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the conceptual case for it was stronger than it is.
The EEC negotiations lie in the future and
there is, regrettably but unavoidably, uncertainty about
their outcome.
On a more positive note, however, I can
say that we, have reached a provisional agreement with the
United States for a period of five years commencing
January 1978. This agreement was concluded some weeks ago
and I am acutely conscious of the frustration in business
circles at the delay in announcing its terms. This is due
to minor technical difficulties faced by the United States
Authorities which have so far delayed the formal signing.
I now expect this to take place very soon. At this stage
all I can say is that the agreement, while more restrictive
than the current one, contains some features which
counterbalance the negative ones. Overall growth rates in
the first year will be low but will increase substantially
in later years. For some sensitive categories the specific
growth rates will be low throughout; but almost without
exception higher than those I have already mentioned as
being in our current agreement with the EEC.
I am sorry I cannot be more specific at this stage.
I was, however, able to announce at the start of this week
a bridging arrangement to cover the period between the
expiry of the present Hong Kong/US agreement on 30 September
and the start of the new one on 1 January 1978. This has
removed some of the immediate problems faced by the trade
due to uncertainties.
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