UNITED STATES
                       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  June  30,  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
                        ---------------------------------
        (Exact name of small business issuer as specified in its charter)

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

             701  Fifth  Avenue,  42nd  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)

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.  Yes  [X]   No  [  ]

     APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
                              PRECEDING FIVE YEARS
Check  whether  the  registrant  filed  all documents and reports required to be
filed  by Section 12, 13, or 15(d) of the Exchange Act after the distribution of
securities  under  a  plan  confirmed  by  a  court.  Yes  [ ]   No [ ]  N/A [X]

                      APPLICABLE ONLY TO CORPORATE ISSUERS
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 as of August 10, 2004.

Transitional  Small  Business  Disclosure  Format:  Yes  [  ]  No  [X]


********************************************************************************
During  the  quarter ended June 30, 2003, 20,000 shares were allotted to Reraise
Corporation, a private Japanese company, at a price of $4.99 per share for total
consideration of $99,900. As of the date hereof, the shares have not been issued
due to pending documentation needed to affect a new share issuance. As a result,
the  $99,900  capital  contribution  should be considered a liability until such
shares  have been issued. This transactions was previously recorded as a capital
transaction in error. The Company will rectify this discrepancy prior to the end
of  the  next  quarter  ended  September 30, 2004. Please refer to Note 2 of the
notes to financial statements and Item 2. Changes in Securities- Recent Sales of
Unregistered  Securities.
********************************************************************************

                                        1
<PAGE>

                         AMANASU ENVIRONMENT CORPORATION
                       QUARTERLY  REPORT  ON  FORM  10QSB
                  FOR  THE  SIX  MONTHS  ENDED  JUNE 30,  2004
                               TABLE  OF  CONTENTS

                           PART 1-FINANCIAL INFORMATION
                           --------------------------

Item  1:     Financial  Statements                                  Page  #

Balance  Sheets  as  of  June  30,  2004  (unaudited)
  and  December  31,  2003  (audited)                                    4

Statement  of  Operations  for  the  six  months
  ended  June  30,  2004,  2004  and  2003  (unaudited)                  5

Statement  of  Operations  for  the  three  months
  ended  June  30,  2004,  2004  and  2003  (unaudited)                  6

Statement  of  Cash  Flows  for  the  six  months
  ended  June  30,  2004  and  2003  (unaudited)                         7

Notes  to  Financial  Statements  (unaudited)                            8

Item  2:     Management  Discussion  &  Analysis  of
             Financial  Condition  and  Results  of  Operations          9

Item  3:     Controls  and  Procedures                                  16

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

Item  1:     Legal  Proceedings                                         16
Item  2:     Changes  in  Securities                                    16
Item  3:     Defaults  upon  Senior  Securities                         17
Item  4:     Submission  of  Matters  to  Vote  of  Security  holders   17
Item  5:     Other  Information                                         17
Item  6:     Exhibits  and  Reports  on  Form  8-K                      17

Signatures                                                              17


                                        2
<PAGE>

ITEM  1.        FINANCIAL  STATEMENTS

GENERAL

The  Company's  unaudited financial statements for the six months ended June 30,
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 six
months  ended  June, 2004 are not necessarily indicative of the results that can
be  expected  for  the  fiscal  year  ending  December  31,  2004.

                                        3
<PAGE>

<TABLE>
<CAPTION>



                                    AMANASU ENVIRONMENT CORPORATION
                                    (A DEVELOPMENT STAGE COMPANY)
                                    BALANCE SHEETS
                                    (UNAUDITED)
                                                                       June 30,    December 31,
                                                                          2004           2003
                                                                       (Unaudited)     (Audited)
ASSETS
------
Current Assets:
<S>                                                                       <C>              <C>
    Cash                                                              $  45,293   $      92,055
    Miscellaneous receivables                                             1,985           1,585
                                                                      --------------------------
                       Total current assets                              47,278          93,640

Fixed Assets:
    Automotive equipment                                                 25,859          25,859
        Less accumulated depreciation                                    11,784          10,910
                                                                      --------------------------
                       Net fixed assets                                  14,075          14,949

Other Assets:
    Rent deposit                                                          5,000           5,000
    Licensing agreement, net of accumulated
        amortization of $29,183 and $24,088                             312,221         322,412
                                                                      --------------------------
                       Total other assets                               317,221         327,412
                                                                      --------------------------
Total Assets                                                          $ 378,574   $     436,001
                                                                      ==========================

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
    Accrued expenses                                                  $     432   $           -
    Stockholder advance                                                     100             100
    Deposits for Common Stock                                            99,900          99,900
                                                                      --------------------------
                      Total current liabilities                         100,432         100,000

Stockholders' Equity:

 Common stock:  authorized 100,000,000 shares of
 $.001 par value; issued and outstanding 43,000,816                      28,801          28,801
    Additional paid-in capital                                          772,239         772,239
Deficit accumulated during the development stage                       (522,898)       (465,039)
                                                                      --------------------------
Total Stockholders' equity                                              278,142         336,001
                                                                      --------------------------
Total Liabilities and Stockholders' Equity                            $ 378,574   $     436,001
                                                                      ==========================
These statements should be read in conjunction with the year-end financial statements.
</TABLE>

                                        4
<PAGE>

<TABLE>
<CAPTION>



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


                                                                            February 22, 1999
                                                  Six Month Periods       (Date of Inception)
                                                   Ended June 30,            To June 30, 2004
                                              2004                  2003
<S>                                            <C>                  <C>              <C>

Expenses                                     $58,065              $60,179          $526,414
                                       ------------------------------------------------------
    Operating loss                           (58,065)             (60,179)         (526,414)
Other Income -
Interest                                       206                   200              3,516
                                       ------------------------------------------------------
Loss accumulated
during development
stage                                       ($57,859)           ($59,979)         ($522,898)
                                        ====================================================
Loss Per Share -
    Basic and Diluted                        $  -                $ -

Weighted average number of shares         43,000,816           41,993,091
 outstanding                           ==================================
</TABLE>

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

                                        5
<PAGE>

<TABLE>
<CAPTION>

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


                                                                            February 22, 1999
                                               Quarter Month Periods       (Date of Inception)
                                                   Ended June 30,            To June 30, 2004
                                              2004                  2003
<S>                                            <C>                  <C>              <C>

Expenses                                     $35,407              $34,814          $526,414
                                       ------------------------------------------------------
    Operating loss                           (35,407)             (34,814)         (526,414)
Other Income -
Interest                                        50                    74              3,516
                                       ------------------------------------------------------
Loss accumulated
during development
stage                                       ($35,357)           ($34,740)         ($522,898)
                                        ====================================================
Loss Per Share -
    Basic and Diluted                        $  -                $ -

Weighted average number of shares         43,000,816           42,034,918
 outstanding                           ==================================
</TABLE>

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

                                        6
<PAGE>

<TABLE>
<CAPTION>



                                      AMANASU ENVIRONMENT CORPORATION
                                     (A DEVELOPMENT STAGE COMPANY)
                                      STATEMENTS OF CASH FLOWS
                                     (UNAUDITED)
                                                                 Six Month Periods      February 22, 1999
                                                                  Ended June 30,      (Date of Inception)
                                                            2004                2003      To June 30 2004
                                                ---------------------------------------------------------
CASH FLOWS FROM OPERATIONS:
<S>                                                         <C>                  <C>                  <C>
Net Loss                                                  (57,859)             (59,979)         (522,898)
Changes Not Requiring the Outlay of Cash:
    Depreciation and amortization                          11,065               10,740            46,063
    Services provided for common stock                          -                    -            70,000
    Changes in Assets and Liabilities:
        Increase in accrued expenses                          432                    -               432
        Increase in miscellaneous receivables                (400)                   -            (1,985)
                                                ---------------------------------------------------------
             NET CASH CONSUMED BY
                 OPERATING ACTIVITIES                     (46,762)             (49,239)         (408,388)

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                                           -                    -           539,540
Advances received in anticipation of
    common stock sales                                          -               99,900           100,000
                                                ---------------------------------------------------------
            NET CASH PROVIDED BY
                FINANCING ACTIVITIES                            -               99,900           639,540

Net change in cash                                        (46,762)              50,661            45,293
Cash balance, beginning of period                          92,055               78,432                 -
                                                ---------------------------------------------------------
Cash balance, end of period                                45,293              129,093            45,294
                                                =========================================================
</TABLE>

                                        7
<PAGE>

                         AMANASU ENVIRONMENT CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2004
                                   (UNAUDITED)




1.     BASIS  OF  PRESENTATION

The  unaudited  interim  financial statements of Amanasu Environment Corporation
("the  Company")  as  of  June  30, 2004 and for the three and six month periods
ended  June  30, 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 June 30, 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.

2.     DEPOSITS FOR COMMON STOCK

During  the  quarter ended June 30, 2003, 20,000 shares were allotted to Reraise
Corporation, a private Japanese company, at a price of $4.99 per share for total
consideration of $99,900. As of the date hereof, the shares have not been issued
due to pending documentation needed to affect a new share issuance. As a result,
the  $99,900 consideration received should be considered a liability, as opposed
to  a  capital contribution, until the shares have been issued. The Company will
rectify  this  discrepancy  prior to the end of the next quarter ended September
30,  2004.



                                        8
<PAGE>


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

SAFE  HARBOR

This  Form  10QSB  contains  "forward-looking  statements" within the meaning of
Section  27A  of  the  Securities  Act  of 1933, as amended, and Section 21E the
Securities  Exchange Act of 1934, as amended and such forward-looking statements
are  made  pursuant  to  the  safe  harbor  provisions of the Private Securities
Litigation  Reform  Act  of  1995.  "Forward-looking statements" describe future
expectations,  plans, results, or strategies and are generally preceded by words
such  as  "may,"  "future," "plan" or "planned," "will" or "should," "expected,"
"anticipates," "draft," "eventually" or "projected." You are cautioned that such
statements  are  subject  to  a  multitude of risks and uncertainties that could
cause  future  circumstances, events, or results to differ materially from those
projected  in  the  forward-looking  statements, including the risks that actual
results  may  differ  materially  from  those  projected  in the forward-looking
statements  as  a  result  of  various  factors, and other risks identified in a
companies'  annual  report on Form 10-KSB and other filings made by such company
with  the  United States Securities and Exchange Commission. You should consider
these  factors in evaluating the forward-looking statements included herein, and
not  place  undue  reliance  on  such  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.

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

                                       9
<PAGE>

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 preliminary 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.  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.  To  date  the Company has entered into negotiations with various
companies  however  terms  have  not  been  finalized.

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 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.

The  inner  walls of furnace and the combustion burner itself are protected from
the  extreme  heat  by  magnetrons  and tokomak. Magnetrons are circular magnets

                                       10
<PAGE>

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.

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.

                                       11
<PAGE>


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.

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)

                                       12
<PAGE>

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  OPERATION

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  through  joint  venture  or  other  affiliations  with  companies
competitive in each respective product market in order to minimize expenditures.
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. The Company is
presently  in  discussions with an engineering design firm and a furnace company
both  located  in Japan. The parties are discussing potential arrangements 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 cannot
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

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technologies  as  discussed  herein, the Company does not expect to generate any
revenues  from  operations.

Given  sufficient  funds  are  raised, the Company plans on refining the Amanasu
Furnace first as sales of similar furnaces in Japan have increased over the past
year. The Company will compete in the market by lowering its manufacturing costs
and thus selling price by locating alternate suppliers that are less costly than
currently identified suppliers and attempting to re-design certain components of
the  furnace  so  as to reduce the manufacturing cost per component. To date the
Company  has  entered  into negotiations with various suppliers and affiliations
with  companies competitive in each respective product market however terms have
not  been  finalized  at  this time. The Company will market the Amanasu furnace
with  a  two  ton  capacity  which 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.

The  Company's  cash  requirements  for  the  next  12 months other than product
refinement  costs  are estimated to be $145,000. This amount is comprised of the
following  estimate  expenditures:

-     $  43,000  for  administrative salaries including salaries paid to current
      and projected  staff  and  consultants,

-     $  81,000  for  office expenses including meals and entertainment, travel,
      and  rental of  office  in  Seattle,

-     $  21,000  for  audit  and  other  professional  fees,

The  Company  is  seeking  to  raise a minimum of $500,000 in the next 12 months
through  shareholder advances from Mr. Atsushi Maki, a principle shareholder and
Director,  to  support its working capital needs as described above. The Company
also  plans on raising a further $200,000 through the public or private offering
of  its  debt  or  equity  securities.

In  addition  to  the  above described capital requirements, the Company will be
required  to  raise  additional  funds  in  order  for it to commence full scale
production.  The amount of such funds is estimated to be $1,500,000. The Company
cannot  predict whether it will be successful in raising any capital efforts. If
the  Company is unsuccessful in raising at least $500,000, it may not be able to
complete  its  plan  of  operations  as  discussed  above.

The  Company  has no material commitments for capital at this time other than as
described  above.

The  Company  does  not  expect to acquire new or sell its existing technologies
within  the  next  12  months.

The  Company expects to hire additional employees in its office in Japan to fill
positions  relating  to  sales  and  marketing  of  its  products.

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MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION AND RESULTS OF
OPERATIONS

The  Company  did  not generate any revenues for the quarter ended June, 2004 or
for  the  same period in 2003 except for interest earned in bank deposits in the
amount  of  $  206  and  $200  respectively.

Total  expenses  for  the  six  month  period  ending June 30, 2004 was $ 58,065
compared  to  $  60,179  for  the  same period of 2003.  The decrease was due to
reduced  professional  fees.

Total expenses for the 3 month period ending June 30, 2004 was $ 35,407 compared
to  $34,814 for the same period in 2003.  The increase was due to an increase in
salaries.

In  the  event  that  the  Company  does not generate revenues in  the  next  12
months,  the  Company  plans  to  obtain  additional  private  placements  and
loans  from  the  Company's  Director,  Atsushi  Maki  in the amount of $500,000
without  interest  or stated terms of repayment.  The  Company  does  anticipate
business  opportunities,  however  those  opportunities  remain  uncertain  to
date.

LIQUIDITY  AND  CAPITAL  RESOURCES

As of June 30, 2004, working capital was negative $ 53,154. The negative working
capital is mostly attributed to deposits received for common stock in the amount
of $99,900. This transaction occurred in June 2003 where shares were allotted to
Reraise  Corporation  but  were  not  issued  when  consideration of $99,900 was
received.  The  Company  expects  to issue these shares before the quarter ended
September  2004.  Once  the  shares  are  issued,  the  Company  will treat this
transaction  as  a capital contribution. Please refer to Note 2 of the financial
statements  and  Item  2.  Changes  in  Securities-Recent  Sales of Unregistered
Securities.

The  Company incurred an accumulated deficit of $ 522,898. Past recurring losses
and  inability  to  generate sufficient cash flow from normal operations to meet
its  obligations as they become due, raises doubt about the Company's ability to
continue  as  a going concern. The Company's ability to continue in existence is
dependent  upon  obtaining the necessary $500,000 needed to fund working capital
needs  and  the  further  $1,500,000  needed  to commence full scale production.

OFF-BALANCE  SHEET  ARRANGEMENTS

The  Company  has  no  off-balance  sheet  arrangements.

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

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EVALUATION  OF  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-15(e) 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  as of a date within 90 days of the filings date of Form 10QSB. 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  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.

CHANGES  IN  INTERNAL  CONTROLS

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, Chief Financial
Officer's  and  Chief  Accounting  Officer's evaluation that could significantly
affect these internal controls, including any corrective actions with regards to
significant  deficiencies  and  material  weaknesses.

Part  II  OTHER  INFORMATION

Item  1.  Legal  Proceedings.
None

Item  2.  Changes  in  Securities-Recent Sales of Unregistered Securities

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.

The  Company  issued  the  following shares which were exempt under Regulation S
under  the  Securities  Act,  as the sales were made in offshore transactions to
non-U.S.  persons.

June  2003-20,000  shares  were  allotted  for  subsequent  issuance  to Reraise
Corporation,  private  Japanese  company  for  consideration of $99,900. To date
these  shares have not been issued due to pending documentation needed to affect
a  new  share  issuance.  As  a  result,  the  $99,900  capital  contribution is
considered  a  liability.  This transaction was previously recorded as a capital
transaction  in  error.  The Company anticipates on resolving this matter before
the  end  of  the  next  quarter  ended  September  30,  2004.


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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.  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.

On  June  1,  2003,  the  Company filed Form 8-K items 6 and 7 reporting Takashi
Yamaguchi's  resignation  as  one  of  the Company's directors.  Mr. Yamaguchi's
resignation  was  owing  to  personal  reasons  and  is not as a result from any
disagreements  with  the  Company  on  any  matter  relating  to  the  Company's
operations,  policies  or  practices.

                                   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.

                      AMANASU  ENVIRONMENT  CORPORATION

Date:  August 20, 2004
/s/ Atsushi Maki
____________________________
Atsushi  Maki
Chief  Executive  Officer
Chief  Financial  Officer
Chief  Accounting  Officer

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