October 1, 1996




Hyman Beck & Co. Inc.
6 Campus Drive - 2nd Fl.
Parsippany, New Jersey   07054
Attention:   Mr. David Fuller


Dear Mr. Fuller:


      Effective  immediately,  all assets have been  reallocated  away from your
trading  account  in  the  Shearson  Hutton  Performance  Partners,   L.P.  This
effectively terminates your management agreement with the Fund. Please liquidate
your positions in an orderly fashion by Tuesday, October 1, 1996.

      If you have any questions, please call me at 212-723-5416.


Very truly yours,


SMITH BARNEY FUTURES MANAGEMENT INC.



Daniel A. Dantuono
Chief Financial Officer & Director


DD/cs