Exhibit 15.1

                April 21, 1998

                FM Properties Inc.
                1615 Poydras St.
                New Orleans, LA 70112

                Gentlemen:

                We are aware that FM Properties Inc. has incorporated by
                reference in its Registration Statements  (File Nos. 33-
                78798 and 333-31059) its Form 10-Q for the quarter ended
                March 31,  1998, which includes  our report  dated April
                21,  1998  covering  the   unaudited  interim  financial
                information contained therein.  Pursuant to Regulation C
                of the Securities Act of 1933 (the  Act), this report is
                not considered  a  part of  the registration  statements
                prepared or certified  by our firm or  a report prepared
                or certified by our firm within  the meaning of Sections
                7 and 11 of the Act.

                Very truly yours,


                Arthur Andersen LLP