§ 1. The United Kingdom and Australian Governments announced in August their intention to resume discussions for the purpose of concluding a comprehensive trade agreement.
§ 2. We have initialled the attached heads of Agreement, which will form the substance of a new Trade Agreement to replace the United Kingdom-Australia Trade Agreement, 1932. This will be drawn up early in 1957.
563§ 3. Throughout the discussions we have been determined to do everything possible to promote the stability and growth of trade between the United Kingdom and Australia, believing that this will also serve the interests of international trade generally.
§ 4. We have made a comprehensive review of the trade between the two countries and we have taken fully into account changes in their economic circumstances.
§ 5. We have agreed that the time is opportune for changes in the contractual arrangements between the United Kingdom and Australia which will, however, continue to reflect the joint determination of both Governments to preserve the principle of mutual preference.
§ 6. To this end, the United Kingdom will maintain tariff preferences and duty free entry enjoyed by Australian goods and Australia will maintain tariff preferences for United Kingdom goods subject to reductions in the level of guaranteed margins.
§ 7. We have recorded an understanding about the opportunity for the sale in the United Kingdom market on commercial terms of 750,000 tons of Australian wheat and flour annually over the next five years.
§ 8. We have reached policy understandings and have made specific arrangements for close consultation between the two Governments about a wide range of trade and related matters, including anti-dumping and countervailing duties, agricultural policies, transport and communications and disposal of surpluses.
§ 9. We are convinced that the new Trade Agreement will preserve and strengthen the close traditional trade and commercial ties between the United Kingdom and Australia to the continuing benefit of both countries.
§ (Signed)
§ J. MCEWEN,
§ Australian Minister for Trade.
§ PETER THORNEYCROFT,
§ President of the Board of Trade.
§ London,
§ 9th November, 1956.