<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 MARCH 31, 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 MARCH 31, 1997

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                           PAGE
<S>                                                                         <C>
PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements

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

          Statement of Operations for the three months ended 
          March 31, 1997 and March 29, 1996 (Commencement of Operations) 
          through March 31, 1996 (unaudited)                                  5

          Statement of Cash Flows for the three months ended 
          March 31, 1997 and March 29, 1996 (Commencement of Operations) 
          through March 31, 1996 (unaudited)                                  6

          Notes to Financial Statements (unaudited)                           7

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


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 March 31,
          1997 and December 31, 1996, statements of operations for the period
          March 29, 1996 (commencement of operations) through March 31, 1996 and
          the three months ended March 31, 1997, and statements of cash flows
          for the period March 29, 1996 (commencement of operations) through
          March 31, 1996 and the three months ended March 31, 1997.






                                        3


<PAGE>   4

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                                 BALANCE SHEETS

                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                             March 31,          December 31,
                 Assets                                                        1997                1996
                 ------                                                     ------------        -----------
<S>                                                                         <C>                <C>         
Current assets:
   Cash and cash equivalents, includes $1,026,463 at March 31, 1997
      and $1,755,486 at December 31, 1996 in interest-bearing accounts      $  1,659,740       $  1,755,884
   Net lease receivables due from Leasing Company
     (notes 1 and 2)                                                             209,426            208,133
                                                                            ------------       ------------
         Total current assets                                                  1,869,166          1,964,017
                                                                            ------------       ------------

Container rental equipment, at cost                                           26,800,273         24,701,402
   Less accumulated depreciation                                               1,272,645            894,114
                                                                            ------------       ------------
     Net container rental equipment                                           25,527,628         23,807,288
                                                                            ------------       ------------

Organizational costs, net (note 3)                                               218,064            229,005
                                                                            ------------       ------------
                                                                            $ 27,614,858       $ 26,000,310
                                                                            ============       ============

         Liabilities and Partners' Capital
         ---------------------------------

Current liabilities:
   Due to general partner (notes 1 and 3)                                   $     28,084       $     17,299
   Container rental equipment purchases payable                                  557,170            341,486
                                                                            ------------       ------------
         Total current liabilities                                               585,254            358,785
                                                                            ------------       ------------

Partners' capital (deficit):
   General partner                                                                (2,514)            (1,820)
   Limited partners                                                           27,032,118         25,643,345
                                                                            ------------       ------------
         Total partners' capital                                              27,029,604         25,641,525
                                                                            ------------       ------------
                                                                            $ 27,614,858       $ 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>

                                                                        For the Period March 29, 1996,
                                                 Three Months Ended      (Commencement of Operations)
                                                   March 31, 1997            through March 31, 1996
                                                 ------------------     ------------------------------
<S>                                                   <C>                        <C>         
Net lease revenue (notes 1 and 4)                     $ 662,478                  $   1,910   
                                                                                             
Other operating expenses:                                                                    
   Depreciation and amortization                        391,014                     18,758   
   Other general and administrative expenses             13,369                         --   
                                                      ---------                  ---------   
                                                        404,383                     18,758   
                                                      ---------                  ---------   
     Earnings (loss) from operations                    258,095                    (16,848)  
                                                                                             
Other income:                                                                                
   Interest income                                       24,918                         --   
   Net gain on disposal of equipment                      2,031                         --   
                                                      ---------                  ---------   
                                                         26,949                         --   
                                                      ---------                  ---------   
     Net earnings (loss)                              $ 285,044                  $ (16,848)  
                                                      =========                  =========   
                                                                                             
Allocation of net earnings (loss):                                                           
                                                                                             
   General partner                                    $  26,687                  $    (169)  
   Limited partners                                     258,357                    (16,679)  
                                                      ---------                  ---------   
                                                      $ 285,044                  $ (16,848)  
                                                      =========                  =========   
                                                                                             
Limited partners' per unit share of net earnings      $    0.26                  $   (0.14)  
                                                      =========                  =========   
</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,
                                                         Three Months Ended         (Commencement of Operations)
                                                             March 31, 1997               through March 31, 1996
                                                        ------------------------    ----------------------------
<S>                                                         <C>                               <C>          
Net cash provided by operating activities                   $   679,017                       $        --  
                                                                                                           
Cash flows used in investing activities:                                                                   
   Purchase of container rental equipment                    (1,786,590)                               --  
   Acquisition fees paid to general partner                     (89,330)                               --  
                                                            -----------                       -----------  

         Net cash used in investing activities               (1,875,920)                               --  
                                                            -----------                       -----------  
                                                                                                           
Cash flows provided by (used in) financing activities:                                                     
   Capital contributions                                      1,931,060                         2,374,460  
   Underwriting commissions                                    (193,196)                               --  
   Offering and organizational expenses                         (91,494)                               --  
   Distribution to partners                                    (545,611)                               --  
                                                            -----------                       -----------  
                                                                                                           
     Net cash provided by financing activities                1,100,759                         2,374,460  
                                                            -----------                       -----------  
                                                                                                           
Net increase (decrease) in cash and cash equivalents            (96,144)                        2,374,460  
                                                                                                           
Cash and cash equivalents at January 1                        1,755,884                               100  
                                                            -----------                       -----------  
                                                                                                           
Cash and cash equivalents at March 31                       $ 1,659,740                       $ 2,374,560  
                                                            ===========                       ===========  
</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 terminates December 27, 1997.

          As of March 31, 1997, the Partnership operated 3,853 twenty-foot,
          1,050 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.





                                                                     (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 March 31,
      1997 and December 31, 1996 were as follows:

<TABLE>
<CAPTION>
                                                               March 31,    December 31,
                                                                 1997          1996
                                                               ---------    ------------
<S>                                                            <C>           <C>     
           Lease receivables, net of doubtful accounts
             of $9,087 at March 31, 1997 and $7,329
             at December 31, 1996                              $900,402      $755,259
           Less:
           Direct operating payables and accrued expenses       308,913       302,271
           Damage protection reserve                             37,004        17,860
           Base management fees                                 190,470       124,420
           Reimbursed administrative expenses                   154,589       102,575
                                                               --------      --------
                                                               $209,426      $208,133
                                                               ========      ========
</TABLE>


                                                                     (Continued)

                                        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 March 31, 1997 and 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 March 31, 1997
      and the period March 29, 1996 (commencement of operations) through March
      31, 1996 was as follows:

<TABLE>
<CAPTION>
                                                                     For the Period March 29, 1996,
                                            Three Months Ended        (Commencement of Operations)
                                               March 31, 1997             through March 31, 1996
                                            -------------------      -------------------------------
<S>                                               <C>                           <C>   
Rental revenue                                    $946,791                      $3,300

Less:
Rental equipment operating expenses                166,248                       1,000
Base management fees                                66,051                         231
Reimbursed administrative expenses                  52,014                         159
                                                  --------                      ------
                                                  $662,478                      $1,910
                                                  ========                      ======
</TABLE>




                                                                     (Continued)

                                       9


<PAGE>   10

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                     NOTES TO UNAUDITED FINANCIAL STATEMENTS


(5)   Container Rental Equipment Purchases

      As of March 31, 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 March 31, 1997 was $25,525,844, of
      which $557,170 remained payable. 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. At March
      31, 1997, the Partnership has committed to purchase from container
      manufacturers an additional 150 forty-foot dry cargo containers at an
      aggregate manufacturer's invoice cost of approximately $557,170. The
      Partnership expects to accept delivery of this new equipment during the
      second quarter of 1997.



                                       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 March 31, 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 May 31, 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        1,481,117          4.6%
                                                   -----------        -----
         Total Public Offering Expenses              4,680,451         14.6%
                                                   -----------        -----

     Net Proceeds                                   27,312,889         85.4%

     Acquisition Fees                                1,266,834          4.0%

     Working Capital Reserve                           319,933          1.0%

     Unexpended Proceeds                               389,448          1.2%
                                                   -----------        -----
     Gross Proceeds Invested in Equipment          $25,336,674         79.2%
                                                   ===========        =====
</TABLE>


      The Registrant's cash balances as of March 31, 1997 totalled $784,421
      included unexpended 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, and pending
      the build-up of the Registrant's fleet of equipment, the general partner
      and its affiliates have agreed to defer the deduction of all base
      management fees and reimbursable administrative expenses from the leasing
      receivables due to the Registrant. At March 31, 1997, these deferred fees
      and expenses totaled $345,059.




                                       11


<PAGE>   12

      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.

      At March 31, 1997, the Registrant has committed to purchase an additional
      150 forty-foot dry cargo containers at an aggregate manufacturers' invoice
      cost of approximately $557,170. The Registrant expects to accept delivery
      of this new equipment during the second quarter of 1997.

      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. These conditions continued to exist throughout
      the first quarter of 1997, impacting the Registrant's financial condition
      and results of operations. The Leasing Company continues to implement
      various marketing strategies, including but not limited to, offering
      incentives to shipping companies, repositioning containers to high demand
      locations and focusing towards term leases and other leasing opportunities
      including the leasing of containers for local storage, in order to counter
      current leasing market conditions. These conditions are expected to
      continue throughout 1997, impacting the Registrant's liquidity and capital
      resources.


2)    Material changes in the results of operations between the three-month
      period ended March 31, 1997 and the period March 29, 1996 (commencement of
      operations) through March 31, 1996.

      The Registrant did not commence operations until March 29, 1996, therefore
      a discussion of comparative periods cannot be made. Net lease revenue for
      the first quarter of 1997 was $662,478. The Registrant's net lease revenue
      is directly related to the size of its fleet and the utilization and lease
      rates of the equipment owned by the Registrant. Direct operating expenses
      include repositioning costs, storage and handling expenses, agent fees and
      insurance premiums, as well as provisions for doubtful accounts and repair
      costs for containers covered under damage protection plans. Direct
      operating costs are affected by the quantity of off-hire containers as
      well as the frequency at which the containers are redelivered. During the
      build-up phase of the Registrant's fleet, direct operating costs may be
      greater if containers purchased directly from container manufacturers
      experience an off-hire period while they are marketed and repositioned for
      initial lease-out, during which period the Registrant experiences storage,
      handling and repositioning costs. At the same time, direct operating costs
      may be lessened with respect to containers purchased directly from the
      general partner which are generally on-hire and generating revenues at the
      time of purchase.

      The Registrant's fleet size, as measured in twenty-foot equivalent units
      ("TEU"), and average utilization rates at

      March 31, 1997 and March 31, 1996 were as follows:

<TABLE>
<CAPTION>
                                               March 31,    March 31,
                                                 1997         1996
                                               ---------    ---------
<S>                                              <C>          <C>
     Fleet size (measured in twenty-foot
       equivalent units (TEU))
            Dry cargo containers                 6,798        600
            Refrigerated containers                690         35
                Tank containers                     52         17
         Average utilization
                Dry cargo containers              77.2%       7.3%
                Refrigerated containers           90.4%         -
                Tank containers                   84.7%         -
</TABLE>



                                       12


<PAGE>   13

      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
      6, 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 of 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.

      The Registrant does not, at this time, have sufficient information to
      determine the impact, if any, that 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.

      Arthur Andersen's report on the financial statements of Cronos Capital
      Corp. and the Registrant, for either of the past 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 most recent fiscal year 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.

      Due to the nature and timing of Arthur Andersen's resignation, the Parent
      Company and General Partner were unable to name a successor auditor on
      behalf of the Registrant until it retained 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.

      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 March 31, 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        $ 3,521
       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 March 31, 1997 was
          $25,525,844, of which $557,170 remained payable. 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. At March 31, 1997, the Registrant has
          committed to purchase from container manufacturers an additional 150
          forty-foot dry cargo containers at an aggregate manufacturers' invoice
          cost of approximately $557,170.



                                       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

      In lieu of filing a current report on Form 8-K, the Registrant has
      provided in Part II, Item 5 hereof, a description of its purchase of
      marine cargo containers during the period March 29, 1996 (commencement of
      operations) to March 31, 1997.

      The Registrant filed a Report on Form 8-K, February 6, 1997 and Amendment
      No. 1 to Report on Form 8-K dated February 26, 1997, reporting the
      resignation of the Registrant's certifying accountant.

      The Registrant filed a Report on Form 8-K, 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 Finance & Accounting Officer


Date:  June 16, 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 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, 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)