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 September 30, 1996

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


<PAGE>



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

                                                                     Page
                                                                    Number


PART I - Financial Information:

       Item 1.   Financial Statements:

                 Statements of Financial Condition at
                 September 30, 1996 and December 31, 1995            3

                 Statements of Income and Expenses and
                 Partners' Capital for the Three and Nine
                 Months ended September 30, 1996 and 1995            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.
                        STATEMENTS OF FINANCIAL CONDITION



                                                     SEPTEMBER 30,  DECEMBER 31,
                                                        1996          1995
                                                     -----------   -----------
                                                    (Unaudited)
ASSETS

Equity in commodity futures trading account:
Cash and cash equivalents                            $ 3,264,852    $ 6,912,939

Net unrealized appreciation (depreciation)
on open futures contracts                                164,975        (22,990)

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


                                                       3,429,827      6,889,949

Interest receivable                                       11,495         25,911
Other assets                                                             19,853

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

                                                     $ 3,441,322    $ 6,935,713

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


LIABILITIES AND PARTNERS' CAPITAL

Liabilities:

Accrued expenses:
Commissions                                          $    20,074    $    40,342
Other                                                     42,675         44,133
Redemptions payable                                      103,047      2,513,653
Incentive fee                                             38,286              -
Due to Smith Barney                                                      39,194
                                                     -----------    -----------

                                                         204,082      2,637,322
                                                     -----------    -----------

Partners' Capital
General Partner, 8,000.2096 Unit equivalents
outstanding in 1996 and 1995                              84,882         74,402
Limited Partners, 297,151.1546 and
454,095.3092 Units of Limited Partnership
Interest outstanding in 1996 and 1995,
respectively                                           3,152,358      4,223,989

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

                                                       3,237,240      4,298,391

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

                                                     $ 3,441,322    $ 6,935,713

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

See Notes to Financial Statements.





                                      3

<PAGE>                                       
             SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
             STATEMENTS OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
                                   (UNAUDITED)



<TABLE>
<CAPTION>

                                                       THREE-MONTHS ENDED                 NINE-MONTHS ENDED
                                                           SEPTEMBER 30,                    SEPTEMBER 30,

                                                   ------------    ------------    ------------    ------------
                                                         1996            1995            1996            1995

                                                   ------------    ------------    ------------    ------------
<S>                                                      <C>            <C>             <C>             <C>

Income:
Net gains (losses) on trading of
commodity futures:
Realized gains on closed positions                 $    246,259    $    744,619    $    474,137    $  1,257,352
Change in unrealized gains /losses on
open positions                                          (13,775)       (405,121)        187,965        (501,180)

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

                                                        232,484         339,498         662,102         756,172
Less, brokerage commissions and clearing
fees ($48, $1,228, $934, and $8,748,
respectively)                                           (60,272)       (165,187)       (200,382)       (560,510)
                                                   ------------    ------------    ------------    ------------

Net realized and unrealized gains                       172,212         174,311         461,720         195,662
Interest income                                          35,404         107,338         115,587         373,073

                                                   ------------    ------------    ------------    ------------
                                                        207,616         281,649         577,307         568,735

                                                   ------------    ------------    ------------    ------------
Expenses:
Incentive fees                                           38,286          68,346          41,086         130,186
Other                                                    16,467          28,172          48,213         122,071
Organization expense and filing fees                          -          56,868          19,954         160,158
                                                   ------------    ------------    ------------    ------------

                                                         54,753         153,386         109,253         412,415

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

Net income                                              152,863         128,263         468,054         156,320
Redemptions                                            (332,541)     (1,079,628)     (1,529,205)     (3,695,096)
Additions                                                     -               -               -          24,500

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

Net decrease in Partners' capital                      (179,678)       (951,365)     (1,061,151)     (3,514,276)

Partners' capital, beginning of period                3,416,918       9,298,958       4,298,391      11,861,869

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

Partners' capital, end of period                   $  3,237,240    $  8,347,593    $  3,237,240    $  8,347,593

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

Net Asset Value per Unit
(305,151.3642 and 839,353.1199 Units
outstanding at September 30, 1996 and 1995,
respectively)                                      $      10.61    $       9.94    $      10.61    $       9.94

                                                   ============    ============    ============    ============
Net income per Unit of Limited Partnership
Interest and General Partnership Unit equivalent   $       0.48    $       0.13    $       1.31    $       0.15

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

See Notes to Financial Statements.





                                      4

<PAGE>




             SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   (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 commodity  interests,  including  forward  contracts,  commodity  options and
commodity futures contracts on foreign currencies.  The commodity interests that
are traded by the  Partnership  are volatile and involve a high degree of market
risk. The Partnership commenced trading 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 Management Inc. (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 September 30, 1996 and the results of its  operations for the three
and nine months ended September 30, 1996 and 1995.  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, 1995.

     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
                               September 30, 1996
                                   (Continued)



2.   Net Asset Value Per Unit:

     Changes  in net asset  value per Unit for the three and nine  months  ended
September 30, 1996 and 1995 were as follows:

                                      THREE-MONTHS ENDED      NINE-MONTHS ENDED
                                         SEPTEMBER 30,          SEPTEMBER 30,
                                         1996        1995       1996       1995

Net realized and unrealized
 gains                                 $ 0.54      $ 0.19     $ 1.29     $ 0.20
Interest income                          0.11        0.12       0.31       0.35
Expenses                                (0.17)      (0.18)     (0.29)     (0.40)
                                       ------      ------     ------     ------

Increase for period                      0.48        0.13       1.31       0.15

Net Asset Value per Unit,
  beginning of period                   10.13        9.81       9.30       9.79
                                       ------      ------     ------     ------

Net Asset Value per Unit,
  end of period                        $10.61      $ 9.94     $10.61     $ 9.94
                                       ======      ======     ======     ======


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
activities are shown in the statements 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  September  30, 1996 was $164,975 and the average fair value during
the nine months then ended, based on monthly calculation, was $143,599.



                                      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

                                      7

<PAGE>



amounts  of  the   instruments.   At  September  30,  1996  the  net  unrealized
appreciation for off-exchange traded forward currency contracts was $164,975.

      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  September  30,  1996,  the  notional or
contractual  amounts of the Partnership's  commitment to purchase and sell these
instruments was $25,267,103 and  $27,312,962,  respectively,  as detailed below.
All of these instruments mature within one year of September 30, 1996.  However,
due to the nature of the  Partnership's  business,  these instruments may not be
held to maturity.  At September 30, 1996,  the  Partnership  had net  unrealized
trading gains of $164,975, as detailed below.

                                    NOTIONAL OR CONTRACTUAL            NET
                                     AMOUNT OF COMMITMENTS          UNREALIZED
                                   TO PURCHASE     TO SELL             GAIN


Currencies - OTC Contracts          $25,267,103      $27,312,962      $164,975
                                    -----------      -----------      --------

                                    $25,267,103      $27,312,962      $164,975
                                    ===========      ===========      ========




                                        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
third quarter of 1996.

      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  nine  months  ended  September  30,  1996,  Partnership  capital
decreased 24.7% from $4,298,391 to $3,237,240. This decrease was attributable to
the redemption of  156,944.1546  Units totaling  $1,529,205  which was partially
offset by net income  from  operations  of $468,054  for the nine  months  ended
September 30, 1996. 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  third quarter of 1996,  the net asset value per
Unit increased 4.7% from $10.13 to $10.61, as compared to an increase of 1.3% in
the third quarter of 1995. The Partnership experienced a net trading gain before
commissions and expenses in the third quarter of 1996 of $232,484  recognized in
the  trading  of  major,  minor  and  exotic  forward  currency  contracts.  The
Partnership  experienced a net trading gain before  commissions  and expenses in
the third quarter of 1995 of $339,498.  Gains were  recognized in the trading of
major  and  exotic  currencies  and were  partially  offset  by  losses in minor
currencies.

      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 things, changing supply and demand relationships,  weather,  governmental,
agricultural,   commercial  and  trade  programs  and  policies,   national  and
international political and economic events

                                        9

<PAGE>



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 nine months ended September 30, 1996 decreased
by $71,934 and $257,486,  respectively, as compared to the corresponding periods
in 1995.  These  decreases are primarily due to the effect of redemptions on the
Partnership's  equity maintained in cash as well as a decrease in interest rates
in 1996 as compared to 1995.

      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 nine months  ended  September  30, 1996  decreased by $104,915 and
$360,128, respectively, as compared to the corresponding periods in 1995.

      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 nine
months ended  September  30, 1996  resulted in a decrease in  incentive  fees of
$30,060 and $89,100,  respectively,  as compared to the corresponding periods in
1995.

                                       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  BARNEYINTERNATIONAL ADVISORS CURRENCY FUND L.P.


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


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

Date:    11/11/96

    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:    11/11/96



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

Date:    11/11/96


                                       12

<PAGE>