U.S.  SECURITIES  AND  EXCHANGE  COMMISSION
                           Washington,  D.  C.  20549

                                  FORM  10-QSB

       [x]  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
                                   SECURITIES
        EXCHANGE  ACT  OF  1934  for  the  period  ended  March 31, 2004

  [  ]  TRANSITION  REPORT  UNDER  SECTION  13  OR  15(d)  OF  THE  SECURITIES
   EXCHANGE  Act  of  1934  for  the  transition  period  from  ___  to  ___.
                       Commission  file  number:  0-49719

                        AMANASU  ENVIRONMENT  CORPORATION
              (Name  of  Small  Business  Issuer  in  its  charter)

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

             701  Fifth  Avenue,  42nd  Floor,  Seattle,  WA  98109
                  (Address  of  principal  executive  offices)

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

         Securities  registered  under  Section  12  (b)  of  the  Act:

   Title  of  each  class                         Name  of  exchange  on
   Which to be  registered                        each  class  is  to  be
                                                  registered
            None                                        None
          Securities  registered  under  Section  12(g)  of  the  Act:
                                  Common  Stock
                               (Title  of  Class)

Check  whether  issuer  (1)  filed  all  reports  to  be  filed  by  Section  13
or  15(d)  of  the  Exchange  Act  during  the  past  12  months  (or  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.  (1)  Yes  :      No:  X  (2)  Yes:  X    No:

The  number  of  shares  issued  and  outstanding  of  issuer's  common  stock,
$.001  par  value,  as  of  May  13,  2004  was  43,000,816
Transitional  Small  Business  Issuer  Format  (Check  One):
Yes    No    X

                                        1
<PAGE>

                        AMANASU  ENVIRONMENT  CORPORATION
                       QUARTERLY  REPORT  ON  FORM  10QSB/A
                FOR  THE  THREE  MONTHS  ENDED  MARCH  31,  2004
                               TABLE  OF  CONTENTS

                           PART1-FINANCIALINFORMATION
                           --------------------------

Item  1:     Financial  Statements                              Page  #

Balance  Sheets  as  of  March  31,  2004  (unaudited)
              and  December  31,  2003  (audited)                  4

Statement  of  Operations  for  the  three  months
              ended  March  31,  2004  and  2003  (unaudited)      5

Statement  of  Cash  Flows  for  the  three  months
              ended  March  31,  2004  and  2003  (unaudited)      6

Notes  to  Financial  Statements  (unaudited)                      7

Item  2:     Management  Discussion  &  Analysis  of Financial
                Condition  and  Results  of  Operations            8

Item  3:     Controls  and  Procedures                            14

                             PART 2-OTHER INFORMATION
                             ------------------------

Item  1:     Legal  Proceedings                                   15

Item  2:     Changes  in  Securities                              15

Item  3:     Defaults  upon  Senior  Securities                   15

Item  4:     Submission  of  Matters  to  Vote  of
              Security  holders                                   15

Item  5:     Other  Information                                   15

Item  6:     Exhibits  and  Reports  on  Form  8-K                15

Signatures                                                        15

                                        2
<PAGE>

ITEM  1.        FINANCIAL  STATEMENTS

GENERAL

The  Company's  unaudited  financial statements for the three months ended March
31,  2004 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, and cash flows 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 three
months  ended  March 31, 2004 are not necessarily indicative of the results that
can  be  expected  for  the  fiscal  year  ending  December  31,  2004.

                                        3
<PAGE>
                         AMANASU ENVIRONMENT CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                                 BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>



                                                   March 31,     December 31,
                                                    2004           2003
                                                 ------------  --------------
                                                 (Unaudited)     (Audited)
ASSETS
------
<S>      <C>                                         <C>             <C>

Current Assets:
    Cash                                         $    77,040   $      92,055
    Miscellaneous receivables                          1,585           1,585
                                                 ------------  --------------
                    Total current assets              78,625          93,640

Fixed Assets:
    Automotive equipment                              25,859          25,859
        Less accumulated depreciation                 11,354          10,910
                                                 ------------  --------------
                     Net fixed assets                 14,505          14,949

Other Assets:
    Rent deposit                                       5,000           5,000
    Licensing agreement, net of accumulated
        amortization of $29,183 and $24,088          317,317         322,412
                                                 ------------  --------------

                     Total other assets              322,317         327,412
                                                 ------------  --------------
                     Total Assets                $   415,447   $     436,001
                                                 ============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
    Accrued expenses                             $     1,948   $           -
    Stockholder advance                                  100             100
                                                 ------------  --------------
                     Total current liabilities         2,048             100

Stockholders' Equity:
    Common stock:  authorized 100,000,000 shares of
     $.001 par value; issued and outstanding
     41,950,816                                       28,821          28,821
    Additional paid-in capital                       872,119         872,119

Deficit accumulated during the development stage    (487,541)       (465,039)
                                                 ------------  --------------
                     Total Stockholders' equity      413,399         435,901
                                                 ------------  --------------
Total Liabilities and Stockholders' Equity       $   415,447   $     436,001
                                                 ============  ==============

</TABLE>

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

                                        4
<PAGE>

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

<TABLE>
<CAPTION>



                                                                  February 22, 1999
                             Three Month Periods Ended March 31,  (Date of Inception)
                                2004                 2003         To March 31, 2004
                           ---------------------------------------  ----------------
<S>                             <C>                <C>                   <C>
Expenses                       $  22,580       $   25,365            $ 490,929
    Operating loss               (22,580)         (25,365)            (490,929)

Other Income - interest               78              126                3,388

Loss accumulated
during development stage       $ (22,502)      $  (25,239)           $(487,541)
                             =====================================  ================

Loss Per Share -
    Basic and Diluted          $  -            $     -

Weighted average
    number of shares
    outstanding             41,950,816      41,950,816

</TABLE>

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

                                        5
<PAGE>
                         AMANASU ENVIRONMENT CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>



                                                                       February 22, 1999
                                                Three Month Periods    (Date of Inception)
                                                  Ended March 31       To March 31    2004
                                                 2004          2003
                                               ---------------------  ---------------------
CASH FLOWS FROM OPERATIONS:
<S>                                               <C>        <C>            <C>
Net Loss                                       $ (22,502)  $ (25,239)  $ (487,541)
Changes Not Requiring the Outlay of Cash:
    Depreciation and amortization                  5,539       5,369       40,537
    Services provided for common stock               -           -         70,000
    Changes in Assets and Liabilities:
        Increase in accrued expenses               1,948         -          1,948
        Increase in miscellaneous receivables        -           -         (1,585)
                                               ---------------------  ---------------------

             NET CASH CONSUMED BY
                 OPERATING ACTIVITIES            (15,015)    (19,870)    (376,641)

CASH FLOWS FROM INVESTING   ACTIVITIES:
Acquisition of licensing agreement                   -            -      (155,000)
Purchase of automobile                               -            -       (25,859)
Rent deposit for warehouse lease                     -            -        (5,000)
                                               ---------------------  ---------------------

            NET CASH CONSUMED BY
                INVESTING ACTIVITIES                 -            -      (185,859)
                                               ---------------------  ---------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Sales of common stock                                -            -       639,440
Advances received in anticipation of
    common stock sales                               -            -           100
                                               ---------------------  ---------------------

            NET CASH PROVIDED BY
                FINANCING ACTIVITIES                  -            -      639,540
                                               ---------------------  ---------------------
Net change in cash                               (15,015)    (19,870)      77,040
Cash balance, beginning of period                 92,055      78,432            -

Cash balance, end of period                     $ 77,040    $ 58,562     $ 77,040
                                               =====================  =====================
</TABLE>


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

                                        6
<PAGE>

                         AMANASU ENVIRONMENT CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2004
                                   (UNAUDITED)




1.     BASIS  OF  PRESENTATION

The  unaudited  interim  financial statements of Amanasu Environment Corporation
("the Company") as of March 31, 2004 and for the three month periods ended March
31,  2004  and 2003, have been prepared in accordance with accounting principles
generally  accepted  in  the  United  State  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 ended March 31, 2004 are not
necessarily  indicative  of  the results to be expected for the full fiscal year
ending  December  31,  2004.

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,  2003.


                                        7
<PAGE>

ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND
RESULTS  OF  OPERATIONS

                              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.

See  the  Company's  Annual Report on Form 10-KSB for the period ending December
31,  2003  ("Form  10-KSB")  filed  on  March 20, 2004 for additional statements
concerning  operations and future capital requirements. Certain risks exist with
respect  to  the  Company  and  its  business,  which risks include the need for
additional  capital,  and lack of commercial product, among other risks. Readers
are  urged to refer to the section entitled "Risk Factors" in the Company's Form
10-KSB  for a broader discussion of such risks and uncertainties. In addition to
the  risks  described  therein, the Company has incurred a significant loss with
respect  to  a  transaction  which  the  Company  entered into during the second
quarter  of  2003  ("Company  Overview - Capital Stock of Kyoei Reiki Industrial
Corporation  Ltd.").

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, 2003.

                                        8
<PAGE>

COMPANY  OVERVIEW

Amanasu  Environment  Corporation,  formerly known as Amanasu Energy Corporation
(the  "Company"), is a development stage company. It has acquired the exclusive,
worldwide licensee rights to a high temperature furnace, a hot water boiler, and
ring-tube  desalination methodology. At this time, the Company is not engaged in
the  commercial sale of any of its licensed technologies. Its operations to date
have been limited to acquiring the technologies and testing the technologies for
commercial  sale.  For each such technology, the Company has acquired proto-type
or  demonstrational  units  from  the respective licensor of the technology. The
Company  also  has  conducted  various  testing  on these units to determine the
commercial  viability of the underlying technology. As a result of such testing,
the Company believes that its technologies are commercially viable and are ready
for commercial sale. It is the present intention of the Company not to engage in
the  actual  production  and  sale  of its products. Rather, it is seeking joint
venture  or  other  affiliations  with  companies competitive in each respective
product market whereby the Company can capitalize on the existing infrastructure
of  such other companies, such as warranty and post-warranty service and repair.
The  Company  can  not  predict  whether  it  will be successful in establishing
affiliations  with  any such company, or whether it will be able to successfully
produce  and  market  its  products.


PRODUCTS

Amanasu Furnace
---------------
The  Amanasu  furnace  is  a  waste  disposal system that safely and efficiently
disposes  of  toxic and hazardous wastes. The system has three general features;
the  proprietary  combustion  burner,  the  furnace  compartment,  and  the  gas
processing  compartment.

The  proprietary  aspect  of the Amanasu furnace is the unique combustion system
that  generates  abnormally high temperatures in excess of 2,000 degrees Celsius
within  the  furnace compartment. A proprietary formula of low cost metals, such
as  powered  aluminum and iron, is combined with an air pressurized, hydrocarbon
flame creating a superheated hydrogen combustion flame. A spray nozzle or burner
injects  the  flame  into  the furnace compartment where the flame is irradiated
with  microwaves  to  create  an  ionized  flame  reaching  a  heat  conversion
temperature  of  18,000  C  but  an actual measured temperature of 1,800-2,300 C
inside  the  furnace compartment. By contrast, an ordinary burner, neutral flame
reaches  temperatures  between 800 to 1,600 C. In order to raise the temperature
to  the  1,800  to  2,300 degrees C range, large amounts of additional energy is
required,  typically,  electricity.  The cost of this energy source is expensive
and  generally  would  be  cost  prohibitive  to the operation of a furnace. The
Company's  proprietary  system reaches these temperatures using approximately 20
gallons  of  kerosene  or light oil per hour for each one ton of daily capacity.
For  example,  a  five  ton  daily  capacity  unit  requires  five times as much
hydrocarbon  use  or  100  gallons,  per  hour.  The  furnace  reaches  maximum
temperatures  within  four  to  five  hours  after flame ignition. The resultant
effect  is  a  low  cost  methodology  of generating extremely high temperatures
within  a  confined  furnace  compartment.

                                        9
<PAGE>

The  inner  walls of furnace and the combustion burner itself are protected from
the extreme heat by magnetrons and tokomak. Magnetrons are circular magnets that
deflect  the  gaseous  ions from the furnace walls to the center of the furnace.
Tokomak  is an insulating material that further protects the furnaces walls from
the  extreme  heat. Waste matter enters a feed dump where a conveyor or overhead
grapple continuously feeds the waste to the furnace compartment. Once inside the
high temperature furnace compartment, the chemical compounds of waste matter are
instantly  ionize  or disintegrated into gaseous matter and a magna-like liquid.
The  magna-like liquid is water cooled to form a dense, inert carbon matter. The
combustion gases resulting from the ionization first receive a light irradiation
process  to  prevent  recombination.  A primary high speed water dousing process
follows  whereby  the gas is cooled to 1,300 C. A series of two to four reaction
tanks,  similar to water shower units, further cool the gases, and sulfuric acid
and  nitric acid are removed through processing. Finally, the cooled gas, in the
form  of  oxygen, is filtered and vented from the system as warm air at below 60
degrees C. The process is unlike conventional waste incinerators, as it produces
no  toxins,  smoke, ash, or soot. The vented oxygen has dioxin levels below 0.01
nanogram  and  dibenzoflan  levels below 0.001 nanogram. The inert carbon matter
produced in the form of pellets is no more than 2% of the original mass, and can
be  used  for  roadway  surfaces  or  disposed  of  in  landfills.

The  outer  housing  of  the Amanasu furnace is constructed of fabricated steel.
Ancillary  equipment, other than as described above, includes feed hoppers, pipe
conveyors,  fuel polarization equipment, air polarization equipment, turbo fans,
and  an  air compression system for the burner. The Company believes the furnace
will  have  an estimated useful life of approximately 15 years. This estimate is
based  upon  the  results  of  the  unit  that  operated  in  Hokkaido,  Japan.

The  Company  believes that the prior pricing structure for its furnaces was not
competitive,  and it is currently seeking ways to lower its manufacturing costs.
In  an  effort to lower manufacturing costs, the Company is attempting to locate
alternate suppliers that are less costly than currently identified suppliers. It
also will attempt to re-design certain components of the furnace so as to reduce
the  manufacturing cost per component. The Company anticipates that it will sell
furnaces  with  daily  disposal  capacities  of 50 tons, however, it may seek to
increase  daily  capacities based upon product demand. At this time, the Company
does  not  have projected prices for a re-designed unit, although the Company is
seeking  to  achieve,  through its re-design efforts, a retail price of $200,000
for  each  ton  of  capacity.  Thus,  a furnace with a two ton capacity would be
expected  to  retail  for  approximately  $400,000.  The Company can not predict
whether  it  will  be  successful in it redesign efforts and achieve its desired
pricing.

                                       10
<PAGE>

Fire Bird Boiler.
----------------

The  Fire  Bird  Boiler technology is a patented process which incinerates whole
waste tires in a non polluting manner emitting heat or steam in the incineration
process. The technology provides for combustion efficiency and seeks to minimize
dioxin  generation  which  is  generally  a  by-product of imperfect combustion.

The  boiler is comprised of a "combustion room" for combusting, a "water jacket"
for protecting and cooling metals in the combustion room, and an "air layer" for
insulating  the heat radiation. The combustion chamber is circular, with a power
forced ventilation device which accelerates a more efficient combustion, and hot
steam  in  introduced  at  the  burn  point  which increases the oxygen capacity
creating  the  high  burning  temperatures in the combustion chamber. During the
incineration process, temperature can reach as high as 1,000 degrees C. In other
boiler or incineration technologies, reaching temperatures of 1,000 degrees C or
more  generally  takes  4 hours to prevent any internal damage caused by a rapid
rise in temperature. However, due to the heat protection attributes of the water
jacket,  the  boiler  can  reach  1,000  degrees  C in approximately two minutes
without causing damage to any of the internal components of the boiler. The high
temperatures  enable  the waste tire to be incinerated with minimal waste, odor,
and  gas dioxins. Prior technologies have required that waste tire be pulverized
prior  to  incineration.  This  process is designed to accept whole waste tire s
though  a  conveyor  and  sensor  which  manages the condition of the combustion
operation  calculating  the  number of tires delivered the timing of the dumping
along  with  the condition of water supply temperature, quantities of hot water,
and  heater temperature. The unit has a combustion capacity of 100 kilograms per
hour,  and  can  generate  932,000  kcal per hour. The Company believes that the
operating  costs  of the boiler are minimal due to the fact that the fuel source
is  the  waste  tires.

The  weight of the 5 ton/day capacity boiler, which is similar to the inventor's
operating  unit,  is  1,939  kg, and measures 3,850 mm in length and 1,650 mm in
width. The Company will attempt to re-design the boiler to accept waste products
such  as  non-toxic bulk waste, in addition to waste tires. The Company believes
that  this  redesign,  if successful, will increase demand of the product due to
its increased use versatility. At this time, the Company does not have projected
prices  for  a  re-designed  unit,  although  the  Company will seek to achieve,
through  its  re-design  efforts,  a  retail  price  of $100,000 for each ton of
capacity.  The  Company  can  not  predict  whether  it will be successful in it
redesign  efforts  and  achieve  its  desired  pricing.

                                       11
<PAGE>

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

Large  scale desalination is conducted mainly by distillation or reverse osmosis
methodologies.  In  the  past,  distillation  has  been  used  for  large  scale
desalination,  while  reverse  osmosis  had  been used for medium size and small
desalination.  However,  recent  developments  in reverse osmosis have increased
output  and  are  now  used  for  large scale desalination. In both methods, the
technologies  condense  the  seawater  to  make  fresh  water. However, in their
processes,  calcium  carbonate and magnesium hydroxide is created in the form of
scales  which  adheres to the equipment and pipes. The amount of scales increase
with  temperature. The condition is more common with distillation process than a
reverse  osmosis  (RO)  process.  Scale inhibitors or other cleaning methods are
introduced  to  the  process  to  control  or lessen the amount of scales on the
equipment  and pipes, however oftentimes, they are not completely effective, and
are  generally  costly  to  use.  R  O is performed in a single step or two step
methods.  The  single  step  method requires more pressure to separate the fresh
water  from the impurities, while the two step method use less pressure but more
energy  to  separate  the  fresh  water. As a result of these pressures, special
sealing  technologies  and  materials  for  piping  and  pumps  are  required to
withstand  these  pressures,  which  are  generally  expensive.

The  Ring-Tube  technology  is used as a filter to purify seawater into drinking
water  and  also  treats  sewage  and  wastewater,  by  removing  pollutants and
bacteria.  The technology is different than both methodologies (distillation and
RO) described above. The equipment filters bacteria and other impurities through
its  fine  rings  and  comb  type  filter and reduces the presence of inhibiting
scales  on the equipment. The impurities are then destroyed by the high pressure
and  temperature  in  the ring-tube. The Company believes that its technology is
more cost efficient to construct and operate than conventional RO equipment. Its
fresh  water  recovery  rate is 95% compared with less than 40% for a RO method.
Moreover,  water produced from the Company's technology retains a certain amount
of  salt  and  minerals  and  does  not  required a pH adjustment. RO filtration
removes all minerals and salt, requiring minerals to be added to improve flavor,
and  an  adjustment  to  reduce  pH  levels.  The reject brine resulting from RO
filtration  is  discharged  in  the ocean creating higher salt concentrations in
such  areas,  however,  the  by-product  from  the  Company's  technology  is
sufficiently  condensed  allowing  it  to  be  sold  as  a  salt  product.

PLAN  OF  OPERATIONS.

The  Company was organized February 22, 1999 and is a development stage company.
Its operations to date have been limited to obtaining exclusive licensing rights
for three technologies, conducting preliminary marketing efforts, and conducting
product  testing.

The  Company's  plan of operations for the next 12 months is to initiate, and if
successful,  complete  the  product  refinement  of  the  three  of the acquired
technologies.  Product  refinement  includes  product redesign, improvements, or
enhancements, and testing of existing technologies. The product refinement costs
of  the  three  technologies are estimated to be $1,500,000. The Company will be
required  to  raise funds in order fund the projected refinement costs. However,
the  Company  may  seek  affiliations  with engineering firms or other companies
within  each  industry  in  order  minimize  such  expenditures.  The Company is
presently  in  discussions with an engineering design firm and a furnace company
both  located in Japan. The parties are discussing potential arrangement s where
the  Company  would  acquire  an equity interest in both companies. The terms of
such  arrangements  have  not  been  finalized  at this time. If successful, the
Company  would seek to capitalize on the engineering expertise of companies, and
sales,  marketing,  and  warranty repair of the furnace company. The Company can
not  predict  whether  it will be successful in raising the necessary capital or
whether  it will be successful in its current negotiations or other negotiations
with  prospective  companies.  Until  such  time  as  it  completes  the product
refinements of its technologies as discussed herein, the Company does not expect
to  generate  any  revenues  from  operations.

                                       12
<PAGE>

Other  than  the product refinement costs discussed above, the Company estimates
that  its operating overhead, which includes general and administrative charges,
will  be approximately $150,000 for the next 12 months. This amount is comprised
of  the  following  estimated  costs;  $65,000  in  annual  salaries  for office
personnel  and  consultants, $50,000 for rent, $20,000 for professional fees and
$12,000  for  miscellaneous  expenses.  The  Company  does not anticipate paying
salaries  to  any  of  its  officers  for the next 12 months. The Company has no
material  commitments  for  capital  at this time other than as described above.


RESULTS  OF  OPERATIONS

The  Company  did not generate any revenues for the quarter ended March 31, 2004
or  for  the  same period in 2003 except for interest earned in bank deposits in
the  amount  of  $  78  and  $  126  respectively.

Total  expenses  for  the  three month period ending March 31, 2004 was $ 22,580
compared  to  $  25,365  for  the  same  period of 2003. The decrease was due to
reduction  in  professional  fees.

In  the  event that the Company does not generate revenue 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.

                                       13
<PAGE>

LIQUIDITY  AND  CAPITAL  RESOURCES


In the three months ended March 31, 2004 cash used in operating activities was $
15,015  compared  to $ 19,870 for the same period in 2003. This decrease was due
to  reduced  expenses.

In  the  three months ended March 31, 2004, there were no cash used in investing
or  financing  activities. There were also no cash used for investing activities
or  financing  activities  for  the  same  period  of  2003.

The  Company will require a minimum of $150,000 to satisfy its cash requirements
for  the  next  twelve  months.  If the Company is not successful in raising the
necessary  funds,  it  may  not  be  able  to  complete  its plan of operations.

In  May  2001,  the  Company  received  $200,000  resulting from the exercise of
20,000,000 stock purchase options by the Company's principal shareholder. During
2003,  in connection with the acquisition of the Fire Bird boiler, the Company's
President  made  a  contribution  of  capital  to  the  Company in the amount of
$95,000.  In  addition  during the 2003 period, the Company raised $100,000 from
the  sale  of  20,000  shares  of  its common stock to one investor. The Company
intends  to  raise  additional  funds in the approximate amount of $2,000,000 to
$3,000,000 in near future through the private placement of its common stock. The
proceeds  from such private placement will be used to fund the refinement of the
three  technologies  as  described  above,  and to funds it annual overhead. The
Company  cannot  predict  whether  it will be successful in raising any capital,
which  capital  is  essential  to  its  plan  of  operations.


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.

Item  3.  Effectiveness  of  the  registrant's  disclosure  controls  and
procedures

The  Company  carried  out  an  evaluation of the effectiveness of the Company's
disclosure  controls  and  procedures  (as  defined  by Rule 13a-14(c) under the
Securities  Exchange  Act  of  1934)  under  the  supervision  and  with  the
participation  of  the  Company's  chief  executive  officer and chief financial
officer.  Based  on  and  as  of the date of such evaluation, the aforementioned
officers  have  concluded  that the Company's disclosure controls and procedures
have  functioned  effectively  so  as  to provide those officers the information
necessary  whether: (i) this quarterly report on Form 10 QSB contains any untrue
statement of a material fact or omits 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 this quarterly
report  on  Form  10  QSB, and(ii) the financial statements, and other financial
information  included in this quarterly report on Form 10 QSB, fairly present in
all  material  respects  the financial condition, results of operations and cash
flows  of  the  Company  as of, and for, the periods presented in this quarterly
report  on  Form 10 QSB. There have been no significant changes in the Company's
internal  controls  or  in  other  factors since the date of the Chief Executive
Officer's  and Principal Financial Officer's evaluation that could significantly
affect these internal controls, including any corrective actions with regards to
significant  deficiencies  and  material  weaknesses.

                                       14
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Part  II  OTHER  INFORMATION

Item  1.  Legal  Proceedings.
None

Item  2.  Changes  in  Securities.
None

Item  3.  Defaults  upon  Senior  Securities.
None

Item  4.  Submission  of  Matters  to  a  Vote  of  Securityholders.
None

Item  5.  Other  Information.
None

Item  6.  Exhibits.
(a).  Furnish  the  Exhibits  required  by  Item  601  of  Regulation  S-B.

Exhibit  31  -  Certification  Pursuant  To  Section  302  Of  The
Sarbanes-Oxley  Act  Of  2002.

Exhibit  32  -  Certification  Pursuant  To  Section  906  Of  The
Sarbanes-Oxley  Act  Of  2002.

(b)  Reports  on  Form  8-K.
None

SIGNATURES

Pursuant  to  the  requirements  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.

                      AMANASU  ENVIRONMENT  CORPORATION

Date:  May 17, 2004

                         /s/ Atsushi Maki
                         Atsushi  Maki
                         President  and  Principle  Accounting  Officer

                                       15
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