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 JUNE 30, 1998

                                     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 Identification No)
   incorporation or organization)

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

                               44 1752 608000
            (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         No   X   
                                -----      -----

Indicate the number of shares outstanding of each of the issuer's classes of 
common stock as of August 8, 1998:

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


                         WALKER WINGSAIL AMERICA INC

INDEX                                                               Page


PART I   FINANCIAL INFORMATION

Item 1.  Financial Statements

            Condensed Balance Sheets - 
              June 30, 1998and December 31, 1998..................      3

            Condensed Statements of Operations - 
              For the Three Months ended June 30, 1998 and 1997
              For the Six Months ended June 30, 1998 and 1997
              For the Cumulative From Inception 
              (January 19, 1995) to June 30, 1998.................      4

            Condensed Statements of Cash Flows -
              For the Six Months ended June 30, 1998and 1997
              For the Cumulative From Inception
             (January 19, 1995) to March 31, 1998.................      5

             Notes to Condensed Financial Statements..............    6-7

Item 2.  Management's Discussion and Analysis of
          Financial Condition and Results of Operations...........    8-9


PART II  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K.........................  10-11

         Signatures


PART 1   FINANCIAL INFORMATION
ITEM 1   FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
Condensed Balance Sheets                                                                 Walker Wingsail America Inc
                                                                                       (A Development Stage Company)
--------------------------------------------------------------------------------------------------------------------
                                                                                          Jun 30        December 31,
                                                                                           1998             1977
                                                                                        (Unaudited)
--------------------------------------------------------------------------------------------------------------------

<S>                                                                                      <C>             <C>
Assets                                                                                   $               $        
Current Assets:
  Cash                                                                                       1,693           2,341
  Prepaid Expenses and Other Current Assets                                                  2,100           2,100
------------------------------------------------------------------------------------------------------------------
Total Current Assets                                                                         3,793           4,441

  Intangible Assets, Net of Accumulated Amortization of $629 and $527, Respectively            388             491
  Due from Affiliated Entity (Note 6)                                                       46,411         101,391
------------------------------------------------------------------------------------------------------------------

Total Assets                                                                                50,592         106,323
                                                                                         =========================

Liabilities and Stockholders' Equity

Current Liabilities
  Accounts Payable and Accrued Expenses                                                      2,555           4,625
  Note Payable,                                                                            112,500         150,000
  Customer Deposits                                                                         19,958          19,958
------------------------------------------------------------------------------------------------------------------
Total Current Liabilities                                                                  135,013         174,583

  Due to Affiliated Entity (Note 6)                                                              0               0
  License and Sub-License Agreement Obligation
------------------------------------------------------------------------------------------------------------------
Total Liabilities                                                                          135,013         174,583
------------------------------------------------------------------------------------------------------------------

Stockholders' Equity
  Preferred Stock: $.001 Par Value; 5,000,000 Shares Authorized
  Common Stock: $.001 Par Value; 20,000,000 Shares Authorized 2,386,680

  Shares Issued and Outstanding (Note 9)                                                     2,387           2,387
  Additional Paid-in Capital                                                               858,547         858,547
  Deficit Accumulated During Development Stage                                            (945,355)       (929,194)
------------------------------------------------------------------------------------------------------------------
Total Stockholders' Equity                                                                 -84,421         -68,260
------------------------------------------------------------------------------------------------------------------

Total Liabilities and Stockholders' Equity                                               $  50,592       $ 106,323
                                                                                         =========================
</TABLE>


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS



<TABLE>
<CAPTION>
Condensed Statements of Operations                                                                  Walker Wingsail America, Inc
                                                                                                    (A Development Stage Company)
---------------------------------------------------------------------------------------------------------------------------------
                                                       For the Three Months Ended  For the Six   For the Six       Cumulative
                                                                                   Months Ended  Months Ended    From Inception
                                                         June 30        June 30      June 30       June 30     (January 19, 1995)
                                                          1998           1997         1998          1997        to June 30, 1998
                                                       (Unaudited)    (Unaudited)  (Unaudited)   (Unaudited)      (Unaudited)
---------------------------------------------------------------------------------------------------------------------------------


<S>                                                     <C>            <C>          <C>           <C>             <C>
Selling, General and Administrative Expenses               (9,951)       (22,296)     (16,161)      (76,484)      (1,006,233)
----------------------------------------------------------------------------------------------------------------------------

Other Income(Loss)
  Deferred Syndication Costs                                                                                         (43,062)
  Interest Expense                                                                                                   (17,223)
  Gain on Sale of Demonstration Yacht                                                                                  8,850 
  Gain on Surrender of License Agreement                                                                              96,036 
  Interest Income                                                              2                         64            4,327 
  Other Income                                                                                                         2,130 
  Gain (Loss) on Foreign Currency Exchange Rate                               (6)                        (6)           9,820 
----------------------------------------------------------------------------------------------------------------------------
Total Other Income(Loss)                                        -             (4)           -            58           60,878 
----------------------------------------------------------------------------------------------------------------------------

Net Income(Loss) from Development Stage Operations      $  (9,951)     $ (22,300)   $ (16,161)    $ (76,426)      $ (945,355)
                                                        ====================================================================

Net Income(Loss) Per Share                                      -          (0.01)       (0.01)        (0.03)           (0.40)
                                                        ====================================================================

Weighted Average Number of Common Shares Outstanding    2,386,680      2,386,680    2,386,680     2,386,680        2,382,394
                                                        ====================================================================
</TABLE>


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS



<TABLE>
<CAPTION>
Condensed Statements of Cash Flows                                                    Walker Wingsail America, Inc
                                                                                      (A Development Stage Company)
-------------------------------------------------------------------------------------------------------------------
                                                                                                     Cumulative
                                                               For the Six      For the Six        From Inception
                                                               Months Ended     Months Ended     (January 19, 1995)
                                                               June 30, 1998    June 30, 1997     to June 30, 1998
                                                               (Unaudited)      (Unaudited)         (Unaudited)
-------------------------------------------------------------------------------------------------------------------

<S>                                                             <C>              <C>                <C>
Cash Flows from Operating Activities                             (16,161)         (76,426)           (945,355)

  Net Loss from Development Stage Operations
  Adjustments to Reconcile Net Loss from Development Stage
  Operations to Net Cash
   (Used In) Provided by Operating Activities:
     Depreciation and Amortization                                   102           22,264             101,967 
     Gain on Sale of Demonstration Yacht                                                               (8,850)
     Gain on Surrender of License Agreement
     Non-Cash Debt Issuance Costs
     Amortization of Note Payable Discount                                          1,902               7,500
     Deferred Syndication Costs                                                                        43,062
     Stock Compensation for Services Rendered                                                          18,500
     Proceeds from Surrender of License                                                               (96,036)
     Decrease (Increase) in Prepaid Expenses and Other                                                 (2,100)

   Current Assets                                                                                       2,555
    (Decrease) Increase in Accounts Payable                       (2,070)         (12,582)
    (Decrease) Increase in Customer Deposits                                      (24,930)             19,958
    (Decrease) Increase in Due to Affiliated Entity                                76,804             228,999
    (Increase) Decrease in due from Affiliated Entity             54,980                               54,980
-------------------------------------------------------------------------------------------------------------
Net Cash (Used In) Provided By Operating Activities               36,851          (12,968)           (574,820)
-------------------------------------------------------------------------------------------------------------

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

Cash Flows from Financing Activities:
  Proceeds from Issuance of Note Payable                                                              142,500
  Capital Repayment of Loan                                      (37,500)                             (37,500)
  Principal Repayments of License and Sub-License
   Agreement Obligation                                                                              (330,390)
  Proceeds from Issuance of Common Stock, Net of
   Syndication Costs                                                                                  842,434
  Deferred Syndication Costs                                                                          (43,062)
-------------------------------------------------------------------------------------------------------------
Net Cash (Used In) Provided by Financing Activities              (37,500)               -             573,982
-------------------------------------------------------------------------------------------------------------

Net Increase in Cash                                                (649)         (12,968)              1,692
                                                                ---------------------------------------------

Cash, Beginning                                                    2,341           21,461                   -
                                                                ---------------------------------------------

Cash, Ending                                                    $  1,692         $  8,493           $   1,692
                                                                =============================================
</TABLE>


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS



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 June 30, 1998 and December 31, 1997;  the results of its operations 
and its cash flows for the six months ended June 30, 1998and 1997 and the 
cumulative period from inception (January 19, 1995) through March 31, 1998

The information included in the condensed balance sheet as of December 31, 
1997 has been derived from the Company 's Form 10-KSB for the year ended 
December 31, 1997 (1997 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 1997 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.    DEMONSTRATION YACHT:

In February, 1997, the Company sold its demonstration yacht to Wingsail 
U.S.A., Inc., an unaffiliated third party, for cash consideration in the 
amount of $357,000.

4.    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. A new date of December 31, 1998 has 
been agreed. The note is collateralized by substantially all assets of the 
Company.  As of June 30, 1998 borrowings outstanding under the note amounted 
to $112,500.  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.  

5.    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 license 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. 

6.    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 $228,999.  The remaining 
net balance of $46,411 has been included in as due from affiliated entity 
and will be used to reduce the cost of the investment by WWS.  (See note 5)

7.    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.

8.    LITIGATION

During January 1998, the Company, WWS and Mr and Mrs John Walker were named 
as parties to a lawsuit initiated by Wingsail USA Inc.  The lawsuit alleges, 
among other things, breach of contract with respect to certain distributor 
agreements with the Company and WWS, and raises certain warranty issues, 
with respect to the demonstration yacht purchased by Wingsail USA Inc., from 
the Company during February 1996 (Note 3).  Action under the lawsuit has 
been postponed while the Company, WWS and Mr & Mrs Walker are in 
negotiations with Wingsail USA Inc., in an attempt to settle the 
disagreements.  The Company, WWS and Mr and Mrs Walker believe that the 
lawsuit is without merit and, in the event that a settlement is not reached, 
they intend to vigorously defend this action.  The litigation is in its 
initial stages and the potential losses by the Company are not predictable 
at this time.

9.    COMMON STOCK ISSUANCE:

No stock has been issued during the six months ended June 30, 1998.

10.   SUBSEQUENT EVENTS

On July 10, 1998 all the employees of Walker Wingsail Systems plc were made 
redundant and a liquidator of the company was nominated.  This was Ian 
Walker of Pannell Kerr Forster, 2 Barnfield Crescent, Exeter, EX1 1QT, 
Devon, England.  A notice was sent to all shareholders advising them of an 
Extra-ordinary general meeting to be held on August 7, 1998 at Alexandra 
Palace, Wood Green, London, N22 7AY, England asking them to consider  and if 
thought fit, to pass the following resolutions.  

      1.    Extra-ordinary Resolution

            THAT it has been proved to the satisfaction of this meeting 
            that the company cannot, by reason of its liabilities, 
            continue its business, and that it is advisable to wind up 
            the same and accordingly that the company be would up 
            voluntarily.

      2.    Ordinary Resolution

            THAT I E Walker of Pannell Kerr Forster, 2 Barnfield 
            Crescent, Exeter EX1 1QT be and is hereby appointed as 
            liquidator of the company for the purpose of the voluntary 
            winding up.

A notice was also sent to all Creditors giving notice of a Creditors meeting 
to be held on August 10, 1998, at the New Continental Hotel, Millbay Road, 
Plymouth, Devon, PL1 3LD, England for the purposes mentioned in Sections 99 
to 101 of the Insolvency Act 1986 to

            a.    to have laid before it a statement as to the affairs of 
                  the company
            b.    to nominate one or more insolvency practitioners as 
                  liquidator or liquidators; and
            c.    if thought fit, to appoint a liquidation committee
            d.    and to pass any other resolution necessary.


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

COMPARISON OF THE RESULTS OF OPERATIONS FOR THE QUARTER ENDED JUNE 30, 1998 
WITH THE QUARTER ENDED JUNE 30, 1997 AND THE PERIOD FROM INCEPTION FROM 
(JANUARY 19, 1995) to JUNE 30, 1998


RESULTS OF OPERATIONS

During the period from the inception of the Company (January 19, 1995) 
through June 30, 1998, 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 six 
month period ended June 30, 1998, (the  Current Period ), or the six month 
period ended June 30, 1997, (the  Prior Period ), or during the period from 
inception (January 19, 1995) to June 30 , 1998. 

The Company incurred selling, general and administrative expenses of $9,951 
in the Current Period and  $22,296 in the Prior Period and $1,006,233 during 
the period from inception (January 19, 1995) to June 30, 1998.

The Company incurred depreciation and amortization expenses of $51 in the 
Current Period and $11,132 in the Prior Period and $101,967 during the 
period from inception (January 19, 1995) to June 30, 1998.

The Company incurred  no other income during the current period.  In the 
prior period the Company incurred a  loss on foreign currency exchange rate 
of $6 and other income of $2.  During the period from inception (January 19, 
1995 to June 30, 1998 the Company received other income of $121,163, 
including a gain on surrender of license agreement of $96,036 with Deferred 
Syndication Costs of $43,062 and Interest Expense of $17,223. 

During the three months ended June 30, 1998 the net cash used in operating 
activities amounted to $47, of this amount cash was decreased in the amount 
of $9,900 as a result of the net income, net of non-cash items.  There was a 
decrease of 4,721 in accounts payable and a decrease in the amount due from 
affiliated entity of $14,574.  In the prior period the net cash used in 
operating activities amounted to $677, of this amount cash was decreased in 
the amount of $11,168 as a result of the net income, net of non-cash items.  
A decrease of $17,530 in accounts payable, a decrease in customer deposits 
of $10,000 and as increase in the amount due to the affiliated entity of 
$38,021.

During the period of inception (January 19, 1995) to June 30, 1998 the net 
cash used in operating activities amounted to $574,820.  Of this amount, 
cash was decreased in the amount of $879,212 as a result of the net loss, 
net of non-cash items. 

There were no cash flows from investing activities during the current or 
prior period.  During the period from inception (January 19, 1995) to June 
30, 1998 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 organization costs in the amount of $1,018.

During the three months ended June 30, 1998, and the prior period, there was 
no cash used in financing activities.  During the period from inception 
(January 19 1995) to March 31, 1998, the net cash provided by financing 
activities amounted to $573,982 which consisted of  $842,434 in proceeds of 
issuance of Common Stock, $105,000 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.

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.  The Company explored the possibility of 
raising additional capital of approximately $8,000,000 through private 
sources, but such further Capital has not been forthcoming. The Company 
therefore currently has no plans, agreements, understandings or arrangements 
for completing such a financing since there was no assurance that the 
Company would be able to secure such financing on a timely basis or on terms 
that are acceptable to it, or that such funds will be adequate for its 
future operations. 

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.  A new date of December 31, 1998 has been agreed. 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.  During 1998/1999, it is management's 
intention to incur minimal office and administration expenses and 
professional fees.  These continued losses and deficiency in working capital 
raise substantial doubt about the Company and its ability to continue in 
existence as a going concern.  In regard to this matter, the control of the 
Company was shifted to WWS through an exchange of stock. In July 1997 Walker 
Wingsail Systems plc made an offer of takeover of the Company, and this was 
taken up by 56% of issued stock.  The Company and its ability to continue as 
a going concern is dependent upon the ability of WWS to support the Company 
in meeting its obligations for professional and administrative costs until 
such time as the Company is sold as a shell corporation or it generates 
sufficient cash flow in its capacity as a sales representative for WWS to 
support itself.


                         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 June 30, 1998






                                 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 authorized.


                                       WALKER WINGSAIL AMERICA, INC.




November 11, 1998                      /s/ John Walker
-----------------                      ---------------------------------
                                       John Walker, President (Principal 
                                       Executive Officer, Principal 
                                       Financial Officer and Principal 
                                       Accounting Officer)