===========
See Notes to Financial Statements 



                                      3

<PAGE>

             SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
             STATEMENT OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
                                   (UNAUDITED)


                                                    THREE-MONTHS    THREE-MONTHS
                                                       ENDED          ENDED
                                                      MARCH 31,      MARCH 31,
                                                        1997           1996
                                                     -----------    -----------

Income:
  Net gains on trading of commocity futures:
  Realized gains on closed positions                 $   303,094    $    34,302
  Change in unrealized gains/losses on 
    open positions                                       (36,371)       118,493

                                                     -----------    -----------

                                                         266,723        152,795

Less, brokerage commissions and clearing
  fees ($0 and $5,555,  respectively)                    (63,768)       (74,959)
                                                     -----------    -----------

Net realized and unrealized gains                        202,955         77,836
  Interest income                                         36,196         42,935
                                                     -----------    -----------
                                                         239,151        120,771

                                                     -----------    -----------
Expenses:
  Incentive fees                                          46,586
  Other                                                   13,358         16,219
  Organization expense                                    19,954
                                                     -----------    -----------

                                                          59,944         36,173

                                                     -----------    -----------

  Net income                                             179,207         84,598
  Redemptions                                            (92,365)      (685,223)

                                                     -----------    -----------

  Net increase (decrease) in Partners' capital            86,842       (600,625)

Partners' capital, beginning of period                 3,358,976      4,298,391
                                                     -----------    -----------

Partners' capital, end of period                     $ 3,445,818    $ 3,697,766

                                                     ===========    ===========
Net asset value per Unit
  (286,749.3628 and 389,154.9293 Units
  outstanding at March 31, 1997 and
  1996, respectively)                                $     12.02    $      9.50

                                                     ===========    ===========
Net income per Unit of Limited Partnership
   Interest and General Partner Unit equivalent      $      0.61    $      0.20

                                                     ===========    ===========
See Notes to Financial Statements 



                                      4

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             SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 1997
                                   (Unaudited)

1. General:

        Smith  Barney   International   Advisors   Currency   Fund  L.P.,   (the
"Partnership")  is a limited  partnership  which was  organized  on May 29, 1991
under the partnership laws of the State of New York to engage in the speculative
trading of a diversified  portfolio of commodity  interests,  including  futures
contracts options and forward contracts. The commodity interests that are traded
by the  Partnership  are volatile and involve a high degree of market risk.  The
Partnership commenced trading operations on March 12, 1992.

        Smith Barney Futures  Management  Inc. acts as the general  partner (the
"General Partner") of the Partnership. Smith Barney Inc. ("SB"), an affiliate of
the General Partner,  acts as commodity broker for the Partnership.  All trading
decisions for the  Partnership are made by Friedberg  Commodity  Management Inc.
and Trendview Capital Management (collectively, the "Advisors").

        The accompanying  financial statements are unaudited but, in the opinion
of management,  include all  adjustments  (consisting  only of normal  recurring
adjustments)  necessary for a fair presentation of the  Partnership's  financial
condition  at March 31,  1997 and the  results of its  operations  for the three
months ended March 31, 1997 and 1996.  These  financial  statements  present the
results of interim periods and do not include all disclosures  normally provided
in annual financial statements.  It is suggested that these financial statements
be read in conjunction  with the financial  statements and notes included in the
Partnership's  annual report on Form 10-K filed with the Securities and Exchange
Commission for the year ended December 31, 1996.

        Due to the nature of commodity  trading,  the results of operations  for
the interim periods presented should not be considered indicative of the results
that may be expected for the entire year.


                                       5

<PAGE>



             Smith Barney International Advisors Currency Fund L.P.
                          Notes to Financial Statements
                                 March 31, 1997
                                   (Continued)



2.      Net Asset Value Per Unit:

  Changes in net asset value per Unit for the three  months ended March 31, 1997
and 1996 were as follows:

                                                    THREE-MONTHS ENDED
                                                       MARCH 31,
                                                 1997              1996

Net realized and unrealized
 gains                                         $ 0.68            $ 0.18
Interest income                                  0.12              0.10
Expenses                                        (0.19)            (0.08)
                                               -------           -------

Increase for period                              0.61              0.20

Net Asset Value per Unit,
  beginning of period                           11.41              9.30
                                               -------           ------

Net Asset Value per Unit,
  end of period                                $12.02            $ 9.50
                                               =======           ======

3. Trading Activities:

      The  Partnership  was formed for the  purpose  of trading  contracts  in a
variety of commodity interests,  including derivative financial  instruments and
derivative  commodity  instruments.  The  results of the  Partnership's  trading
activity are shown in the statement of income and expenses.

      The  Customer   Agreement   between  the  Partnership  and  SB  gives  the
Partnership the legal right to net unrealized gains and losses.

      All of the  commodity  interests  owned  by the  Partnership  are held for
trading purposes. The fair value of these commodity interests, including options
thereon,  at March 31, 1997 was  $(69,677) and the average fair value during the
three months then ended, based on monthly calculation, was $173,308.



                                      6

<PAGE>



4. Financial Instrument Risk:

      The Partnership is party to financial  instruments with  off-balance sheet
risk,  including  derivative  financial  instruments  and  derivative  commodity
instruments,  in the normal course of its business.  These financial instruments
include forwards,  futures and options,  whose value is based upon an underlying
asset,  index, or reference rate, and generally  represent future commitments to
exchange  currencies  or  cash  flows,  to  purchase  or  sell  other  financial
instruments  at specific  terms at specified  future  dates,  or, in the case of
derivative commodity instruments, to have a reasonable possibility to be settled
in cash or with another financial instrument. These instruments may be traded on
an  exchange  or  over-the-counter  ("OTC").  Exchange  traded  instruments  are
standardized and include futures and certain option contracts. OTC contracts are
negotiated between contracting parties and include forwards and certain options.
Each of these  instruments  is subject to various risks similar to those related
to the underlying  financial  instruments  including  market and credit risk. In
general,  the  risks  associated  with OTC  contracts  are  greater  than  those
associated  with  exchange  traded  instruments  because of the greater  risk of
default by the counter party to an OTC contract.

      Market risk is the  potential  for  changes in the value of the  financial
instruments traded by the Partnership due to market changes,  including interest
and foreign  exchange rate movements and  fluctuations  in commodity or security
prices.  Market risk is directly impacted by the volatility and liquidity in the
markets in which the related underlying assets are traded.

      Credit risk is the possibility that a loss may occur due to the failure of
a counterparty to perform according to the terms of a contract. Credit risk with
respect to exchange traded instruments is reduced to the extent that an exchange
or  clearing  organization  acts  as a  counterparty  to the  transactions.  The
Partnership's  risk of loss in the event of  counterparty  default is  typically
limited to the amounts  recognized in the  statement of financial  condition and
not  represented  by the contract or notional  amounts of the  instruments.  The
Partnership has concentration  risk because the sole counterparty or broker with
respect to the Partnership's assets is SB.

      The  Partnership  engages in the trading of forward  contracts  in foreign
currencies.  In  this  connection,  the  Partnership  contracts  with  SB as the
counterparty  to take future  delivery of a particular  foreign  currency.  In a
forward transaction,  cash settlement does not occur until the agreed upon value
date of the transaction.  The Partnership's  credit risk in the event of counter
party default is typically limited to the amounts recognized in the statement of
financial  condition and not represented by the contract or notional  amounts of
the instruments.

                                      7

<PAGE>




      The General Partner monitors and controls the Partnership's  risk exposure
on a daily  basis  through  financial,  credit  and risk  management  monitoring
systems  and,   accordingly  believes  that  it  has  effective  procedures  for
evaluating and limiting the credit and market risks to which the  Partnership is
subject.  These  monitoring  systems allow the General Partner to  statistically
analyze actual  trading  results with risk adjusted  performance  indicators and
correlation statistics. In addition,  on-line monitoring systems provide account
analysis  of  futures,   forwards  and  options  positions  by  sector,   margin
requirements, gain and loss transactions and collateral positions.

      The  notional  or  contractual  amounts  of these  instruments,  while not
recorded in the financial  statements,  reflect the extent of the  Partnership's
involvement in these instruments. At March 31, 1997, the notional or contractual
amounts of the  Partnership's  commitment to purchase and sell these instruments
was $8,643,896 and  $10,282,811,  respectively,  as detailed below. All of these
instruments mature within one year of March 31, 1997. However, due to the nature
of the Partnership's business, these instruments may not be held to maturity. At
March 31,  1997,  the fair  value of the  Partnership's  derivatives,  including
options thereon, was $(69,677), as detailed below.

                                    NOTIONAL OR CONTRACTUAL
                                     AMOUNT OF COMMITMENTS
                                   TO PURCHASE       TO SELL       FAIR VALUE


Currencies - OTC Contracts           $8,643,896       $10,282,811      $(69,677)
                                     ==========       ===========      =========






                                        8

<PAGE>




Item 2.    Management's Discussion and Analysis of Financial Condition
           and Results of Operations

Liquidity and Capital Resources

      The Partnership does not engage in the sale of goods or services. Its only
assets are its equity in its commodity  futures trading  account,  consisting of
cash and cash equivalents,  net unrealized  appreciation  (depreciation) on open
futures and forward contracts and interest receivable. Because of the low margin
deposits normally required in commodity futures trading,  relatively small price
movements may result in substantial losses to the Partnership. While substantial
losses  could lead to a decrease in  liquidity,  no such losses  occurred in the
first quarter of 1997.

      The  Partnership's  capital  consists of the capital  contributions of the
partners as  increased  or  decreased  by gains or losses on  commodity  futures
trading,  expenses,  interest  income,  redemptions  and  additions of Units and
distributions of profits, if any.

      For the three months ended March 31, 1997,  Partnership  capital increased
2.6% from $3,358,976 to $3,445,818. This increase was attributable to net income
from  operations  of $179,207  which was partially  offset by the  redemption of
7,595.7459  Units  totaling  $92,365 for the three  months ended March 31, 1997.
Future  redemptions  can impact the amount of funds available for investments in
commodity contract positions in subsequent periods.

Results of Operations

      During the  Partnership's  first quarter of 1997,  the net asset value per
Unit increased 5.3% from $11.41 to $12.02, as compared to an increase of 2.2% in
the first quarter of 1996. The Partnership experienced a net trading gain before
commissions  and expenses in the first quarter of 1997 of $266,723.  These gains
were  primarily  recognized  in the trading of Japanese Yen and Italian Lira and
were  partially  offset by  losses  in Pound  Sterling  and  Swiss  Francs.  The
Partnership  experienced a net trading gain before  commissions  and expenses in
the first  quarter  of 1996 of  $152,795.  These  gains were  recognized  in the
trading of Japanese Yen, Deutsche Mark,  Australian  Dollar,  New Zealand Dollar
and Swedish Krona and were  partially  offset by losses in Swiss  Francs,  Pound
Sterling, Italian Lira and Czech Koruna.

      Commodity  futures markets are highly volatile.  Broad price  fluctuations
and rapid inflation increase the risks involved in commodity  trading,  but also
increase the possibility of profit. The profitability of the Partnership depends
on the  existence  of major  price  trends and the  ability of the  Advisors  to
identify  correctly  those price trends.  Price trends are  influenced by, among
other

                                        9

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things,  changing  supply  and  demand  relationships,   weather,  governmental,
agricultural,   commercial  and  trade  programs  and  policies,   national  and
international  political and economic  events and changes in interest  rates. To
the extent that market trends exist and the Advisors are able to identify  them,
the Partnership expects to increase capital through operations.

      Interest  income on 85% of the  Partnership's  daily equity  maintained in
cash was  earned at the  monthly  average  13-week  U.S.  Treasury  bill  yield.
Interest income for the three months ended March 31, 1997 decreased by $6,739 as
compared to the corresponding  period in 1996. This decrease is primarily due to
the effect of redemptions on the  Partnership's  equity maintained in cash which
was  partially  offset by an increase in interest  rates during the three months
ended March 31, 1997 as compared to 1996.

      Brokerage  commissions  are  calculated on the adjusted net asset value on
the last day of each month and, therefore, vary according to trading performance
and  redemptions.  Accordingly,  they  must  be  compared  in  relation  to  the
fluctuations in the monthly net asset values.  Commissions and clearing fees for
the three  months  ended March 31, 1997  decreased by $11,191 as compared to the
corresponding period in 1996.

      Incentive  fees are based on the new  trading  profits  generated  by each
Advisor as defined in the  advisory  agreements  between  the  Partnership,  the
General Partner and each Advisor. Trading performance for the three months ended
March  31,  1997  and  1996  resulted  in  incentive  fees  of  $46,586  and $0,
respectively.

                                       10

<PAGE>



                            PART II OTHER INFORMATION

Item 1.      Legal Proceedings - None

Item 2.      Changes in Securities - None

Item 3.      Defaults Upon Senior Securities - None

Item 4.      Submission of Matters to a Vote of Security Holders - None

Item 5.      Other Information - None

Item 6.      (a) Exhibits - None

             (b) Reports on Form 8-K - None


                                       11

<PAGE>







                                   SIGNATURES
  
        Pursuant to the  requirements  of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.


By:     Smith Barney Futures Management Inc.
  (General Partner)

By:     /s/ David J. Vogel, President
  David J. Vogel, President

Date:   5/12/97


        Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,
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:     Smith Barney Futures Management Inc.
       (General Partner)


By:     /s/ David J. Vogel, President
        David J. Vogel, President


Date:   5/12/97

By     /s/ Daniel A. Dantuono
       Daniel A. Dantuono
       Chief Financial Officer and
       Director

Date:  5/12/97


                                       12