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 March 31, 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  March  31,  2000, there were 3,117,050 shares of the Registrant's Common
Stock,  par  value  $0.001  per  share,  outstanding  and  75,669  shares of the
Registrant's  Series A Preferred Stock, par value $0.001 per share, outstanding.

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


<PAGE>

                         PART I - FINANCIAL INFORMATION



Item  1.          Financial  Statements





















                                        2
<PAGE>

                    Consortium Service Management Group, Inc.
                                  BALANCE SHEET
                      March 31, 2000 and December 31, 1999



                                     ASSETS
                                     ------
<TABLE>
<CAPTION>
                                                     3/31/00       12/31/99
Current  Assets                                    (Unaudited)
---------------                                    -----------     --------
<S>                                                  <C>           <C>
Cash                                                   4,973             0
Marketable  Securities                                 1,800
Prepaid  Expenses                                      5,000
Notes  Receivable                                        600           600
                                                     -------       -------
     Total  Current  Assets                           12,373           600

Fixed  Assets
-------------
Furniture,  Fixtures,  Equipment                      58,518        58,518
Less:  Accumulated  Depr.                            (29,968)      (28,041)
                                                     -------       -------
     Total  Fixed  Assets                             28,550        30,477

Other  Assets
-------------
Investment  United  Engineering  Co.                 270,556       161,030
Founders  Fund                                        73,843        73,843
Investment  Anaerobic  Farm  Waste                       946           946
Employee  Advances                                    28,633         1,633
                                                     -------       -------
     Total  Other  Assets                            373,978       237,452
                                                     -------       -------

     Total  Assets                                   414,901       268,529
                                                     =======       =======
</TABLE>

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

                                        3
<PAGE>

                    Consortium Service Management Group, Inc.
                                  BALANCE SHEET
                      March 31, 2000 and December 31, 1999


                                  LIABILITIES
                                  -----------
<TABLE>
<CAPTION>
                                                     3/31/00       12/31/99
Current  Liabilities                               (Unaudited)
                                                   -----------     --------
<S>                                                <C>             <C>
Bank  Overdraft                                                             6
Accounts  Payable                                     58,612           57,800
Federal  Payroll  Taxes  Payable                       8,609           20,627
Accrued  Interest                                     33,544           18,063
Notes  Payable                                        31,000           31,000
Notes  Payable  To  Stockholders                     571,031          485,264
                                                   ---------       ----------
     Total  Current  Liabilities                     702,796          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  3/31/00
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  Income  (Loss)                         20,404         (396,952)
Foreign  Exchange  Loss                              (10,193)         (46,847)
                                                   ---------        ---------
Ending  Deficit                                   (2,247,326)      (2,257,537)
     Total  Stockholders  Equity                    (287,895)        (344,231)
                                                   ---------        ---------
     Total  Liabilities  and
     Stockholders  Equity                            414,901          268,523
                                                   =========        =========
</TABLE>

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

                                        4
<PAGE>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                            STATEMENT OF OPERATIONS
                                  (Unaudited)
<TABLE>
<CAPTION>
                                          Jan. 1, 2000-     Jan. 1, 1999-
                                          Mar. 31, 2000     Mar. 31, 1999
                                          -------------     -------------
<S>                                        <C>                <C>
Revenues                                   $   10,000         $        0

Gross  Profit                                  10,000                  0
General  and  Administrative
Expenses                                      102,217             70,158

Funded  R  &  D                                     0             21,217

Cost  of  Funded  R  &  D                       3,594             18,266

Net  R  &  D  Cost                              3,594             (2,951)

Operating  Loss                               (95,811)           (67,207)

Interest  Income                                   11                  9

Interest  in  Income
From  Unconsolidated  Cos.                    123,406              4,349

Foreign  Exchange  (Loss)                     (10,195)           (11,712)

(Loss)  on  Investments                        (7,200)                 0

Net  Income  (Loss)                            10,211            (74,561)

Earnings  (Loss)  Per  Share                      .00                .03

Avg.  Shares  Outstanding                   3,117,050 Shs.     2,690,057 Shs.

Diluted  Earnings  Per  Share
Net Income                                     10,211       Basic and diluted
                                                            earnings per share
Diluted  Earnings  Per  Share                     .00       are the same.  The
                                                            corporation  is
Average  Shares  and  Potentially                           reporting a net loss
Dilutive Shares Outstanding                 3,117,050 Shs.  for the period of
                                                            January 1, 1999
                                                            through March 31,
                                                            1999 and any
                                                            potentially dilutive
                                                            securities are anti-
                                                            dilutive (reduce
                                                            loss per share) and
                                                            therefore  not
                                                            presented.
</TABLE>


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

                                        5
<PAGE>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                            STATEMENT OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                            Jan. 1, 2000-   Jan. 1, 1999-
                                            Mar. 31, 2000   Mar. 31, 1999
                                            -------------   -------------
Cash  Flows From Operating Activities
-------------------------------------
<S>                                          <C>               <C>

Net  Income  (Loss)                            10,211          (74,561)
Dividends  From  Investee                       3,685
Depreciation                                    1,927
(Increase)  Decrease  Prepaid  Expenses        (5,000)
Increase  (Decrease)  Accounts  Payable           812           (2,822)
Increase  (Decrease)  Accrued  Interest        15,481
Bank  Overdraft                                     6
Increase  (Decrease)  Taxes  Payable          (12,018)            (503)
Equity  (Income)  Loss  From  Investees      (123,404)           4,349
Foreign  Exchange  Loss                        10,193           11,712
Compensation  For  Common  Stock               46,129
                                              -------           ------
Cash  Flows  From  Operating  Activities      (51,990)         (61,825)



Cash Flows From Investing Activities

Purchase  Securities                           (1,800)
Employee  Advance                             (27,004)         (12,515)
                                             --------           ------
Cash  Flows  From  Investing  Activities      (28,804)         (12,515)


Cash  Flows  From  Financing  Activities
----------------------------------------

Increase  Notes  Payable                       85,767           25,000
                                             --------           ------
Cash  Flows  From  Financing  Activities       85,767           25,000
                                             --------           ------


Net  Increase  (Decrease)  Cash                 4,973          (49,340)
Cash  Beginning  of  Period                         0           50,179
Cash  End  of  Period                           4,973              839
</TABLE>

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

                                        6
<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
three  month  period  ended March 31, 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
income  of  $10,211  for the quarter ended March 31, 2000 but 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.





                                        7
<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 - First Quarter of 2000 Compared to First Quarter of
     ---------------------------------------------------------------------------
     1999
     ----

     Our  revenues for Q1 2000 were $10,000, compared to no revenues in Q1 1999.
The  source  of  our  revenues  for  Q1 2000 was the forfeiture of funds earlier
deposited  by  a  dairy  in  Idaho that decided not to proceed with an anaerobic
project  for  which  it  had  earlier  contracted.

     Operating  expenses  rose  during  Q1  2000 compared to Q1 1999.  Operating
expenses  increased by $32,059 from $70,158 in Q1 1999 to $102,217 in Q1 2000, a
46  percent increase.  The increase is attributable to stock issued for interest
payments  on  notes  payable.

     We  had a net loss from operations of $95,811 for Q1 2000 compared to a net
loss  of  $67,207  for  Q1  1999,  a  $28,604  or  42.6  percent  increase.

     In  January  2000  we rescinded our contracts with the Louisville, Kentucky
doctors  (the  L  Group)  and  with Frantz Medical and Research, Inc. and ceased
receiving  any  additional  funded  research  and  development costs from Frantz
Medical  and Research, Inc. with respect to our live tissue bonding project.  In
the  previous  year, in Q1 1999, we spent $18,266 of $21,217 funded research and
development  in  this  regard.

     We  accrued $123,406 income in Q1 2000 from our 50-50 Ukraine joint venture
in  United  Engineering Company, as compared with accrued income of $4,349 in Q1
1999  from this investment.  We attribute this increase to increased activity in
U.E.C.'s  missile  silo  dismantlement  work.

     We  continue  to  suffer  foreign  exchange  losses  from the Ukraine joint
venture  -  $10,195  during  Q1  2000  compared  to  $11,712  during  Q1  1999.

     While  we  had net operating losses during Q1 of both 2000 and 1999, we had
reportable net income in Q1 2000 of $10,211 - attributable to the accrued income
of  $123,406 from the Ukraine joint venture - as compared to a reported net loss
of  $74,561  during  Q1  1999.

     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

                                        8
<PAGE>

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.*

           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*

                                        9
<PAGE>

          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***

          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
<PAGE>

          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**

          27        -       Financial  Data  Schedule

          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



                                       11
<PAGE>

                                   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







                                       12
<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                                                        MAR  31-2000
Cash                                                                      4,973
Securities                                                                1,800
Receivables                                                                 600
Allowances                                                                5,000
Inventory                                                                     0
Current  Assets                                                          12,373
PP&E                                                                     58,518
Depreciation                                                             29,968
Total  Assets                                                           414,901
Current  Liabilities                                                    702,796
Bonds                                                                         0
Preferred  Mandatory                                                          0
Preferred                                                                    76
Common                                                                1,959,355
Other  SE                                                           (2,247,326)
Total  Liability  and  Equity                                           414,901
Sales                                                                    10,000
Total  Revenue                                                           10,000
Cgs                                                                       3,594
Total  Costs                                                            102,217
Other  Expenses                                                          10,195
Loss  Provision                                                               0
Interest  Expense                                                           (11)
Income  Pretax                                                           10,211
Income  Tax                                                                   0
Income  Continuing                                                       10,211
Discontinued                                                                  0
Extraordinary                                                                 0
Changes                                                                 123,406
Net  Income                                                              10,211
EPS  Primary                                                                  0
EPS  Diluted                                                                  0
</TABLE>

                                                                      Exhibit 27
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