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, 2004

                                       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  [X]  No  [ ]

As  of  May  10,  2004,  there  were 9,578,622 shares of the Registrant's Common
Stock,  par  value  $0.001,  outstanding.

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








<PAGE>

                         PART I - FINANCIAL INFORMATION



Item  1.     Financial  Statements

     Review  Letter                                                            3
     Consolidated  Balance  Sheet  March  31,  2004  and
       December  31,  2003                                                     4
     Consolidated  Statement  of  Operations  March  31,  2004
       and  2003                                                               6
     Consolidated  Statement  of  Cash  Flows  March  31,  2004  and  2003     7
     Consolidated  Statement  of  Stockholders'  Equity  Three  Months
       Ended  March  31,  2004                                                 8
     Notes to Financial Statements                                             9























                                        2
<PAGE>


                        Independent Accountant's Report


I  have  reviewed  the accompanying interim balance sheets of Consortium Service
Management Group, Inc. and consolidated subsidiaries for the quarter ended March
31,  2004  and  year  ended  December  31,  2003  and  the related statements of
operations,  cash  flows  and stockholders' equity for the quarter and year then
ended.  These  interim  financial  statements  are  the  responsibility  of  the
company's  management.

I  conducted  my  review  in accordance with standards established by the Public
Company  Accounting  Oversight  Board. A review of interim financial information
consists  principally  of applying analytical procedures and making inquiries of
persons  responsible  for financial and accounting matters.  It is substantially
less  in  scope  than  an  audit conducted in accordance with generally accepted
auditing  standards,  the  objective  of  which  is the expression of an opinion
regarding  the  financial  statements  taken  as a 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 interim financial statements in order for them to be
in conformity with accounting principles generally accepted in the United States
of  America.

The  accompanying  interim financial statements have been prepared assuming that
the  Company  will  continue  as a going concern.  As discussed in Note 2 to the
interim  financial  statements,  the  Company has suffered recurring losses from
operations  that  raised  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,  C.P.A.,  P.C.
-----------------------------------
Gary  Skibicki,  C.P.A.,  P.C.
Oklahoma  City,  OK
May  7,  2004








                                        3
<PAGE>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                                AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEETS

                                     ASSETS

<TABLE>
<CAPTION>
                                                    Mar 31, 2004   Dec 31, 2003
                                                    ------------   ------------
CURRENT  ASSETS
<S>                                                 <C>            <C>
  Cash                                              $      (265)   $     13,118
                                                    -----------    ------------
     Total  Current  Assets                                (265)         13,118


FIXED  ASSETS
  Furniture  and  Equipment                              61,409          61,409
    Less  Accumulated  Depreciation                     (60,809)        (58,881)
                                                    -----------    ------------
      Total  Fixed  Assets                                  600           2,528


OTHER  ASSETS
  Investment  -  United  Engineering  Company           234,172         255,318
  Investment  -  CO2  Equipment                       1,451,207       1,450,490
  CO2  Equipment  Patent                                  8,000           8,000
  Tissue  Bonding  Patent                               236,018         236,018
    Less  Accumulated  Amortization                     (23,014)        (20,514)
                                                    -----------    ------------
      Total  Other  Assets                          $ 1,906,383    $  1,929,312

      Total  Assets                                 $ 1,906,718    $  1,944,958
                                                    ===========    ============
</TABLE>










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

                                        4
<PAGE>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                                AND SUBSIDIARIES

                    CONSOLIDATED BALANCE SHEETS (CONTINUED)

                                  LIABILITIES


<TABLE>
<CAPTION>
                                                    Mar 31, 2004   Dec 31, 2003
                                                    ------------   ------------
CURRENT  LIABILITIES
<S>                                                 <C>            <C>
  Accounts  Payable                                 $   603,117    $    680,969
  Interest  Payable                                     378,201         199,266
  Payroll  Taxes  Payable                                28,911          26,046
  Notes  Payable  to  Stockholders                    3,577,841       3,475,802
  CO2  Equipment  Payable                               206,749         206,749
                                                    ------------   ------------
      Total  Current  Liabilities                     4,794,819       4,588,832


Minority  Interest  in  Consolidated  Subsidiary        206,000         206,000


STOCKHOLDERS'  EQUITY
  Common  stock  $.001  par  value,  40,000,000
    shares  authorized;  9,216,374  shares
    issued  and 9,135,661  shares  outstanding
    at  March  31,  2004 and  9,175,874  shares
    issued  and  9,095,161  shares outstanding
    at  December  31,  2003                               9,216           9,175

  Additional  Paid  in  Capital                       5,435,564       5,410,293

  Accumulated  Other  Comprehensive  (Loss)            (343,375)       (343,375)

  Accumulated  (Deficit)                             (8,163,221)     (7,893,682)

  Treasury  Stock                                       (32,285)        (32,285)
                                                    ------------   ------------
      Total  Stockholders'  Equity                   (3,094,101)     (2,849,874)


      Total  Liabilities  and
        Stockholders'  Equity                       $ 1,906,718    $  1,944,958
                                                    ===========    ============
</TABLE>







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

                                        5
<PAGE>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                                                 Jan 1, 2004-     Jan 1, 2003-
                                                 Mar 31, 2004     Mar 31, 2003
                                                 ------------     ------------
<S>                                              <C>              <C>
Revenues                                         $          -     $          -

General  and  Administrative  Expenses                245,774          145,094
  Funded  R  &  D                                           -                -
  Cost  of  Funded  R  &  D                             2,622            8,910
  Net  R  &  D  Cost                                    2,622            8,910
                                                 ------------     ------------
      Operating  (Loss)                              (248,396)        (154,004)

Interest  Income                                            3                3

Interest  in  Income (Loss) of
  Unconsolidated Companies                            (21,146)         (36,830)
                                                 ------------     ------------
      (Loss)  from  Continuing  Operations           (269,539)        (190,831)

Income  Taxes                                               -                -

      Net  (Loss)                                $   (269,539)     $  (190,831)
                                                 ============      ===========

Net  (Loss)  Per  Share  Common  Stock                  (0.03)           (0.03)

Weighted  Average Common Shares Outstanding         9,115,411        6,950,313
</TABLE>


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













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

                                        6
<PAGE>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF CASH FLOWS


<TABLE>
<CAPTION>
                                                 Jan 1, 2004-     Jan 1, 2003-
                                                 Mar 31, 2004     Mar 31, 2003
                                                 ------------     ------------
CASH  FLOWS  FROM  OPERATING  ACTIVITIES
<S>                                              <C>              <C>
Net  (Loss)                                      $   (269,539)    $   (190,831)
Depreciation  and  Amortization                         4,428            4,428
Increase  (Decrease)  Accrued  Interest               178,935                -
Increase  (Decrease)  Current  Liabilities            (74,987)         177,923
Equity  (Income)  Loss  from  Investee                 21,146           36,830
                                                 ------------     ------------
      Net  Cash  provided  by  (used  in)
        Operating Activities                         (140,017)          28,350


CASH  FLOWS  FROM  INVESTING  ACTIVITIES
Employee  Advance                                           -          (13,800)
Purchase  Equipment  and  Patent                         (717)        (166,939)
                                                 ------------     ------------
      Net  Cash  (used  in)  Investing
        Activities                                       (717)        (180,739)


CASH  FLOWS  FROM  FINANCING  ACTIVITIES
Increase  Notes  Payable                              102,039          130,700
Increase  Stock  Issue                                 25,312           20,000
                                                 ------------     ------------
      Net  Cash  provided  by  Financing
        Activities                                    127,351          150,700


NET  INCREASE  (DECREASE)  IN  CASH  AND
  CASH  EQUIVALENTS                                   (13,383)          (1,689)

Cash and Cash Equivalents at Beginning of Period       13,118            3,905
                                                 ------------     ------------

Cash and Cash Equivalents at End of Period       $       (265)    $      2,216
                                                 ============     ============
</TABLE>











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

                                        7
<PAGE>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                                AND SUBSIDIARIES

                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                        JANUARY 1, 2004 - MARCH 31, 2004


<TABLE>
<CAPTION>
                                                                  Accumulated
                                                   Additional       Other
                            No. Common      Par      Paid In    Comprehensive    Accumulated    Treasury
Description                Shares (Ea.)    Value     Capital        Deficit        Deficit        Stock         Total
-----------                ------------   -------  -----------  -------------    -----------   ------------  ------------
<S>                         <C>           <C>      <C>            <C>            <C>            <C>          <C>
Balance  January 1, 2004    9,175,874     $9,175   $5,410,293     $ (343,375)    $(7,893,682)   $  (32,285)  $(2,849,874)
Common  Stock  Sold                 -          -            -              -               -             -             -
Common  Stock  Issued
  for  Services                 6,000          6        3,743              -               -             -         3,749
Common  Shares  Issued
  for  Interest                34,500         35       21,528              -               -             -        21,563
Net  (Loss)                         -          -            -              -        (269,539)            -      (269,539)
Other  Comprehensive
  Income  (Loss)                    -          -            -              -               -             -             -
Foreign  Exchange
  Gain  (Loss)                      -          -            -              -               -             -             -
                            --------------------------------------------------------------------------------------------

Balance  March  31, 2004    9,216,374     $9,216   $5,435,564     $ (343,375)    $(8,163,221)   $  (32,285)  $(3,094,101)
                            ============================================================================================

     Treasury  Shares         (80,713)
                            ---------
Shares  Outstanding         9,135,661
                            =========
</TABLE>








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

                                        8

<PAGE>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                                AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS
                        MARCH 31, 2004, DECEMBER 31, 2003


                                     NOTE 1
                              BASIS OF PRESENTATION


The  accompanying  unaudited  interim financial statements have been prepared in
accordance with standards established by the Public Company Accounting Oversight
Board.  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 ending March 31, 2004 are not necessarily indicative of the results
that  may  be  expected  for  the  year  ended  December  31, 2004.  For further
information,  refer to the annual financial statements and footnotes thereto for
the  year  ended  December  31,  2003.

                                     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 a net
loss  of  $(269,539) for the three months ended March 31, 2004 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.

                                     NOTE 3
                    INCOME (LOSS) FROM UNCONSOLIDATED COMPANY

The  Company's  33%  owned  subsidiary  United  Engineering  Company,  a Ukraine
company,  reported  the  following  sales,  gross  profits  and  net  loses:

<TABLE>
<CAPTION>
                                         Jan 1, 2003-     Jan 1, 2002-
                                         Mar 31, 2003     Mar 31, 2002
                                         ------------     ------------
<S>                                       <C>             <C>

          Sales                           $   203,243     $    228,973
          Gross  Profit                           982          (26,296)
          Net  (Loss)                     $   (63,500)    $   (110,490)
</TABLE>


                                        9
<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 2004 Compared to First Quarter of 2003
-------------------------------------------------------------------------------

     We  had  no  revenues  in  Q1  2004,  compared  to  no revenues in Q1 2003.

     Operating  expenses  increased  by  $94,392 or 61 percent during Q1 2004 as
compared  with  operating  expenses  during  Q1  2003.  Operating  expenses were
$248,396  in Q1 2004 and were $154,004 in Q1 2003.  The increase is attributable
primarily  to  increased  cost  of CO2 equipment installation and tissue bonding
development.

     We  had a net loss from operations of $248,396 for Q1 2004, up considerably
from  a  net  loss  of  $154,004  for  Q1  2003.

     We  accrued  a loss in Q1 2004 of $21,146 from our joint venture in Ukraine
with  United  Engineering  Company,  as compared with a net loss of $36,830 from
this  activity  in  Q1  2003.

     Altogether,  we  reported  a  net  loss  in Q1 2004 of $269,539, or $0.03 a
share,  compared  with  a  net  loss  in  Q1  2003 of $190,831 or $0.03 a share.

     We  were  able to remain liquid during this quarter through (1) an increase
in  notes  payable of $102,039, (2) an increase in accrued interest of $178,935,
and  (3)  the  sale  of  $35,312  of  common  stock.

     On  March 29, 2004, we entered into an Equity Line of Credit Agreement with
Cornell  Capital  Partners.  Under  this  agreement,  we  may  issue and sell to
Cornell  Capital  Partners  common stock for a total purchase price of up to $10
million.  Subject  to  certain  conditions,  we are entitled to draw down on the
Equity  Line  of Credit once the common stock to be issued under the Equity Line
of  Credit  is  registered  with  the Securities and Exchange Commission and the
registration statement is declared effective.  The purchase price for the shares
is  equal  to 95% of, or a 5% discount to, the market price, which is defined as
the  lowest  closing  bid price of the common stock during the five trading days
following  the  notice  date.  We  have  the  right,  but not the obligation, to
require  Cornell  Capital  to  purchase  shares in the company's common stock in
amounts  not  to  exceed $140,000 per draw up to a maximum of $420,000 per month
with a total of $10 million over a consecutive 24-month period.  Cornell Capital
Partners  will  receive  a fee debenture of $390,000, in the form of convertible
debentures.  Cornell  will  also receive a $10,000 legal fee of which $5,000 has
been  paid  and  the  balance  will  be  paid from the proceeds from the initial
advance  under  the Equity Line of Credit.  Cornell Capital Partners is entitled


                                       10
<PAGE>

to  retain  a  fee of 5% of each advance.  The net effect of the 5% discount and
the  5%  retainage  of  each  advance is that Cornell Capital Partners shall pay
90.25%  of  the applicable closing bid price for each share of our common stock.
In  addition,  we  have  entered into a placement agent agreement with Newbridge
Securities,  a  registered  broker-dealer.   Pursuant  to  the  placement  agent
agreement,  we will pay a one-time placement agent fee in shares of common stock
equal to approximately $10,000 based on the stock price on the date we agreed to
engage  the  placement  agent.

     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 for our future, particularly with regard to all of 2004.
The  status of our CO2 separator project in Chastang County, Alabama is that the
installation  was completed during March 2003. Start-up and equipment adjustment
were  delayed  while waiting for the landfill gas owner to complete installation
of  the  end-user pipeline and gas metering system.  This was installed near the
end  of March just as our Ukraine supervisory team had to return to Ukraine.  In
addition,  the  landfill gas quality was well below expected levels and required
repairs  to  the  gas  gathering  system to reduce air intake.  The landfill gas
owner  coordinated  and  completed  these  repairs  during  the  next few weeks,
finishing toward the end of May.  The Ukraine supervisory team returned in early
June  to  oversee  service,  start-up  and  adjust the equipment.   Poor weather
caused some delays but this was completed in about two weeks.  As we prepared to
begin  start-up  operations  and  equipment  adjustment,  Waste  Management Inc.
("WMC",  the  operator  of the landfill) ordered Resource Technology Corporation
"RTC"  (the holder of the gas ownership contract) off the landfill and contended
that  our  CO2  separator  equipment produces methane gas that fails to meet gas
quality  specifications  and  that,  therefore,  the agreement to buy the gas is
terminated.  This  contention  is  now  being  litigated  in  RTC's  chapter  11
reorganization proceeding. It is possible that our gas collection and conversion
systems  could  be  determined  to  be  out of specifications thus necessitating
installing  upgrades  estimated  to cost between $200,000 and $300,000 to enable
the  equipment to meet the gas quality requirements. Currently the Company has a
caretaker  at  the  landfill to maintain the equipment.  If additional funds are
required  to  upgrade  the  system the possibility remains that the process will
still  not  meet the Mobile Gas specifications and if so it will be necessary to
move  the equipment from the Chastang landfill.  Should this occur it is unclear
if  any  future carbon dioxide projects will be possible and if so the continued
existence  of  the Company will depend on live tissue bonding and anaerobic farm
waste  technology  sales.

     The  status  of  our  tissue bonding project is that we have completed more
than  2,000  human  surgeries in Ukraine clinical trials and continue to develop
new  methods  of surgical procedures and tools.  We have started the development
of  equipment  from  prototype  model to a commercial model. The equipment bonds
the  soft  biological  tissue with a special miniature surgical tool.  No glues,
sutures,  staples  or  other  foreign  matter  are  used.  The  process  is best
described  as  a  welding  process.  The  scar  tissue  is  either  minimal  or
non-existent.  Tests  conducted  in  Louisville,  Kentucky  by  U.S. surgeons on
rabbits'  stomachs  resulted  in  scar tissue only forty microns wide six months
after  surgery.  It  appears  that  the  Ukraine  scientists  have  developed  a
superior, all-purpose, seamless method of bonding soft biological tissues, which
method  is characterized by simple manipulation applicable to different surgical
operations  and  the fast restoration of tissues without the formation of coarse
scars.  Apparently  there  is no need for prolonged special training of surgeons
and  surgical  personnel.

     The  Ukraine  prototype  for the equipment was successfully demonstrated to


                                       11
<PAGE>

physicians  and  surgeons  in the U.S. in June 1996 on the blood vessels, nerves
and  stomachs  of  rats  and  rabbits.  Additional, subsequent demonstrations on
animals  were  performed  in  Ukraine  by Ukraine surgeons with U.S. surgeons in
attendance.  In  1998 the U.S. surgeons performed successful tests on animals in
Louisville, Kentucky.  Testing on humans in Ukraine began in mid-year 1998.  One
patient  had  a  blood  vessel  welded,  and the other patient had a torn uterus
repaired  using  minimally  invasive  surgery  tools.  According  to the Ukraine
doctors,  both  patients  recovered in the normal amount of healing time without
side  effects.

     E.O. Paton Institute of Electric Welding of the Ukraine National Academy of
Sciences  and  International Association of Welding filed U.S. and international
patent  applications  on  the process in February 1999.  An Australia patent has
been  issued,  but no other patents have been issued.  We own the technology and
have  been  assigned  the exclusive world rights of the patents - should they be
issued.  See  Exhibit  10.3  filed  as  part  of  our  Form  10-SB.

     We  have  submitted  no  applications,  requests  or testing results to the
Federal  Drug Administration.  We have not marketed the bonding equipment in the
Ukraine or any other non-U.S. country and have no plans at this time to do this.
Our  plans  are  to  manufacture  prototypes only in Ukraine and to set up fully
controlled clinical trials in Ukraine for comprehensive human testing.  We began
this  clinical  work  in  May  2000.  To  date we have completed more than 2,000
successful  human  surgeries  at Ukraine hospitals. We are currently negotiating
with  a  group  of private investors who are familiar with our company for these
funds.

     In  2002  we  formed  Live  Tissue  Connect,  Inc., a Delaware corporation,
through  which  we  propose to develop our Tissue Bonding technology.  We own 86
percent  of  Live  Tissue  Connect,  Inc.

     We  estimate  that in excess of $2 million have been expended in developing
the  project and that $2.5 million of additional funds must be expended to bring
this  product  to market.  We estimate that the first surgical equipment will be
manufactured  in  the  U.S.  during  the next 12 months now that the U.S. patent
applications  are  approved  and  patents  are  issued.

     This  project is still in the development stage, even though the Ukrainians
have  created  a  finished  product  in  their  special miniature surgical tool.
Improvements  in  the tool are possible, and testing on live tissue of humans to
U.S.  testing  standards  is required.  Approval of the process and equipment by
the  Federal  Drug  Administration  is  required.

     With  regard to our farm waste anaerobic project, we expect contracts to be
executed  during  2004.  We  have  met  resistance from swine, dairy and poultry
farmers  in  our efforts to sell our farm waste anaerobic plant, due to the long
period  of  time  required for small farms to recover the costs of the plant and
due  to  falling  producer prices in these industries.  Our efforts at this time
are  concentrated  on  building  a  demonstration  plant with Poultry Growers of
Oklahoma.  The  growers  are working with the Oklahoma Agriculture Commission in
coordination  with  Anaerobic  Farm  Waste,  Inc.  for  a  loan  grant  to do an
engineering  and  marketing  feasibility  study of building a plant in Southeast
Oklahoma.  Also,  we  have retained a Native American consultant to negotiate an
arrangement  with  the Native American tribes for a grant from the U.S. Corps of
Engineers  to  do  a  feasibility  study  for  building  an  anaerobic  plant in
Northeastern  Oklahoma.  The resolution has been drawn but not signed as of this
date.


                                       12
<PAGE>


     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.

Item  3.     Controls  and  Procedures

     Evaluation of disclosure controls and procedures.  We maintain controls and
procedures  designed to ensure that information required to be disclosed in this
report  is  recorded, processed, accumulated and communicated to our management,
including  our chief executive officer and our chief financial officer, to allow
timely decisions regarding the required disclosure.  Within the 90 days prior to
the  filing  date  of this report, our management, with the participation of our
chief  executive  officer and chief financial officer, carried out an evaluation
of  the  effectiveness  of the design and operation of these disclosure controls
and  procedures.  Our  chief  executive  officer  and  chief  financial  officer
concluded,  as  of  fifteen  days  prior to the filing date of this report, that
these  disclosure  controls  and  procedures  are  effective.

     Changes  in  internal  controls.  Subsequent  to  the  date  of  the  above
evaluation,  we made no significant changes in our internal controls or in other
factors  that  could  significantly  affect  these controls, nor did we take any
corrective  action,  as  the  evaluation revealed no significant deficiencies or
material  weaknesses.


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  2001)


                                       13
<PAGE>

          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,  2002 between
                            Consortium  Service   Management  Group,  Inc.   and
                            Resource Technology Corporation***

          10.11       -     Contract     Agreement    Effective     August   14,
                            2001   between    Consortium    Service   Management
                            Group/Anaerobic   Farm   Waste   Co.   and   Rondeau
                            Anaerobic***

          10.12       -     Contract     IAW-USA    002-PR-19.04.2001    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-19.04.2001    between
                            International  Association  Welding,  Kiev  and E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***


                                       14
<PAGE>

          10.14       -     Contract    IAW-USA     004-PR-19.04.2001    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-19.04.2001     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-19.04.2001     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-19.04.2001     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.***

          10.19       -     Natural  Gas  Purchase  Agreement  of  June 20, 2000
                            between  Texas  Energy  Transfer  Company, Ltd.  and
                            Resource Technology Corp.****

          10.20       -     Agency   Agreement   between   Joint  Stock  Company
                            "Sumy Frunze Machine-Building Science and Production
                            Association"  of  Ukraine  and  Consortium   Service
                            Management  Group,  Inc.+

          10.21       -     2003  Stock  Option  Plan  adopted  by  the board of
                            directors of Consortium  Service  Management  Group,
                            Inc.++

          16          -     Letter dated January 29, 2001 from Jaak (Jack) Olesk
                            to Consortium Service  Management  Group,  Inc.  Re:
                            Termination as Auditor**

          31          -     Certification of Chief Executive Officer pursuant to
                            18  U.S.C.  Section 1350,  as  adopted  pursuant  to
                            Section 302 of the Sarbanes-Oxley Act  of  2002.


                                       15
<PAGE>

          31.1        -     Certification of Chief Financial Officer pursuant to
                            18  U.S.C. Section  1350,  as  adopted  pursuant  to
                            Section  302  of  the Sarbanes-Oxley  Act  of  2002.

          32          -     Certification of Chief Executive Officer pursuant to
                            18  U.S.C.  Section  1350,  as  adopted  pursuant to
                            Section 906 of the Sarbanes-Oxley Act  of  2002.

          32.1        -     Certification of Chief Financial Officer pursuant to
                            18  U.S.C. Section  1350,  as  adopted  pursuant  to
                            Section  906  of  the Sarbanes-Oxley  Act  of  2002.

          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.


                                        3
<PAGE>

     **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.

     ****Previously  filed  with  Amendment  No. 1 to Form 10-QSB for the period
ended  September  30,  2002;  Commission  File  No. 0-27359 incorporated herein.

     +Previously  filed  with  Form 10-KSB for the year ended December 31, 2002;
Commission  File  No.  0-27359  incorporated  herein.

     ++Previously filed with Amendment No. 1 to Form 10-QSB for the period ended
March  31,  2003;  Commission  File  No.  0-27359  incorporated  herein.


(b)     Forms  8-K

        None






















                                       16
<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:  May 12, 2004                   Consortium Service Management Group, Inc.


                                      By:/s/  Gordon  W.  Allison
                                         ---------------------------------------
                                         Gordon  W.  Allison,    Executive  Vice
                                         President and  Chief  Financial Officer


































                                       17
<PAGE>




                    Consortium Service Management Group, Inc.
                           Commission File No. 0-27359

                                  EXHIBIT INDEX

                                   FORM 10-QSB
                  For the quarterly period ended March 31, 2004


     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  2001)

          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*


                                        1
<PAGE>

          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,  2002 between
                            Consortium  Service   Management  Group,  Inc.   and
                            Resource Technology Corporation***

          10.11       -     Contract     Agreement    Effective     August   14,
                            2001   between    Consortium    Service   Management
                            Group/Anaerobic   Farm   Waste   Co.   and   Rondeau
                            Anaerobic***

          10.12       -     Contract     IAW-USA    002-PR-19.04.2001    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-19.04.2001    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-19.04.2001    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-19.04.2001     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-19.04.2001     between
                            International Association  Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

                                        2
<PAGE>

          10.17       -     Contract    IAW-USA    007-PR-19.04.2001     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.***

          10.19       -     Natural  Gas  Purchase  Agreement  of  June 20, 2000
                            between  Texas  Energy  Transfer  Company, Ltd.  and
                            Resource Technology Corp.****

          10.20       -     Agency   Agreement   between   Joint  Stock  Company
                            "Sumy Frunze Machine-Building Science and Production
                            Association"  of  Ukraine  and  Consortium   Service
                            Management  Group,  Inc.+

          10.21       -     2003  Stock  Option  Plan  adopted  by  the board of
                            directors of Consortium  Service  Management  Group,
                            Inc.++

          16          -     Letter dated January 29, 2001 from Jaak (Jack) Olesk
                            to Consortium Service  Management  Group,  Inc.  Re:
                            Termination as Auditor**

          31          -     Certification of Chief Executive Officer pursuant to
                            18  U.S.C.  Section 1350,  as  adopted  pursuant  to
                            Section 302 of the Sarbanes-Oxley Act  of  2002.

          31.1        -     Certification of Chief Financial Officer pursuant to
                            18  U.S.C. Section  1350,  as  adopted  pursuant  to
                            Section  302  of  the Sarbanes-Oxley  Act  of  2002.

          32          -     Certification of Chief Executive Officer pursuant to
                            18  U.S.C.  Section  1350,  as  adopted  pursuant to
                            Section 906 of the Sarbanes-Oxley Act  of  2002.

          32.1        -     Certification of Chief Financial Officer pursuant to
                            18  U.S.C. Section  1350,  as  adopted  pursuant  to
                            Section  906  of  the Sarbanes-Oxley  Act  of  2002.

          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.


                                        3
<PAGE>

     **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.

     ****Previously  filed  with  Amendment  No. 1 to Form 10-QSB for the period
ended  September  30,  2002;  Commission  File  No. 0-27359 incorporated herein.

     +Previously  filed  with  Form 10-KSB for the year ended December 31, 2002;
Commission  File  No.  0-27359  incorporated  herein.

     ++Previously filed with Amendment No. 1 to Form 10-QSB for the period ended
March  31,  2003;  Commission  File  No.  0-27359  incorporated  herein.

















                                        4