U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB
              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended June 30, 2000

                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
              For the transition period from ________ to ________


                    Consortium Service Management Group, Inc.
             (Exact name of registrant as specified in its charter)

    Texas                            0-27359                       74-2653437
  (state of                 (Commission File Number)             (IRS Employer
incorporation)                                                    I.D. Number)

                   500 North Shoreline Drive, Suite 701 North
                            Corpus Christi, TX 78471
                                  512-887-7546
            -------------------------------------------------------
            (Address and telephone number of registrant's principal
               executive offices and principal place of business)

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 twelve 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  [ ]     No  [X]

As  of  June  30,  2000,  there were 3,117,050 shares of the Registrant's Common
Stock, par value $0.001, outstanding, and 75,669 shares of Registrant's Series A
Preferred  Stock,  par  value  $0.001,  outstanding.

Transitional  Small Business Disclosure Format (check one):  Yes [ ]     No [X]


<PAGE>
                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                  (Unaudited)

9

                         PART I - FINANCIAL INFORMATION


Item  1.          Financial  Statements






















                                        2
<PAGE>




To  the  Board  of  Directors  and  Stockholders  of
Consortium  Service  Management  Group,  Inc.



I  have reviewed the accompanying balance sheet of Consortium Service Management
Group,  Inc.  as  of  June 30, 2000 and the related statements of operations and
accumulated  deficit  and  cash  flows for the quarter then ended, in accordance
with  Statements  on  Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants.  All information included in
these financial statements is the representation of the management of Consortium
Service  Management  Group,  Inc.

A  review  consists principally of inquiries of company personnel and analytical
procedures applied to financial data.  It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which  is  the expression of an opinion regarding the financial statements taken
as  whole.  Accordingly,  I  do  not  express  such  an  opinion.

Based  upon  my review, I am not aware of any material modifications that should
be  made  to  the  accompanying  financial statements in order for them to be in
conformity  with  generally  accepted  accounting  principles.

The  accompanying  financial  statements  have  been  prepared assuming that the
Company  will  continue  as  a  going  concern.  As  discussed  in Note 2 to the
financial  statements, the Company has suffered recurring losses from operations
that  raises substantial doubt about its ability to continue as a going concern.
Management's plans in regard to these matters are also described in Note 2.  The
financial  statements  do not include any adjustments that might result from the
outcome  of  this  uncertainty.



                                             /s/Gary  Skibicki

Date:  September  28,  2001                  Gary  Skibicki
Oklahoma  City,  OK.                         Certified  Public  Accountant


                                        3

<PAGE>
                    Consortium Service Management Group, Inc.
                                  BALANCE SHEET
                      June 30, 2000 and December 31, 1999

                                     ASSETS
                                     ------
<TABLE>
<CAPTION>
                                                     6/30/00          12/31/99
Current  Assets                                    (Unaudited)
---------------                                    -----------        --------
<S>                                                 <C>             <C>
Cash                                                 127,368                0
Marketable  Securities                                 8,490
Notes  Receivable                                        600              600
Prepaid  Expenses                                      5,000
                                                    --------        ---------
     Total  Current  Assets                          141,458              600

Fixed  Assets
-------------
Furniture,  Fixtures,  Equipment                      64,576           58,518
Less:  Accumulated  Depr.                            (31,896)         (28,041)
                                                   ---------        ---------
     Total  Fixed  Assets                             32,680           30,477

Other  Assets
-------------
Investment  United  Engineering  Co.                 254,860          161,030
Founders  Fund                                        73,843           73,843
Investment  Anaerobic  Farm  Waste                       946              946
Employee  Advances                                    58,188            1,633
                                                   ---------        ---------
     Total  Other  Assets                            387,837          237,452
                                                   ---------        ---------

     Total  Assets                                   561,975          268,529
                                                   =========        =========
</TABLE>





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

                                        4
<PAGE>
                    Consortium Service Management Group, Inc.
                                  BALANCE SHEET
                      June 30, 2000 and December 31, 1999

                                  LIABILITIES
                                  -----------
<TABLE>
<CAPTION>
Current  Liabilities
--------------------
<S>                                                 <C>             <C>
Bank  Overdraft                                                             6
Accounts  Payable                                     53,612           57,800
Federal  Payroll  Taxes  Payable                           0           20,627
Accrued  Interest                                     33,544           18,063
Notes  Payable                                        31,000           31,000
Notes  Payable  To  Stockholders                     957,531          485,264
                                                   ---------        ---------
     Total  Current  Liabilities                   1,075,687          612,760

                              STOCKHOLDERS' EQUITY
                              --------------------

Preferred  Stock  $.001  par  value,
10,000,000  shares  authorized,
75,669  shares  issued  and  outstanding                  76               76

Common  Stock  $.001  par  value,
40,000,000  shares  authorized,
3,117,050  shares  outstanding  at  6/30/00
and  3,043,050  outstanding  at  12/31/99              3,117            3,043

Additional  Paid  In  Capital                      1,956,238        1,910,187
Beginning  Deficit                                (2,257,537)      (1,813,738)
Current  Year  Loss                                 (202,464)        (396,952)
Foreign  Exchange  Loss                              (13,142)         (46,847)
                                                   ---------        ---------
Ending  Deficit                                   (2,473,143)      (2,257,537)
     Total  Stockholders  Equity                    (513,712)        (344,231)
                                                   ---------        ---------

     Total  Liabilities  and
     Stockholders  Equity                            561,975          268,523
                                                   =========        =========
</TABLE>


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

                                        5
<PAGE>
                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                            STATEMENT OF OPERATIONS
                                  (Unaudited)
<TABLE>
<CAPTION>
                        April 1, 2000-  April 1, 1999-  Jan. 1, 2000-  Jan. 1, 1999-
                        June 30, 2000   June 30, 1999   June 30, 2000  June 30, 1999
                        --------------  --------------  -------------  --------------
<S>                      <C>              <C>             <C>             <C>
Revenues                     9,000                0          19,000              0

General  and
Administrative
Expenses                   150,324           23,713         252,541         93,871

Funded  R  &  D                                   0                         21,217

Cost of Funded R & D        55,923           18,266          59,517         36,532

Net  R  &  D Cost           55,923          (18,266)         59,517        (15,315)

Operating  Loss           (197,247)         (41,979)       (293,058)      (109,186)

Interest  Income             1,434                0           1,445              9

Interest  in  Income
(Loss)  From
Unconsolidated  Cos.       (12,747)           4,349         110,659          8,698

Foreign  Exchange
(Loss)                      (2,949)         (11,712)        (13,144)       (23,424)

(Loss  on  Investments)    (14,310)                         (21,510)
                         ---------        ---------       ---------      ---------
Net  (Loss)               (225,819)         (49,342)       (215,608)      (123,903)
Earnings  (Loss)
Per  Share                    (.07)            (.02)           (.07)          (.05)

Avg.  Shares
Outstanding              3,117,050 Shs.   2,690,057 Shs.  3,117,050 Shs.  2,690,057 Shs.
</TABLE>

Basic and diluted earnings per share are the same.  The corporation is reporting
net losses for the reportion periods and any potentially dilutive securities are
antidilutive  (reduce  loss  per  share)  and  therefore  not  presented.


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

                                        6
<PAGE>
                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                            STATEMENT OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                       April 1, 2000-  April 1, 1999-  Jan. 1, 2000-  Jan. 1, 1999-
                                       June 30, 2000   June 30, 1999   June 30, 2000  June 30, 1999
                                       --------------  --------------  -------------  --------------
<S>                                     <C>              <C>             <C>             <C>
Cash Flows From Operating Activities
------------------------------------
Net  Income  (Loss)                       (225,819)         (49,342)       (215,608)       (123,903)
Dividends  From  Investee                                                     3,685
Depreciation                                 1,928                            3,855
(Increase)  Decrease  Prepaid  Expenses                                      (5,000)
Increase  (Decrease)  Accounts  Payable     (5,000)           7,500          (4,188)          4,678
Increase  (Decrease)  Accrued  Interest                                      15,481
Increase  (Decrease)  Taxes  Payable        (8,609)                         (20,627)           (503)
Equity  (Income)  Loss  From  Investees     12,745            4,349        (110,659)          8,698
Foreign  Exchange  Loss                      2,949           11,712          13,142          23,424
Compensation  For  Common  Stock                                             46,129
                                        ----------        ---------      ----------      ----------
Cash Flows From Operating Activities      (221,806)         (25,781)       (273,790)        (87,606)


Cash Flows From Investing Activities
------------------------------------
Purchase  Equipment                         (6,058)                          (6,058)
Purchase  Securities                        (6,690)                          (8,490)
Employee  Advance                          (29,551)         (13,550)        (56,555)        (26,065)
                                        ----------        ---------      ----------      ----------
Cash Flows From Investing Activities       (42,299)         (13,550)        (71,103)        (26,065)


Cash Flows From Financing Activities
------------------------------------
Increase  Notes  Payable                   386,500         (323,866)        472,267        (298,866)
(Decrease)  Issue  Common  Stock                                647                             647
Increase  Paid  In  Capital                                 361,008                         361,008
                                         ---------        ---------      ----------      ----------
Cash  Flows From Financing Activities      386,500           37,789         472,267          62,789
Net  Increase  (Decrease)  Cash            122,395           (1,542)        127,374         (50,882)
Cash  Beginning  of  Period                  4,973              839              (6)         50,179
Cash  End  of  Period                      127,368             (703)        127,368            (703)
</TABLE>


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

                                        7
<PAGE>
                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                  (Unaudited)


                                     NOTE 1
                              BASIS OF PRESENTATION

The  accompanying   unaudited  unconsolidated  financial  statements  have  been
prepared in accordance with generally accepted accounting principles for interim
financial  information.  Accordingly, they do not include all of the information
and  footnotes required by generally accepted accounting principles for complete
financial  statements.  In the opinion of management, all adjustments considered
necessary for a fair presentation have been included.  Operating results for the
six-month  period  ended  June  30,  2000  are not necessarily indicative of the
results  that may be expected for the year ended December 31, 2000.  For further
information,  refer to the annual financial statements and footnotes thereto for
the  year  ended  December  31,  1999.



                                     NOTE 2
                                  GOING CONCERN

The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of  liabilities in the normal course of business.  The Company incurred net loss
of  $215,608 for the six months ended June 30, 2000 and when combined with prior
year  net losses, raises substantial doubt as to the Company's ability to obtain
debt  and/or  equity  financing  and  achieve  profitable  operations.

The  Company's  management  intends  to raise additional operating funds through
equity  and/or  debt offerings and the sale of technologies.  However, there can
be  no  assurance  management  will be successful in its endeavors. The possible
consequences  of not obtaining additional funds either through equity offerings,
debt  offerings  or  sale  of  technologies is that there will not be sufficient
money  to  fund the capital projects required to earn long term planned revenues
of  the  company.






                                        8
<PAGE>

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

     The  following  discussion  and analysis should be read in conjunction with
the  financial statements and the accompanying notes thereto and is qualified in
its  entirety  by  the  foregoing  and  by  more  detailed financial information
appearing  elsewhere.  See  "Item  1.  Financial  Statements."

     Results  of  Operations - Second Quarter of 2000 Compared to Second Quarter
     ---------------------------------------------------------------------------
     of  1999
     --------

     We  had  no  revenues  for  Q2  2000  or  Q2  1999.

     Operating  expenses  rose  during  Q2  2000 compared to Q2 1999.  Operating
expenses increased by $126,611 from $23,713 in Q2 1999 to $150,324 in Q2 2000, a
534  percent  increase.  This  increase  is  attributed  to  increased  expenses
incurred  with  regard  to  our  tissue  bonding  project.

     We  had  a  loss  from operations of $197,247 for Q2 2000 compared to a net
loss  of  $41,979  for  Q2  1999,  a  $155,268  or 370 percent increase.  We had
additional  accrued  losses  in  Q2  2000  of  $12,747  and $2,949, attributable
respectively  to  the  operations  of  our  Ukraine  joint  venture  in  United
Engineering Company and to foreign exchange loss, as compared to an accrued gain
in  Q2  1999  of  $4,349  from  the  joint  venture and foreign exchange loss of
$11,712.

     Our net loss for Q2 2000 was $215,608, or $0.07 a share, as compared with a
net  loss  in  Q2  1999  of  $49,342,  or  $0.02  a  share.

     Results  of  Operations - First Half of 2000 Compared to First Half of 1999
     ---------------------------------------------------------------------------

     We  had  revenues of only $19,000 for the first half of FY 2000 and none in
the first half of FY 1999.  The 2000 revenues came from our anaerobic farm waste
project.

     General  and  administrative expenses of $252,541 in the first half of 2000
reflected  a  $158,670  increase over operating expenses of $93,871 in the first
half  of 1999 - a 166 percent increase. The increase is attributable to increase
in  our  tissue  bonding  project  expenses.

     We  had an operating loss of $293,058 in the first half of 2000, a $183,872
increase  over  the  $109,186  operating  loss in the first half of 1999 - a 168
percent  increase.  This  increase  partially  reflects the shift in 2000 to our
direct funding of the human tissue bonding project, which had been funded to the
extent  of $21,217 during the first half of 1999 by Frantz Medical and Research,
Inc.

     We  recorded  accrued income of $110,659 in the first half of 2000 from our
Ukraine joint venture operations in United Engineering Company, as compared with
only  $8,698  in  the  first  half  of  1999.  This  increase is attributable to
increased  activity  in  U.E.C.'s  conversion  of defense installations to other
purposes  but  was partially offset by a foreign exchange loss of $13,144 in the
first  half  of  2000.  In  the first half of 1999 our foreign exchange loss was
$23,424.

                                        9
<PAGE>

     Taking  into  account our joint venture operations in Ukraine and losses on
stock  market  investments,  we had a net loss of $215,608, or $0.07 a share, in
the  first  half of 2000, compared with a net loss of $123,903, or $0.05 a share
in  the  first  half  of  1999.  Nevertheless,  we feel that we are on the right
course  for  the  company,  that our CO2 separator project, our anaerobic animal
waste  project and our live tissue bonding project hold considerable promise for
our  company  in  2001.

     Outlook
     -------

     The  statements  made  in  this  Outlook  are  based  on  current plans and
expectations.  These statements are forward-looking, and actual results may vary
considerably  from  those  that  are  planned.

     We are optimistic about the future.  Our anaerobic farm waste projects, our
CO2  separator  project  and our live tissue bonding project are all on positive
tracks.

     The  company's  future  results of operations and the other forward-looking
statements  contained  in  this  Outlook  involve  a  number  of  risks  and
uncertainties.  Among  the  factors  that  could  cause actual results to differ
materially  are  the  following:  inability  of  the  company  to  obtain needed
additional  capital,  loss  of  personnel - particularly Chief Executive Officer
Donald S. Robbins or Executive Vice President and Chief Financial Officer Gordon
W. Allison - as a result of accident or for health reasons, interruptions in the
supply  of  equipment  from  manufacturers  of the equipment, the development of
competing  products  by  well-capitalized competitors, and an accident involving
life  or  serious  bodily harm that fairly or unfairly would bring into question
the  safety  of  using  the  company's  products.


     Management's  Statement  on  Y2K
     --------------------------------

     We  have  determined  that  we  do  not  face  material  costs, problems or
uncertainties  about  the year 2000 computer problem.  This problem affects many
companies  and organizations and stems from the fact that many existing computer
programs  use  only  two  digits to identify a year in the date field and do not
consider the impact of the year 2000.  Our company is newly organized, presently
uses  off-the-shelf  and  easily  replaceable  software programs, and has yet to
devise  its  own  software  programs.


Item  6.          Exhibits  and  Reports  on  Form  8-K

(a)     Exhibits

     The following exhibits are filed, by incorporation by reference, as part of
this  Form  10-QSB:

     Exhibit  No.                    Description
     -----------                     -----------

         3          -       Amended  and  Restated  Articles of Incorporation of
                            Consortium  Service  Management  Group,  Inc.*

                                       10

<PAGE>
         3.1        -       Bylaws  of   Consortium  Service  Management  Group,
                            Inc.*

        10          -       Founders'  Agreement  of United Engineering Company*

        10.1        -       Statutes  (Bylaws)  of United Engineering Company*

        10.2        -       Agreement  of  April  24,  1996  between  Consortium
                            Service Management Group, Inc. and The L Group, Inc.
                            concerning tissue bonding technology*  (rescinded in
                            January  2000)

        10.3        -       Agreement   of   July  9,  1996  between  Consortium
                            Service  Management Group,  Inc.  and  International
                            Welding concerning tissue bonding  technology*

        10.4        -       Agreement  among   Consortium   Service   Management
                            Group, Inc.,  United Engineering Company and Ivan V.
                            Semenenko, the inventor of the anaerobic farm  waste
                            technology*

        10.5        -       Agreement  of  June 9, 1998 among Consortium Service
                            Management  Group, Inc.,  The  Sumy  Frunze  Machine
                            Building   Science  and Production Association,  and
                            United Engineering Company concerning the  anaerobic
                            farm waste technology*

        10.6        -       Agreement   between   Consortium  Service Management
                            Group,  Inc.  and  Western  Waste  Management,  Inc.
                            concerning the anaerobic farm waste  technology*

        10.7        -       Agreement   between   Consortium  Service Management
                            Group,  Inc.  and  Aardema  Dairy   concerning   the
                            anaerobic farm waste technology*

        10.8        -       Agreement   between   Consortium  Service Management
                            Group, Inc. and John  and  Ruth  Beukers  concerning
                            the anaerobic farm waste technology*

        10.9        -       Agreement  of  December 1998  between  International
                            Welding Association of  Kiev, Ukraine and Consortium
                            Service Management Group, Inc. concerning the carbon
                            dioxide  separator  technology*

        10.10       -       Operating  Agreement  of   June  14,  2001   between
                            Consortium  Service  Management   Group,  Inc.   and
                            Resource Technology Corporation***

                                       11
<PAGE>

        10.11       -       Contract   Agreement   Effective   August  14,  2000
                            between   Consortium   Service   Management   Group/
                            Anaerobic Farm Waste Co. and Rondeau Anaerobic***

        10.12       -       Contract    IAW-USA    002-PR-19.04.2000     between
                            International  Association Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

        10.13       -       Contract    IAW-USA    003-PR-19.04.2000     between
                            International  Association Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

         10.14      -       Contract    IAW-USA    004-PR-19.04.2000     between
                            International Association  Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine and  Consortium  Service Management
                            Group,  Inc.***

        10.15       -       Contract    IAW-USA    005-PR-19.04.2000     between
                            International Association  Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

        10.16       -       Contract    IAW-USA    006-PR-19.04.2000     between
                            International Association Welding,  Kiev  and  E.O..
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

        10.17       -       Contract    IAW-USA    007-PR-19.04.2000     between
                            International Association  Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

        10.18       -       Contract    IAW-USA   008-PR  between  International
                            Association Welding, Kiev,  Ukraine  and  Consortium
                            Service Management Group, Inc.***

        16          -       Letter dated January 29, 2000 from Jaak (Jack) Olesk
                            to  Consortium Service Management  Group,  Inc.  Re:
                            Termination as Auditor**

                                       12
<PAGE>

        99          -       Ukraine  Ministry  of   Health,   State  Department,
                            Certificate of State  Registration  No.  1105-193***


     *Previously filed with Form 10-SB; Commission File No. 0-27359 incorporated
herein.

     **Previously  filed with Amendment No. 1 to Form 10-SB; Commission File No.
0-27359  incorporated  herein.

     ***Previously filed with Amendment No. 2 to Form 10-SB; Commission File No.
0-27359  incorporated  herein.

(b)     Forms  8-K

        None

                                   SIGNATURES

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

Date:  October  31, 2001                    Consortium Service Management Group,
Inc.


                                            By/s/Gordon  W.  Allison

                                              Gordon W. Allison,  Vice President
                                                and Chief Financial Officer




                                       13

<PAGE>

                            FINANCIAL DATA SCHEDULE
<TABLE>
<CAPTION>
<S>                                                                <C>
Period  Type                                                              3-MOS
Fiscal  Year  End                                                  DEC  31-2000
Period  Start                                                      JAN  01-2000
Period  End                                                        JUN  30-2000
Cash                                                                    127,368
Securities                                                                8,490
Receivables                                                                 600
Allowances                                                                5,000
Inventory                                                                     0
Current  Assets                                                         141,458
PP&E                                                                     64,576
Depreciation                                                             31,896
Total  Assets                                                           561,975
Current  Liabilities                                                  1,075,687
Bonds                                                                         0
Preferred  Mandatory                                                          0
Preferred                                                                    76
Common                                                                1,959,355
Other  SE                                                            (2,473,143)
Total  Liability  and  Equity                                           565,975
Sales                                                                    (5,310)
Total  Revenue                                                           (5,310)
Cgs                                                                      55,923
Total  Costs                                                             55,923
Other  Expenses                                                         150,324
Loss  Provision                                                               0
Interest  Expense                                                        (1,434)
Income  Pretax                                                         (225,819)
Income  Tax                                                                   0
Income  Continuing                                                     (225,819)
Discontinued                                                                  0
Extraordinary                                                           (15,696)
Changes                                                                       0
Net  Income                                                            (225,819)
EPS  Primary                                                              (0.07)
EPS  Diluted                                                              (0.07)
</TABLE>