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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C.



                                    FORM 8-K



                                 CURRENT REPORT
                         PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


         Date of Report (date of earliest event reported): May 20, 1998


                       CRONOS GLOBAL INCOME FUND XVI, L.P.
             (Exact name of registrant as specified in its charter)




                                                                                                           
                   California                                   0-27496                                   94-3230380
          (State or other jurisdiction                   (Commission File No.)                      (IRS Employer I.D. No.)
        of incorporation or organization)




         444 Market Street, 15th Floor, San Francisco, California 94111
               (Address of principal executive offices) (zip code)

                  Registrant's telephone number: (415) 677-8990


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Item 5. Other Events.

                     The General Partner of the Registrant is Cronos Capital
Corp. ("CCC"). CCC is an indirect wholly-owned subsidiary of The Cronos Group, a
Luxembourg corporation headquartered in Orchard Lea, England (the "Parent
Company") (NASDAQ-CRNSF). On May 20, 1998, the Parent Company reported that its
Chairman, Stefan M. Palatin, has been suspended from his duties pending an
investigation of charges against him regarding a financial matter in Austria. In
the interim, Rudolf J. Weissenberger, currently a non-executive director on the
Board of Directors of the Parent Company, has been named acting Chairman and
Chief Executive Officer.


Item 7. Financial Statements and Exhibits.

           (a)        Financial statements of business acquired. Not applicable.

           (b)        Pro forma financial information. Not applicable.

           (c)        Exhibits.

                      20.1 Press Release ("Cronos Announces Board Changes"),
                      dated May 20, 1998, as published by Dow Jones
                      News/Retrieval.

                                   SIGNATURES

                     Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this Report to be signed on its behalf
by the undersigned, hereunto duly authorized.

                                        CRONOS GLOBAL INCOME FUND XVI, L.P.

Date:May 20, 1998                       By:    CRONOS CAPITAL CORP.
                                               The General Partner

                                        By:    /s/  DENNIS J. TIETZ
                                             -----------------------------------
                                             Dennis J. Tietz
                                             President