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 QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997

                                      OR

( )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES 
      EXCHANGE ACT OF 1934

For the transition period from                       to 

                       Commission File Number 0-27274


                         WALKER WINGSAIL AMERICA INC
           (Exact Name of Registrant as specified in its charter)


            Delaware                                    04-3303425
(State or other jurisdiction of            (IRS Employer Indentification No)
 incorporation or organization)

            Devonport Royal Dockyard, Plymouth, Devon, UK PL1 4SG
                  (Address of principal executive offices)

                               44 1752 605426
            (Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the 
Registrant was required to file such reports), and (2) has been subject to 
such filing requirement for the past 90 days.

                  Yes  X                             No  ___

Indicate the number of shares outstanding of each of the issuer's classes of 
common stock as of August 8 1997:

      Common Stock $0.001 par value                      2,386,680
                  Class                              Number of Shares

<PAGE>  1

                         WALKER WINGSAIL AMERICA INC

                                    INDEX

                                                                      Page
                                                                      ----

PART I   FINANCIAL INFORMATION

Item 1.  Financial Statements

         Condensed Balance Sheets - 
          September 30, 1997 and December 31, 1996...................... 3

         Condensed Statements of Operations - 
          For the Three Months ended September 30, 1997 and 1996
          For the Nine Months ended September 30, 1997
          For the Cumulative From Inception 
          January 19, 1995) to September 30, 1997....................... 4

         Condensed Statements of Cash Flows -
          For the Nine Months ended September 30, 1997 and 1996
          For the Cumulative From Inception
          (January 19, 1995) to September 30, 1997...................... 5

         Notes to Condensed Financial Statements........................ 6

Item 2.  Management's Discussion and Analysis of
          Financial Condition and Results of Operations............... 7-8


PART II  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K............................ 9-10

         Signatures

<PAGE>  2

PART 1  FINANCIAL INFORMATION
ITEM 1  FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
Condensed Balance Sheets                       Walker Wingsail America Inc
                                               (A Development Stage Company)
----------------------------------------------------------------------------
                                               Sep 30         December 31
                                               1997           1996
                                               (Unaudited)
----------------------------------------------------------------------------

<S>                                            <C>            <C>
Assets                                         $              $
Current Assets:
  Cash                                             3,184         21,461 
  Prepaid Expenses and Other Current Assets        2,100          2,100 
----------------------------------------------------------------------------
Total Current Assets                               5,284         23,561 

  Due From Affiliated Entity (Note 5)            114,052              0 
  Intangible Assets, Net of Accumulated
   Amortization of $357 and $74,197
   respectively (Note 3)                             542        813,301 
----------------------------------------------------------------------------
Total Assets                                     119,878        836,862 
============================================================================

Liabilities and Stockholders' Equity

Current Liabilities
  Accounts Payable and Accrued Expenses           11,702         26,448 
  Note Payable, Net of Unamortized Discount
   of $0 and $1902 respectively (Note 4)         150,000        148,098 
  Customer Deposits                               19,958         44,888 
---------------------------------------------------------------------------

Total Current Liabilities                        181,660        219,434 

  Due to Affiliated Entity (Note 5)                    0        129,675 
  License and Sub-License Agreement Obligation         0        556,090 
---------------------------------------------------------------------------

Total Liabilities                                181,660        905,199 
---------------------------------------------------------------------------

Stockholders' Equity
  Preferred Stock: $.001 Par Value;
   5,000,000 Shares Authorized                         0              0 
  Common Stock: $.001 Par Value; 20,000,000
   Shares Authorized, 2,386,680 Shares
   Issued and Outstanding (Note 8)                 2,387          2,387 
  Additional Paid-in Capital                     858,547        858,547 
  Deficit Accumulated During Development
   Stage                                        (922,716)      (929,271)
---------------------------------------------------------------------------
Total Stockholders' Equity                       (61,782)       (68,337)
---------------------------------------------------------------------------

Total Liabilities and Stockholders' Equity     $ 119,878      $ 836,862 
===========================================================================
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

<PAGE>  3

<TABLE>
<CAPTION>
Condensed Statements of Operations            Walker Wingsail America, Inc
                                              (A Development Stage Company)
---------------------------------------------------------------------------
                                                                                                                Cumulative
                                                        For the Three Months Ended  For the Nine  For the Nine  From Inception
                                                        --------------------------  Months Ended  Months Ended  (January 19, 1995)
                                                        September 30  September 30  September 30  September 30  to September 30,
                                                        1997          1996          1997          1996          1997
                                                        (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
----------------------------------------------------------------------------------------------------------------------------------
                    
<S>                                                     <C>           <C>           <C>           <C>           <C>
Selling, General and Administrative Expenses              (13,055)      (77,244)      (89,539)     (325,928)     (983,592)
-------------------------------------------------------------------------------------------------------------------------

Other Income(Loss)
  Deferred Syndication Costs                                                                                        (43,062)
  Interest Expense                                                                                                  (17,223)
  Gain on Sale of Demonstration Yacht                           -             -             -         8,850         8,850 
  Gain on Surrender of Licence Agreement                   96,036                      96,036                      96,036 
  Interest Income                                               -           586            64         2,426         4,325 
  Other Income                                                  -             -             -         2,130         2,130 
  Gain (Loss) on Foreign Currency Exchange Rate                 -           (98)           (6)       (1,704)        9,820
------------------------------------------------------------------------------------------------------------------------- 
Total Other Income (Loss)                                  96,036           488        96,094        11,702        60,876
------------------------------------------------------------------------------------------------------------------------- 
                    
Net Income (Loss) from Development Stage Operations       $82,981      $(76,756)     $  6,555     $(314,226)    $(922,716)
=========================================================================================================================
                   
Net Income (Loss) Per Share                                  0.03         (0.03)            -         (0.13)        (0.44)
=========================================================================================================================
															 
Weighted Average Number of Common Shares Outstanding    2,386,680     2,382,767     2,386,680     2,351,435     2,097,577
=========================================================================================================================
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

<PAGE>  4

<TABLE>
<CAPTION>
Condensed Statements of Cash Flows              Walker Wingsail America,Inc
                                               (A Development Stage Company)
----------------------------------------------------------------------------
                                                          For the Nine    For the Nine    Cumulative
                                                          Months Ended    Months Ended    From Inception
                                                          Sep 30          Sep 30          (January 19, 1995)	      
                                                          1997            1996            to Sep 30, 1997
                                                          (Unaudited)     (Unaudited)     (Unaudited)
------------------------------------------------------------------------------------------------------------

<S>                                                       <C>             <C>              <C>
Cash Flows from Operating Activities

  Net Loss from Development Stage Operations                  6,555        (314,266)       (922,716)
  Adjustments to Reconcile Net Loss from Development Stage
  Operations to Net Cash
   (Used In) Provided by Operating Activities:
    Depreciation and Amortization                            22,315          33,397         101,814 
    Gain on Sale of Demonstration Yacht                                      (8,850)         (8,850)
    Gain on Surrender of Licence Agreement                  (96,036)                        (96,036)
    Non-Cash Debt Issuance Costs                                              3,500     
    Amortisation of Note Payable Discount                     1,902           3,646           7,500 
    Deferred Syndication Costs                                                               43,062 
    Stock Compensation for Services Rendered                                                 18,500 
    Decrease (Increase) in Prepaid Expenses and Other            
      Current Assets                                              -          10,069          (2,100)
    (Decrease) Increase in Accounts Payable                 (14,746)        (32,086)         11,702 
    (Decrease) Increase in Customer Deposits                (24,930)         19,923          19,958 
    (Decrease) Increase in Due to Affiliated Entity          86,663        (165,917)        216,338 
---------------------------------------------------------------------------------------------------
Net Cash Used In Operating Activities                       (18,277)       (450,584)       (610,828)
---------------------------------------------------------------------------------------------------

Cash Flows from Investing Activities
  Proceeds from Sale of Demonstration Yacht                       -         357,000         357,000 
  Acquisition of Demonstration Yacht                              -                        (353,452)
  Organization Costs                                              -                          (1,018)
---------------------------------------------------------------------------------------------------
Net Cash Provided by Investing Activities                                   357,000           2,530
--------------------------------------------------------------------------------------------------- 

Cash Flows from Financing Activities:
  Proceeds from Issuance of Note Payable                          -         142,500         142,500 
  Principal Repayments of License and Sub-License
    Agreement Obligation                                                   (136,995)       (330,390)
  Proceeds from Issuance of Common Stock, Net of
    Syndication Costs                                             -          45,800         842,434 
  Deferred Syndication Costs                                                 (4,250)        (43,062)
---------------------------------------------------------------------------------------------------
Net Cash Provided by Financing Activities                         -          47,055         611,482
---------------------------------------------------------------------------------------------------

Net Increase in Cash                                        (18,277)        (46,489)          3,184
---------------------------------------------------------------------------------------------------

Cash, Beginning                                              21,461          79,250               -
---------------------------------------------------------------------------------------------------

Cash, Ending                                              $   3,184       $  32,761       $   3,184
=================================================================================================== 
</TABLE>

For non cash investing and financing activities during the nine months ended 
September 30, 1997 see notes 4 and 5

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

<PAGE>  5
NOTES TO CONDENSED FINANCIAL                   WALKER WINGSAIL AMERICA, INC.
STATEMENTS (UNAUDITED)                         (A DEVELOPMENT STAGE COMPANY)

1.    INTERIM REPORTING:

In the opinion of management, the accompanying unaudited interim condensed 
financial statements of Walker Wingsail America Inc. (the "Company") contain 
all adjustments necessary to present fairly the Company's financial position 
as of September 30, 1997 and December 31, 1996;  the results of its 
operations and its cash flows for the nine months ended September 30, 1997 
and 1996 and the cumulative period from inception (January 19, 1995) through 
September 30, 1997

The information included in the condensed balance sheet as of December 31, 
1996 has been derived from the Company 's Form 10-KSB for the year ended 
December 31, 1996 (1996 Form 10-KSB).  The unaudited condensed financial 
statements contained herein should be read in conjunction with the financial 
statements and the corresponding notes contained in the Company's 1996 Form 
10-KSB.

2.    NET LOSS PER SHARE:

Net loss per share is calculated based on the weighted average number of 
shares of common stock and common stock equivalents outstanding during the 
corresponding periods.

3.    NOTE PAYABLE:

During March, 1996, the Company borrowed $142,500, net of unamortized 
discount of $7,500, under a 7.75% note agreement with an effective interest 
rate of 13.2%.  Under the terms of the note agreement, the outstanding 
borrowings were due on March 28, 1997.  The note is collateralized by 
substantially all assets of the Company.  As of September 30, 1997 
borrowings outstanding under the note amounted to $150,000.  In connection 
with the note agreement, the Company incurred debt issuance costs in the 
amount of $12,500 and issued 50,000 shares of its .001 par value common 
stock to the lender.  Such shares of common stock have been recorded at a 
value of $3,500 in the accompanying balance sheet as issued and outstanding 
common stock.  The Company is in the process of negotiating an extended due 
date.

4.    LICENSE AND SUB-LICENSE AGREEMENT OBLIGATION:

As a result of Walker Wingsail America Inc (WWA) being unsuccessful in 
raising further equity funds on the terms and conditions recommended by the 
company's US financial advisor, Walker Wingsail Systems plc (WWS) and WWA 
have agreed to cancel the licence agreement entered into on May 5, 1995. In 
order to preserve control over the North American Wingsail market, the 
company made a takeover offer to the stockholders on July 10, 1997 on the 
basis of two ordinary shares in WWS for every one common share in WWA.  
During the quarter ended September 30, 1997 the license and sub-license 
agreement obligation in the amount of $556,090 has been reversed and the 
previous payments made to WWS by WWA under this obligation have been 
credited in the amount of $330,390.  The net license intangible asset in the 
amount of $790,444 has also been reversed.  This transaction has resulted in 
a net gain on surrender of license in the amount of $96,036 during the 
quarter ended September 30, 1997 .  (See note 5)

5.    DUE TO/FROM AFFILIATED ENTITY:

As a result of Walker Wingsail America Inc (WWA) cancelling the license and 
sub-license agreement, WWS reversed the license fee and netted this figure 
off against the balance due to WWS in the amount of $216,338.  The remaining 
net balance of $114,052 has been included in as due from affiliated entity 
and will be used to reduce the cost of the investment by WWS.  (See note 4)

6.    SALES REPRESENTATION AGREEMENTS:

In March 1996, Walker Wingsail Systems PLC entered into a sales 
representation agreement with Wingsail, U.S.A., Inc. pursuant to which it 
agreed to pay a commission of 20% of each sale of Walker Wingsail yachts for 
which Wingsail, U.S.A., Inc. is responsible.  Walker Wingsail Systems PLC 
has also agreed to pay the Company a commission of 2% for each such sale 
made by Wingsail, U.S.A. Inc.

7.    COMMON STOCK ISSUANCE:

No stock has been issued during the nine months ended September 30, 1997.

<PAGE>  6

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

COMPARISON OF THE RESULTS OF OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 
1997 WITH THE QUARTER ENDED SEPTEMBER 30, 1996 AND THE PERIOD FROM INCEPTION 
FROM (JANUARY 19, 1995) to SEPTEMBER 30, 1997.

RESULTS OF OPERATIONS

During the period from the inception of the Company (January 19, 1995) 
through September 30, 1997, the Company has engaged in no significant 
operations.  During the Current Period (defined below) the Company's primary 
activities consisted of acting as a sales representative for an affiliated 
entity, Walker Wingsail Systems PLC ( WWS ).

No revenues were received by the Company from operations during the three 
month period ended September 30, 1997, (the  Current Period ), or the three 
month period ended September 30, 1996, (the  Prior Period ), or during the 
period from inception (January 19, 1995) to September 30, 1997.  The Company 
realized a gain of $82,981 mainly due to the reversal of amortisation on 
surrender of the License Agreement during the Current Period and a loss of 
$76,756 in the Prior Period and a loss of $922,716 during the period from 
inception (January 19, 1995) to September 30, 1997 from development-stage 
operations.  

The Company incurred selling, general and administrative expenses of $13,055 
in the Current Period and  $77,244 in the Prior Period and $983,592 during 
the period from inception (January 19, 1995) to September 30, 1997.
 
The Company incurred depreciation and amortization expenses of $51 in the 
Current Period and $11,133 in the Prior Period and $101,814 during the 
period from inception (January 19, 1995) to September 30, 1997.

The Company incurred a gain on the reversal of amortisation is respect of 
the surrender of the license agreement and no other income during the 
current period.  In the prior period the Company incurred a loss on foreign 
currency exchange rate of $98 and interest income of $586.  During the 
period from inception (January 19, 1995 to September 30, 1997 the Company 
received other income of $121,161, with Deferred Syndication Cost of $43,062 
and Interest Expense of $17,223. 

During the nine months ended September 30, 1997 the net cash used in 
operating activities amount to $18,277, of this amount cash was decreased in 
the amount of $65,264 as a result of the net income, net of non-cash items.

During the period of inception (January 19, 1995) to September 30, 1997 the 
net cash used in operating activities amounted to $610,888.  Of this amount, 
cash was decreased in the amount of $856,726 as a result of the net loss, 
net of non-cash items. 

During the nine months ended September 30, 1997 there were no cash flow from 
investing activities.  During the period from inception (January 19, 1995) 
to September 30, 1997 the cash flows from investing activities amounted to 
$2,530 which consisted of the purchase of the demonstration yacht for 
$353,452, the proceeds from the sale of the demonstration yacht in the 
amount of $357,000, and an outlay for organisation costs in the amount of 
$1,018.

During the nine months ended September 30, 1997 there were no cashflows from 
financing activities.

During the period from inception (January 19 1995) to September 30, 1997, 
the net cash provided by financing activities amounted to $611,482 which 
consisted of  $842,434 in proceeds of issuance of Common Stock, $142,500 
proceeds from issuance of note payable, less $43,062 in deferred syndication 
costs, less repayments of license and sub license agreement obligation of 
$330,390.

<PAGE>  7

LIQUIDITY AND CAPITAL RESOURCES

      The Company's ability to continue in operation has been dependent upon 
raising additional capital until revenues are sufficient to fund the 
company's operating expenses, and the Company has therefore been exploring 
the possibility of raising additional capital through private sources.  The 
Company has been unable to secure such financing on a timely basis or on 
terms that are acceptable to it. The directors therefore resolved on July 
10, 1997 to recommend to its stockholders that an offer of takeover by its 
affiliated entity, WWS, be accepted.  The offer was made on July 10, 1997 
and as at August 1, 1997 the necessary single majority of acceptances has 
been received totalling 2,237,066 shares.  The Company is now therefore a 
subsidiary of WWS.  The takeover terms offered two WWS Ordinary Shares for 
every share of Common Stock held.  Under the terms of the offer WWS will 
purchase the 30% shareholding of Mr J G Walker and Mrs J M Walker in Wwa for 
the original nominal value paid of $200.  WWS is in the process of 
attempting to raise approximately $4,300,000 of capital through a U.K. 
offering of its Convertible Unsecured Loan Stock.  So far, approximately 
$1,200,000 has been subscribed.

During the first quarter 1996 the Company entered into a term loan agreement 
with an unaffiliated third party pursuant to which the Company borrowed 
$142,500, net of unamortized discount of $7,500, at an annual interest rate 
of 7-3/4% (an effective annual interest rate of 13.2%) for working capital 
purposes.  Under the terms of the loan agreement, the borrowings were due on 
March 28, 1997.  The Company is in the process of negotiating an extended 
due date.  The loan is secured by substantially all of the Company's assets, 
but the liability to repay will be undertaken by WWS.  The Company currently 
has no other borrowing facilities or alternative financing methods available 
to it.

The Company is not currently committed to expend funds for marketing or any 
other activities or purchases. 


PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

      a.    Exhibits:

            27.01      Financial Data Schedule

      b.    Reports on Form 8-K:

            The Company has not filed any reports on Form 8-K during 
            the quarterly period ended September 30, 1997


                                 SIGNATURES

Pursuant to the requirement of the Securities Exchange Act of 1934, the 
Company has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorised.

                                       WALKER WINGSAIL AMERICA, INC.


November 14, 1997                     /s/ John Walker
                                      John Walker, President
                                      (Principal Executive Officer,
                                      Principal Financial Officer and 
                                      Principal Accounting Officer)

<PAGE>  8