Commission File Number:     2-71136

                   DETONICS SMALL ARMS LIMITED   
          (Exact name of registrant as specified in it's charter)
        
            Washington                          91-1150122 
    (State or other Jurisdiction of        (IRS Employer ID No.)
    incorporation or organization)

                     14508 SE 51st, Bellevue, WA  98006
             (Address and zip code of principal executive offices)

    Registrant's telephone number, including area code:  (425) 746-6761

   
                                             
         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:         

                     DOCUMENTS INCORPORATED BY REFERENCE

    Form S-1, Detonics Small Arms Limited, Commission File No. 2-
    71136, but excluding the balance sheet of Detonics Small Arms
    Limited together with the report of independent certified public
    accountants, is incorporated by reference.
                                                                   
   
                       PART I - FINANCIAL INFORMATION
     
    Item 1:    Financial Statements

    See Appendix A
     
    Item 2:    Management's Discussion and Analysis of the Financial
               Condition and Results of Operations
   
    No royalties or other income were booked in the third quarter of
    1998.
            
    The partnership originally had licensed the manufacturing and sale
    of its products to Detonics Manufacturing Corporation (DMC) a
    subsidiary of Energy Sciences Corporation, (ESC).  DMC, ESC and
    the Partnership entered Chapter 11 bankruptcy proceedings on April
    29, 1986.  In late 1987, the Bankruptcy Court approved a sale of
    all of DMC's assets to a new entity, formed by outside third
    parties, called New Detonics Manufacturing Corporation, (NDMC). 
    By subsequent majority vote of the limited partners of the
    Partnership, a new license was entered into between the
    Partnership and NDMC, which called for royalties to begin in late
    1991 at the rate of 4% of gross sales.  No partnership income was
    expected before that time.
   
    On May 13, 1988, ESC's bankruptcy was dismissed and all remaining
    assets were repossessed by the sole secured creditor of ESC, the
    firm of Murphy & Elgot.  These assets are primarily amounts owed
    to ESC by the partnerships and the rights to produce products
    owned by the partnerships.  The general partners have begun
    discussions with Mr. Murphy, (who was also counsel for ESC and the
    partnerships), on the elimination of most or all the debt owed by
    the Partnership to ESC, (and now, therefor to Murphy & Elgot).

    As previously reported, the general partners learned in late 1991
    that production of firearms at NDMC was suspended in 1991.  The
    general partners have subsequently been advised that Murphy &
    Elgot, the sole secured creditirs of the original DMC, have moved
    to have the "soft" assets (the name "Detonics" and the right to
    manufacture the Detonics designs) which were assigned to NDMC by
    the Bankruptcy Court be returned to Murphy & Elgot.  This occured
    in September 1992.  Mr. Murphy passed away in 1997.  The general
    partners have had discussions with Mr. Elgot regarding future
    attempts to recommercialize the products and he indicated he
    would likely approve any recommercialization plan that the general
    partners would be able to obtain.  The general partners have been
    discussing such plans with a third party and a draft license
    agreement is being reviewed, but, no royalty amounts have been
    discussed as of November 5, 1998.  There can be no guarantee that
    it will be possible to arrange for production of any of the
    Partnership's products and no royalties are expected for 1998.
          
                          
                       PART II - OTHER INFORMATION

    Item 1:    Legal Proceedings

    The staff of the Securities and Exchange Commission's Division of
    Enforcement recommended to the Commission that it authorize the
    staff to file a civil injunction action against the Partnership and 
    Messrs. Maes and Steffey to require timely filing of reports with
    the commission.  Such an injunction was entered on June 25, 1986. 
    All subsequent reports have been timely filed.
   
    On October 16, 1989 the U.S. Bankruptcy Court ordered the conversion of
    the partnership's Chapter 11 to a Chapter 7.  On May 11, 1990, the
    partnership filed an amended motion to dismiss the Chapter 7.  The
    motion was granted on June 21, 1990 and the partnership is no
    longer in bankruptcy.
   
    In March 1993, the partnership received a "Notice of Beginning of
    Administrative Proceeding" from the Internal Revenue Service.  The
    issue was a possible finding that the partnership "burned out" and
    is subject to recapture.  The general partners are of the
    position that the products and the partnership remain viable.  In
    July, 1993, the general partners received notification from the
    IRS that they did not intend to make any changes as a result of
    that Administrave Proceeding.  The IRS has the right to bring the
    subject up again.
                                          
    Item 2:  Changes In Securities: None
   
    Item 3:  Defaults Upon Senior Securities: None
   
    Item 4:  Submission Of Matters To A Vote Of Security Holders: None
   
    Item 5:  Other Information: None
                                     
    Item 6:  Exhibits, Financial Statement Schedules, and Reports
               on Form 8-K

          a)   Documents filed as part of this Report: Unaudited
               financial statement.

          b)   Reports on Form 8-K: None.
   
                                     
                              Appendix A
                                         
                       DETONICS SMALL ARMS LIMITED
                             BALANCE SHEET
                           SEPTEMBER 30, 1998    
                              (UNAUDITED)
                                                        
   
    ASSETS                              
    Cash                                       $        0       
    Royalties Receivable                                0     
                                                    --------           
            TOTAL CURRENT ASSETS               $        0        

    Intangible Assets Less Amortization                 0       
    Receivable from Affiliates Less Allowance           0       
                                                    --------             
            TOTAL ASSETS                       $        0        


    LIABILITIES AND PARTNERS' EQUITY
    Accounts Payable                           $        0      
    Taxes Payable                                       0       
                                                    --------              
            TOTAL CURRENT LIABILITIES                   0       
   
    Payable to Affiliates                         672,769      
                                          
                                                ------------             
            TOTAL LIABILITIES                     672,769      

    Partners' Capital                           
                                                 (672,769)         
                                                ------------             
            TOTAL LIABILITIES
            AND PARTNER'S EQUITY                        0       
                                                                          
   
                         DETONICS SMALL ARMS LIMITED
                            STATEMENT OF INCOME
                           FOR THE QUARTER ENDING
                             SEPTEMBER 30, 1998
                                (UNAUDITED)
                                                                          
                                            
    Royalty Revenue                                   $   0   
                                                 
    Expenses                                              0
                                                         -----
    Net Income (Loss)                                 $   0    

    NOTE: The products owned by the Partnership were licensed to New
    Detonics Manufacturing Corporation (NDMC).  Under the terms of
    that license, royalties were not scheduled to be paid to the
    Partnership until late 1991.  NDMC suspended production of all
    firearms and the license with NDMC has been terminated.  As of
    November 1998, there are no new license agreements in existance.
                                     


                                                                         
                         DETONICS SMALL ARMS LIMITED
                          STATEMENT OF CASH FLOWS
                           FOR THE QUARTER ENDING
                             SEPTEMBER 30, 1998
                                (UNAUDITED)


    Net Cash Provided By Operating Activities            $ 0

    Net Cash Used By Investing Activities                  0

    Net Cash Provided By Financing Activities              0
                                                          -----
    Net Increase In Cash                                 $ 0

      Cash At Beginning Of Period                        $ 0
                                                         ------
      Cash At End Of Period                              $ 0
   
          
   
                                                          
                            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.
                                  
                                DETONICS SMALL ARMS LIMITED
                                     (Registrant)
   
          11/5/98           Michel E. Maes, General Partner
           Date               (Signature)