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 September 30, 2000

                                       OR

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


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

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

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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding twelve months (or for such shorter period that the registrant was
required  to  file  such  reports),  and  (2)  has  been  subject to such filing
requirements  for  the  past  90  days.  Yes  [ ]     No  [X]

As of September 30, 2000, there were 3,448,928 shares of the Registrant's Common
Stock,  par  value  $0.001,  outstanding  and  75,669 shares of the Registrant's
Series  A  Preferred  Stock,  par  value  $0.001,  outstanding.

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




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

                         PART I - FINANCIAL INFORMATION



Item  1.          Financial  Statements















                                        2
<PAGE>



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



I have reviewed the accompanying balance sheets of Consortium Service Management
Group,  Inc.  as  of  September  30, 2000 and December 31, 1999, and the related
statements  of  operations  and  accumulated  deficits  and  cash  flows for the
quarters  then  ended, in accordance with Statements on Standards for Accounting
and  Review  Services  issued  by  the  American  Institute  of Certified Public
Accountants.  All  information  included  in  these  financial statements is the
representation  of  the  management of Consortium Service Management Group, Inc.

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

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

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



                                             /s/Gary  Skibicki

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


                                        3
<PAGE>
                    Consortium Service Management Group, Inc.
                                  BALANCE SHEET
                    September 30, 2000 and December 31, 1999



                                     ASSETS
                                     ------
<TABLE>
<CAPTION>
                                                  9/30/00          12/31/99
                                               ----------         ---------
Current  Assets
---------------
<S>                                            <C>                <C>
Cash                                           $    6,146         $      (6)
Marketable  Securities                              8,490
Notes  Receivable                                     600               600
                                                ---------          --------
     Total  Current  Assets                        15,236               594


Fixed  Assets
-------------
Furniture,  Fixtures,  Equipment                   60,909            58,518
Less:  Accumulated  Depr.                         (33,824)          (28,041)
                                                ---------          --------

     Net  Book  Value                              27,085            30,477


Other  Assets
-------------
Investment  United  Engineering  Co.              267,598           161,030
Investment  UEC  Founders  Fund                    73,843            73,843
Investment  Anaerobic  Farm  Waste                    946               946
Employee  Advances                                 80,114             1,633
Tissue  Bonding  Patent                             8,667
                                                ---------         ----------
     Total  Other  Assets                         431,168           237,452
                                                ---------         ---------

     Total  Assets                             $  473,489        $  268,523
                                                =========         =========
</TABLE>






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

                                        4
<PAGE>
                    Consortium Service Management Group, Inc.
                            BALANCE SHEET (Continued)
                    September 30, 2000 and December 31, 1999




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

<TABLE>
<CAPTION>
                                                  9/30/00          12/31/99
                                               ----------         ---------
Current  Liabilities
--------------------
<S>                                            <C>                <C>
Accounts  Payable                              $   59,050         $   57,800
Federal  Payroll  Taxes  Payable                        0             20,627
Accrued  Interest                                  34,294             18,063
Notes  Payable                                     31,000             31,000
Notes  Payable  To  Stockholders                  947,764            485,264
                                                ---------          ---------
     Total  Current  Liabilities                1,072,108            612,754


                              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,
3,448,928  shares  outstanding  at  9/30/00
and  3,043,050  outstanding  at  12/31/99           3,449              3,043

Additional  Paid  In  Capital                   2,160,380          1,910,187

Beginning  Deficit                             (2,257,537)        (1,813,738)
Current  Year  Loss                              (491,845)          (396,952)
Foreign  Exchange  Loss                           (13,142)           (46,847)
                                                ---------          ---------
Ending  Deficit                                (2,762,524)        (2,257,537)

     Total  Stockholders  Equity                 (598,619)          (344,231)
                                                ---------          ---------
     Total  Liabilities  and
     Stockholders  Equity                      $  473,489         $  268,523
                                                =========          =========
</TABLE>




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

                                        5
<PAGE>
                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                            STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                         July 1, 2000-   July 1, 1999-   Jan. 1, 2000-   Jan. 1, 1999-
                                         Sep. 30, 2000   Sep. 30, 1999   Sep. 30, 2000   Sep. 30, 1999
                                         -------------   -------------   -------------   -------------
Cash Flows From Operating Activities
------------------------------------
<S>                                         <C>              <C>            <C>             <C>
Net  Loss                                   (289,381)        (44,183)       (504,987)       (168,086)
Depreciation                                   1,928                           5,783
Equity  Income  From  Investees              (12,738)        (21,745)       (123,397)        (13,047)
Increase  Other  Liabilities                   6,188          31,000           1,040          31,000
Increase  Other  Receivables                                  (2,474)                         (2,474)
Foreign  Currency  Exchange  Loss                             11,711          13,142          35,135
Decrease  Accounts  Payable                                  (13,798)         (4,188)         (9,120)
Decrease  Payroll  Taxes  Payable                                                               (503)
Dividends  From  Investee                                      8,390           3,685           8,390
Increase  Prepaid  Expenses                                                   (5,000)
Compensation  For  Stock                                                                      46,129
                                            --------        --------        --------        --------
Net  Cash  Used  in  Operations             (294,003)        (31,099)       (567,793)       (118,705)

Cash Flows From Investing Activities
------------------------------------
Increase  Employee  Advances                 (21,926)         (4,500)        (78,481)        (30,565)
Increase  Notes  Receivable
Purchase  Equipment  &  Other
  Depreciable  Assets                                                         (6,058)
Purchase  Securities                                                          (8,490)
                                            --------        --------        --------        --------
Net  Cash  Used  In  Investing               (21,926)         (4,500)        (93,029)        (30,565)

Cash  Flows  From  Financing
----------------------------
Increase  In  Common  Stock                      332              30             332             677
Increase  In  Paid  In  Capital              204,142          14,970         204,142         375,978
Increase  (Decrease)  in  Notes  Payable      (9,767)         20,233         462,500        (278,633)
                                            --------        --------        --------        --------
Net  Cash  From  Financing                   194,707          35,233         666,974          98,022


Net  Increase  (Decrease)  In  Cash         (121,222)           (366)          6,152         (51,248)
Cash  Beginning  of  Period                  127,368            (703)             (6)         50,179
Cash  End  of  Period                          6,146          (1,069)          6,146          (1,069)
</TABLE>


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

                                        6
<PAGE>
                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                            STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                                         July 1, 2000-   July 1, 1999-   Jan. 1, 2000-   Jan. 1, 1999-
                                         Sep. 30, 2000   Sep. 30, 1999   Sep. 30, 2000   Sep. 30, 1999
                                         -------------   -------------   -------------   -------------
<S>                                        <C>              <C>            <C>             <C>
Revenues                                      14,310               0          19,000          21,217
General  and
Administrative  Expenses                     279,336          31,497         531,877         127,998
    Funded R & D                                   0               0               0               0
    Cost  of  Funded  R  &  D                 31,014           5,332          90,531          39,234
    Net  R  &  D  Cost                        31,014           5,332          90,531          39,234
Operating  Loss                             (296,040)        (36,829)       (603,408)       (146,015)
(Loss)  On  Investments                       (7,110)              0         (14,310)              0
Interest  Income                               1,031               8           2,476              17
Interest  in  Income  From
Unconsolidated  Companies                     12,738           4,349         123,397          13,047

Foreign  Exchange  (Loss)                                    (11,711)        (13,142)        (35,135)
                                            --------        --------        --------        --------
(Loss)  From  Continuing
Operations                                  (289,381)        (44,183)       (504,987)       (168,086)
                                            --------        --------        --------        --------
Income  Taxes

Net  Income (Loss)                          (289,381)        (44,183)       (504,987)       (168,086)

Net  (Loss)  Per
Share Common Stock                              (.09)           (.01)           (.15)           (.06)

Weighted  Average
Common  Shares Outstanding                 3,364,344 shs    2,948,095 shs  3,317,491 shs   2,776,070 shs
</TABLE>



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

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



                                     NOTE 1
                              BASIS OF PRESENTATION

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



                                     NOTE 2
                                  GOING CONCERN

The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of  liabilities in the normal course of business.  The Company incurred net loss
of  $289,381  for  the  quarter  ended September 30, 2000 and when combined with
prior  year  net losses, raises substantial doubt as to the Company's ability to
obtain  debt  and/or  equity  financing  and  achieve  profitable  operations.

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


                                        8
<PAGE>

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

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

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

     Our  revenues for Q3 2000 were $14,310.  We had no revenues during Q3 1999.
The revenues in Q3 2000 came previously from our anaerobic farm waste project in
Idaho.

     General  and  administrative  expenses  rose  significantly  during Q3 2000
compared  to  Q3 1999.  Operating expenses increased by $247,839 from $31,497 in
Q3  1999  to  $279,336  in  Q3  2000,  a 787 percent increase.  The increase was
attributable  to  consulting  fees,  increase  in  expense on tissue bonding and
expenses  on  our  CO2  separator  project.

     We  continued  funding our research and development project on human tissue
bonding  in  Kiev,  Ukraine  during Q3 2000.  We spent $31,014 in funds for this
project.  During  Q3  1999 we spent $5,332 in funded research and development on
this  project.

     We had a net loss from operations of $296,040 for Q3 2000 compared to a net
loss  of  $36,829  for  Q3  1999,  a  $259,211  or  704  percent  increase.

     We accrued income of $12,738 in Q3 2000 from our Ukraine joint venture with
United  Engineering Company, compared with income of $4,349 in Q3 1999.  This Q3
2000 income is attributable to converting Ukraine defense installations to other
purposes.  For  the  first  time  in several quarters, we experienced no foreign
currency  loss  during  Q3 2000, as opposed to a loss of $11,711 in Q3 1999 from
this  source.

     Our  net  loss  during  Q3  2000  of $289,381 was $245,198 greater than the
$44,183  net  loss  during  Q3  1999 - or 5.55 times as great a loss.  This much
greater  loss was attributable to our expenses in pursuing our CO2 separator and
anaerobic  animal  waste projects.  We were able to bear this loss only from the
sale  of  $204,474  in  stock.

     Results  of  Operations  -  First  Three Quarters of 2000 Compared to First
     ---------------------------------------------------------------------------
Three  Quarters  of  1999
-------------------------

     Revenue  from  operations  was $19,000 for the first three quarters of 2000
compared  to  $21,217  the  first  three  quarters  of  1999.

     General  and  administrative  expenses, however, increased from $127,998 in
the  first  three  quarters  of  1999 to $531,877 in the first three quarters of
2000.  In  large  part, the increase in operating expenses in 2000 is attributed
to  increased  expenses  on  our  tissue  bonding  project.

                                        9
<PAGE>

     We  offset part of this increased loss from accrued income of $123,397 from
our  Ukraine  joint venture in United Engineering Company during the first three
quarters  of  2000,  as  compared  with accrued income of only $13,047 from this
source  in the same period in 1999.  Our foreign currency loss of $13,142 during
the  first three quarters of 2000 compared favorably with a loss of $35,135 from
this  source  during  the  same  period  in  1999.

     We  experienced  a net loss of $504,987 in the first three quarters of 2000
as  compared to a net loss of $168,086 in the first three quarters of 1999.  The
loss  per  share  of common stock was $0.15 for the first three quarters of 2000
compared  to  a net loss per share of $0.06 in the first three quarters of 1999.

     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 2001.  Our
CO2  separator  project  appears  to  be  extremely promising, with negotiations
underway  with  Resource  Technology  Corporation  regarding  the  extraction of
methane  gas  from  five  landfills  in  the  U.S.A.

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

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

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


Item  6.          Exhibits  and  Reports  on  Form  8-K

(a)     Exhibits

                                       10
<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*

                                       11
<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.***

                                       12
<PAGE>

          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

                                   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

<PAGE>

                            FINANCIAL DATA SCHEDULE

<TABLE>
<CAPTION>
<S>                                                                <C>
Period  Type                                                              3-MOS
Fiscal  Year  End                                                  DEC  31-2000
Period  Start                                                      JUL  01-2000
Period  End                                                        SEP  30-2000
Cash                                                                      6,146
Securities                                                                6,146
Receivables                                                                 600
Allowances                                                                    0
Inventory                                                                     0
Current  Assets                                                          15,236
PP&E                                                                     60,909
Depreciation                                                             33,824
Total  Assets                                                           473,489
Current  Liabilities                                                  1,072,108
Bonds                                                                         0
Preferred  Mandatory                                                          0
Preferred                                                                    76
Common                                                                2,163,829
Other  SE                                                            (2,762,524)
Total  Liability  and  Equity                                           473,489
Sales                                                                    14,310
Total  Revenue                                                           14,310
Cgs                                                                           0
Total  Costs                                                                  0
Other  Expenses                                                         279,336
Loss  Provision                                                               0
Interest  Expense                                                       (1,031)
Income  Pretax                                                        (289,381)
Income  Tax                                                                  0
Income  Continuing                                                    (289,381)
Discontinued                                                                 0
Extraordinary                                                                0
Changes                                                                 12,738
Net  Income                                                           (289,381)
EPS  Primary                                                             (0.09)
EPS  Diluted                                                             (0.09)
</TABLE>

                                                                      Exhibit 27
                                                                     Page 1 of 1