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                                 Schedule 13D
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                                UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                                 SCHEDULE 13D


                   Under the Securities Exchange Act of 1934
                              (Amendment No. 8)


                             LAWTER INTERNATIONAL, INC.
                                (Name of Issuer)

                          Common Stock, Par Value $1.00 Per Share
                         (Title of Class of Securities)

                                   520786 10 4
                                 (CUSIP Number)


                                 Donald G. Mulack

                               McBride Baker & Coles
                      500 West Madison Street, 40th Floor
                        Chicago, IL 60661 (312) 715-5700
                 (Name, Address and Telephone Number of Person
                Authorized to Receive Notices and Communications)


                                February 19, 1998
           (Date of Event which Requires Filing of this Statement)


If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box ( ).



Check the following box if a fee is being paid with the statement ( ).  

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act.






SCHEDULE 13D
CUSIP No. 520786 10 4


1     NAME OF REPORTING PERSON:  James D. Terra
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON:  

2     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: 
           a ( )     b (X)
3     SEC USE ONLY
4     SOURCE OF FUNDS:  Not applicable
5     CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
      ITEMS 2(d) or 2(e):     ( )     None
6     CITIZENSHIP OR PLACE OF ORGANIZATION:  United States of America
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH:
7     SOLE VOTING POWER:                                             13,286,267
8     SHARED VOTING POWER:                                                    0
9     SOLE DISPOSITIVE POWER:                                        13,286,267
10    SHARED DISPOSITIVE POWER:                                               0
11    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:  13,286,267
12    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
      CERTAIN SHARES:  (X)
13    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11):  29.2%
14    TYPE OF REPORTING PERSON:  IN







          This Amendment No. 8 relates to the Schedule 13D filed by James D. 
Terra on January 19, 1987, as previously amended (the "Schedule 13D"). All 
terms used herein unless otherwise defined shall have the same meaning as in 
the Schedule 13D. The Schedule 13D is hereby amended as follows:

ITEM 4.   PURPOSE OF TRANSACTION.

          Item 4 of the Schedule 13D is amended and restated to read in its 
entirety as follows:  

          Mr. Terra became a beneficial owner of 11,943,130 shares of the 
Common Stock (the "Estate Shares") when he was named executor of the Estate 
of Daniel J. Terra (the "Estate"), Mr. Terra's father, on July 8, 1996. At 
that time, Mr. Terra also owned 2,249,237 shares of Common Stock for his own 
account. Mr. Terra subsequently sold 466,100 Estate Shares on behalf of the 
Estate and 466,100 shares of Common Stock on his own behalf. As of February 
19, 1998, the Estate owned 11,503,130 shares of Common Stock, and Mr. Terra 
owned 1,783,137 shares of Common Stock for his own account. 

          Approximately seven months age, Mr. Terra contracted with SBC 
Warburg Dillon Read (the "Advisor") to act as his and the Estate's exclusive 
financial advisor with respect to the possible sale of all or a portion of 
their shares of Common Stock (the "Shares") whether to the Company or to one 
or more third parties.

          Mr. Terra and the Estate, through their representatives, have 
discussed with the Company the sale of Shares to the Company. Because such 
discussions have been unsuccessful to date, Mr. Terra and the Estate have 
instructed the Advisor aggressively to seek a third-party buyer for the 
Shares. It is likely that any such buyer may seek to gain control of the 
Company.

          Except as described above, Mr. Terra does not have any present 
plans or proposals which relate to or would result in (a) the acquisition by 
any person of additional securities of the Company, or the disposition of 
securities of the Company, (b) an extraordinary corporate transaction, such 
as a merger, reorganization or liquidation, involving the Company or any of 
its subsidiaries, (c) a sale or transfer of a material amount of assets of 
the Company or any of its subsidiaries, (d) any change in the present Board 
of Directors or management of the Company, including any plans or proposals 
to change the number or term of directors or to fill any other existing 
vacancies on the board, (e) any material change in the present capitalization 
or dividend policy of the Company, (f) any




other material change in the Company's business or corporate structure, (g) 
changes in the Company's Restated Certificate of Incorporation or By-Laws or 
other actions which may impede the acquisition of control of the Company by 
any person, (h) causing a class of securities of the Company to be delisted 
from a national securities exchange or to cease to be authorized to be quoted 
in an interdealer quotation system of a registered national securities 
organization, (i) a class of equity securities of the Company becoming 
eligible for termination of registration pursuant to Section 12(g)(4) of the 
Securities Exchange Act of 1934 (the "Exchange Act") or (j) any action 
similar to any of those enumerated above. Mr. Terra retains the right to 
evaluate his position in the future and change his intent with respect to any 
of the foregoing actions.

ITEM 5.   INTEREST IN SECURITIES OF THE ISSUER.

Paragraph (a) of Item 5 is amended and restated to read in its entirety as 
follows:

          (a)  Mr. Terra beneficially owns 13,286,267 shares representing
29.2% of the total Common Stock issued and outstanding on October 31, 1997. 


          DISCLAIMER OF BENEFICIAL OWNERSHIP


     James D. Terra disclaims beneficial ownership of any shares of the 
     Common Stock held by the Terra Foundation For The Arts (formerly, the 
     Terra Museum of American Art) (the "Foundation"), of which he is a 
     director.  As of February 13, 1998, the Foundation owned 1,328,487 shares 
     of Common Stock, all of which were acquired through gifts to the 
     Foundation by Daniel J. Terra.  These shares are not among the shares of
     Common Stock reported herein.

          DISCLAIMER OF GROUP MEMBERSHIP

     James D. Terra disclaims that he, individually or as the Estate's 
     executor, is acting, for purposes of Section 13(d)(3) of the Exchange Act,
     with Warburg as a partnership, limited partnership, syndicate, or other 
     group for the purpose of acquiring, holding, or disposing of shares of 
     Common Stock. Mr. Terra further disclaims that he, individually or as the
     Estate's executor, has agreed with Warburg, for purposes of 
     Rule 13d-5(b)(1) under the Exchange Act, to act together for the purpose
     of acquiring, holding, voting or disposing of shares of Common Stock.





                                  SIGNATURE

     After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.


Dated:  February 19, 1998                     /s/ James D. Terra
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                                                   Signature