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                                  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, 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
                 September 30, 1997 and December 31,
                 1996                                                      3

                 Statement of Income and Expenses and Partners' Capital
                 for the three and Nine Months ended September 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

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                                     PART I

                          Item 1. Financial Statements


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



                                                    SEPTEMBER 30,   DECEMBER 31,
                                                        1997           1996
                                                   -------------     -----------
                                                    (Unaudited)
ASSETS:

Equity in commodity futures trading account:
  Cash and cash equivalents                         $ 3,257,107     $ 3,525,670

  Net unrealized depreciation
    on open futures contracts                           (40,893)        (33,306)

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


                                                      3,216,214       3,492,364

Interest receivable                                      11,211          12,361

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

                                                    $ 3,227,425     $ 3,504,725

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

LIABILITIES AND PARTNERS' CAPITAL:

Liabilities:

 Accrued expenses:
  Commissions                                       $    18,805     $    20,444
  Other                                                  30,304          33,891
  Incentive fees                                         41,654          42,819
Commodity options written, at market value
  (premiums received $10,500 )                            3,750              --
Redemptions payable                                      43,465          48,595
                                                    -----------     -----------

Partners' Capital                                       137,978         145,749
                                                    -----------     -----------

General Partner, 8,000.2096 Unit equivalents
  outstanding in 1997 and 1996                           94,082          91,282
Limited Partners, 254,626.7001 and
  286,344.8991 Units of Limited Partnership
  Interest outstanding in 1997 and 1996,
  respectively                                        2,995,365       3,267,694
                                                    -----------     -----------

                                                      3,089,447       3,358,976

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

                                                    $ 3,227,425     $ 3,504,725

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

See Notes to Financial Statements.
                                                                 3




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             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
                                                                          SEPTEMBER 30,                       SEPTEMBER 30,

                                                                 ---------------    -----------      -------------      ------------
                                                                      1997              1996              1997              1996
                                                                 ---------------    -----------      -------------      ------------
<S>                                                                    <C>               <C>              <C>                <C>
Income:
  Net gains (losses) on trading of
   commodity futures:
  Realized gains  on closed positions                             $   220,937       $   246,259       $   290,916       $   474,137
  Change in unrealized gains /losses on
   open positions                                                     100,198           (13,775)             (837)          187,965
                                                                  -----------       -----------       -----------       -----------

                                                                      321,135           232,484           290,079           662,102
Less, brokerage commissions and clearing
  fees ($0,  $48, $0, and $934, respectively)                         (57,562)          (60,272)         (178,656)         (200,382)

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

  Net realized and unrealized gains                                   263,573           172,212           111,423           461,720
  Interest income                                                      34,110            35,404           107,420           115,587

                                                                  -----------       -----------       -----------       -----------
                                                                      297,683           207,616           218,843           577,307

                                                                  -----------       -----------       -----------       -----------
Expenses:
  Incentive fees                                                       41,654            38,286            88,240            41,086
  Other                                                                 6,678            16,467            30,852            48,213
  Organization expense and filing fees                                     --                --                --            19,954

                                                                  -----------       -----------       -----------       -----------
                                                                       48,332            54,753           119,092           109,253

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

  Net income                                                          249,351           152,863            99,751           468,054
  Redemptions                                                        (111,275)         (332,541)         (369,280)       (1,529,205)


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

   Net  increase (decrease) in Partners' capital                      138,076          (179,678)         (269,529)       (1,061,151)

Partners' capital, beginning of period                              2,951,371         3,416,918         3,358,976         4,298,391

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

Partners' capital, end of period                                  $ 3,089,447       $ 3,237,240       $ 3,089,447       $ 3,237,240

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

Net Asset Value per Unit
  (262,626.9097 and 305,151.3642 Units
  outstanding at September 30, 1997 and 1996,
  respectively)                                                   $     11.76       $     10.61       $     11.76       $     10.61

                                                                  ===========       ===========       ===========       ===========
Net income per Unit of Limited Partnership
    Interest and General Partner Unit equivalent                  $      0.91       $      0.48       $      0.35       $      1.31

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

</TABLE>
See Notes to Financial Statements.


                                      4

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             SMITH BARNEY INTERNATIONAL ADVISORS CURRENCY FUND L.P.
                          NOTES TO FINANCIAL STATEMENTS
                               September 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 September 30, 1997 and the results of its  operations for the three
and nine months ended September 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

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             Smith Barney International Advisors Currency Fund L.P.
                          Notes to Financial Statements
                               September 30, 1997
                                   (Continued)



2.      Net Asset Value Per Unit:

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

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

                                       1997        1996         1997        1996
                                   -----------------------   -------------------

Net realized and unrealized
 gains                                  $ 0.97     $ 0.54     $ 0.39     $ 1.29
Interest income                           0.13       0.11       0.38       0.31
Expenses                                 (0.19)     (0.17)     (0.42)     (0.29)
                                        ------     ------     ------     ------

Increase for period                       0.91       0.48       0.35       1.31

Net Asset Value per Unit,
  beginning of period                    10.85      10.13      11.41       9.30
                                        ------     ------     ------     ------

Net Asset Value per Unit,
  end of period                         $11.76     $10.61     $11.76     $10.61
                                        ======     ======     ======     ======


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 September  30, 1997 was $(44,643) and the average fair value during
the nine months then ended, based on monthly calculation, was $62,226.



                                        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  September  30,  1997,  the  notional or
contractual  amounts of the Partnership's  commitment to purchase and sell these
instruments was $9,642,187 and $10,358,539, respectively, as detailed below. All
of these instruments mature within one year of September 30, 1997. However,  due
to the nature of the Partnership's  business,  these instruments may not be held
to  maturity.  At  September  30,  1997,  the fair  value  of the  Partnership's
derivatives, including options thereon, was $(44,643), as detailed below.

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


Currencies - OTC Contracts          $9,642,187       $10,358,539      $(44,643)
                                    ===========      ===========      =========


5.  Pending Merger:

         On September 24, 1997,  Travelers Group Inc.  ("Travelers") and Salomon
Inc  ("Salomon")  announced  an agreement  and plan of merger  pursuant to which
Salomon will become a wholly  owned  subsidiary  of  Travelers  and Smith Barney
Holdings  Inc., the parent company of Smith Barney Inc. and Smith Barney Futures
Management  Inc.,  will be merged into  Salomon  forming  Salomon  Smith  Barney
Holdings Inc. The transaction is expected to be completed by year-end 1997.





                                        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 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 distributions of profits, if
any.

  For the nine months ended September 30, 1997,  Partnership  capital  decreased
8.0% from  $3,358,976  to  $3,089,447.  This  decrease was  attributable  to the
redemption of 31,718.1990  Units totaling $369,280 which was partially offset by
net income from  operations  of $99,751 for the nine months ended  September 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  third quarter of 1997, the net asset value per Unit
increased 8.4% from $10.85 to $11.76,  as compared to an increase of 4.7% in the
third  quarter of 1996.  The  Partnership  experienced a net trading gain before
commissions  and expenses in the third  quarter of 1997 of $321,135.  Gains were
primarily  recognized in the trading of Czech Korona,  Deutsche Mark,  Malaysian
Ringgit,  French Francs,  Australian Dollar,  Spanish Peseta, New Zealand Dollar
and  Italian  Lira and were  partially  offset by losses in Pound  Sterling  and
Japanese Yen. The Partnership  experienced a net trading gain before commissions
and expenses in the third quarter of 1996 of $232,484.  Gains were recognized in
the trading of Deutsche Mark, Japanese Yen, Spanish Peseta, Czech Korona, French
Francs,  New Zealand Dollar and Italian Lira and were partially offset by losses
in Pound Sterling, Swiss Francs and Australian Dollar.

  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

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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 nine  months  ended  September  30, 1997  decreased  by
$1,294 and $8,167,  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.

  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,  1997  decreased  by  $2,710  and  $21,726,
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 nine months
ended  September  30, 1997  resulted in  incentive  fees of $41,654 and $88,240,
respectively.  Trading performance for the three and nine months ended September
30, 1996 resulted in incentive fees of $38,286 and $41,086, respectively.

                                       10

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                            PART II OTHER INFORMATION

Item 1.            Legal Proceedings - None

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


                                       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:    11/12/97

        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:    11/12/97


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

Date:    11/12/97






                                       12


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