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, 1998

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:

                         Statement of Financial Condition at
                         September 30, 1998 and December 31,
                         1997                                            3

                         Statement of Income and Expenses
                         and Partners' Capital for the three
                         and nine months ended September 30,
                         1998 and 1997                                   4

                         Notes to Financial Statements                 5 - 8

           Item 2.       Management's Discussion and Analysis
                         of Financial Condition and Results of
                         Operations                                    9 - 11

          Item 3.        Quantitative and Qualitative Disclosures
                         of Market Risk                                  12

PART II - Other Information                                           13 - 14


                                    2

<PAGE>



                                     PART I

                          Item 1. Financial Statements


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

<TABLE>
<CAPTION>

                                                     SEPTEMBER 30,    CEMBER 31,
                                                          1998            1997
                                                     ------------    -----------
                                                     (Unaudited)
<S>                                                         <C>           <C>

ASSETS:
Equity in commodity futures trading account:
  Cash and cash equivalents                            $3,393,468     $3,143,740

  Net unrealized appreciation
    on open futures contracts                             124,870        462,188

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


                                                        3,518,338      3,605,928

Interest receivable                                        10,804         11,501

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

                                                       $3,529,142     $3,617,429

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


LIABILITIES AND PARTNERS' CAPITAL:

Liabilities:

 Accrued expenses:
  Commissions                                          $   20,461     $   21,027
  Incentive fees                                           19,100         54,882
  Other                                                    21,567         27,954
 Redemptions payable                                       86,700         19,439
 Commodity options written, at market value
 (premiums received $16,800 in 1997)                         --           12,775

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

Partners' Capital:                                        147,828        136,077
                                                       ----------     ----------

General Partner, 8,000.2096 Unit equivalents
  outstanding in 1998 and 1997                            115,603        108,162
Limited Partners, 226,051.7165 and
  249,401.2878 Units of Limited Partnership
  Interest outstanding in 1998 and 1997,
  respectively                                          3,265,711      3,373,190
                                                       ----------     ----------

                                                        3,381,314      3,481,352
                                                       ----------     ----------

                                                       $3,529,142     $3,617,429

                                                       ==========     ==========
</TABLE>
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 ENDED                  NINE MONTHS ENDED
                                                       SEMPTEMBER 30,                    SEPTEMBER 30,
                                                    -------------   ------------   ------------   ------------
                                                           1998            1997         1998             1997

                                                    -------------   ------------   ------------   ------------
<S>                                                     <C>                 <C>        <C>             <C>
Income:
  Net gains (losses) on trading of commodity
   futures:
  Realized gains  on closed positions                $   273,094    $   220,937    $   715,273    $   290,916
  Change in unrealized gains/losses on open
   positions                                             (91,005)       100,198       (341,343)          (837)

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

                                                         182,089        321,135        373,930        290,079
Less, brokerage commissions and clearing fees
  ($32, $0, $37 and $0,  respectively)                   (62,287)       (57,562)      (186,716)      (178,656)

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

  Net realized and unrealized gains                      119,802        263,573        187,214        111,423
  Interest income                                         34,011         34,110        105,171        107,420

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

                                                         153,813        297,683        292,385        218,843

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

Expenses:
  Incentive fees                                          19,100         41,654         33,083         88,240
  Other                                                    9,084          6,678         28,217         30,852

                                                     -----------    -----------    -----------    -----------
                                                          28,184         48,332         61,300        119,092

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

  Net income                                             125,629        249,351        231,085         99,751
  Redemptions                                           (123,383)      (111,275)      (331,123)      (369,280)

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

  Net increase (decrease) in Partners' capital             2,246        138,076       (100,038)      (269,529)

Partners' capital, beginning of period                 3,379,068      2,951,371      3,481,352      3,358,976

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

Partners' capital, end of period                     $ 3,381,314    $ 3,089,447    $ 3,381,314    $ 3,089,447
                                                     -----------    -----------    -----------    -----------

Net asset value per Unit
  (234,051.9261 and 262,626.9097 Units outstanding
  at September 30, 1998 and 1997, respectively)      $     14.45    $     11.76    $     14.45    $     11.76
                                                     -----------    -----------    -----------    -----------


Net income per Unit of Limited Partnership
  Interest and General Partner Unit equivalent       $      0.52    $      0.91    $      0.93    $      0.35
                                                     -----------    -----------    -----------    -----------
</TABLE>


See Notes to Financial Statements
                                                       4
<PAGE>




             SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 1998
                                   (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.  On September 1, 1998, the Partnership's
commodity  broker,  Smith  Barney  Inc.,  merged with  Salomon  Brothers Inc and
changed its name to Salomon  Smith Barney Inc.  ("SSB").  SSB is an affiliate of
the General Partner. The General Partner is wholly owned by Salomon Smith Barney
Holdings Inc.  ("SSBH"),  which is the sole owner of SSB. SSBH is a wholly owned
subsidiary of Travelers Group Inc. All trading decisions for the Partnership are
made by Friedberg  Commodity  Management Inc. and Trendview  Capital  Management
(collectively, the "Advisors"). (see Note 5)

           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, 1998 and the results of its operations for
the three and nine months ended  September  30, 1998 and 1997.  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, 1997.

           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, 1998
                                   (continued)

2.         Net Asset Value Per Unit:

         Changes in net asset value per Unit for the three and nine months ended
September 30, 1998 and 1997 were as follows:

                                THREE-MONTHS ENDED  NINE-MONTHS ENDED
                                   SEPTEMBER 30,      SEPTEMBER 30,
                                 1998      1997      1998        1997

Net realized and unrealized
 gains                         $ 0.50    $ 0.97    $ 0.75     $0.39
Interest income                  0.15      0.13      0.44      0.38
Expenses                        (0.13)    (0.19)    (0.26)    (0.42)
                                ------    ------    ------   ------

Increase for period              0.52       .91      0.93       .35

Net Asset Value per Unit,
 beginning of period            13.93     10.85     13.52     11.41
                                ------    ------    ------   ------

Net Asset Value per Unit,
 end of period                 $14.45    $11.76    $14.45    $11.76
                               ======    ======    ======    ======

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 SSB  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, 1998 and December 31, 1997 was $124,870 and $449,413,
respectively,  and the average fair value during the nine and twelve months then
ended, based on monthly calculation, was $205,142 and $93,357, respectively.

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

                                 6

<PAGE>



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 counterparty 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 SSB.

         The Partnership  engages in the trading of forward contracts in foreign
currencies.  In this  connection,  the  Partnership  contracts  with  SSB 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
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 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

                                 7

<PAGE>



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,  1998,  the  notional or
contractual  amounts of the Partnership's  commitment to purchase and sell these
instruments was $17,055,826 and  $14,431,978,  respectively,  as detailed below.
All of these instruments mature within one year of September 30, 1998.  However,
due to the nature of the  Partnership's  business,  these instruments may not be
held to maturity.  At September  30, 1998,  the fair value of the  Partnership's
derivatives, including options thereon, was $124,870, as detailed below.

                               SEPTEMBER 30, 1998
                             NOTIONAL OR CONTRACTUAL
                              AMOUNT OF COMMITMENTS
                            TO PURCHASE       TO SELL     FAIR VALUE

Currencies:
- OTC Contracts              $17,055,826   $14,192,978   $   110,870
- Exchange Traded Contract          --         539,000        14,000
                             -----------   -----------   -----------

Totals                       $17,055,826   $14,731,978   $   124,870
                             ===========   ===========   ===========

         At  December  31,  1997,  the  notional or  contractual  amounts of the
Partnership's  commitment to purchase and sell these  instruments was $8,492,956
and  $16,663,901,   respectively,  and  the  fair  value  of  the  Partnership's
derivatives, including options thereon, was $449,413 as detailed below.

                                DECEMBER 31, 1997
                             NOTIONAL OR CONTRACTUAL
                              AMOUNT OF COMMITMENTS
                              TO PURCHASE      TO SELL     FAIR VALUE
Currencies:
- OTC Contracts               $ 8,492,956   $16,647,101   $   (12,775)
- Exchange Traded Contracts          --          16,800       462,188
                              -----------   -----------   -----------

Totals                        $ 8,492,956   $16,663,901   $   449,413
                              ===========   ===========   ===========

5.       Subsequent Event:

         On October 8, 1998, Travelers Group Inc. merged with Citicorp
Inc. and changed its name to Citigroup Inc.


                                    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,  commodity  options  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 1998.

         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 distributions of profits, if
any.

         For the nine months  ended  September  30,  1998,  Partnership  capital
decreased 2.9% from $3,481,352 to $3,381,314.  This decrease was attributable to
the redemption of 23,349.5713 Units totaling $331,123 which was partially offset
by net income from  operations  of $231,085 for the nine months ended  September
30,  1998.  Future  redemptions  can impact the  amount of funds  available  for
investments in commodity contract positions in subsequent periods.

Operational Risk

         The General Partner administers the business of the Partnership through
various  systems and processes  maintained by SSBH. SSBH has analyzed the impact
of the year 2000 on its systems and processes and  modifications  for compliance
are  proceeding  according to plan.  All  modifications  necessary for year 2000
compliance  are expected to be completed by the first  quarter of 1999.  In July
1998, SSB participated in successful  industry-wide  testing  coordinated by the
Securities  Industry  Association  and plans to participate in such tests in the
future.  The  purpose of  industry-wide  testing is to confirm  that  exchanges,
clearing organizations,  and other securities industry participants are prepared
for the year 2000.

         The most likely and most significant risk to the Partnership associated
with the lack of year 2000  readiness  is the failure of outside  organizations,
including the commodities  exchanges,  clearing organizations or regulators with
which the  Partnership  interacts to resolve  their year 2000 issues in a timely
manner.  This risk could  involve the  inability to  determine  the value of the
Partnership  at some  point  in time  and  would  make  effecting  purchases  or
redemptions  of Units in the  Partnership  infeasible  until such  valuation was
determinable.


                                     9

<PAGE>



         In  addition,  the  General  Partner is  addressing  the  technological
implications that will result from regulatory and market changes due to Europe's
Economic and Monetary Union ("EMU").

         Risks to the Partnership  exist in the lack of experience with this new
currency and the potential impact it can have on the Advisors' trading programs.
Risks  also  exist  in  the  failure  of  external  information  technology  and
accounting  systems to  adequately  prepare  for the  conversion.  This issue is
particularly   acute  in  the  area  of  the  exchanges,   clearing  houses  and
over-the-counter  foreign  exchange  markets  where the  futures  interests  are
traded. If the necessary changes are not properly  implemented,  the Partnership
could suffer failed trade settlements,  inability to reconcile trading positions
and funding  disruptions.  Such events could result in erroneous  entries in the
Partnership's  accounts,  mispriced  transactions,  and a delay or  inability to
provide  timely  pricing of Units for the  purpose of  effecting  purchases  and
redemptions.

         SSB has evaluated its internal  systems and made the necessary  changes
to  accommodate  EMU  transactions  on behalf of the  Partnership.  The  General
Partner will continue to monitor and  communicate  with the Advisors and related
third-party  entities to assure  preparation for the EMU conversion and advanced
notification of impending issues or problems.


Results of Operations

         During the Partnership's third quarter of 1998, the net asset value per
Unit increased 3.7% from $13.93 to $14.45, as compared to an increase of 8.4% in
the third quarter of 1997. The Partnership experienced a net trading gain before
brokerage commissions and related fees in the third quarter of 1998 of $182,089.
These gains were primarily  recognized in the trading of Swiss Francs,  Deutsche
Mark,  Canadian Dollar, New Zealand Dollar,  Mexican Peso and Brazilian Real and
were partially offset by losses in Japanese Yen, Hong Kong Dollar, Russian Ruble
and South African Rand.  The  Partnership  experienced a net trading gain before
brokerage commissions and related fees in the third quarter of 1997 of $321,135.
These  gains were  primarily  recognized  in the trading of  Australian  Dollar,
French Francs,  Czech Korona,  Malaysian Ringgit,  Italian Lira,  Deutsche Mark,
Spanish  Peseta and New Zealand  Dollar and were  partially  offset by losses in
Pound Sterling and Japanese Yen.

         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

                                10

<PAGE>



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 nine months ended September 30, 1998 decreased
by $99 and $2,249,  respectively,  as compared to the  corresponding  periods in
1997.  This  decrease is primarily  due a decrease in interest  rates in 1998 as
compared to 1997.

         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 fees for the three
and nine  months  ended  September  30,  1998  increased  by $4,725 and  $8,060,
respectively, as compared to the corresponding periods in 1997.

         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, 1998  resulted in incentive  fees of $19,100
and $33,083,  respectively.  Trading  performance  for the three and nine months
ended  September  30, 1997  resulted in  incentive  fees of $41,654 and $88,240,
respectively.

                                 11

<PAGE>



Item 3.            Quantitative and Qualitative Disclosures of Market Risk

         The Partnership is subject to SEC Financial  Reporting  Release No. 48,
regarding  quantitative  and  qualitative  disclosures  of market  risk and will
comply with the  disclosure  and reporting  requirements  in its Form 10-K as of
December 31, 1998.


                          12

<PAGE>



                   PART II OTHER INFORMATION

Item 1.            Legal Proceedings

                   Between  May  1994  and  the  present, Salomon Brothers Inc.
                   ("SBI"),    Smith   Barney  Inc.  ("SB")  and  The  Robinson
                   Humphrey  Company,  Inc. ("R-H"), all currently subsidiaries
                   of Salomon  Smith  Barney Holdings Inc. ("SSBH"), along with
                   a  number  of other broker-dealers, were named as defendants
                   in  approximately  25  federal  court lawsuits and two state
                   court  lawsuits, principally  alleging  that  companies that
                   make markets in  securities traded  on  NASDAQ  violated the
                   federal  antitrust  laws by conspiring to maintain a minimum
                   spread of $.25   between the bid and asked price for certain
                   securities.  The  federal  lawsuits and one state court case
                   were  consolidated  for  pre-trial  purposes in the Southern
                   District of New York in the  fall  of 1994 under the caption
                   In  re  NASDAQ  Market-Makers Antitrust  Litigation,  United
                   States District Court, Southern  District  of  New York  No.
                   94-CIV-3996  (RWS); M.D.L.No.  1023.  The  other state court
                   suit, Lawrence A.  Abel  v.  Merrill  Lynch  &  Co., Inc. et
                   al.; Superior  Court  of  San  Diego,  Case  No. 677313, has
                   been   dismissed  without  prejudice  in  conjunction with a
                   tolling agreement.

                   In consolidated action, the plaintiffs purport to represent a
                   class  of  persons  who  bought  one or  more  of  what  they
                   currently  estimate to be  approximately  1,650 securities on
                   NASDAQ  between  May 1,  1989  and May 27,  1994.  They  seek
                   unspecified  monetary  damages,  which would be trebled under
                   the  antitrust  laws.  The  plaintiffs  also seek  injunctive
                   relief,  as well as  attorney's  fees  and the  costs  of the
                   action.  (The state cases seek similar relief.) Plaintiffs in
                   the  consolidated   action  filed  an  amended   consolidated
                   complaint  that  defendants  answered  in December  1995.  On
                   November 26, 1996,  the Court  certified a class  composed of
                   retail   purchasers.   A  motion  to  include   institutional
                   investors in the class and to add class  representatives  was
                   granted.  In  December  1997,  SBI,  SB and R-H,  along  with
                   several other broker-dealer defendants, executed a settlement
                   agreement  with  the  plaintiffs.  This  agreement  has  been
                   preliminarily  approved  by the U.S.  District  Court for the
                   Southern  District  of New  York  but  is  subject  to  final
                   approval.

                   On July 17, 1996, the Antitrust Division of the Department of
                   Justice filed a complaint  against a number of firms that act
                   as market makers in NASDAQ  stocks.  The complaint  basically
                   alleged that a common understanding arose among NASDAQ market
                   makers which worked to keep quote spreads in

                                          13

<PAGE>



                   NASDAQ stocks  artificially  wide.  Contemporaneous  with the
                   filing of the complaint, SBI, SB and other defendants entered
                   into a stipulated settlement agreement, pursuant to which the
                   defendants  would  agree not to engage in  certain  practices
                   relating  to the  quoting  of  NASDAQ  securities  and  would
                   further  agree to  implement  a program to ensure  compliance
                   with  federal  antitrust  laws  and  with  the  terms  of the
                   settlement.  In entering into the stipulated settlement,  SBI
                   and SB did not  admit  any  liability.  There  are no  fines,
                   penalties, or other payments of monies in connection with the
                   settlement.  In April 1997,  the U.S.  District Court for the
                   Southern District of New York approved the settlement. In May
                   1997,  plaintiffs  in the  related  civil  action  (who  were
                   permitted to  intervene  for limited  purposes)  appealed the
                   district court's  approval of the settlement.  The appeal was
                   argued in March 1998 and was affirmed in August 1998.

                   The  Securities  and  Exchange  Commission  ("SEC")  is  also
                   conducting a review of the NASDAQ  marketplace,  during which
                   it has  subpoenaed  documents  and  taken  the  testimony  of
                   various individuals  including SBI and SB personnel.  In July
                   1996,  the  SEC  reached  a  settlement   with  the  National
                   Association  of  Securities   Dealers  and  issued  a  report
                   detailing  certain  conclusions  with respect to the NASD and
                   the NASDAQ market.

                   In  December  1996,  a complaint seeking unspecified monetary
                   damages  was  filed  by  Orange  County,  California  against
                   numerous brokerage firms, including SB, in the U.S.
                   Bankruptcy  Court  for  the  Central  District of California.
                   Plaintiff  alleged,  among  other things, that the defendants
                   recommended  and  sold  to  plaintiff  unsuitable securities.
                   The  case  (County  of  Orange  et  al. v. Bear Stearns & Co.
                   Inc. et al.) has been stayed by agreement of the parties.

Item 2.            Changes in Securities and Use of Proceeds - 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


                                    14

<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:
         David J. Vogel, President


Date:

     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:
         David J. Vogel, President


Date:


By
         Daniel A. Dantuono
         Chief Financial Officer and
         Director

Date:

                                                          15

<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:       11/12/98

     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:       11/12/98


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

Date:       11/12/98



                                15

<PAGE>