TEXTAINER FINANCIAL SERVICES CORPORATION
                        650 California Street, 16th Floor
                             San Francisco, CA 94108


May 13, 1997


Securities and Exchange Commission
Washington, DC  20549

Gentlemen:

Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,  we are
submitting  herewith for filing on behalf of TCC Equipment  Income Fund IV, L.P.
(the  "Company") the Company's  Quarterly  Report on Form 10-Q for the quarterly
period ended March 31, 1997.

This filing is being effected by direct  transmission to the Commission's  EDGAR
System.

Sincerely,


Nadine Forsman
Controller




<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                               Washington DC 20549



                                    FORM 10Q



                 QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


                  For the quarterly period ended March 31, 1997


                         Commission file number 0-19145


                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
             (Exact name of Registrant as specified in its charter)


     California                                                   94-3097644
(State or other jurisdiction                                   (IRS Employer
of incorporation or organization)                            Identification No.)

650 California Street, 16th Floor
San Francisco, CA                                                    94108
(Address of Principal Executive Offices)                           (ZIP Code)

                                 (415) 434-0551
                  (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>



                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                       (a California limited partnership)

                      Quarterly Report on Form 10Q for the
                          Quarter Ended March 31, 1997

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>



                                                                                                               Page


Item 1.   Financial Statements

<S>                                                                                                           <C>
          Balance Sheets - March 31, 1997 (unaudited) and December 31, 1996.................................    3


          Statements of Earnings for the three months ended
          March 31, 1997 and 1996 (unaudited)...............................................................    4


          Statements of Partners' Capital for the three months
          ended March 31, 1997 and 1996 (unaudited).........................................................    5


          Statements of Cash Flows for the three months
          ended March 31, 1997 and 1996 (unaudited).........................................................    6


          Notes to Financial Statements (unaudited).........................................................    8


Item 2.   Management's Discussion and Analysis of Financial Condition and
          and Results of Operations.........................................................................   12


</TABLE>
<PAGE>



                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                       (a California limited partnership)

                                 Balance Sheets

                      March 31, 1997 and Decemeber 31, 1996
                             (Amounts in thousands)
<TABLE>
<CAPTION>

                                                                                1997                    1996
                                                                          -----------------       -----------------
                                                                            (unaudited)
<S>                                                                     <C>                       <C>
Assets
Container rental equipment, net of accumulated
   depreciation of $30,828 (1996:  $29,128)                             $           94,413                  95,626
Cash                                                                                   688                   2,694
Accounts receivable, net of allowance
   for doubtful accounts of $1,344 (1996:  $1,391)                                   5,518                   5,647
Due from affiliates (note 5)                                                           366                       -
Organization costs, net of accumulated
   amortization of $232 (1996:  $220)                                                    4                      16
Prepaid expenses                                                                        34                      46
                                                                          -----------------       -----------------

                                                                        $          101,023                 104,029
                                                                          =================       =================

Liabilities and Partners' Capital
Liabilities:
   Accounts payable                                                     $              612                     629
   Accrued liabilities                                                                  15                       -
   Accrued damage protection plan costs (note 2)                                       426                     520
   Warranty claims (note 3)                                                            583                     599
   Due to affiliates (note 5)                                                            -                     815
   Deferred quarterly distribution                                                     198                     199
   Equipment purchases payable                                                         195                     361
                                                                          -----------------       -----------------

      Total liabilities                                                              2,029                   3,123
                                                                          -----------------       -----------------

Partners' capital:
   General partners                                                                      -                       -
   Limited partners                                                                 98,994                 100,906
                                                                          -----------------       -----------------

      Total partners' capital                                                       98,994                 100,906
                                                                          -----------------       -----------------

Commitments (note 8)
                                                                        $          101,023                 104,029
                                                                          =================       =================
</TABLE>

See accompanying notes to financial statements



<PAGE>



                 TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                    (a California limited partnership)

                          Statements of Earnings

         For the  three  months  ended  March  31,  1997 and 1996
     (Dollar amounts in thousands except for unit and per unit amounts)
                              (unaudited)
<TABLE>
<CAPTION>

                                                                      1997                1996
                                                                  --------------     ---------------

<S>                                                            <C>                   <C>  
Rental Income                                                  $          5,173               6,355
                                                                  --------------     ---------------

Costs and expenses:
   Direct container expenses                                                992                 981
   Bad debt expense                                                           5                   6
   Depreciation and amortization                                          1,874               1,892
   Professional fees                                                          8                  10
   Management fees to affiliates (note 5)                                   495                 591
   General and administrative costs to affiliates (note 5)                  359                 404
   Other general and administrative costs                                    56                  63
                                                                  --------------     ---------------

                                                                          3,789               3,947
                                                                  --------------     ---------------

   Income from operations                                                 1,384               2,408
                                                                  --------------     ---------------

Other income:
   Interest income                                                           24                  29
   Gain on sale of equipment                                                 61                 112
                                                                  --------------     ---------------

                                                                             85                 141
                                                                  --------------     ---------------

   Net earnings                                                $          1,469               2,549
                                                                  ==============     ===============

Allocation of net earnings (note 5):
   General partners                                            $             34                  38
   Limited partners                                                       1,435               2,511
                                                                  --------------     ---------------

                                                               $          1,469               2,549
                                                                  ==============     ===============
Limited partners' per unit share
   of net earnings                                             $           0.21                0.37
                                                                  ==============     ===============

Limited partners' per unit share
   of distributions                                            $           0.48                0.52
                                                                  ==============     ===============

Weighted average number of limited
   partnership units outstanding                                      6,827,168           6,837,810
                                                                  ==============     ===============
</TABLE>

See accompanying notes to financial statements


<PAGE>


                         TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                           (a California limited partnership)

                              Statements of Partners' Capital

                    For the three months ended March 31, 1997 and 1996
                                  (Amounts in thousands)
                                       (unaudited)
<TABLE>
<CAPTION>

                                                                            Partners' Capital
                                                          ------------------------------------------------------
                                                            General            Limited              Total
                                                          ------------     ----------------    -----------------

<S>                                                    <C>                 <C>                 <C>    
Balances at January 1, 1996                             $           -              106,926              106,926

Distributions                                                    (38)              (3,589)              (3,627)

Redemptions (note 7)                                                -                 (32)                 (32)

Net earnings                                                       38                2,511                2,549
                                                          ------------     ----------------    -----------------

Balances at March 31, 1996                              $           -              105,816              105,816
                                                          ============     ================    =================

Balances at January 1, 1997                             $           -              100,906              100,906

Distributions                                                     (34)             (3,243)              (3,277)

Redemptions (note 7)                                                -                (104)                (104)

Net earnings                                                       34                1,435                1,469
                                                          ------------     ----------------    -----------------

Balances at March 31, 1997                              $           -               98,994               98,994
                                                          ============     ================    =================

</TABLE>

See accompanying notes to financial statements


<PAGE>



                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                       (a California limited partnership)

                            Statements of Cash Flows

               For the three months ended March 31, 1997 and 1996
                             (Amounts in thousands)
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                                         1997              1996
                                                                                    ----------------  ----------------

<S>                                                                              <C>                  <C>
Cash flows from operating activities:
   Net earnings                                                                   $           1,469             2,549
   Adjustments  to  reconcile  net  earnings to net cash  provided by  operating
      activities:
        Depreciation                                                                          1,862             1,880
        Decrease in allowance for doubtful accounts                                            (47)              (76)
         Amortization of organization costs                                                      12                12
         Gain on sale of equipment                                                             (61)             (112)
         Changes in assets and liabilities:
            Decrease in accounts receivable                                                     176               641
            Decrease in due to affiliates, net                                              (1,155)           (1,072)
            (Decrease) increase in accounts payable and accrued liabilities                     (2)               145
            (Decrease) increase in accrued damage protection plan costs                        (94)                25
            Decrease in warranty claims                                                        (16)               (3)
            Decrease in prepaid expenses                                                         12                15
                                                                                    ----------------  ----------------

               Net cash provided by operating activities                                      2,156             4,004
                                                                                    ----------------  ----------------

Cash flows from investing activities:
   Proceeds from sale of equipment                                                              326               439
   Equipment purchases                                                                      (1,099)             (404)
                                                                                    ----------------  ----------------

              Net cash (used in) provided by investing activities                             (773)                35
                                                                                    ----------------  ----------------

Cash flows from financing activities:
    Redemptions of limited partnership units                                                  (104)              (32)
    Distributions to partners                                                               (3,285)           (3,608)
                                                                                    ----------------  ----------------

               Net cash used in financing activities                                        (3,389)           (3,640)
                                                                                    ----------------  ----------------

Net (decrease) increase in cash                                                             (2,006)               399

Cash at beginning of period                                                                   2,694             1,293
                                                                                    ----------------  ----------------

Cash at end of period                                                             $             688             1,692
                                                                                    ================  ================

</TABLE>

See accompanying notes to financial statements


<PAGE>

 
                    TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                       (a California limited partnership)

                      Statements Of Cash Flows--Continued

               For the three months ended March 31, 1997 and 1996
                             (Amounts in thousands)
                                   (unaudited)

Supplemental Disclosures:

Supplemental schedule of non-cash investing and financing activities:

The following table summarizes the amounts of Equipment purchases, distributions
to  partners  and  proceeds  from sale of  Equipment  which had not been paid or
received  as of March  31,  1997 and  1996,  and  December  31,  1996 and  1995,
resulting in  differences  in amounts  recorded and amounts of cash disbursed or
received by the  Partnership,  as shown in the  Statements of Cash Flows for the
three-month periods ended March 31, 1997 and 1996.
<TABLE>
<CAPTION>

                                                                 Mar. 31       Dec. 31        Mar. 31         Dec. 31
                                                                    1997          1996           1996            1995
                                                            ------------    -----------    -----------    ------------

<S>                                                       <C>               <C>             <C>           <C>
Equipment purchases included in:
     Due to affiliates..............................      $          31              5             37              53
     Equipment purchases payable....................                195            361          1,307             349

Distributions to partners included in:
     Due to affiliates..............................                 11             18            136             115
     Deferred quarterly distribution................                198            199            232             234

Proceeds from sale of Equipment included in:
     Accounts receivable............................                  -              -              2               2
     Due from affiliates............................                406            361            274             360
</TABLE>

The following table summarizes the amounts of Equipment purchases, distributions
to partners and proceeds from sale of Equipment  recorded by the Partnership and
the amounts  paid or received as shown in the  Statements  of Cash Flows for the
three-month periods ended March 31, 1997 and 1996.
<TABLE>
<CAPTION>

                                                                                              1997               1996
                                                                                              ----               ----

<S>                                                                                      <C>                    <C>  
Equipment purchases recorded......................................................       $     959              1,346
Equipment purchases paid..........................................................           1,099                404

Distributions to partners declared................................................           3,277              3,627
Distributions to partners paid....................................................           3,285              3,608

Proceeds from sale of Equipment recorded..........................................             371                353
Proceeds from sale of Equipment received..........................................             326                439
</TABLE>


See accompanying notes to financial statements




<PAGE>

                      TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                        (a California limited partnership)

                          Notes To Financial Statements

                                 March 31, 1997
         (Dollar amounts in thousands except for unit and per unit amounts)
                                   (Unaudited)

Note 1.   General

      Textainer Equipment Income Fund IV, L.P. (the Partnership) is a California
      Limited  Partnership  formed in 1991.  The  Partnership  owns and leases a
      fleet of intermodal  marine cargo  container  equipment (the Equipment) to
      international shipping lines.

      The accompanying  interim comparative  financial  statements have not been
      audited by an independent  public  accountant.  However,  all  adjustments
      (which  were only  normal and  recurring  adjustments)  which are,  in the
      opinion of management,  necessary to fairly present the financial position
      of the  Partnership  as of March 31, 1997 and December  31, 1996,  and the
      results of its operations, changes in partners' capital and cash flows for
      the three-month periods ended March 31, 1997 and 1996, have been made.

      The financial  information  presented herein should be read in conjunction
      with  the  audited  financial  statements  and  other  accompanying  Notes
      included in the Partnership's  annual audited  financial  statements as of
      December 31, 1996.

      Certain   estimates  and  assumptions  were  made  by  the   Partnership's
      management that affect the reported  amounts of assets and liabilities and
      disclosures  of  contingent  assets  and  liabilities  at the  date of the
      financial  statements  and the  reported  amounts of revenue and  expenses
      during the  reporting  period.  Actual  results  could  differ  from those
      estimates.

Note 2.   Damage Protection Plan

      The Partnership  offers a Damage  Protection Plan (the Plan) to lessees of
      its  Equipment.  Under  the  terms  of the  Plan,  the  Partnership  earns
      additional  revenues on a daily basis and, as a result, has agreed to bear
      certain repair costs. It is the Partnership's  policy to recognize revenue
      when earned and to provide a reserve sufficient to cover the Partnership's
      obligation for estimated  repair costs. At March 31, 1997 and December 31,
      1996, this reserve was equal to $426 and $520, respectively.

Note 3.   Warranty Claims

      During 1996 and 1995, the Partnership  settled warranty claims against two
      equipment  manufacturers.  The  Partnership  is amortizing  the settlement
      amount over the  remaining  estimated  useful life of the  Equipment  (ten
      years), reducing maintenance and repair costs over that time. At March 31,
      1997 and December  31, 1996,  the  unamortized  portion of the  settlement
      amount was $583 and $599, respectively.

Note 4.   Acquisition of Equipment

      During  the  three-month  periods  ended  March  31,  1997 and  1996,  the
      Partnership   purchased   Equipment  with  a  cost  of  $959  and  $1,346,
      respectively.

Note 5.   Transactions with Affiliates

      Textainer  Financial  Services  Corporation  (TFS) is the managing general
      partner of the Partnership.  TFS is a wholly-owned subsidiary of Textainer
      Capital Corporation (TCC).  Textainer  Equipment  Management Limited (TEM)
      and  Textainer   Limited  (TL)  are  associate  general  partners  of  the
      Partnership.  The  managing  general  partner  and the  associate  general
      partners  are  collectively  referred to as the General  Partners  and are
      commonly  owned by Textainer  Group Holdings  Limited  (TGH).  The General
      Partners  also  act in  this  capacity  for  other  limited  partnerships.
      Textainer  Acquisition  Services  Limited  (TAS)  is an  affiliate  of the
      General  Partners which performs  services  relative to the acquisition of
      Equipment  outside  the United  States on behalf of the  Partnership.  TCC
      Securities  Corporation  (TSC), a licensed broker and dealer in securities
      and an affiliate of the General Partners, was the managing sales agent for
      the offering of Units for sale.

      In accordance with the Partnership  Agreement,  and subject to the special
      allocations  described  therein,  net earnings or losses,  and partnership
      distributions  are generally  allocated 1% to the General Partners and 99%
      to the limited partners with the exception of gross income,  as defined in
      the  Partnership  Agreement.  Gross  income is  allocated  to the  General
      Partners  to the extent that their  partners'  capital  accounts  deficits
      exceed the portion of syndication and offering costs allocated to them. On
      termination of the  Partnership,  the General  Partners shall be allocated
      gross income equal to their allocations of syndication and offering costs.

      As part of the operation of the Partnership,  the Partnership is to pay to
      the General  Partners or TAS an incentive  management  fee, an acquisition
      fee, an equipment  management fee and an equipment  liquidation fee. These
      fees  are  for  various   services   provided  in   connection   with  the
      administration   and  management  of  the  Partnership.   The  Partnership
      capitalized equipment acquisition fees totaling $54 and $19 as a component
      of Equipment costs during the three-month periods ended March 31, 1997 and
      1996,  respectively.  The Partnership  incurred $137 and $151 of incentive
      management  fees during the  three-month  periods ended March 31, 1997 and
      1996,  respectively.  No equipment  liquidation  fees were incurred during
      either period.

      The  Equipment  of the  Partnership  is  managed  by TEM.  In its  role as
      manager,  TEM has  authority to acquire,  hold,  manage,  lease,  sell and
      dispose of the  Partnership's  Equipment.  Additionally,  TEM  holds,  for
      payment  of direct  operating  expenses,  a reserve  of cash that has been
      collected from Equipment leasing operations;  such cash is included in the
      amount due from affiliates at March 31, 1997 and December 31, 1996.

      Subject to certain reductions, TEM receives a monthly Equipment management
      fee equal to 7% of gross revenues  attributable to operating leases and 2%
      of  gross  revenues  attributable  to  full  payout  net  leases.  For the
      three-month periods ended March 31, 1997 and 1996, these fees totaled $358
      and $440,  respectively.  The Partnership's  Equipment is leased by TEM to
      third  party  lessees on  operating  master  leases,  spot leases and term
      leases.  The majority of the  Equipment is leased under  operating  master
      leases with limited terms and no purchase option.

      Certain  indirect  general  and  administrative  costs  such as  salaries,
      employee  benefits,  taxes  and  insurance,  are  incurred  in  performing
      administrative  services  necessary to the  operation of the  Partnership.
      These costs are borne by TFS and TEM. During the three-month periods ended
      March 31, 1997 and 1996,  costs  allocated to the Partnership for salaries
      were $184 and $197,  respectively  and other  general  and  administrative
      costs were $175 and $207, respectively. TEM allocates these costs based on
      the ratio of the Partnership's  interest in managed Equipment to the total
      Equipment  managed  by  TEM  during  the  period.   Indirect  general  and
      administrative  costs  allocated to the  Partnership  by TEM were $316 and
      $330, for the three-month periods ended March 31, 1997 and 1996.

      TFS allocates indirect general and administrative costs to the Partnership
      based on the ratio of the  Partnership's  Equipment to the total Equipment
      of all limited  partnerships  managed by TFS. TFS allocated $43 and $74 of
      these indirect costs to the  Partnership  during the  three-month  periods
      ended March 31, 1997 and 1996.

      The General  Partners or TAS may acquire  Equipment  in their own name and
      hold  title on a  temporary  basis for the  purpose  of  facilitating  the
      acquisition of such Equipment for the Partnership.  The Equipment may then
      be resold to the  Partnership on an all-cash basis at a price equal to the
      actual cost, as defined in the  Partnership  Agreement.  In addition,  the
      General  Partners  or TAS  are  entitled  to an  acquisition  fee  for any
      Equipment resold to the Partnership.

      At March 31, 1997 and December 31, 1996,  due from and to  affiliates  are
      comprised of:
<TABLE>
<CAPTION>

                                                                                       1997            1996
                                                                                       ----            ----
<S>                                                                              <C>                  <C>
                    Due from affiliates:
                             Due from TEM...................................     $      693               -
                                                                                        ===             ===

                    Due to affiliates:
                             Due to TFS.....................................     $      278              50
                             Due to TGH.....................................              1               -
                             Due to TAS.....................................             29               5
                             Due to TCC.....................................             19              36
                             Due to TEM.....................................              -             723
                             Due to TL......................................              -               1
                                                                                        ---             ---
                                                                                 $      327             815
                                                                                        ===             ===
</TABLE>

      These amounts  receivable  from and payable to affiliates were incurred in
      the ordinary course of business between the Partnership and its affiliates
      and represent  timing  differences  in the accrual and payment of expenses
      and fees  described  above or in the accrual and  remittance of net rental
      revenues from TEM.

      It is the policy of the  Partnership  and the  General  Partners to charge
      interest on intercompany  balances which are outstanding for more than one
      month,  to  the  extent  such  balances  relate  to  loans  for  Equipment
      purchases.  Interest  is charged at a rate not  greater  than the  General
      Partners' or affiliates' own cost of funds.  There was no interest charged
      on intercompany  balances for the three-month  period ended March 31, 1997
      or 1996.

Note 6.   Rentals Under Operating Leases

      The following is a schedule by year of minimum future  rentals  receivable
      on noncancelable operating leases as of March 31, 1997:

         Year ending March 31:

         1998.............................................          $   967
         1999.............................................              102
         2000.............................................                8
                                                                    -------

         Total minimum future rentals receivable..........          $ 1,077
                                                                    =======

Note 7.   Redemptions

      The following  redemption  offerings were  consummated by the  Partnership
      during the three-month period ended March 31, 1997:
<TABLE>
<CAPTION>

                                                           Units                 Average
                                                          Redeemed           Redemption Price            Amount Paid
                                                          --------           ----------------            -----------
<S>                                                       <C>                <C>                         <C>   
          Balance at December 31, 1996..............        10,715                $15.49                      $  166

          Quarter ended:
             March 31, 1997.........................         8,020                $13.03                         104
                                                            ------                                              ----

          Partnership to date.......................        18,735                $14.43                      $  270
                                                            ======                                              ====
</TABLE>
                                                                          

      The  redemption  price is fixed by  formula  and varies  depending  on the
      length of time the units have been outstanding.

Note 8. Commitments

      At March 31,  1997,  the  Partnership  has  committed  to purchase 350 new
      containers at an  approximate  total purchase price of $662 which includes
      acquisition fees of $32. These  commitments were made to TAS which, as the
      contracting  party,  has in turn  committed to purchase this  Equipment on
      behalf of the Partnership.



<PAGE>

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

          (Dollar amounts in thousands except for unit and per unit amounts)

The Financial Statements contain information which will assist in evaluating the
financial  condition of the Partnership for the three-month  periods ended March
31, 1997 and 1996. Please refer to the Financial Statements and Notes thereto in
connection with the following discussion.

Liquidity and Capital Resources

From April 30,  1992 until April 30, 1994 the  Partnership  was  involved in the
offering of limited partnership  interests to the public. On April 30, 1994, the
Partnership had received a total subscription amount of $136,918.

The Partnership  has set up a program whereby limited  partners may redeem units
for a specified  redemption  value.  The redemption  price is set by formula and
varies  depending on length of time the units are  outstanding.  Up to 2% of the
Partnership's outstanding units may be redeemed each year, although the 2% limit
may be exceeded at the Managing General  Partner's  discretion.  All redemptions
are subject to the Managing  General  Partner's  good faith  determination  that
payment for the redeemed units will not (i) cause the Partnership to be taxed as
a  corporation,  (ii) impair the capital or  operations of the  Partnership,  or
(iii) impair the ability of the Partnership to pay  distributions  in accordance
with its distribution  policy. The Partnership  redeemed 8,020 units for a total
dollar amount of $104 during the three-month period ended March 31, 1997.

The  Partnership  invests  working  capital  and cash flows from  operations  in
short-term,  highly liquid  investments prior to distribution or reinvestment in
additional Equipment.  It is the policy of the Partnership to maintain a minimum
working  capital  reserve in an amount  which is the lesser of (i) 1% of capital
contributions,  or (ii) $100. At March 31, 1997, the Partnership's  cash of $688
was invested in a market-rate account.

During the  three-month  period ended March 31, 1997, the  Partnership  declared
cash  distributions to limited  partners  pertaining to the period from December
1996  through  February  1997,  in the  amount of  $3,243.  These  distributions
represent a return of 9.5% of original capital (measured on an annualized basis)
on each unit.  On a GAAP  basis  $1,808 of these  distributions  was a return of
capital and the balance was from net  earnings.  On a cash basis $1,087 of these
distributions was from operations and the balance was from reserves.

At March 31, 1997, the  Partnership had committed to purchase 350 new containers
at an approximate total purchase price of $662, which includes  acquisition fees
of $32. At March 31, 1997, the  Partnership  had sufficient cash on hand to meet
these  commitments.  In the event that  Partnership  decides not to purchase the
Equipment,  one of the General  Partners or an affiliate of the General Partners
will retain the Equipment for its own account.

For the  three-month  period ended March 31, 1997, the  Partnership had net cash
provided by operating  activities  of $2,156,  compared with $4,004 for the same
period in 1996.  This decrease was primarily  attributable to a decreases in net
earnings and due to affiliates, net of $1,080 and $1,155, respectively.  The 42%
decrease in net earnings  from the three months ended March 31, 1996 to the same
period in 1997, was primarily due to a decrease in rental revenues of $1,182, or
19%. The  decrease in rental  revenues  between  periods was due to a decline in
utilization,  rental rates and fleet size.  These  decreases are discussed  more
fully below under "Results of Operations". Due to affiliates, net, decreased due
to timing  differences in the accrual and payment of expenses and fees or in the
accrual and remittance of net rental revenues.

As explained below under "Results of Operations",  demand for leased  containers
has  declined,  and  this  decline  has  affected  the  Partnership's  financial
condition.

Net  cash  used in  investing  activities  (the  purchase  and  sale  of  rental
equipment) for the three-month  period ended March 31, 1997 was $773 compared to
net cash  provided by investing  activities  of $35 for the same period in 1996.
This  difference  is  primarily  due to the  fact  that,  on a cash  basis,  the
Partnership  purchased  more  Equipment in 1997 than in the same period in 1996.
The General Partners believe that these differences  reflect normal fluctuations
in equipment sales and purchases.  Moreover,  the Partnership has used Equipment
in its portfolio and expects to sell this Equipment periodically when it reaches
the end of its useful marine life. Consistent with its investment objectives and
the General  Partners'  determination  that Equipment can be profitably  sold or
bought at any time,  the  Partnership  intends to reinvest all or a  significant
amount of proceeds from future  Equipment  sales in additional  Equipment.  Such
additional Equipment purchases may not, however, equal the number of units sold.

Results of Operations

The  Partnership's  operations,   which  consist  of  rental  income,  Equipment
depreciation,  direct operating expenses,  management fees, and reimbursement of
administrative  expenses,  were  directly  related to the size of the  Equipment
fleet (inventory) during the three-month  periods ended March 31, 1997 and 1996,
as well as certain other factors as discussed  below. The following is a summary
of the Equipment (in units) available for lease during those periods:

                                                               1997        1996
                                                               ----        ----
                   Opening inventory.......................   35,931      36,297
                   Closing inventory.......................   36,079      36,373
                   Average.................................   36,005      36,335

The decline in the average container fleet from the three-months ended March 31,
1996 to the  equivalent  period in 1997 was primarily due to the sale of certain
Equipment.  Although, sales proceeds were used to purchase new Equipment,  fewer
units were bought than sold.

Rental  income  and  direct  container  expenses  are  also  affected  by  lease
utilization  percentages  for the  Equipment,  which were 77% and 86% on average
during the three-month  period ended March 31, 1997 and 1996,  respectively.  In
addition, rental income is affected by daily rental rates, which have declined.

The  following is a comparative  analysis of the results of  operations  for the
three-month periods ended March 31, 1997 and 1996.

The Partnership's  income from operations for the three-month period ended March
31,  1997 was $1,384 on gross  rental  income of $5,173,  compared  to $2,408 on
gross  rental  income  for  $6,355  for the same  period  in 1996.  The  largest
component  of total  rental  income  is income  from  container  rentals,  which
decreased by $993 or 17%, from 1996 to 1997.  Income from  container  rentals is
largely  dependent  upon three factors:  equipment  available for lease (average
inventory),  average on-hire  (utilization)  percentage and average daily rental
rates.  Average  utilization  decreased  by  10%,  average  daily  rental  rates
decreased by 5% and average inventory decreased 1%.

Container  utilization  began to decline in late 1995 and that decline persisted
throughout 1996 and into 1997. The General  Partners  believe that this decrease
in demand for leased containers is the result of adverse changes in the business
of its shipping line  customers.  These changes  consist  principally  of: (i) a
general slowdown in the growth of world containerized cargo trade,  particularly
in the  Asia-North  America and  Asia-Europe  trade routes;  (ii)  over-capacity
resulting from the 1996 and 1997 additions of new,  larger ships to the existing
container  ship  fleet at a rate in excess of the growth  rate in  containerized
cargo  trade;   and  (iii)  shipping  line   alliances  and  other   operational
consolidations   that  have  allowed   shipping  lines  to  operate  with  fewer
containers,  thereby decreasing the demand for leased containers.  The container
ship  over-capacity  in particular  led to lower  shipping  rates,  resulting in
shipping  lines'  need to reduce  operating  costs.  The drive to reduce  costs,
coupled with the  availability  of  inexpensive  financing  and lower  container
prices,  encouraged  shipping  lines to purchase,  rather than lease,  a greater
number of new  containers in 1996 than in previous  years.  All of these factors
have led to downward pressure on container lease rates, a decline in utilization
of leased containers,  and an increase in leasing incentives and other discounts
being  granted  to  shipping  lines  by  container   lessors,   further  eroding
Partnership profitability.  The decline in demand for leased containers has been
accompanied  by a drop in the  purchase  price of new  containers.  For the near
term,  the  General  Partners  do not  foresee  any  changes in  current  market
conditions and caution that both  utilization  and lease rates could continue to
decline, adversely affecting the Partnership's operating results.

Substantially  all of the  Partnership's  rental income was  generated  from the
leasing of the Equipment under short-term operating leases.

The balance of rental income consists of other  lease-related  items,  primarily
income  from  charges  to the  lessees  for  pick-up  of  containers  from prime
locations  less  credits  granted to lessees  for leasing  containers  from less
desirable  locations  (location  income),  income  for  handling  and  returning
containers  and income  from  charges to lessees  for a damage  protection  plan
(DPP). For the three-month period ended March 31, 1997, the total of these other
revenue items was $419, a decrease of $189 compared to the equivalent  period in
1996.  The primary  components of this net decrease  were  decreases in location
income and DPP of $128 and $68, respectively. This decline in location income is
mainly due to lower  demand,  which drove  drop-off  charges to lessees down and
increased  credits  given to lessees  for  picking up units from less  desirable
locations.  DPP revenue  declined due to the decrease in return fees as a result
of fewer  units  being  turned in during  the  period  ended  March 31,  1997 as
compared to the equivalent period in 1996.

Direct operating expenses,  excluding bad debt expense, increased by $11, or 1%,
from the  three-month  period ended March 31, 1996,  to the same period in 1997.
The primary  component of this increase was an increase in storage expense which
increased by $218,  offset by a decrease in DPP expense of $152 between periods.
The increase in storage expense was primarily due to the decline in utilization.
The  decrease  in DPP  expense  was  primarily  due to a decrease in the average
number of units  requiring  repairs  from March 31,  1996 to the same  period in
1997,  coupled  with a slight  decrease  in the  average  repair  costs per unit
between the two periods.

Bad debt expense decreased from $6 in the three-month  period  ended  March  31,
1996 to $5 in the same period of 1997.

Depreciation  and  amortization  expense  decreased  by  $18,  or 1%,  from  the
three-month  period ended March 31, 1996 to the same period in 1997,  reflecting
the decrease in the Partnership's average fleet size between periods.

Management  fees  decreased by $96 or 16%, from the three months ended March 31,
1997 to the  equivalent  period  in 1997  due to a  decrease  in  equipment  and
incentive  management fees. Equipment management fees, which are based primarily
of gross revenue,  decreased $81 or 18% due to the decrease in rental income and
were 7% of gross revenue for both periods.  Incentive management fees, which are
based on the Partnership's  limited and general partner distribution  percentage
and partners'  capital,  decreased $15 or 10% primarily due to a decrease in the
distribution  rate from 10.5% in the three-month  period ended March 31, 1996 to
9.5% for the equivalent period in 1997.

General and  administrative  costs to affiliates  decreased by 11%, or $45, from
the  three-month  period  ended  March  31,  1996 to the  same  period  in 1997,
primarily due to a decline in overhead  costs  allocated from TEM and TFS during
these periods.

Other income provided $85 of additional income for the three-month  period ended
March 31,  1997,  representing  a decrease  of $56,  or 40% over the  equivalent
period in 1996.  The  decrease  was  attributable  to a $51 decline in gain from
sales of Equipment and a $5 decrease in interest income.

Net  earnings  per  limited  partnership  unit  decreased  from  $0.37  for  the
three-month  period  ended  March 31, 1996 to $0.21 for the  three-month  period
ended March 31, 1997,  reflecting  the decrease in net earnings  from $2,549 for
the  three-month  period  ended  March 31, 1996 to $1,469 for the same period in
1997.

Although  substantially  all of the  Partnership's  income  from  operations  is
derived from assets employed in foreign operations, virtually all of this income
is  denominated  in United  States  dollars.  The  Partnership's  customers  are
international  shipping  lines  which  transport  goods on  international  trade
routes.  The  domicile  of the lessee is not  indicative  of where the lessee is
transporting  the  Equipment.  The  Partnership's  business  risk in its foreign
operations lies with the  creditworthiness of the lessees, and the Partnership's
ability to keep the Equipment under lease,  rather than the geographic  location
of the  Equipment  or the domicile of the  lessees.  The  Equipment is generally
operated on the international  high seas rather than on the domestic  waterways.
The  Equipment  is subject to the risk of war or other  political,  economic  or
social  occurrence  where the Equipment is used, which may result in the loss of
Equipment,  which,  in turn,  may have a  material  impact on the  Partnership's
results of operations  and  financial  condition.  The General  Partners are not
aware of any  conditions  as of March 31, 1997 which  would  result in such risk
materializing.

Other risks of the Partnership's  leasing  operations include  competition,  the
cost of  repositioning  Equipment  after  it  comes  off-lease,  the  risk of an
uninsured  loss,  increases in maintenance  expenses or other costs of operating
the  Equipment,  and the effect of world trade,  industry  trends and/or general
business and economic cycles on the Partnership's operations. See "Risk Factors"
in the Partnership's Prospectus, as supplemented,  for additional information on
risks of the Partnership's business.



<PAGE>


                                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.


                                     TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                                     (A California limited partnership)

                                     By Textainer Financial Services Corporation
                                     The Managing General Partner



                                     By _______________________________
                                         John R. Rhodes
                                         Executive Vice President


Date:  May 13, 1997

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of Textainer  Financial
Services  Corporation,  the Managing  General Partner of the Registrant,  in the
capacities and on the dates indicated:

<TABLE>
<CAPTION>

Signature                                Title                                          Date




<S>                                      <C>                                            <C> 
________________________                 Executive Vice President,                      May 13, 1997
John R. Rhodes                           (Principal Financial and
                                         Accounting Officer) and
                                         Secretary


________________________                 President (Principal Executive                 May 13, 1997
James E. Hoelter                         Officer) and Director
</TABLE>

<PAGE>




                                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.


                                     TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
                                     (A California limited partnership)

                                     By Textainer Financial Services Corporation
                                     The Managing General Partner



                                     By /s/John R. Rhodes
                                        John R. Rhodes
                                        Executive Vice President


Date:  May 13, 1997


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of Textainer  Financial
Services  Corporation,  the Managing  General Partner of the Registrant,  in the
capacities and on the dates indicated:

<TABLE>
<CAPTION>

Signature                                   Title                                             Date



<S>                                      <C>                                            <C> 
/s/John R. Rhodes                        Executive Vice President,                      May 13, 1997
-------------------------                (Principal Financial and
John R. Rhodes                           Accounting Officer) and
                                         Secretary

/s/James E. Hoelter                      President (Principal Executive                 May 13, 1997
-----------------------                  Officer) and Director
James E. Hoelter                         
</TABLE>