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 June 30, 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
                 June 30, 1997 and December 31, 1996                 3

                 Statement of Income and Expenses and
                 Partners' Capital for the Three and
                 Six Months ended June 30, 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



                                                      JUNE 30,     DECEMBER 31,
                                                       1997            1996
                                                    -----------     -----------
                                                    (Unaudited)


Equity in commodity futures trading account:
  Cash and cash equivalents                         $ 3,202,667     $ 3,525,670

  Net unrealized depreciation
    on open futures contracts                          (134,341)        (33,306)

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


                                                      3,068,326       3,492,364

Interest receivable                                      11,599          12,361


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

                                                    $ 3,079,925     $ 3,504,725

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


LIABILITIES AND PARTNERS' CAPITAL:

Liabilities:

 Accrued expenses:
  Commissions                                       $    17,967     $    20,444
  Other                                                  27,713          33,891
  Incentive fees                                              -          42,819
  Redemptions payable                                    82,874          48,595
                                                    -----------     -----------


Partners' Capital:                                      128,554         145,749
                                                    -----------     -----------

General Partner, 8,000.2096 Unit equivalents
  outstanding in 1997 and 1996                           86,802          91,282
Limited Partners, 264,053.1830 and
  286,344.8991 Units of Limited Partnership
  Interest outstanding in 1997 and 1996,
  respectively                                        2,864,569       3,267,694

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

                                                      2,951,371       3,358,976

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

                                                    $ 3,079,925     $ 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)


<TABLE>
<CAPTION>

                                                                  THREE-MONTHS      THREE-MONTHS      SIX-MONTHS        SIX- MONTHS
                                                                      ENDED            ENDED            ENDED             ENDED
                                                                     JUNE 30,         JUNE 30,         JUNE 30,          JUNE 30,
                                                                      1997              1996             1997              1996
                                                                  -----------       -----------       -----------       -----------
<S>                                                                    <C>              <C>               <C>                <C>  

Income:
  Net gains (losses) on trading of
   commodity futures:
  Realized gains (losses) on closed positions                     $  (233,115)      $   193,576       $    69,979       $   227,878
  Change in unrealized gains /losses on
   open positions                                                     (64,664)           83,247          (101,035)          201,740
                                                                  -----------       -----------       -----------       -----------

                                                                     (297,779)          276,823           (31,056)          429,618
Less, brokerage commissions and clearing
  fees ($0, $304, $0  and $886, respectively)                         (57,326)          (65,151)         (121,094)         (140,110)
                                                                  -----------       -----------       -----------       -----------


  Net realized and unrealized gains (losses)                         (355,105)          211,672          (152,150)          289,508
  Interest income                                                      37,114            37,248            73,310            80,183
                                                                  -----------       -----------       -----------       -----------

                                                                     (317,991)          248,920           (78,840)          369,691


Expenses:
  Incentive fees                                                            -             2,800            46,586             2,800
  Other                                                                10,816            15,527            24,174            31,746
  Organization expense and filing fees                                      -                 -                 -            19,954
                                                                  -----------       -----------       -----------       -----------

                                                                       10,816            18,327            70,760            54,500

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

  Net income (loss)                                                  (328,807)          230,593          (149,600)          315,191
  Redemptions                                                        (165,640)         (511,441)         (258,005)       (1,196,664)
                                                                  -----------       -----------       -----------       -----------

  Net decrease in Partners' capital                                  (494,447)         (280,848)         (407,605)         (881,473)


Partners' capital, beginning of period                              3,445,818         3,697,766         3,358,976         4,298,391
                                                                  -----------       -----------       -----------       -----------

Partners' capital, end of period                                  $ 2,951,371       $ 3,416,918       $ 2,951,371       $ 3,416,918

                                                                  ===========       ===========       ===========       ===========
Net asset value per Unit
    (272,053.39and 337,239.6780 Units
    outstanding at June 30, 1997 and
    1996 , respectively)                                          $     10.85       $     10.13       $     10.85       $     10.13

                                                                  ===========       ===========       ===========       ===========
Net income (loss) per Unit of Limited Partnership
    Interest and General Partnership Unit equivalent              $     (1.17)      $      0.63       $     (0.56)      $      0.83

                                                                  ===========       ===========       ===========       ===========
</TABLE>

See Notes to Financial Statements.




                                      4

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             SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 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 June 30, 1997 and the results of its  operations  for the three and
six months ended June 30, 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
                                  June 30, 1997
                                   (Continued)



2.      Net Asset Value Per Unit:

  Changes in net asset  value per Unit for the three and six  months  ended June
30, 1997 and 1996 were as follows:

                                      THREE-MONTHS ENDED    SIX-MONTHS ENDED
                                           JUNE  30,             JUNE 30,
                                       1997        1996      1997        1996

Net realized and unrealized
 gains (losses)                     $   (1.26) $    0.57  $   (0.58) $    0.75
Interest income                          0.13       0.10       0.26       0.20
Expenses                                (0.04)     (0.04)     (0.24)     (0.12)
                                    ---------- ---------- ---------- ----------

Increase (decrease) for
 period                                 (1.17)      0.63      (0.56)      0.83

Net Asset Value per Unit,
  beginning of period                   12.02       9.50      11.41       9.30
                                    ---------- ---------- ---------- ----------

Net Asset Value per Unit,
  end of period                     $   10.85  $   10.13  $   10.85  $   10.13
                                    ========== ========== ========== ==========


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 June 30, 1997 was  $(134,341) and the average fair value during the
three months then ended, based on monthly calculation, was $23,719.



                                        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 June 30, 1997, the notional or contractual
amounts of the  Partnership's  commitment to purchase and sell these instruments
was $15,649,205 and $19,489,884,  respectively,  as detailed below. All of these
instruments mature within one year of June 30, 1997. However,  due to the nature
of the Partnership's business, these instruments may not be held to maturity. At
June 30,  1997,  the  fair  value of the  Partnership's  derivatives,  including
options thereon, was $(134,341), as detailed below.

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


Currencies - OTC Contracts          $15,649,205       $19,489,884     $(134,341)
                                    ===========       ===========     ==========






                                        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
second 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 six months  ended June 30,  1997,  Partnership  capital  decreased
12.1% from $3,358,976 to $2,951,371.  This decrease was attributable to net loss
from  operations of $149,600  coupled with the redemption of  22,291.7161  Units
totaling $258,005 for the six months ended June 30, 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  second quarter of 1997, the net asset value per
Unit decreased 9.7% from $12.02 to $10.85, as compared to an increase of 6.6% in
the second  quarter of 1996.  The  Partnership  experienced  a net trading  loss
before commissions and expenses in the second quarter of 1997 of $297,779. These
losses were primarily  recognized in the trading of Deutsche Mark, Japanese Yen,
Swiss Francs,  Spanish  Peseta,  New Zealand  Dollar,  and Italian Lira and were
partially offset by gains in Pound Sterling,  Canadian Dollar, Australian Dollar
and  Norwegian  Krone.  The  Partnership  experienced  a net trading gain before
commissions and expenses in the second quarter of 1996 of $276,823.  These gains
were recognized in the trading of Deutsche Mark,  Japanese Yen,  Spanish Peseta,
Australian  Dollar,  New Zealand  Dollar,  and Italian  Lira and were  partially
offset by losses in Pound Sterling, Canadian Dollar and Czech Korona.

      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

                                        9

<PAGE>



those price trends. Price trends are influenced by, among other 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 and six months  ended June 30, 1997  decreased by
$134 and $6,873, respectively, as compared to the corresponding periods 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 the
13-week U.S. Treasury bill yield.

      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 and six months  ended June 30, 1997  decreased  by $7,825 and $19,016,
respectively, as compared to the corresponding periods 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 and six
months  ended  June 30,  1997  resulted  in  incentive  fees of $0 and  $46,586,
respectively.  Trading  performance  for the three and six months ended June 30,
1996 resulted in incentive fees of $2,800.

                                       10

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                            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:    8/13/97

        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:    8/13/97


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

Date:    8/13/97



                                       12

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