<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, 1999

                                       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 [ ].




                                       1
<PAGE>   2

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                  REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD
                               ENDED JUNE 30, 1999

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                          PAGE
                                                                                                          ----

<S>        <C>                                                                                           <C>
PART I - FINANCIAL INFORMATION

  Item 1.  Financial Statements

           Balance Sheets - June 30, 1999 (unaudited) and December 31, 1998                                  4

           Statements of Operations for the three and six months ended June 30, 1999 and 1998 (unaudited)    5

           Statements of Cash Flows for the six months ended June 30, 1999 and 1998 (unaudited)              6

           Notes to Financial Statements (unaudited)                                                         7

  Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations            11

  Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                       13

PART II- OTHER INFORMATION

  Item 1.  Legal Proceedings                                                                                14

  Item 3.  Defaults Upon Senior Securities                                                                  14

  Item 5.  Other Information                                                                                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,
          1999 and December 31, 1998, statements of operations for the three and
          six months ended June 30, 1999 and 1998, and statements of cash flows
          for the six months ended June 30, 1999 and 1998.



                                       3
<PAGE>   4



                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                                 BALANCE SHEETS

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                         June 30,       December 31,
                                                                                           1999            1998
                                                                                      ------------     ------------
<S>                                                                                  <C>              <C>
                    Assets

Current assets:
    Cash and cash equivalents, includes $2,079,103 at June 30, 1999
       and $1,843,712 at December 31, 1998 in interest-bearing accounts               $  2,079,203     $  1,843,812
    Net lease receivables due from Leasing Company
       (notes 1 and 2)                                                                     416,767          532,067
                                                                                      ------------     ------------

           Total current assets                                                          2,495,970        2,375,879
                                                                                      ------------     ------------

Container rental equipment, at cost                                                     26,666,487       26,700,728
    Less accumulated depreciation                                                        4,772,618        3,998,314
                                                                                      ------------     ------------
       Net container rental equipment                                                   21,893,869       22,702,414
                                                                                      ------------     ------------

Organizational costs, net                                                                  105,655          130,635
                                                                                      ------------     ------------

                                                                                      $ 24,495,494     $ 25,208,928
                                                                                      ============     ============
               Partners' Capital

Partners' capital (deficit):
    General partner                                                                   $     (8,570)    $     (5,349)
    Limited partners                                                                    24,504,064       25,214,277
                                                                                      ------------     ------------

           Total partners' capital                                                      24,495,494       25,208,928
                                                                                      ------------     ------------

                                                                                      $ 24,495,494     $ 25,208,928
                                                                                      ============     ============

</TABLE>

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




                                       4
<PAGE>   5

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                            STATEMENTS OF OPERATIONS

                                   (UNAUDITED)

<TABLE>
<CAPTION>


                                                        Three Months Ended          Six Months Ended
                                                    -------------------------    ------------------------
                                                      June 30,       June 30,     June 30,      June 30,
                                                       1999           1998         1999           1998
                                                    ----------     ----------    ----------    ----------
<S>                                                 <C>            <C>           <C>           <C>
Net lease revenue (notes 1 and 3)                   $  655,589     $  767,808    $1,334,502    $1,481,109

Other operating expenses:
    Depreciation                                       402,688        403,360       805,204       806,463
    Other general and administrative expenses           11,113         16,831        24,823        30,897
                                                    ----------     ----------    ----------    ----------
                                                       413,801        420,191       830,027       837,360
                                                    ----------     ----------    ----------    ----------

       Earnings from operations                        241,788        347,617       504,475       643,749

Other income:
    Interest income                                     21,898         19,891        41,030        36,302
    Net gain (loss) on disposal of equipment            (1,938)            --         3,953         8,237
                                                    ----------     ----------    ----------    ----------
                                                        19,960         19,891        44,983        44,539
                                                    ----------     ----------    ----------    ----------

       Net earnings                                 $  261,748     $  367,508    $  549,458    $  688,288
                                                    ==========     ==========    ==========    ==========

Allocation of net earnings:
    General partner                                 $   25,956     $   29,323    $   59,923    $   65,552
    Limited partners                                   235,792        338,185       489,535       622,736
                                                    ----------     ----------    ----------    ----------

                                                    $  261,748     $  367,508    $  549,458    $  688,288
                                                    ==========     ==========    ==========    ==========

Limited partners' per unit share of net earnings    $     0.15     $     0.20    $     0.31    $     0.39
                                                    ==========     ==========    ==========    ==========
</TABLE>

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



                                       5
<PAGE>   6

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                            STATEMENTS OF CASH FLOWS

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                       Six Months Ended
                                                                                 ---------------------------
                                                                                   June 30,       June 30,
                                                                                     1999           1998
                                                                                 -----------     -----------
<S>                                                                              <C>             <C>
Net cash provided by operating activities                                        $ 1,471,077     $ 1,553,236

Cash flows provided by investing activities:
    Proceeds from disposal of equipment                                               27,206          69,416

Cash flows used in financing activities:
    Distribution to partners                                                      (1,262,892)     (1,262,892)
                                                                                 -----------     -----------


Net increase in cash and cash equivalents                                            235,391         359,760


Cash and cash equivalents at January 1                                             1,843,812       1,232,159
                                                                                 -----------     -----------


Cash and cash equivalents at June 30                                             $ 2,079,203     $ 1,591,919
                                                                                 ===========     ===========

</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 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 terminated on December 27, 1997.

          As of June 30, 1999, the Partnership owned and operated 3,825
          twenty-foot, 1,045 forty-foot and 456 forty-foot high-cube marine dry
          cargo containers, as well as 90 twenty-foot and 299 forty-foot
          refrigerated cargo 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.


                                                                     (Continued)


                                       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, 1999 and
     December 31, 1998 were as follows:

<TABLE>
<CAPTION>
                                                                                    June 30,           December 31,
                                                                                      1999                 1998
                                                                                    --------             --------
<S>                                                                                 <C>                  <C>
          Lease receivables, net of doubtful accounts of $62,142
            at June 30, 1999 and $63,388 at December 31, 1998                        $807,611             $925,432
          Less:
          Direct operating payables and accrued expenses                              286,272              271,115
          Damage protection reserve                                                    32,966               37,905
          Base management fees                                                         55,033               66,324
          Reimbursed administrative expenses                                           16,573               18,021
                                                                                     --------             --------
                                                                                     $416,767             $532,067
                                                                                     ========             ========

                                                                                                        (Continued)

</TABLE>



                                        8
<PAGE>   9


                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                     NOTES TO UNAUDITED FINANCIAL STATEMENTS

(3)  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 and six-month periods ended
     June 30, 1999 and 1998 was as follows:
<TABLE>
<CAPTION>
                                                             Three Months Ended                     Six Months Ended
                                                         ---------------------------         ------------------------------
                                                         June 30,           June 30,           June 30,            June 30,
                                                          1999               1998               1999                1998
                                                         --------           --------         ----------          ----------
<S>                                                      <C>               <C>                <C>                <C>
          Rental revenue (note 4)                        $931,210         $1,056,286         $1,895,152          $2,137,161
          Less:
          Rental equipment operating expenses             163,582            166,829            335,239             392,408
          Base management fees                             64,630             72,240            131,316             146,414
          Reimbursed administrative expenses               47,409             49,409             94,095             117,230
                                                         --------           --------         ----------          ----------

                                                         $655,589           $767,808         $1,334,502          $1,481,109
                                                         ========           ========         ==========          ==========
</TABLE>

(4)  Operating Segment

     The Financial Accounting Standards Board has issued SFAS No. 131,
     "Disclosures about Segments of an Enterprise and Related Information,"
     which changes the way public business enterprises report financial and
     descriptive information about reportable operating segments. An operating
     segment is a component of an enterprise that engages in business activities
     from which it may earn revenues and incur expenses, whose operating results
     are regularly reviewed by the enterprise's chief operating decision maker
     to make decisions about resources to be allocated to the segment and assess
     its performance, and about which separate financial information is
     available. Management operates the Partnership's container fleet as a
     homogenous unit and has determined, after considering the requirements of
     SFAS No. 131, that as such it has a single reportable operating segment.

     The Partnership derives its revenues from owning and leasing marine cargo
     containers. As of June 30, 1999, the Partnership operated 3,825
     twenty-foot, 1,045 forty-foot and 456 forty-foot high-cube marine dry cargo
     containers, as well as 90 twenty-foot and 299 forty-foot refrigerated cargo
     containers, and 52 twenty-four thousand-liter tanks. A summary of gross
     lease revenue, by product, for the three and six-month periods ended June
     30, 1999 and 1998 was as follows:
<TABLE>
<CAPTION>
                                                            Three Months Ended                     Six Months Ended
                                                         ---------------------------         ------------------------------
                                                         June 30,           June 30,           June 30,            June 30,
                                                          1999               1998               1999                1998
                                                         --------         ----------         ----------          ----------
<S>                                                      <C>                <C>              <C>                 <C>
          Dry cargo containers                           $513,138         $  621,866         $1,051,120          $1,259,152
          Refrigerated containers                         376,371            377,389            755,219             753,788
          Tank containers                                  41,701             57,031             88,813             124,221
                                                         --------         ----------         ----------          ----------

          Total                                          $931,210         $1,056,286         $1,895,152          $2,137,161
                                                         ========         ==========         ==========          ==========


                                                                                                                 (Continued)

</TABLE>


                                       9
<PAGE>   10

                       CRONOS GLOBAL INCOME FUND XV, L.P.

                     NOTES TO UNAUDITED FINANCIAL STATEMENTS


(4)  Operating Segment - (continued)

     Due to the Partnership's lack of information regarding the physical
     location of its fleet of containers when on lease in the global shipping
     trade, it is impracticable to provide the geographic area information
     required by SFAS No. 131. Any attempt to separate "foreign" operations from
     "domestic" operations would be dependent on definitions and assumptions
     that are so subjective as to render the information meaningless and
     potentially misleading.



                                       10
<PAGE>   11

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, 1999 and December
     31, 1998.

     At June 30, 1999, the Registrant had $2,079,103 in cash and cash
     equivalents, an increase of $235,391 from the December 31, 1998 cash
     balances. At June 30, 1999, the Registrant had approximately $127,000 in
     cash generated from equipment sales reserved as part of its cash balances.
     Throughout the remainder of 1999, the Registrant expects to use cash
     generated from equipment sales to purchase and replace containers which
     have been lost or damaged beyond repair.

     The Registrant's cash distribution from operations for the second quarter
     of 1999 was 8.0% (annualized) of the limited partners' original capital
     contribution, an increase from the first quarter 1999 distribution of 7.5%
     (annualized). These distributions are directly related to the Registrant's
     results from operations and may fluctuate accordingly.

     The sentiment with respect to the container industry's slump over the past
     two years has turned more favorable in recent months as evidence suggests a
     turnaround is underway with respect to Asia's economic crisis. In recent
     months, economic reforms in Asia, as well as in Latin America, have begun
     to produce gradual improvement in terms of world trade, and there are
     preliminary indications that containerized trade volumes from North America
     and Europe to Asia, in particular, may be stabilizing. In addition,
     intra-Asian trade, which also has stagnated since the Asia financial crisis
     began nearly two years ago, has shown increased activity in recent months.
     These favorable signs, however, have yet to produce any significant
     positive impact on the Registrant's operating performance. In spite of the
     reduced redelivery of on-hire equipment by the ocean carriers, per-diem
     rental rates, which declined sharply over the past two years, have
     continued to soften as a result of competitive market conditions, decreased
     demand and high inventories.

     The Registrant continues to take advantage of its strong marketing
     resources in order to seek out leasing opportunities during this period in
     which seasonal factors are also influencing the increased demand. At the
     same time, it has identified specific strategies intended to strengthen
     on-hire volumes and enhance utilization of the container fleet. The
     short-term objective is to improve utilization by offering greater leasing
     incentives and actively moving surplus, off-hire equipment to higher-demand
     locations. While this short-term strategy will increase repositioning
     expenses, it may also minimize those expenses related to handling and
     storing off-hire containers. These measures will also provide the
     longer-term advantage of placing the containers where the demand is
     greatest.

2)   Material changes in the results of operations between the three and
     six-month periods ended June 30, 1999 and 1998.

     Net lease revenue for the three and six-month periods ended June 30, 1999
     was $655,589 and $1,334,502, respectively, a decrease of 15% and 10% from
     the respective three and six-month periods in the prior year. Gross rental
     revenue (a component of net lease revenue) for the three and six-month
     periods ended June 30, 1999 was $931,210 and $1,895,152, respectively,
     reflecting a decrease of 12% and 11% from the same three and six-month
     periods in the prior year. Dry container average per-diem rental rates for
     the three and six-month periods ended June 30, 1999 decreased 8% and 7%,
     respectively, when compared to the same three and six-month periods in the
     prior year. Refrigerated container average per-diem rental rates for the
     three and six-month periods ended June 30, 1999 decreased 2% and 1%,
     respectively, when compared to the same periods in the prior year. Tank
     container average per-diem rental rates for the three and six-month periods
     ended June 30, 1999 decreased 6% and 5%, 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 and
     six-month periods ended June 30, 1999 and 1998 were as follows:
<TABLE>
<CAPTION>
                                                                 Three Months Ended                 Six Months Ended
                                                              -------------------------         -----------------------
                                                               June 30,        June 30,         June 30,        June 30,
                                                                1999            1998             1999            1998
                                                               --------        --------         --------        -------
<S>                                                            <C>             <C>             <C>             <C>
          Average fleet size (measured in twenty-foot
              equivalent units (TEU))
                 Dry cargo containers                            6,830           6,845           6,835           6,850
                 Refrigerated containers                           688             688             688             689
                 Tank containers                                    52              52              52              52
          Average Utilization
                 Dry cargo containers                                75%             82%             75%             82%
                 Refrigerated containers                             99%             99%             99%             98%
                 Tank containers                                     75%             87%             76%             87%
</TABLE>

     Rental equipment operating expenses were 18% of the Registrant's gross
     lease revenue during both the three and six-month periods ended June 30,
     1999, as compared to 16% and 18%, respectively, of the Registrant's gross
     lease revenue during the same three and six-month periods ended June 30,
     1998.

     Year 2000

     The Registrant relies upon the financial and operational systems provided
     by the Leasing Company and its affiliates, as well as the systems provided
     by other independent third parties to service the three primary areas of
     its business: investor processing/maintenance; container leasing/asset
     tracking; and accounting finance. The Leasing Company's computer systems
     have undergone modifications in order to render the systems ready for the
     Year 2000. The Leasing Company has completed a detailed inventory of all
     software and hardware systems and has identified all components that need
     to be modified. The Leasing Company has completed all the necessary changes
     and testing in a dedicated Year 2000 environment. The Leasing Company
     anticipates that all compliant code will be live by the end of August 1999.
     The Leasing Company has contacted all of its critical business suppliers
     and has been advised that their systems are Year 2000 compliant. The
     Leasing Company has also confirmed the compliance of its suppliers'
     products through its own extensive testing. Expenses associated with
     addressing Year 2000 issues are being recognized as incurred. Management
     has not yet assessed the Year 2000 compliance expense but does not
     anticipate the costs incurred to date or to be incurred in the future by
     the Leasing Company and its affiliates to be in excess of $500,000. None of
     the costs incurred with respect to Year 2000 compliance will be borne by
     the Registrant. The Leasing Company believes it will be able to resolve any
     major Year 2000 issues. The Leasing Company is aware of the implications of
     a Year 2000 computer system failure and is currently in the process of
     developing its contingency plans. While management believes the possibility
     of a Year 2000 system failure to be remote, if the Leasing Company's
     internal systems or those of its critical business suppliers fail, the
     Leasing Company's consolidated financial position, liquidity or results of
     operations may be adversely affected.



                                       12
<PAGE>   13

     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.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

         Not applicable.




                                       13
<PAGE>   14

                           PART II - OTHER INFORMATION


Item 1.   Legal Proceedings

          As the Registrant has previously reported, in February 1997, its
          former outside auditors, Arthur Andersen LLP ("Arthur Andersen"),
          resigned as auditors to The Cronos Group (the "Parent Company"), its
          subsidiaries, and all other entities affiliated with the Parent
          Company, including the Registrant. The Parent Company is the indirect
          corporate parent of CCC, the managing general partner of the
          Registrant. CCC 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.

          Arthur Andersen's reports on the financial statements of CCC and the
          Registrant, for years preceding 1996, had not contained an adverse
          opinion or a disclaimer of opinion, nor were any such reports
          qualified or modified as to uncertainty, audit scope, or accounting
          principles.

          During the Registrant's fiscal year ended December 31, 1995, and the
          subsequent interim period preceding Arthur Andersen's resignation,
          there were no disagreements between CCC or the Registrant and Arthur
          Andersen on any matter of accounting principles or practices,
          financial statement disclosure, or auditing scope or procedure.

          In connection with its resignation, Arthur Andersen prepared a report
          pursuant to Section 10A of the Securities Exchange Act of 1934, as
          amended, for filing by the Parent Company with the Securities and
          Exchange Commission ("SEC"). As a result of the Arthur Andersen
          report, the SEC commenced an investigation of the Parent Company on
          February 10, 1997. The purpose of the investigation has been to
          determine whether the Parent Company and persons associated with the
          Parent Company violated the federal securities laws administered by
          the SEC. The Registrant does not believe that the focus of the SEC's
          investigation is upon the Registrant or CCC.

          Current management of the Parent Company has been in discussions with
          the staff of the SEC with a view to settling the investigation. The
          Parent Company is hopeful of reaching a settlement of the
          investigation by the end of 1999.


Item 3.   Defaults Upon Senior Securities

          See Item 5. Other Information.


Item 5.   Other Information

          In 1993, the Parent Company negotiated a credit facility with several
          banks for the use by the Parent Company and its subsidiaries,
          including CCC. At December 31, 1998, approximately $33,110,000 in
          principal indebtedness was outstanding under that credit facility
          (none of which had been borrowed by the Registrant). As a party to
          that credit facility, CCC was jointly and severally liable for the
          repayment of all principal and interest owed under the credit
          facility. On August 2, 1999, all outstanding amounts under the credit
          facility were repaid through the establishment of a new credit
          facility with two financial institutions. CCC is not a party to the
          new loan agreement. The Parent Company has guaranteed up to $10
          million of amounts borrowed under the new credit facility and, as
          partial security for this guarantee, the Parent Company has pledged
          all of the capital stock held by it in Cronos Holding/Investments
          (U.S.), Inc., a Delaware corporation that, in turn, owns all of the
          outstanding capital stock of CCC.

          The Registrant is not a borrower under the new credit facility
          established by the Parent Company, and neither the containers nor the
          other assets of the Registrant have been pledged as collateral under
          the new credit facility.


                                       14
<PAGE>   15

Item 6.   Exhibits and Reports on Form 8-K

(a)   Exhibits
<TABLE>
<CAPTION>

                Exhibit
                  No.                             Description                             Method of Filing
                ------                            -----------                             ----------------
<S>              <C>        <C>                                                           <C>
                 3(a)       Limited Partnership Agreement of the Registrant, amended      *
                            and restated as of December 28, 1995

                 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

     No reports on Form 8-K were filed by the Registrant during the quarter
ended June 30, 1999.






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

*    Incorporated by reference to Exhibit "A" to the Prospectus of the
     Registrant dated December 28, 1995, 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/ Dennis J. Tietz
                        -----------------------------------
                        Dennis J. Tietz
                        President and Director of Cronos Capital Corp. ("CCC")
                        Principal Executive Officer of CCC




Date:  August 16, 1999


                                       16
<PAGE>   17

                                  EXHIBIT INDEX
<TABLE>
<CAPTION>

                Exhibit
                  No.                             Description                              Method of Filing
                ------                            -----------                              ----------------
<S>              <C>        <C>                                                            <C>
                 3(a)       Limited Partnership Agreement of the Registrant, amended       *
                            and restated as of December 28, 1995

                 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>















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

*    Incorporated by reference to Exhibit "A" to the Prospectus of the
     Registrant dated December 28, 1995, 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)