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, 2001

                                       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  August  29, 2001, there were 5,624,218 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



















                                        2
<PAGE>


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



I have reviewed the accompanying balance sheets of Consortium Service Management
Group,  Inc.  and Subsidiary as of March 31, 2001 and December 31, 2000, and the
related  Statements  of Operations, Accumulated Deficits, and Cash Flows for the
quarter  and  year  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.  and  Subsidiary.

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  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  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:  November  14,  2001                    Gary  Skibicki
Oklahoma  City,  OK.                          Certified  Public  Accountant

<PAGE>
            CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET



                                     ASSETS
                                     ------
<TABLE>
<CAPTION>

                                                     3/31/01          12/31/00
                                                     -------          --------
Current  Assets
---------------
<S>                                                <C>              <C>
Cash                                               $       164      $     1,492
Dividends  Receivable                                    8,155            8,155
                                                   -----------      -----------

     Total  Current  Assets                        $     8,319      $     9,647


Fixed  Assets
Furniture,  Fixtures,  Equipment                        60,909           74,909
Less:  Accumulated  Depreciation                       (37,679)         (35,751)
                                                   -----------      -----------

     Total  Fixed  Assets                          $    23,230      $    39,158


Other  Assets
-------------

Investment  -  United                                  297,257          307,217
  Engineering  Co.

Investment  -  Anaerobic
  Farm  Waste,  Inc.                                     1,200              880

Carbon  Dioxide  Equipment                             654,300           27,889

Employee  Advances                                      24,200            1,752

Tissue  Bonding  Patent                                  8,667            8,667
Less:  Accumulated  Amortization                          (603)            (482)
                                                   -----------      -----------

     Total  Other  Assets                          $   985,021      $   345,923
                                                   -----------      -----------

     Total  Assets                                 $ 1,016,570      $   394,728
                                                   ===========      ===========
</TABLE>



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

                                        4
<PAGE>
            CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARY
                     CONSOLIDATED BALANCE SHEET (Continued)


                                  LIABILITIES
                                  -----------

<TABLE>
<CAPTION>

                                                     3/31/01          12/31/00
                                                     -------          --------
Current  Liabilities
--------------------
<S>                                                <C>              <C>
Accounts  Payable                                  $   556,268      $    43,661

Interest  Payable                                      110,427           83,332

Federal  Payroll  Taxes  Payable                        26,823           23,896

Notes  Payable  To  Stockholders                       980,264          990,264
                                                   -----------      -----------

     Total  Current  Liabilities                   $ 1,673,782      $ 1,141,153
                                                   ===========      ===========

                        STOCKHOLDERS' AND MEMBERS' EQUITY
                        ---------------------------------

Preferred  Stock  $.001  par  value,
10,000,000  shares  authorized;
75,669  shares  issued  and  outstanding
at  December  31,  2000,  0  shares  issued
and  outstanding  at  March  31,  2001             $                $        76

Common  Stock  $.001  par  value,
40,000,000  shares  authorized;
3,927,374  shares  issued  and
outstanding  at  December  31,  2000
and  5,138,078  issued  and
outstanding  at  March  31,  2001                  $     5,138            3,927


Additional  Paid  In  Capital                        3,428,235        2,452,680

Membership  Capital  Gastech  LLC                      163,000                0

Beginning  Accumulated  Deficit,                    (3,203,108)      (2,257,537)
1/1/01,  1/1/00

Current  Year  Loss                                 (1,051,110)        (935,770)

Foreign  Exchange  Gain  (Loss)                            633           (9,801)
                                                   -----------      -----------

Ending  Accumulated  Deficit,
3/31/01,  12/31/00                                 $(4,253,585)     $(3,203,108)
                                                   -----------      -----------

     Total  Stockholders'  Equity                     (657,212)        (746,425)
                                                   -----------      -----------

     Total  Liabilities  and
     Stockholders'  Equity                         $ 1,016,570      $   394,728
                                                   ===========      ===========
</TABLE>


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

                                        5
<PAGE>
            CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF OPERATIONS


<TABLE>
<CAPTION>

                                          Jan.  1,  2001 -      Jan.  1,  2000 -
                                          March  31,  2001      March  31,  2000
                                          ----------------      ----------------
<S>                                         <C>                     <C>
Revenues                                    $       100             $   10,000

Cost  of  Goods  Sold                             5,000
                                            -----------             ----------

Gross  Profit  (Loss)                            (4,900)                10,000

General  and
Administrative  Expenses                      1,036,888                102,217

  Funded  R&D                                         0                      0
  Cost  of  Funded  R&D                             750                  3,594
  Net  R&D  Cost                                    750                  3,594
                                            -----------             ----------

Operating  Loss                             $(1,042,538)            $  (95,811)

(Loss)  On  Investments                                                 (7,200)

Interest  Income                                     63                     11

Interest  in  Income  (Loss)
Of  Unconsolidated  Company                      (8,635)               123,406

Foreign  Exchange
Gain  (Loss)                                        633                (10,195)
                                            -----------             ----------

Net  Income  (Loss)                         $(1,050,477)            $   10,211

Basic  and  Diluted
Earnings  Per  Share                               (.20)                   .00

Average  Shares  Outstanding                  5,138,078              3,117,050
</TABLE>





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

                                        6
<PAGE>
            CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                          Jan.  1,  2001 -      Jan.  1,  2000 -
                                          March  31,  2001      March  31,  2000
                                          ----------------      ----------------
Cash  Flows  From  Operating  Activities
----------------------------------------
<S>                                         <C>                    <C>
Net  Income  (Loss)                         $ (1,050,477)          $     10,211
Depreciation  and  Amortization                    4,007                  1,927
Dividends  from  Investees                                                3,685
Increase  (Decrease)  Accounts  Payable                                     812
(Increase)  Decrease  Prepaid  Expenses                                  (5,000)
Increase  (Decrease)  Accrued  Interest           27,095                 15,481
Increase  (Decrease)  Taxes  Payable               2,927                (12,018)
Equity  (Income)  Loss  from  Investees            8,635              (1,234,04)
Foreign  Exchange  Loss  (Gain)                     (633)                10,193
Compensation  for  Common  Stock                 756,690                 46,129
                                            ------------           ------------
Cash  Flows  From  Operating  Activities    $   (251,756)          $    (51,984)


Cash  Flows  From  Investing  Activities
----------------------------------------

Purchase  Securities                                               $     (1,800)
Employee  Advance                           $    (22,448)               (27,004)
Purchase  Equipment                             (612,411)
Investment  in  Subsidiary                          (320)
                                            ------------           ------------

Cash  Flows  From  Investing  Activities    $   (635,179)          $    (28,804)


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

Increase  Accounts  Payable  *              $    512,607
Increase  (Decrease)  Notes  Payable             (10,000)          $     85,767
Sell  Stock                                      220,000
Sell  Membership  Interest  in  LLC              163,000
                                            ------------           ------------

Cash  Flows  From  Financing  Activities  $       885,607         $      85,767
                                            ------------           ------------

Net  Increase  (Decrease)  Cash                    (1,328)                4,979
Cash  Beginning  of  Period                         1,492                    (6)
Cash  End  of  Period                     $           164         $       4,973
</TABLE>


* Accounts payable are shown as part of financing in 2001 because they relate to
purchasing  carbon  dioxide  equipment.

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

                                        7
<PAGE>
            CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARY
                          NOTES TO FINANCIAL STATEMENTS



                                     NOTE 1
                              BASIS OF PRESENTATION

The accompanying unaudited 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
ending  March 31, 2001 are not necessarily indicative of the results that may be
expected  for  the year ended December 31, 2001.  For further information, refer
to  the  annual  financial  statements  and footnotes thereto for the year ended
December  31,  2000.

On  February  15,  2001 CSMG Gastech LLC was formed as a Texas Limited Liability
Company  of  which  Consortium  Service  Management  Group  owns  55%  interest.
Operations  in  2001  for  CSMG Gastech have principally been limited to raising
funds  through  selling membership interest to purchase carbon dioxide separator
equipment, and those activities have been included in the consolidated financial
statements.


                                     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  $1,050,477 for the three months ended March 31, 2001 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 - First Quarter of 2001 Compared to First Quarter of
     ---------------------------------------------------------------------------
2000
----

     Our  revenues  for  Q1  2001  were  $100,  compared  to $10,000 in Q1 2000.

     Cost  of  services provided in Q1 2001 was $5,000, compared with no cost of
services  in  Q1  2000.  These  costs  reflected  the  cost of videos for tissue
bonding.

     Operating  expenses  increased  ten-fold  during  Q1  2001  over  Q1  2000.
Operating  expenses increased by $934,671 from $102,217 in Q1 2000 to $1,036,888
in Q1 2001.  The increase is attributable to (i) the exchange of preferred stock
by  two officers for common stock with the increase in value of the common stock
over  the  preferred  stock  being  regarded  as  compensation  expense and (ii)
expenses  associated with the organization of CSMG Gastech LLC, a new 55 percent
subsidiary  of  the  company through which we propose to operate some of our CO2
separator  projects.

     Due  to the increased operating expenses, we had a net loss from operations
of  $1,042,538  for  Q1  2001, up considerably from a net loss of $95,811 for Q1
2000.

     We  accrued  a  loss in Q1 2001 of $8,635 from our joint venture in Ukraine
with  United  Engineering Company, as compared with income of $123,406 from this
activity  in Q1 2000.  The reason for the difference is a decline in the defense
conversion  activities  of  U.E.C.

     Altogether,  we  reported  a  net  loss in Q1 2001 of $1,050,477 or $0.20 a
share,  compared with net income in Q1 2000 of $10,211 or $0 a share.  This loss
reflects  increased  general  and  administrative expenses incurred in 2001 with
regard to our CO2 separator project, our anaerobic animal waste project, and our
tissue bonding project, all of which are poised to produce continuing income for
the  company  by  the  fourth  quarter  of  2001.

     We  were  able to remain liquid during this quarter through (1) the sale of
$220,000  worth  of common stock to shareholders and friends of the company, (2)
an  increase  in accounts payable of $512,607, representing part of the $718,686
purchase  price of CO2 equipment, (3) the sale of $163,000 in members' interests
in CSMG Gastech LLC, and (4) the issuance of 1,210,704 shares of common stock to
officers  of  the company, Donald Robbins and Gordon W. Allison, in exchange for
the  cancellation of $756,690 face value of 75,667 shares of Series  A Preferred
Stock.


Item  6.          Exhibits  and  Reports  on  Form  8-K

(a)     Exhibits


                                        9
<PAGE>

     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*

          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
<PAGE>

          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.***

          10.16       -     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.***

                                       11
<PAGE>

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

          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




                                       12