UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB

[X]     Quarterly  Report  pursuant  to  Section  13  or 15(d) of the Securities
        Exchange  Act  of  1934

        For  the  quarterly  period  ended  June  30,  2003

[ ]     Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act
        of  1934

        For  the  transition  period  from  __________  to  __________

        Commission  File  Number  0-32905

                         AMANASU ENVIRONMENT CORPORATION
                         -------------------------------
        (Exact name of Small Business Issuer as specified in its charter)

Nevada                                   98  -  0347883
------                                   --------------
(State  or  other  jurisdiction  of       (IRS  Employer
incorporation)                             Identification  No.)

                 701 Fifth Avenue, 36th Floor, Seattle, WA 98109
                 -----------------------------------------------
                    (Address of principal executive offices)
                    ----------------------------------------

                                  206-262-8188
                                  ------------
                           (Issuer's telephone number)
                           ---------------------------

        _________________________________________________________________
     (Former name, former address and former fiscal year if changed since last
                                     report)


State the number of shares outstanding of each of the issuer's classes of common
equity,  as  of the latest practicable date:   43,000,816 shares of Common Stock
issued  and  outstanding  as  of  June  30,  2003.

**Transitional  Small Business Disclosure Format (check one):  Yes [  ]   No [X]

                                        1
<PAGE>

                                Table of Contents

                                                                    Page  No.

PART  I.     FINANCIAL  INFORMATION

Item  1.     Financial  Statements                                          3
             Balance  Sheet  (unaudited) (F-1)                              6
             Statement  of  Operations  (unaudited) (F-2)                   7
             Statement  of  Cash  Flows  (unaudited) (F-4)                  9
             Notes  to  Financial  Statements (F-5)                        10

Item  2.     Management's  Discussion  and  Analysis  of  Plan  of
             Operations                                                    11

Item  3.     Controls  and  Procedures                                     19

PART  II.    OTHER  INFORMATION

Item  1.     Legal  Proceedings                                            19

Item  2.     Changes  in  Securities  and  Use  of  Proceeds               19

Item  3.     Defaults  Upon  Senior  Securities                            19

Item  4.     Submission  of  Matters  to  Vote  of  Security  Holders      19

Item  5.     Other  Information                                            20

Item  6.     Exhibits  and  Reports  on  Form  8-K                         20

Signatures                                                                 21

Certifications                                                             22


                                        2
<PAGE>

PART  I  FINANCIAL  INFORMATION

ITEM  1.          FINANCIAL  STATEMENTS

GENERAL

The  Company's  unaudited financial statements for the six months ended June 30,
2003  are  included  with  this Form 10-QSB.  The unaudited financial statements
have  been  prepared  in  accordance  with  the instructions to Form 10-QSB and,
therefore, do not include all information and footnotes necessary for a complete
presentation  of  financial  position,  results  of  operations, cash flows, and
stockholders'  equity  in  conformity  with  generally  accepted  accounting
principles.  In  the opinion of management, all adjustments considered necessary
for a fair presentation of the results of operations and financial position have
been  included  and  all  such  adjustments  are  of  a normal recurring nature.
Operating  results  for  the  six months ended June 30, 2003 are not necessarily
indicative  of  the  results  that  can  be  expected for the fiscal year ending
December  31,  2003.

                                        3
<PAGE>

                         AMANASU ENVIRONMENT CORPORATION

                          (A DEVELOPMENT STAGE COMPANY)

                                  JUNE 30, 2003

                                   (UNAUDITED)

                                        4
<PAGE>

                         AMANASU ENVIRONMENT CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                                  JUNE 30, 2003
                                   (UNAUDITED)








                                 C O N T E N T S



                                                                      Page
                                                                      ----

     Balance  Sheets                                                   F-1

     Statements  of  Operations  and  Deficit  Accumulated
          During  Development  Stage                                   F-2

     Statements  of  Cash  Flows                                       F-4

     Notes  to  Financial  Statements                                  F-5

                                        5
<PAGE>

                         AMANASU ENVIRONMENT CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                                 BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>



                                                                              June 30,     December 31,
                                                                                2003           2002
                                                                            ------------  --------------
                                                                            (Unaudited)      (Audited)
ASSETS
------
<S>                                                                               <C>           <C>

Current Assets:
    Cash                                                                    $   129,093   $      78,432
                                                                            ------------  --------------
                                                Total current assets            129,093          78,432

Fixed Assets:
    Automotive equipment                                                         25,859          25,859
        Less accumulated depreciation                                             9,435           7,960
                                                                            ------------  --------------
                                                Net fixed assets                 16,424          17,899

Other Assets:
    Licensing agreement, net of accumulated
        amortization of $13,897 and $4,632                                      332,603         310,368
    Equity investment                                                         4,993,000               -
    Rent deposit                                                                  8,028           8,028
                                                                            ------------  --------------
                                                Total other assets            5,333,631         318,396
                                                                            ------------  --------------

Total Assets                                                                $ 5,479,148   $     414,727
                                                                            ============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
    Amount due for licensing agreement                                      $    95,000   $      95,000
    Stockholder advance                                                       5,093,000             100
                                                                            ------------  --------------
                                                Total current liabilities.    5,188,000          95,100

Stockholders' Equity:
    Common stock:  authorized 100,000,000 shares of
        $.001 par value; issued and outstanding,
       43,000,816 and 41,950,816, respectively                                   28,801          27,751
    Additional paid-in capital                                                  677,239         646,789
    Deficit accumulated during the development stage                           (414,892)       (354,913)
                                                                            ------------  --------------
Total stockholders' equity                                                      291,148         319,627
                                                                            ------------  --------------

Total Liabilities and Stockholders' Equity                                  $ 5,479,148   $     414,727
                                                                            ============  ==============

</TABLE>

    These statements should be read in conjunction with the year-end financial
                                   statements.

                                      (F-1)
                                        6
<PAGE>


                         AMANASU ENVIRONMENT CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                      STATEMENTS OF OPERATIONS AND DEFICIT
                      ACCUMULATED DURING DEVELOPMENT STAGE
                                   (UNAUDITED)

<TABLE>
<CAPTION>



                                                                February 22, 1999
                                                               (Date of Inception)
                          Six Month Periods Ended June 30,      To June 30, 2003
                            2003               2002
                         ----------------------------------  ---------------------
Revenue:
<S>                      <C>                     <C>                   <C>
Interest income          $     200          $     28                 $   3,138
Expenses                    60,179            16,955                   418,030
                         ----------------------------------  ---------------------

Loss accumulated
during development
stage                    $ (59,979)         $ (16,927)                $(414,892)
                         ==================================  ======================

Loss Per Share -
    Basic and Diluted .  $    -             $    -
                         ==================================  ======================

Weighted average
    number of shares
    outstanding            41,991,424       41,247,816
                         ==================================  ======================
</TABLE>

    These statements should be read in conjunction with the year-end financial
                                   statements.

                                       (F-2)
                                        7
<PAGE>

                         AMANASU ENVIRONMENT CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                      STATEMENTS OF OPERATIONS AND DEFICIT
                      ACCUMULATED DURING DEVELOPMENT STAGE
                                   (UNAUDITED)

<TABLE>
<CAPTION>



                                                                February 22, 1999
                                                              (Date of Inception)
                            Quarter Ended June 30,              To June 30, 2003
                              2003          2002
                         ----------------------------------  ---------------------
Revenue:
<S>                      <C>              <C>                            <C>
Interest income          $      74      $     -                      $    3,138
Expense                     34,814         15,710                       418,030
                         ----------------------------------  ---------------------

Loss accumulated
during development
stage                    $ (34,740)      $ (15,710)                 $ (414,892)
                         ==================================  ======================

Loss Per Share -
    Basic and Diluted    $   -           $   -
                         ==================================
Weighted average
    number of shares
    outstanding            42,031,585    41,247,816
                         ==================================
</TABLE>

    These statements should be read in conjunction with the year-end financial
                                   statements.

                                      (F-3)
                                        8
<PAGE>

                         AMANASU ENVIRONMENT CORPORATION
                          A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>



                                                                      February 22, 1999
                                                                     (Date of Inception)
                                              Three Month Periods          To June 30,
                                                  Ended June 30,              2003
                                            2003               2002
                                           --------------------------  -----------------
CASH FLOWS FROM OPERATIONS:
<S>                                          <C>                 <C>             <C>
Net loss                                 $ (59,979)       $ (16,927)     $ (414,892)
Changes not requiring the outlay of cash:
    Depreciation and amortization           10,740            2,450           23,332
    Services provided for common stock         -                 -            70,000
    Changes in assets and liabilities:
        Increase in accounts payable           -                960              -
                                           --------------------------  -----------------

             NET CASH CONSUMED BY
                 OPERATING ACTIVITIES      (49,239)         (13,517)       (321,560)

CASH FLOWS FROM INVESTING   ACTIVITIES:
Acquisition of licensing agreement             -              -            (155,000)
Purchase of automobile                         -              -             (25,859)
Rent deposit for warehouse lease               -              -              (8,028)
Acquisition of equity investment         (4,993,000)          -          (4,993,000)
                                           --------------------------  -----------------

            NET CASH CONSUMED BY
                INVESTING ACTIVITIES     (4,993,000)          -           (5,181,887)
                                           --------------------------  -----------------

CASH FLOWS FROM FINANCING
ACTIVITIES:
Sales of common stock                          -              50,000          539,540
Advances received in anticipation of
    common stock sales                         -              -                   100
Stockholder advances                       5,092,900          -             5,092,900
                                           --------------------------  -----------------
            NET CASH PROVIDED BY
                FINANCING ACTIVITIES       5,092,900           50,000       5,632,540
                                           --------------------------  -----------------

Net change in cash         .                  50,661           36,483         129,093
Cash balance, beginning of period             78,432           35,287             -
                                           --------------------------  -----------------
Cash balance, end of period            $     129,093       $   71,770     $   129,093
                                           ==========================  =================
</TABLE>

    These statements should be read in conjunction with the year-end financial
                                   statements.

                                      (F-4)
                                        9
<PAGE>

                         AMANASU ENVIRONMENT CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2003
                                   (UNAUDITED)




1.     BASIS  OF  PRESENTATION

The  unaudited  interim  financial statements of Amanasu Environment Corporation
("the  Company")  as  of  June  30,  2003  and for the three month and six month
periods  ended  June  30,  2003  and 2002, have been prepared in accordance with
accounting  principles  generally  accepted in the United States of America.  In
the opinion of management, such information contains all adjustments, consisting
only  of  normal recurring adjustments, necessary for a fair presentation of the
results  for  such  periods.  The  results of operations for the quarter and six
month  period ended June 30, 2003  are not necessarily indicative of the results
to  be  expected  for  the  full  fiscal  year  ending  December  31,  2003.

Certain  information and disclosures normally included in the notes to financial
statements  have  been  condensed  or  omitted  as  permitted  by  the rules and
regulations  of  the  Securities  and  Exchange Commission, although the Company
believes  the  disclosure  is  adequate  to  make  the information presented not
misleading.  The  accompanying  unaudited financial statements should be read in
conjunction  with  the  financial  statements  of the Company for the year ended
December  31,  2002.

2.     LICENSE  ACQUISITION

On  September  30,  2002, the Company acquired the exclusive worldwide rights to
produce  and market a patented product known as Firebird PD 5000, which is a hot
water  boiler  that  collects  heat from waste tires.  As consideration for this
acquisition,  the  Company  paid  $155,000  and  issued 650,000 shares of common
stock;  it  is  obligated  to  pay  on  demand  an  additional  $95,000.

On June 30, 2003, the Company acquired the exclusive worldwide rights to produce
and  market  a  patented  process  that purifies seawater, and removes hazardous
polutants  from  wastewater.  As consideration for this acquisition, the Company
issued  1,050,000  shares  of  common  stock.

3.     EQUITY  INVESTMENT

During the second quarter the Company acquired for cash 10,000,000 shares of the
common  stock  of  Kyoei  Reiki Industrial Corporation, Ltd., a Japanese company
publicly  traded  on a Japanese exchange.  The Company intends this to be a long
term  investment.  This  investment  cost  $4,993,000  and was financed by a non
interest  bearing  advance  by  the  controlling shareholder of the Company.  An
additional  advance  of  $99,900  was  made  by  the controlling shareholder for
working  capital  needs.

                                      (F-5)
                                       10
<PAGE>

ITEM  2.       MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION

Cautionary  Statement
---------------------

This  report  on  Form 10-QSB contains certain forward-looking statements within
the  meaning  of section 21e of the Securities Exchange Act of 1934, as amended,
and  other  applicable securities laws.  All statements other than statements of
historical  fact  are  "forward-looking  statements"  for  the purposes of these
provisions,  including any projections of earnings, revenues, or other financial
items; any statements of the plans, strategies, and objectives of management for
future  operation; any statements concerning proposed new products, services, or
developments;  any  statements  regarding  future  economic  conditions  or
performance;  statements  of belief; and any statement of assumptions underlying
any  of  the foregoing.  Such forward-looking statements are subject to inherent
risks  and  uncertainties, and actual results could differ materially from those
anticipated  by  the  forward-looking  statements.

The  following  discussion  should  be  read  in  conjunction with the Company's
Financial  Statements,  including the Notes thereto, appearing elsewhere in this
Quarterly  Report and in the Annual Report for the year ended December 31, 2002.

COMPANY  OVERVIEW

Amanasu  Environment  Corporation  (the  "Company") has the exclusive, worldwide
license  to  a technology that disposes of toxic and  hazardous  wastes  through
a  proprietary,  high  temperature  combustion  system,  known  as  the  Amanasu
Furnace.  The  combustion  system  is  a  low  cost  methodology  of  generating
extremely  high  temperatures in excess of 2,000 degrees Celsius.  Waste  matter
exposed  to  the  extreme  temperature  system  is  instantly  decomposed  to  a
gaseous matter and a magna-like liquid.  The process leaves a 1-2% residue of an
inert,  carbon  substance  and  oxygen  which  is vented out of the system.  The
process  produces  no  toxins,  smoke,  ash,  or  soot.

The  Company  entered  into a license agreement with two Japanese companies (the
"licensors"), whereby the Company was granted a worldwide, exclusive license for
the production and marketing of certain products currently produced and marketed
by  the  licensors.  These  products  consist  of  a  state of the art hot water
boiler.  Its  function is to extract heat energy from waste tires. It is a safe,
non-polluting  and  highly  efficient  boiler  used  for  a  variety  of  uses.

During  the 2nd quarter, the Company acquired the exclusive worldwide license to
a  technology  that  purifies  seawater  through  various  fine  ring tubes into
drinking  water.  It  also  treats  sewage  and wastewater and removes hazardous
pollutants.  This  system  is  known  as the Ring-tube Desalinization Equipment.
The  process uses high temperature and pressure to break down harmful pollutants
and  bacteria.

                                       11
<PAGE>

During  the  2nd quarter, the Company purchased 10,000,000 shares of Kyoei Reiki
Industrial  Corporation  Ltd.,  a  publicly traded company in Tokyo, Japan.  The
Company  acquired these shares from Jipangu Inc., a private Japanese corporation
which owned these shares.  The shares were purchased for $4,993,000 of which Mr.
Maki  provided  the necessary funds to the Company to acquire these shares.  The
funds  were  provided  to  the  Company  without  interest  or  stated  terms of
repayment.  The Company intends to hold these shares as a long- term investment.

MARKETS  AND  PRODUCTS

Amanasu  Furnace
----------------

Hazardous  and  toxic  waste  generally consists of a large number of chemicals,
metals,  pesticides,  biological agents, toxic pollutants, and other substances.
The  treatment  of  toxic and hazardous waste worldwide is a growing and diverse
industry.  Significant  legislation  and regulation worldwide has contributed to
the  growth  of  this industry. These regulations are directed at protecting the
environment  by requiring originating parties to be responsible for managing the
hazardous  wastes  that  they  generate.  Although  the  Company's  proprietary
furnace disposes of various forms of waste, the Company will seek to promote its
product  as  a  toxic  and  hazardous  waste  disposal  system. This position is
premised upon the higher disposal fees for hazardous and toxic compared with the
disposal  fees  of  non-toxic  or  hazardous  waste.


Hot  Water  Boiler
------------------

The  Company  currently  markets  its  hot water boiler through its licensors in
Japan where it is marketed as a safe, non-polluting and highly efficient boiler,
which  derives  its energy in a non-polluting chemical process from waste tires.
The  hot water boiler system will also be marketed throughout North America with
particular  attention  being  focused  on  Mexico.  A  complete  system has been
shipped to Mexico to undergo testing for compliance with government regulations.
A  formal  agreement  for  marketing  this  product  in Mexico is expected to be
executed  upon  completion  of  this  testing.

Ring-tube  Desalinization  Equipment
------------------------------------

On May 30, 2003, the Company entered into an agreement with Etsuro Sakagami (who
was  later  appointed  a  director of the Company as of June 6, 2003) to license
technology  relating  to  the  Ring-tube Desalinization Equipment ("Ring-tube").

This  equipment  is  used as a filter to purify seawater into drinking water and
also  treats  sewage  and  wastewater,  removing  pollutants  and bacteria.  The
equipment  filters bacteria and other impurities through its fine rings and comb
type  filter.  The  impurities  are  then  destroyed  by  the  high pressure and
temperature  in  the  Ring-tube.  Other  harsher  pollutants  are  treated  with
Cinderelite   (an  artificial  zeolite)  in  the  ring  tube.  This substance is
commonly  used  for  purifying  wastewater  and  sludge.

                                       12
<PAGE>

The  license  will remain in effect for 30 years from the date of the agreement.
To obtain the technology, the Company issued 1,000,000 shares to Etsuro Sakagami
and  50,000  shares  to  FC Giken Kabushikigahisha as a referral fee on June 23,
2003.  The  Company  will  pay a royalty of 2% of gross receipts to Mr. Sakagami
within  60  days  upon  receipt  of  the  royalty.

The  Company primarily plans on marketing this product in Japan as approximately
40%  of  its  waste  materials  consist  of sludge that is mostly disposed of in
landfills  by  mining  and  construction  companies.  Use  of the Ring-tube will
substantially  reduce  the  level of pollutants and toxins, allowing for a safer
means  for  disposing  of  waste.

PLAN  OF  OPERATIONS

The  Company  is  a  development  stage  corporation.  It  has not commenced its
planned  operations  of  manufacturing  and  selling  its  products.

During the year 2001, the Company obtained a license to manufacture and sell the
Amanasu  furnace,  a  toxic  waste  disposal  system.  On  September 30, 2002 it
obtained  a license to manufacture and sell a state of the art hot water boiler,
which  derives  its energy in a non-polluting chemical process from waste tires.
On  May  30,  2003  the  Company  obtained  a  worldwide  exclusive  license  to
manufacture  and  sell  the  technology relating to the Ring-tube Desalinization
Equipment.

On  May  14,  2003,  the  Company  entered  into a Stock Purchase Agreement with
Jipangu  Inc ("Jipangu") to purchase 10,000,000 shares of Kyoei Reiki Industrial
Corporation Ltd, held by Jipangu.  The Company intends to hold these shares as a
long  term  investment.

The  Company  raised  $265,000  during  fiscal year 2002 through the issuance of
common  stock.    The  Company  intends  to  raise  another  $100,000 during the
remainder  of  2003 through private placements of its common stock or loans from
its  major shareholders.  The proceeds of such private placements and loans will
be used to continue the development and market planning of its products, and for
other  general  working  capital  needs.

The  Company  has  entered  into  discussions with a number of private investors
concerning  a  private placement of its common stock.  At this time, however, it
has  not  received  commitments  from  any  source.  Although  the  Company  is
encouraged  by  its discussions, it cannot predict whether it will be successful
in  raising  capital.  During  the  2nd  quarter,  the  Company's  President and
controlling shareholder, Mr. Maki loaned the Company $99,900 to meet its working
capital  needs  and for further development and marketing of its products.  This
loan  is  without  interest  or  stated  terms  of  repayment.

The  Company's  activities  over  the  next twelve months will be devoted to the
construction  of  a  limited  number of demonstrational units of the furnace and
Ring-tube  equipment, the hiring of a limited staff to conduct its business, and
the  commencement  of  marketing  activities; it will also explore the means for
exploiting  the  license  for  the  hot  water  boiler.

                                       13
<PAGE>

RESEARCH  AND  DEVELOPMENT

The  Amanasu  furnace  has undergone rigorous testing and adjustments to meet UL
and  EPA  requirements, as well as requirements of specific potential customers.
Additional  research  is  also  being conducted in Japan by the inventor of this
product.

Tests  of  the  furnace have also been conducted at a California facility which,
when  marketing  conditions  are  favourable,  would  be  the  primary source of
manufacturing  capability.

Testing of the Ring-tube Desalinization Equipment is being conducted in Japan by
the  inventor.  Further  testing  and  development will be performed to meet the
needs  of  specific  customers.

The  hot  water  boiler  has  been  shipped  to  Mexico  to  undergo testing for
compliance  with  government regulations.  A formal agreement for marketing this
product  in  Mexico  is expected to be executed upon completion of this testing.
Further developments of the product is expected to meet specific customer needs.

CRITICAL  ACCOUNTING  POLICIES

The  following  discussion and analysis of the Company's financial condition and
results  of  operations are based upon the financial statements, which have been
prepared  in  accordance  with  accounting  principles generally accepted in the
United  States.  The  preparation  of  these  financial  statements requires the
Company  to  make  estimates  and  judgments that affect the reported amounts of
assets, liabilities, revenues and expenses, and related disclosure of contingent
assets  and  liabilities.  On  an  on-going  basis,  the Company evaluates these
estimates.  The  Company  bases  its  estimates  on historical experience and on
various  other  assumptions  that  are  believed  to  be  reasonable  under  the
circumstances,  the  results  of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other  sources.  Actual  results may differ from these estimates under different
assumptions  or  conditions.

RESULTS  OF  OPERATIONS

Total  revenues  for the three month period ending June 30,2003 was $ 74.  There
were  no  revenues in the same period of 2002.  The increase was due to earnings
in  the  2003  period  on  bank  deposits.

Total  revenues  for the six month period ending June 30, 2003 was $200 compared
to  $ 28 for the same period of 2002. The increase was due to higher interest on
bank  deposits.

                                       14
<PAGE>

Total  expenses  for  the  three  month period ending June 30,2003 were $ 34,814
compared  to  $  15,710 for the same period of 2002.  The increase was primarily
due  to  higher  professional fees and charges for amortization of the licensing
agreement.

Total  expenses  for  the  six  month  period ending June 30, 2003 were $ 60,179
compared  to  $  16,955  for  the  same period in 2002.  The increase was due to
higher  costs  for  travel and professional fees and charges for amortization of
the  licensing  agreement.

Net loss for the three month period ending June 30,2003 was $ 34,740 compared to
$15,710  for  the  same  period  2002.  The increase was due to higher expenses.

Net  loss for the six month period ending June 30, 2003 was $ 59,979 compared to
$16,927  for  the  same  period  in  2002.  The  increase was also due to higher
expenses.

In  the event that the Company's revenues do not increase in the next 12 months,
the  Company  plans  to  obtain additional private placements and loans from the
Company's  President,  Atsushi  Maki.  The  Company  does  anticipate  business
opportunities,  however  those  opportunities  remain  uncertain  to  date.

LIQUIDITY  AND  CAPITAL  RESOURCES

The  Company believes that the liquidity and capital resources are sufficient to
support operations at the present level given that the Company recently obtained
a  loan  from  Mr.  Maki  in  the  amount  of  $99,900.

In  the  six  months  ended June 30, 2003, cash used in operating activities was
$  49,239  compared  to $ 13,517 for the same period in 2002.  This increase was
due  to  higher  expenses.

In  the  six  months  ended June 30, 2003, cash used in investing activities was
$  4,993,000.  There  was  no  cash  used  for investing activities for the same
period of 2002.  In the 2003 period, the Company made an investment in the stock
of  a  publicly  owned  Japanese  Company.

In  the  six  months  ended  June 30, 2003, there was no cash used for financing
activities.  The  Company raised $5,092,900 during the 2003 period from advances
from the controlling shareholder.  During the 2002 period it raised $50,000 from
the  sale  of  common  stock.

The  Company will require a minimum of $250,000 to satisfy its cash requirements
for  the  next  twelve  months.  If  the  Company  is  not successful in raising
$250,000,  it  may  not  be  able  to  complete  its  plan  of  operations.

                                       15
<PAGE>

FACTORS  THAT  MAY  AFFECT  FUTURE  RESULTS  OF  OPERATIONS

The  Company  was  formed in 1999 and since then, the Company has raised initial
capital, developed a business plan and commenced marketing efforts and initiated
contracts to obtain licenses for various technologies.  As a result, the Company
has  a  limited operating history on which to evaluate its proposed business and
prospects.  The  Company's  prospects  must be considered in light of the risks,
uncertainties  and  difficulties  frequently  encountered  by companies in their
early  stages  of  development.  The  Company  cannot  guarantee that it will be
successful  in accomplishing its objectives.  The Company's risk factors include
and  are  not  limited  to  the  following:

THE  COMPANY  EXPECTS  TO CONTINUE TO HAVE BOTH OPERATING AND NET LOSSES FOR THE
FORESEEABLE  FUTURE

Until  the  Company can obtain the necessary capital to begin full production of
its  products,  it  does  not  expect to realize a net profit.  The Company does
anticipate  business opportunities, however those opportunities remain uncertain
to  date.  Until those opportunities materialize, the Company does not expect to
begin  production  of the Company's products.  However, research and development
and  marketing efforts are still in progress in hopes of bettering the Company's
product  and  attracting  potential  customers.

THE  COMPANY  HAS  RAISED  LIMITED CAPITAL THIS QUARTER AND WILL NEED ADDITIONAL
CAPITAL  TO  MAINTAIN  CURRENT  LEVELS  OF  OPERATION

This quarter, the Company has not raised capital by selling the Company's common
stock.  The Company's working capital needs are currently being funded by a loan
from  the  Company's  President,  Atsushi  Maki.  The Company will need to raise
additional  funds,  either  in  the  form of equity and debt to maintain current
levels  of  operation, which, include research and development, and marketing of
the  Company's  products.

OWNERSHIP  OF  THE  COMPANY'S  COMMON  STOCK IS CONCENTRATED AMONG THE COMPANY'S
PRINCIPAL  SHAREHOLDERS,  OFFICERS AND DIRECTORS WHO CAN CONTROL ALL SIGNIFICANT
CORPORATE  TRANSACTIONS

The  Company's  directors,  officers and principal shareholders beneficially own
approximately  86%  of  its  outstanding  common  stock.  As  a  result,  these
shareholders  can  exercise  control  over  all  matters  requiring  shareholder
approval,  including  the  election  of  directors  and  approval of significant
corporate  transactions.  This concentration of ownership may have the effect of
delaying  or  preventing  a  change  in  control  of  the  Company.


                                       16
<PAGE>

THE  COMPANY'S  ABILITY  TO MAINTAIN CURRENT LEVELS OF PRODUCTION DEPENDS ON THE
COMPANY'S  ABILITY  TO  RETAIN  KEY  PERSONNEL

The  Company's current and future success will depend to a significant extent on
the  continued  service  of  the Company's President, Mr. Maki.  The loss of Mr.
Maki would have a significantly detrimental effect on the Company business.  The
Company  does not have a employment contract with Mr. Maki and does not maintain
life  insurance  policies  for  any  of  the  Company's  officers,  directors or
controlling  shareholders.

At  the present, the Company has employed one full time employee.  The Company's
success  will  depend, in part, upon the ability to attract and retain qualified
employees.  The  Company  believes  that  it  will  be able to attract competent
employees,  but  no  assurance  can  be given that it will be successful in this
regard.  If  the Company is unable to engage and retain the necessary personnel,
its  business  would  be  materially  and  adversely  affected.

THE  COMPANY'S  ABILITY  TO  DEVELOP  AN  ECONOMICALLY  FEASIBLE  PRODUCT

The  Company  has  no assurance at this time that a commercially feasible design
will  ever  be  perfected,  or  if  it  is,  that it will become profitable. The
Company's  profitability  and survival will depend upon its ability to develop a
technically  and  commercially  feasible  product  which will be accepted by end
users.  The  products  that  the  Company  is developing must be technologically
superior  or at least equal to other similar products that competitors offer and
must  have  a  competitive  price/performance  ratio to adequately penetrate its
potential  markets.  If  the Company is not able to achieve this condition or if
the  Company  does  not  remain  technologically competitive, the Company may be
unprofitable  and our investors could lose their entire investment. There can be
no assurance that the Company or potential licensees will be able to achieve and
maintain  end  user  acceptance.

THE  COMPANY'S  DEPENDENCE  ON  CONSULTANTS AND OUTSIDE MANUFACTURING FACILITIES

Since  the  Company's present plans does not provide for a significant technical
staff  or  the  establishment  of  manufacturing facilities, the Company will be
primarily  dependent  on  others  to  perform these functions and to provide the
requisite  expertise  and  quality  control.  There  is  no  assurance that such
persons  or institutions will be available when needed at affordable prices.  It
will  likely  cost  more  to  have  independent  companies  do  research  and
manufacturing  than  for  the  Company  to  handle  these  resources.


                                       17
<PAGE>

THE  COMPANY  IS  SUBECT  TO  A  HIGHLY  COMPETITIVE  INDUSTRY

Generally,  the  waste disposal industry is highly competitive. This industry is
populated  by  many  national  or  international  companies,  with significantly
greater resources than that of the Company. Many of these competitors dispose of
toxic  waste  in  traditional  methods  such  as  landfills and incinerator use.
Despite  the  fact  that these methods may not be environmentally friendly, they
are  nonetheless  in  compliance  with  governing  regulations,  and  therefore,
represent  significant competition to the Company. In addition, competition will
include  other  waste disposal systems that handle toxic and environmental waste
in  a  non-pollutant  manner.  There  is  no  assurance that the Company will be
successful  in  meeting  or  overcoming  its  current  or  future  competition.

THE  COMPANY  IS  DEPENDENT  ON  ITS  PROTECTION  OF  ITS  INTELLECTUAL PROPERTY

The  Company  depends  on  the  protection  of its intellectual property and may
suffer  if  it  is  unable  to  adequately  protect  its  intellectual property.
Currently,  the  Company  has  been granted a patent in Japan for the combustion
technology  relating  to the Amanasu Furnace, which expires in 2016. The Company
cannot  provide assurance that its patents will not be invalidated, circumvented
or  challenged,  that  the  rights  granted  under  the  patents  will  give  it
competitive  advantages  or  that  its  patent  applications  will  be  granted.

THE  COMPANY  IS  SUBJECT  TO RAPID TECHNOLOGICAL CHANGE, WHICH COULD RENDER THE
COMPANY'S  PRODUCTS  AND  SERVICES  OBSOLETE

The  market  for  the  Company's  furnaces  is characterized by rapidly changing
technology,  evolving  industry  standards  and  changing  customer  demands.
Accordingly,  if  it  is unable to adapt to rapidly changing technologies and to
adapt its product to evolving industry standards, its business will be adversely
affected.

THE  COMPANY  HAS  A  LIMITED  PUBLIC  MARKET  FOR  ITS  COMMON  STOCK

At  present,  only  a  limited  public market exists for the Common Stock on the
over-the-counter  bulletin  board  maintained  by  the  National  Association of
Securities  Dealers  and there is no assurance that a more active trading market
will  develop,  or,  if  developed,  that  it  will  be  sustained.

THE  COMPANY  MAY  NOT  BE  ABLE  TO  PAY  DIVIDENDS TO THE SHAREHOLDERS FOR THE
FORESEEABLE  FUTURE

The  Company  has not paid dividends on its Common Stock and does not anticipate
paying  dividends  on  its  Common  Stock  in  the  foreseeable  future.

THE  COMPANY'S  COMMON  STOCK  PRICES  MAY  BECOME  VOLATILE

The  market  price for the Company's Common Stock trades on the over-the-counter
bulletin  board  has been highly volatile since it began trading and will likely
to  continue  to behave in this manner in the future.  Factors such as operating
results  and  other  announcements  regarding  development  work  and  business
operations  may have a significant impact on the market price of its securities.
Additionally,  market  prices  for  securities  of  many  smaller companies have
experienced  wide  fluctuations  not  necessarily  related  to  the  operating
performance  of  the  companies  themselves.


                                       18
<PAGE>

OTHER  RISKS

The  Company's  areas  of  business  may  be  affected from time to time by such
matters  as  changes  in  general  economic  conditions,  changes  in  laws  and
regulations,  taxes,  tax laws, prices and costs, and other factors of a general
nature  which  may  have  an  adverse  effect  on  our  business.

Item  3.     Controls  and  Procedures

Within  the  90-day prior to the date of this report, the Company carried out an
evaluation,  under  the  supervision and with the participation of the Company's
management,  of  the  effectiveness of the design and operation of the Company's
disclosure  controls and procedures pursuant to the Securities Exchange Act Rule
13a-14  and  15d-4.  Based  upon  that evaluation, the Company's Chief Executive
Officer  and  Chief  Financial  Officer  concluded that the Company's disclosure
controls  and  procedures  are  effective  in  timely  alerting them to material
information  relating  to  the  Company required to be included in the Company's
periodic  SEC  filings.  There have been no significant changes in the Company's
internal  controls  or in other factors that could significantly affect internal
controls  subsequent  to  the  date  of the evaluation, including any corrective
actions  with  regard  to  significant  deficiencies  and  material  weaknesses.

PART  II  -  OTHER  INFORMATION

Item  1.       Legal  Proceedings

None

Item  2.       Changes  in  Securities  and  Use  of  Proceeds

               The  Company  made  no  amendments  or  modifications  of  any
               instruments  governing  or  affecting  the rights of any security
               holders  during  the  period  of  this  report.

               Furthermore,  on  June  23,  2003,  the  Company issued 1,000,000
               shares to Etsuro Sakagami pursuant to the licensing of technology
               relating  to  the  Ring  Tube  Desalinization  Equipment  on  an
               exclusive  worldwide  basis  for  30  years.

               The  Company  issued  another  50,000  shares  to  F.C.  Giken
               Kabushikigaisha  as  a  referral  fee.

               These  share  issuances  were exempt under Regulation S under the
               Securities  Act,  as the sales were made in offshore transactions
               to  non-U.S.  persons.

Item  3.       Defaults  Upon  Senior  Securities:

               None

Item  4.       Submission  of  Matters  to  a  Vote  of  Security  Holders:

               None


                                       19
<PAGE>

Item  5.       Other  Information:

               None

Item  6.     Exhibits  and  Reports  on  Form  8K

            (a)     Exhibits

            10.1   Stock  Purchase  Agreement acquiring  10,000,000  shares  of
                   Kyoei  Reiki  Industrial  Corporation  Ltd.,  held  by
                   Jipangu  Inc.

            10.2   License  Agreement  acquiring  "Ring Tube Desalinization
                   Equipment"  from  Etsuro  Sakagami

            99.1   Certification  of  Atsushi  Maki,  President  (Principal
                   Executive Officer),  and  Chief  Financial  Officer
                   (Principal  Financial Officer)  pursuant to 18 U.S.C.
                   Section 1350, as adopted pursuant to Section 906
                   of  the  Sarbanes-Oxley  Act  of  2002

(b)     Reports  on  Form  8-K

     (i)  On  June  2,  2003  the Company filed a report on Form 8-K wherein the
          Company  reported  that it entered into an agreement with Jipangu Inc.
          to  purchase  10,000,000  shares of Kyoei Reiki Industrial Corporation
          Ltd.  held by Jipangu Inc. for 580,000,000 Japanese Yen, approximately
          $4,993,000  US.

     (ii) On  June  3,  2003, the Company filed a report on Form 8-K wherein the
          Company  reported  that  it  entered  into  an  agreement  with Etsuro
          Sakagami  to  license  technology  relating  to  the  Ring  Tube
          Desalinization Equipment on an exclusive worldwide basis for 30 years.

     (iii)  On June 13, 2003, the Company filed a report on Form 8-K wherein the
          Company  reported  the appointment of Etsuro Sakagami as a director of
          the  Company.

     (iv) On  July  22, 2003, the Company filed a report on Form 8-K wherein the
          Company  reported  the  resignations  of  various  directors.


                                       20
<PAGE>

SIGNATURES

In  accordance  with the requirements of the Exchange Act, the registrant caused
this  report  to  be  signed  on  its  behalf by the undersigned, thereunto duly
authorized.

Dated:  August  11,  2003


AMANASU  ENVIRONMENT  CORPORATION



By:     /s/  Atsushi  Maki

Atsushi  Maki,  Chairman,  President
and  Chief  Financial  Officer


                                       21
<PAGE>

                                                              Exhibit 99.1
                             CERTICATION PURSUANT TO
                 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In  connection with the Quarterly Report of AMANASU ENVIRONMENT CORPORATION (the
"Company")  on Form 10-QSB for the period ending June 30, 2003 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, Atsushi
Maki, President and Chief Financial Officer of the Company, certify, pursuant to
18  U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of
2002,  that:

1.   I  have  reviewed  this  Report;

2.   based  on my knowledge, the Report does not contain any untrue statement of
     a  material  fact  or  omit  to state a material fact necessary to make the
     statements  made, in light of the circumstances under which such statements
     were made, not misleading with respect to the period covered by the Report;

3.   based  on  my  knowledge,  the  financial  statements,  and other financial
     information included in the Report, fairly present in all material respects
     the  financial  condition,  results  of  operations,  and cash flows of the
     registrant  as  of,  and  for,  the  periods  presented  in  the  Report;

4.   The  Company's  other  certifying  officers  and  I  are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in  Exchange  Act  Rules  13a-14  and  15d-14)  for  the  Company and have:

     a.   designed  such  disclosure  controls  and  procedures  to  ensure that
          material  information  relating  to  the  Company,  including  its
          consolidated  subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this Report is being
          prepared;

     b.   evaluated  the  effectiveness of the Company's disclosure controls and
          procedures  as  of  a  date within 90 days prior to the filing date of
          this  Report  (the  Evaluation  Date");  and

     c.   presented  in  this  Report  the  Company's  conclusions  about  the
          effectiveness  of  the disclosure controls and procedures based on the
          Company's  evaluation  as  of  the  Evaluation  Date;

                                       22
<PAGE>

5.   The  Company's other certifying officers and I have disclosed, based on the
     Company's  most  recent evaluation, to the Company's auditors and the audit
     committee  of  Company's  board  of  directors  (or  persons performing the
     equivalent  function):

     a.   all  significant  deficiencies  in the design or operation of internal
          controls which could adversely affect the Company's ability to record,
          process,  summarize  and report financial data and have identified for
          the  Company's  auditors any material weaknesses in internal controls;
          and

     b.   any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant  role  in  the Company's internal
          controls;  and

6.   The Company's other certifying officers and I have indicated in this Report
     whether  or  not  there were significant changes in internal controls or in
     other  factors that could significantly affect internal controls subsequent
     to  the  date  of  the  Company's  most  recent  evaluation,  including any
     corrective  actions  with  regard  to significant deficiencies and material
     weaknesses.


     /s/  Atsushi  Maki
     ------------------
     Atsushi  Maki,  President  and
     Chief  Financial  Officer
     (Principal  Executive  Officer  and
     Principal  Financial  Officer)

                                       23
<PAGE>