<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q


[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
      EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED JUNE 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 0-27496

                       CRONOS GLOBAL INCOME FUND XVI, L.P.
             (Exact name of registrant as specified in its charter)


                   California                                   94-3230380
          (State or other jurisdiction of                     (I.R.S. Employer
          incorporation or organization)                     Identification No.)

     444 Market Street, 15th Floor, San Francisco, California      94111
     (Address of principal executive offices)                   (Zip Code)

                                 (415) 677-8990
              (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
requirements for the past 90 days. Yes  X   No 
                                       ---      ---

<PAGE>   2
                       CRONOS GLOBAL INCOME FUND XVI, L.P.


                      Report on Form 10-Q for the Quarterly
                           Period Ended June 30, 1997

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                                   PAGE
<S>       <C>                                                                                                        <C>
PART I - FINANCIAL INFORMATION
Item 1.   Financial Statements

          Balance Sheets - June 30, 1997 (unaudited) and December 31, 1996                                            4

          Statement of Operations for the three and six months ended June 30, 1997 and 1996 (unaudited)               5

          Statement of Cash Flows for the six months ended June 30, 1997 and 1996 (unaudited)                         6

          Notes to Unaudited Financial Statements (unaudited)                                                         7

Item 2.   Management's Discussion and Analysis of Financial Condition and Results of                                 10
          Operations


PART II - OTHER INFORMATION

Item 5.   Other Materially Important Events                                                                          14


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

</TABLE>


                                       2
<PAGE>   3

                         PART I - FINANCIAL INFORMATION


Item 1.   Financial Statements

          Presented herein are the Registrant's balance sheets as of June 30,
          1997 and December 31, 1996, statements of operations for the three and
          six months ended June 30, 1997 and 1996, and statements of cash flows
          for the six months ended June 30, 1997 and 1996.




                                       3
<PAGE>   4

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                                 Balance Sheets

                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                          June 30,      December 31,
                 Assets                                                     1997            1996
                                                                        ------------    ------------
<S>                                                                     <C>             <C>       
Current assets:
   Cash and cash equivalents, includes $1,038,011 at June 30, 1997
      and $1,755,486 at December 31, 1996 in interest-bearing accounts   $  1,052,116    $  1,755,884
   Net lease receivables due from Leasing Company
     (notes 1 and 2)                                                          368,599         208,133
                                                                         ------------    ------------

         Total current assets                                               1,420,715       1,964,017
                                                                         ------------    ------------

Container rental equipment, at cost                                        26,792,576      24,701,402
   Less accumulated depreciation                                            1,662,830         894,114
                                                                         ------------    ------------
     Net container rental equipment                                        25,129,746      23,807,288
                                                                         ------------    ------------

Organizational costs, net                                                     205,574         229,005
                                                                         ------------    ------------

                                                                         $ 26,756,035    $ 26,000,310
                                                                         ============    ============

         Liabilities and Partners' Capital
Current liabilities:
   Due to general partner (notes 1 and 3)                                 $         -    $     17,299
   Container rental equipment purchases payable                                     -         341,486
                                                                         ------------    ------------

         Total current liabilities                                                  -         358,785
                                                                         ------------    ------------

Partners' capital (deficit):
   General partner                                                             (3,859)         (1,820)
   Limited partners                                                        26,759,894      25,643,345
                                                                         ------------    ------------

         Total partners' capital                                           26,756,035      25,641,525
                                                                         ------------    ------------

                                                                         $ 26,756,035    $ 26,000,310
                                                                         ============    ============
</TABLE>
   The accompanying notes are an integral part of these financial statements.



                                       4
<PAGE>   5
                      CRONOS GLOBAL INCOME FUND XVI, L.P.

                            Statement of Operations

                                  (Unaudited)
<TABLE>
<CAPTION>
                                          Three Months Ended                  
                                        -----------------------      Six      For the Period March 29, 1996   
                                        June 30,       June 30,  Months Ended  (Commencement of Operations)
                                          1997          1996     June 30, 1997    through June 30, 1996
                                        ----------    ---------  -------------- ---------------------------
<S>                                     <C>          <C>          <C>                <C>       
Net lease revenue (notes 1 and 4)       $  769,433   $  209,056   $1,431,911         $  210,966

Other operating expenses:
    Depreciation and amortization          402,935      163,544      793,949            182,302
    Other general and
      administrative expenses               19,392        5,412       32,761              5,412
                                        ----------   ----------   ----------         ----------
                                           422,327      168,956      826,710            187,714
                                        ----------   ----------   ----------         ----------

        Earnings from operations           347,106       40,100      605,201             23,252

Other income:
    Interest income                         17,805       27,874       42,723             27,874
    Net gain on disposal of equipment        1,321            -        3,352                  -
                                        ----------   ----------   ----------         ----------
                                            19,126       27,874       46,075             27,874
                                        ----------   ----------   ----------         ----------

        Net earnings                    $  366,232   $   67,974   $  651,276         $   51,126
                                        ==========   ==========   ==========         ==========

Allocation of net earnings:

    General partner                     $   30,226   $    1,940   $   56,913         $    1,771
    Limited partners                       336,006       66,034      594,363             49,355
                                        ----------   ----------   ----------         ----------

                                        $  366,232   $   67,974   $  651,276         $   51,126
                                        ==========   ==========   ==========         ==========

Limited partners' per unit
  share of net earnings                 $      .33   $      .26   $      .59         $      .12
                                        ==========   ==========   ==========         ==========

</TABLE>
   The accompanying notes are an integral part of these financial statements.



                                       5
<PAGE>   6

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                             Statement of Cash Flows

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                     For the Period March 29, 1996,
                                                          Six Months Ended          (Commencement of Operations)
                                                             June 30, 1997                through June 30, 1996
                                                          ----------------          ---------------------------
<S>                                                         <C>                             <C>          
Net cash provided by operating activities                   $  1,293,383                    $     160,081


Cash flows used in investing activities:
   Purchase of container rental equipment                     (2,340,840)                     (12,063,397)
   Acquisition fees paid to general partner                     (117,268)                        (603,170)
                                                            ------------                   --------------


         Net cash used in investing activities                (2,458,108)                     (12,666,567)
                                                            ------------                   --------------


Cash flows provided by (used in) financing activities:
   Capital contributions                                       1,931,060                       15,786,320
   Underwriting commissions                                     (193,196)                      (1,578,642)
   Offering and organizational expenses                          (99,850)                        (789,321)
   Distribution to partners                                   (1,177,057)                         (31,499)
                                                            ------------                   --------------


     Net cash provided by financing activities                   460,957                       13,386,858
                                                            ------------                   --------------


Net increase (decrease) in cash and cash equivalents            (703,768)                         880,372


Cash and cash equivalents at January 1                         1,755,884                              100
                                                            ------------                   --------------


Cash and cash equivalents at June 30                        $  1,052,116                    $     880,472
                                                            ============                    =============

</TABLE>

   The accompanying notes are an integral part of these financial statements.



                                       6
<PAGE>   7

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                     Notes to Unaudited Financial Statements


(1)   Summary of Significant Accounting Policies

      (a) Nature of Operations

          Cronos Global Income Fund XVI, L.P. (the "Partnership") is a limited
          partnership organized under the laws of the State of California on
          September 1, 1995, for the purpose of owning and leasing marine cargo
          containers, special purpose containers and container related
          equipment. Cronos Capital Corp. ("CCC") is the general partner and,
          with its affiliate Cronos Containers Limited (the "Leasing Company"),
          manages and controls the business of the Partnership. The Partnership
          shall continue until December 31, 2015, unless sooner terminated upon
          the occurrence of certain events.

          The Partnership commenced operations on March 29, 1996, when the
          minimum subscription proceeds of $2,000,000 were received from over
          100 subscribers (excluding from such count Pennsylvania residents, the
          general partner, and all affiliates of the general partner). On
          February 3, 1997, CCC suspended the offer and sale of units in the
          Partnership. The offering terminates on December 27, 1997.

          As of June 30, 1997, the Partnership operated 3,851 twenty-foot, 1,049
          forty-foot and 460 forty-foot high-cube marine dry cargo containers,
          90 twenty-foot and 300 forty-foot refrigerated containers and 52
          twenty four thousand-liter tanks.


      (b) Leasing Company and Leasing Agent Agreement

          The Partnership has entered into a Leasing Agent Agreement whereby the
          Leasing Company has the responsibility to manage the leasing
          operations of all equipment owned by the Partnership. Pursuant to the
          Agreement, the Leasing Company is responsible for leasing, managing
          and re-leasing the Partnership's containers to ocean carriers and has
          full discretion over which ocean carriers and suppliers of goods and
          services it may deal with. The Leasing Agent Agreement permits the
          Leasing Company to use the containers owned by the Partnership,
          together with other containers owned or managed by the Leasing Company
          and its affiliates, as part of a single fleet operated without regard
          to ownership. Since the Leasing Agent Agreement meets the definition
          of an operating lease in Statement of Financial Accounting Standards
          (SFAS) No. 13, it is accounted for as a lease under which the
          Partnership is lessor and the Leasing Company is lessee.

          The Leasing Agent Agreement generally provides that the Leasing
          Company will make payments to the Partnership based upon rentals
          collected from ocean carriers after deducting direct operating
          expenses and management fees to CCC and the Leasing Company. The
          Leasing Company leases containers to ocean carriers, generally under
          operating leases which are either master leases or term leases (mostly
          two to five years). Master leases do not specify the exact number of
          containers to be leased or the term that each container will remain on
          hire but allow the ocean carrier to pick up and drop off containers at
          various locations; rentals are based upon the number of containers
          used and the applicable per-diem rate. Accordingly, rentals under
          master leases are all variable and contingent upon the number of
          containers used. Most containers are leased to ocean carriers under
          master leases; leasing agreements with fixed payment terms are not
          material to the financial statements. Since there are no material
          minimum lease rentals, no disclosure of minimum lease rentals is
          provided in these financial statements.



                                       7
<PAGE>   8

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                     Notes to Unaudited Financial Statements



      (c) Basis of Accounting

          The Partnership utilizes the accrual method of accounting. Net lease
          revenue is recorded by the Partnership in each period based upon its
          leasing agent agreement with the Leasing Company. Net lease revenue is
          generally dependent upon operating lease rentals from operating lease
          agreements between the Leasing Company and its various lessees, less
          direct operating expenses and management fees due in respect of the
          containers specified in each operating lease agreement.


      (d) Financial Statement Presentation

          These financial statements have been prepared without audit. Certain
          information and footnote disclosures normally included in financial
          statements prepared in accordance with generally accepted accounting
          procedures have been omitted. It is suggested that these financial
          statements be read in conjunction with the financial statements and
          accompanying notes in the Partnership's latest annual report on Form
          10-K.

          The preparation of financial statements in conformity with generally
          accepted accounting principles (GAAP) requires the Partnership to make
          estimates and assumptions that affect the reported amounts of assets
          and liabilities and disclosure of contingent assets and liabilities at
          the date of the financial statements and the reported amounts of
          revenues and expenses during the reported period. Actual results could
          differ from those estimates.

          The interim financial statements presented herewith reflect all
          adjustments of a normal recurring nature which are, in the opinion of
          management, necessary to a fair statement of the financial condition
          and results of operations for the interim periods presented.


(2)   Net Lease Receivables Due from Leasing Company

      Net lease receivables due from the Leasing Company are determined by
      deducting direct operating payables and accrued expenses, base management
      fees payable, and reimbursed administrative expenses payable to CCC and
      its affiliates from the rental billings payable by the Leasing Company to
      the Partnership under operating leases to ocean carriers for the
      containers owned by the Partnership. Net lease receivables at June 30,
      1997 and December 31, 1996 were as follows:

<TABLE>
<CAPTION>
                                                   June 30,    December 31,
                                                     1997         1996
                                                 ----------   ----------
<S>                                                 <C>          <C>    
Lease receivables, net of doubtful accounts
  of $13,547 at June 30, 1997 and $7,329
  at December 31, 1996                           $1,055,560   $  755,259
Less:
Direct operating payables and accrued expenses      338,096      302,271
Damage protection reserve                            55,736       17,860
Base management fees                                188,038      124,420
Reimbursed administrative expenses                  105,091      102,575
                                                 ----------   ----------

                                                 $  368,599   $  208,133
                                                 ==========   ==========

</TABLE>


                                       8
<PAGE>   9
                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                     Notes to Unaudited Financial Statements


(3)   Due to General Partner

      The amounts due to CCC and its affiliates at December 31, 1996 consist of
      acquisition fees.


(4)   Net Lease Revenue

      Net lease revenue is determined by deducting direct operating expenses,
      base management fees and reimbursed administrative expenses to CCC and its
      affiliates from the rental revenue billed by the Leasing Company under
      operating leases to ocean carriers for the containers owned by the
      Partnership. Net lease revenue for the three months ended June 30, 1997
      and 1996, the six months ended June 30, 1997 and the period March 29, 1996
      (commencement of operations) through June 30, 1996 were as follows:

<TABLE>
<CAPTION>
                                        Three Months Ended                       
                                      -----------------------       Six          For the Period March 29, 1996
                                      June 30,      June 30,    Months Ended      (Commencement of Operations)
                                        1997          1996     June 30, 1997         through June 30, 1996
                                      ----------   ----------  ----------------  -----------------------------
<S>                                   <C>           <C>         <C>                   <C>   
Rental revenue                        $1,089,942   $  333,195   $2,036,733             $  335,495
Less:
Rental equipment operating expenses      185,171       83,201      351,419                 83,201
Base management fees                      75,649       22,832      141,700                 23,063
Reimburse administrative expenses         59,689       18,106      111,703                 18,265
                                      ----------   ----------   ----------             ----------
                                      $  769,433   $  209,056   $1,431,911             $  210,966
                                      ==========   ==========   ==========             ==========
</TABLE>

(5)   Container Rental Equipment Purchases

      As of June 30, 1997, the Partnership had purchased the following types of
container rental equipment:

<TABLE>
<CAPTION>
                                                                                 Purchased from
                                                                   Purchased        Container            Total
           Equipment Type                                          from CCC       Manufacturers         Purchased
           --------------                                          ---------     --------------         ---------
           <S>                                                     <C>             <C>                  <C>
           Dry Cargo Containers:
                  Twenty-foot                                          -             3,853              3,853
                  Forty-foot                                           -             1,050              1,050
                  Forty-foot high-cube                                 -               460                460
           Refrigerated Cargo Containers:
                  Twenty-foot                                          -                90                 90
                  Forty-foot high-cube                                 -               300                300
           Tank Containers:
                  24,000-liter                                         -                52                 52
</TABLE>

      The aggregate purchase price (excluding acquisition fees) of the equipment
      acquired by the Partnership through June 30, 1997 was $25,524,394. The
      aggregate equipment had been acquired from third-party container
      manufacturers located in South Korea, India, the People's Republic of
      China, Thailand and the United Kingdom.




                                       9
<PAGE>   10
Item 2.   Management's Discussion and Analysis of Financial Condition and 
          Results of Operations

It is suggested that the following discussion be read in conjunction with the
Registrant's most recent annual report on Form 10-K.

1)    Material changes in financial condition between June 30, 1997 and
      December 31, 1996.

      The Registrant is a limited partnership organized under the laws of the
      State of California on September 1, 1995 for the purpose of owning and
      leasing marine cargo containers, special purpose containers and
      container-related equipment. The Registrant was initially capitalized with
      $100 and commenced offering its limited partnership interests to the
      public subsequent to December 28, 1995, pursuant to its Registration
      Statement on Form S-1 (File No. 33-98290). The Registrant commenced
      operations on March 29, 1996. On February 3, 1997, Cronos Capital Corp.
      ("CCC"), the general partner, suspended the offer and sale of units in the
      Registrant. Information concerning the suspended offer and sale of units
      in the Registrant is incorporated by reference to the discussion in the
      Supplement dated February 6, 1997 to the Registration Statement on Form
      S-1, dated December 28, 1995 as supplemented December 27, 1996. The
      offering terminates December 27, 1997. For the period December 28, 1995
      through February 3, 1997, the Registrant raised $31,993,340 in
      subscription proceeds. The following table sets forth the use of said
      subscription proceeds as of June 30, 1997.

<TABLE>
<CAPTION>
                                                        Percentage of
                                             Amount    Gross Proceeds
                                           ----------- --------------
<S>                                         <C>             <C>  
Gross Subscription Proceeds                $31,993,340     100.0%

Public Offering Expenses:
    Underwriting Commissions                 3,199,334      10.0%
    Offering and Organizational Expenses     1,482,116       4.6%
                                           -----------   -------

    Total Public Offering Expenses           4,681,450      14.6%
                                           -----------   -------

Net Proceeds                                27,311,890      85.4%

Acquisition Fees                             1,276,220       4.0%

Working Capital Reserve                        319,933       1.0%

Unexpended Proceeds                            191,343       0.6%
                                           -----------   -------

Gross Proceeds Invested in Equipment       $25,524,394      79.8%
                                           ===========   =======
</TABLE>
      The Registrant's cash balances as of June 30, 1997 included proceeds of
      the offering, together with interest earned thereon, and amounts reserved
      as working capital. Net lease receivables due from the Leasing Company are
      determined by deducting direct operating payables and accrued expenses,
      base management fees payable, and reimbursed administrative expenses
      payable to CCC and its affiliates from the rental billings payable by the
      Leasing Company to the Registrant. During the Registrant's first year of
      operations, the general partner and its affiliates agreed to defer the
      deduction of all base management fees and reimbursable administrative
      expenses from the leasing receivables due to the Registrant. Deferral of
      these fees ceased during the second quarter of 1997. At June 30, 1997, 
      these deferred fees and expenses totaled $278,000.



                                       10
<PAGE>   11

      The Registrant may rely upon financing to purchase a portion of its
      equipment. The amount of long-term borrowing secured by the Registrant
      will not exceed 20% of the aggregate purchase price of the Registrant's
      equipment. Once the Registrant completes its acquisition of equipment, the
      Registrant intends to maintain an ongoing reserve approximately equal to
      the greater of 1% of gross proceeds, or $100,000, to meet anticipated
      expenses of managing the equipment. The level of reserves will vary from
      time to time depending upon market conditions and the anticipated needs of
      the Registrant. The Registrant will not reinvest its revenues for the
      purchase of additional equipment. Pending expenditure for operations or
      distribution to the partners, these amounts may be invested in short-term,
      liquid investments.

      During 1996, ocean carriers and other transport companies moved away from
      leasing containers outright, as declining container prices, favorable
      interest rates and the abundance of available capital resulted in ocean
      carriers and transport companies purchasing a larger share of equipment
      for their own account, reducing the demand for leased containers. Once the
      demand for leased containers began to fall, per-diem rental rates were
      also adversely affected, contributing to an uncertain start to 1997. Since
      the beginning of the year, the container leasing industry has experienced
      an upward trend in container utilization. The impact of this trend on the
      utilization rates of the Registrant has been mixed. The Registrant's dry
      container utilization rate increased from 80% at December 31, 1996 to 89%
      at June 30, 1997, while refrigerated container utilization rates increased
      from 77% at December 31, 1996 to 100% at June 30, 1997. Tank container
      utilization also increased from 88% at December 31, 1996 to 90% at June
      30, 1997. During 1996, shipping lines and other transport companies had
      reduced their leased fleets to minimal levels in an attempt to reduce
      costs. However, increasing cargo volumes and continued equipment
      imbalances within the container fleets of shipping lines and transport
      companies have established a need for these companies to replenish their
      leased fleets.

      Although there has been a general improvement in container utilization
      rates, per-diem rental rates continue to remain under pressure. The
      decline in per-diem rental rates from those evidenced during 1996 can be
      attributed to the following factors: three new leasing companies have
      offered new containers and low rental rates in an effort to break into the
      leasing market; established leasing companies have reduced rates to very
      low levels; and a continued over supply of containers. Although these
      conditions are expected to continue to impact the Registrant's financial
      condition and operating performance throughout 1997, the long-term outlook
      remains a positive one.


2)    Material changes in the results of operations between the three-month
      periods ended June 30, 1997 and 1996, the six-month period ended June 30,
      1996 and the period March 29, 1996 (commencement of operations) to June
      30, 1996.

      Net lease revenue for the three and six-month periods ended June 30, 1997
      was $769,433 and $1,431,911, respectively, an increase of approximately
      73% and 85% from the same periods in the prior year, respectively. Gross
      rental revenue (a component of net lease revenue) for the three and
      six-month periods ended June 30, 1997 was $1,089,942 and $2,036,733,
      respectively, reflecting an increase of 69% and 84% from the same periods
      in the prior, respectively. During 1997, gross lease revenue was primarily
      impacted by an increase in fleet size and utilization rates. The average
      dry container per-diem rental rate for the three month period ended June
      30, 1997 increased 4%, when compared to the same period in prior year.
      However, dry container per-diem rental rates for the six-month period
      ended June 30, 1997 declined 4% when compared to the period March 29, 1996
      (commencement of operations) to June 30, 1996. Average refrigerated
      container per-diem rental rates for the three and six-month periods ended
      June 30, 1997 declined 18% and 10%, respectively, when compared to the
      same periods in the prior year. The average tank container per-diem rental
      rate for the three month period ended June 30, 1997 increased 35% and 51%,
      respectively, when compared to the same periods in the prior year.




                                       11
<PAGE>   12
       The Registrant's average fleet size and utilization rates for the
       three-month periods ended June 30, 1997 and 1996, the six-month period
       ended June 30, 1997 and the period March 29, 1996 (commencement of
       operations) to June
      30, 1996 were as follows:
<TABLE>
<CAPTION>
                                                    Three Months Ended                         
                                                  -----------------------         Six          For the Period March 29, 1996 
                                                   June 30,      June 30,     Months Ended      (Commencement of Operations)
                                                     1997          1996        June 30, 1997         through June 30, 1996
                                                  ---------      --------     ----------------  ----------------------------
      <S>                                          <C>            <C>              <C>                     <C>  
       Average Fleet Size (measured in
          twenty-foot equivalent units (TEU))
              Dry cargo containers                 6,870          3,367            6,700                   2,675
              Refrigerated cargo containers          690            267              690                     209
              Tank containers                         52             42               52                      36
       Average Utilization
              Dry cargo containers                    87%            50%              82%                     39%
              Refrigerated cargo containers           98%            84%              94%                     63%
              Tank containers                         90%            49%              87%                     37%
</TABLE>

      Rental equipment operating expenses were 17% of the Registrant's gross
      lease revenue during each of the three and six-month periods ended June
      30, 1997, respectively, as compared to 25% during each of the same periods
      in the prior year. These decreases were largely attributable to a
      reduction in costs associated with higher utilization levels, including
      storage and handling. Direct operating expenses also include repositioning
      costs, agent fees and insurance premiums, as well as provisions for
      doubtful accounts and repair costs for containers covered under damage
      protection clauses. Direct operating costs are affected by the quantity of
      off-hire containers as well as the frequency at which the containers are
      redelivered.

      As reported in the Registrant's Current Report on Form 8-K and Amendment
      No. 1 to Current Report on Form 8-K, filed with the Commission on February
      7, 1997 and February 26, 1997, respectively, Arthur Andersen, London,
      England, resigned as auditors of The Cronos Group, a Luxembourg
      Corporation headquartered in Orchard Lea, England (the "Parent Company"),
      on February 3, 1997.

      The Parent Company is the indirect corporate parent of Cronos Capital
      Corp., the general partner of the Registrant. In its letter of resignation
      to the Parent Company, Arthur Andersen states that it resigned as auditors
      of the Parent Company and all other entities affiliated with the Parent
      Company. While its letter of resignation was not addressed to the general
      partner or the Registrant, Arthur Andersen confirmed to the general
      partner that its resignation as auditors of the entities referred to in
      its letter of resignation included its resignation as auditors of Cronos
      Capital Corp. and the Registrant. Following Arthur Andersen's resignation,
      the Parent Company subsequently received notification from the Securities
      and Exchange Commission that it was conducting a private investigation of
      the Parent Company regarding the events and circumstances leading to
      Arthur Andersen's resignation. The results of this investigation are still
      pending. Accordingly, the Registrant does not, at this time, have
      sufficient information to determine the impact, if any, that the
      Securities and Exchange Commission investigation of the Parent Company and
      the concerns expressed by Arthur Andersen in its letter of resignation may
      have on the future operating results and financial condition of the
      Registrant or the Leasing Company's ability to manage the Registrant's
      fleet in subsequent periods. However, the general partner of the
      Registrant does not believe, based upon the information currently
      available to it, that Arthur Andersen's resignation was triggered by any
      concern over the accounting policies and procedures followed by the
      Registrant.


                                       12
<PAGE>   13
      Arthur Andersen's report on the financial statements of Cronos Capital
      Corp. and the Registrant, for either of the previous two years, has not
      contained an adverse opinion or a disclaimer of opinion, nor was any such
      report qualified or modified as to uncertainty, audit scope, or accounting
      principles. During the Registrant's previous two fiscal years and the
      subsequent interim period preceding Arthur Andersen's resignation, there
      have been no disagreements between Cronos Capital Corp. or the Registrant
      and Arthur Andersen on any matter of accounting principles or practices,
      financial statement disclosure, or auditing scope or procedure.

      The Registrant retained a new auditor, Moore Stephens, P.C. ("Moore
      Stephens") on April 10, 1997, as reported in the Registrant's Current
      Report on Form 8-K, filed April 14, 1997.

      The President of the Leasing Company, a subsidiary of the Parent Company,
      along with two marketing Vice Presidents, resigned in June 1997. These
      vacancies were filled by qualified, long-time employees who average over
      15 years of experience in the container leasing industry, therefore
      providing continuity in the management of the Leasing Company. The
      Registrant and general partner do not believe these changes will have a
      material impact on the future operating results and financial condition of
      the Registrant.


      Cautionary Statement

      This Quarterly Report on Form 10-Q contains statements relating to future
      results of the Registrant, including certain projections and business
      trends, that are "forward-looking statements" as defined in the Private
      Securities Litigation Reform Act of 1995. Actual results may differ
      materially from those projected as a result of certain risks and
      uncertainties, including but not limited to changes in: economic
      conditions; trade policies; demand for and market acceptance of leased
      marine cargo containers; competitive utilization and per-diem rental rate
      pressures; as well as other risks and uncertainties, including but not
      limited to those described in the above discussion of the marine container
      leasing business under Item 2., Management's Discussion and Analysis of
      Financial Condition and Results of Operations; and those detailed from
      time to time in the filings of Registrant with the Securities and Exchange
      Commission.





                                       13
<PAGE>   14

                           PART II - OTHER INFORMATION


Item 5.   Other Materially Important Events

          Equipment Acquisitions

          Pursuant to its undertakings made in its Registration Statement No.
          33-98290, Section 7.2 (h) of the Partnership Agreement, the Registrant
          had purchased the following types of equipment as of June 30, 1997:
<TABLE>
<CAPTION>
                                                                       Purchased from                     Registrant's
                                                        Purchased         Container          Total      Average Cost
           Equipment Type                                from CCC       Manufacturers       Purchased   Per Container
           --------------                               ---------      --------------       ---------   --------------
           <S>                                            <C>              <C>             <C>            <C>
           Dry Cargo Containers:
                  Twenty-foot                                -              3,853           3,853         $   2,369
                  Forty-foot                                 -              1,050           1,050         $   3,520
                  Forty-foot high-cube                       -                460             460         $   3,878
           Refrigerated Cargo Containers:
                  Twenty-foot                                -                 90              90         $  21,108
                  Forty-foot high-cube                       -                300             300         $  25,655
           Tank Containers:
                  24,000-liter                               -                 52              52         $  25,394

</TABLE>

          The aggregate purchase price (excluding acquisition fees) of the
          equipment acquired by the Registrant through June 30, 1997 was
          $25,524,394. The aggregate equipment had been acquired from
          third-party container manufacturers located in South Korea, India, the
          People's Republic of China, Thailand and the United Kingdom.






                                       14
<PAGE>   15

                           PART II - OTHER INFORMATION


Item 6.   Exhibits and Reports on Form 8-K

(a)   Exhibits

<TABLE>
<CAPTION>

             Exhibit                                                        
               No.                      Description                                         Method of Filing
             -------                    -----------                                         ----------------
<S>            <C>                                                                          <C> 
               3(a)      Limited Partnership Agreement of the Registrant, amended and       *
                         restated as of December 28, 1996

               3(b)      Certificate of Limited Partnership of the Registrant               **

               10        Form of Leasing Agent Agreement with Cronos Containers
                         Limited                                                            *** 

               27        Financial Data Schedule                                            Filed with this document
</TABLE>




(b)   Reports on Form 8-K

      The Registrant filed a Report on Form 8-K, dated April 14, 1997 reporting
      the appointment of the Registrant's successor certifying accountant.


















----------------

*      Incorporated by reference to Exhibit "A" to the Prospectus of the 
       Registrant dated December 28, 1996, included as part of Registration
       Statement on Form S-1 (No. 33-98290)

**     Incorporated by reference to Exhibit 3.2 to the Registration Statement 
       on Form S-1 (No. 33-98290)

***    Incorporated by reference to Exhibit 10.2 to the Registration Statement 
       on Form S-1 (No. 33-98290)




                                       15
<PAGE>   16

                                   SIGNATURES


         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.



                    CRONOS GLOBAL INCOME FUND XVI, L.P.

                    By     Cronos Capital Corp.
                           The General Partner



                    By      /s/ JOHN KALLAS
                           ----------------------------------------
                           John Kallas
                           Vice President, Treasurer
                           Principal Financial & Accounting Officer



Date:  August 14, 1997




                                       16
<PAGE>   17
                                 EXHIBIT INDEX

<TABLE>
<CAPTION>

             Exhibit                                                        
               No.                      Description                                         Method of Filing
             -------                    -----------                                         ----------------
<S>            <C>                                                                          <C> 
               3(a)      Limited Partnership Agreement of the Registrant, amended and       *
                         restated as of December 28, 1996

               3(b)      Certificate of Limited Partnership of the Registrant               **

               10        Form of Leasing Agent with Cronos Containers Limited               ***

               27        Financial Data Schedule                                            Filed with this document
</TABLE>



























----------------

*      Incorporated by reference to Exhibit "A" to the Prospectus of the
       Registrant dated December 28, 1996, included as part of Registration 
       Statement on Form S-1 (No. 33-98290)

**     Incorporated by reference to Exhibit 3.2 to the Registration Statement
       on Form S-1 (No. 33-98290)

***    Incorporated by reference to Exhibit 10.2 to the Registration Statement
       on Form S-1 (No. 33-98290)