EXHIBIT 10.07
                                ESCROW AGREEMENT


                                                              September 30, 1994


Chemical Bank
450 W. 33rd Street, 15th Floor
New York, New York  10001

Attn:  Mr. Paul Gilkeson

                  Re:      Dean Witter Spectrum Series Escrow Account

Gentlemen:

                  In accordance  with  arrangements  made by Demeter  Management
Corporation,  a Delaware corporation (the "General Partner"),  on behalf of Dean
Witter  Spectrum  Balanced  L.P.  ("Spectrum  Balanced"),  Dean Witter  Spectrum
Strategic L.P. ("Spectrum  Strategic"),  and Dean Witter Spectrum Technical L.P.
("Spectrum  Technical"),  each a Delaware  corporation (the  "Partnerships"  or,
individually, a "Partnership"), and Dean Witter Reynolds Inc., the selling agent
for the Partnerships (the "Depositor";  the Partnerships and the Depositor being
herein sometimes collectively referred to as the "Parties" or, individually,  as
a "Party"),  the  Depositor  shall:  (i) deliver to you,  as Escrow  Agent,  all
subscription funds (by the direct transfer of immediately available funds into a
non-interest bearing escrow account established by you for the Partnerships, for
investment  in your  interest  bearing  money  market  account)  received by the
Depositor   from   each   subscriber   ("Subscriber"   or,   collectively,   the
"Subscribers")  during the "Initial  Offering Period" and thereafter  during the
"Continuing Offering" (as described in the Partnerships' Prospectus, as the same
may be updated,  supplemented, and amended from time to time (the "Prospectus"))
in  connection  with the offering to the public of Units of Limited  Partnership
Interest of the  Partnerships  (the "Units") and (ii) also promptly  transmit to
the General Partner a complete report of all funds deposited with you during the
Initial  Offering Period and Continuing  Offering.  You, as Escrow Agent,  shall
hold such  subscription  funds  together with any additions,  substitutions,  or
other  financial  instruments  in which such funds may be  invested or for which
such funds may be exchanged  (collectively referred to herein as the "Fund"), IN
ESCROW upon the  following  terms:  

                  1. (a)  Following  receipt by you of written  notice  from the
General   Partner  that  the  General   Partner  has  rejected  a   Subscriber's
subscription,  in whole or in part, during either the Initial Offering Period or
Continuing Offering, you shall transmit to the Depositor, as soon as practicable
but in no event later than three business days following  receipt by you of such
notice, the amount of such Subscriber's  subscription funds that shall have been
deposited  with you hereunder  and that the General  Partner shall have notified
you have been rejected and any interest  earned on the Fund and allocated to the
rejected amount of such  subscription  in accordance with Section 2 hereof.  You
shall at the same time give notice to the  Depositor  of the amount of aggregate
subscription  funds and/or interest so returned.  

                  (b) On the second  business  day before the  scheduled  day of
each  closing,  the General  Partner shall notify you of the portion of the Fund
that  represents  subscriptions  to be accepted by the General  Partner for each
Partnership.  Upon  receipt  by you of joint  written  notice  from the  General
Partner and the  Depositor  on the date of each such  closing to the effect that
all of the terms and  conditions  with  respect to the  release of  subscription
funds from escrow set forth in the  Prospectus  have been  fulfilled,  you shall
promptly  pay and deliver to each of the  Partnerships  that portion of the Fund
specified  for such  Partnership  in the General  Partner's  prior  instructions
(excluding  any  interest  earned on the Fund and  funds  relating  to  rejected
subscription);  provided,  however,  that in the case of the Initial Closing (as
defined  in  the  Prospectus)  you  will  only  pay  and  deliver  funds  to the
Partnerships  after a minimum of 400,000 Units of each of Spectrum Strategic and
Spectrum  Technical and 200,000 Units of Spectrum  Balanced  (1,000,000 Units in
the aggregate) have been subscribed for in the aggregate and not rejected by the
General Partner and a minimum amount of $10,000,000 has cleared the U.S. banking
system (the subscription for each Unit to be $10.00 at the Partnerships' Initial
Closing and at each subsequent  closing,  if any, at 100% of the net asset value
per Unit as of the close of business on the day of the closing). 

                  (c) On the  date of each  closing,  or as soon  thereafter  as
practicable, you shall transmit to the Depositor an amount representing: (i) for
each Subscriber whose  subscription  shall be accepted by the General Partner in
whole or in part, any interest  earned on the Fund and allocated to the accepted
portion of such  Subscriber's  subscription in accordance with Section 2 hereof,
and (ii) for each Subscriber whose  subscription shall have been rejected by the
General Partner in whole or in part but whose  subscription funds shall not have
been previously returned to the Depositor by you in accordance with Section 1(a)
hereof, such Subscriber's subscription funds that shall have been deposited with
you hereunder and that shall have been rejected by the General Partner,  and any
interest  earned  on the Fund  and  allocated  to the  rejected  amount  of such
subscription  in  accordance  with Section 2 hereof.  You shall at the same time
give notice to the  Depositor  of the  aggregate  amount of  subscription  funds
and/or  interest so returned.  

                  (d)  Notwithstanding  Section 1(a) hereof, upon receipt by you
of written  notice from the General  Partner that a Subscriber has been rejected
or because  such  Subscriber  has provided bad funds in the form of a bad check,
draft,  or otherwise to the  Depositor),  you shall  transmit to the  Depositor,
within three business days following  receipt by you of such notice,  the amount
of subscription  funds deposited with you hereunder relating to that amount (the
portion  of such  Subscriber's  subscription  for which good funds have not been
provided)  together  with any interest  earned on the Fund and allocated to such
portion of such a subscription  in accordance  with Section 2 hereof to the date
of such return,  and shall immediately  notify the General Partner of the return
of such  funds.  

         2. You shall hold the Fund  (including any interest earned thereon) for
the account of the  Partnerships  pending delivery to either the Partnerships or
the Depositor, pursuant to Paragraphs 1 or 3 hereof, as the case may be. On each
day that  subscription  funds are  transferred  to you hereunder in  immediately
available  funds and receipt is confirmed  before 2:00 P.M., New York City time,
you shall  immediately  invest such  subscription  funds solely in your interest
bearing money market account.  If  subscription  funds are transferred to you in
immediately  available  funds and receipt is confirmed after 2:00 P.M., New York
City time,  you shall so invest such funds on the next day.  Interest  earned on
the  Fund  shall  be  allocated   by  the   Depositor   among  the   Subscribers
proportionately  based on (A) the amount of their  respective  subscriptions  on
deposit  in the Fund  and (B) the  period  of time  from  the  date  that  their
respective subscriptions shall have been deposited in the Fund to the earlier of
the delivery of the Fund to the  Partnerships  at a closing or the  Depositor in
accordance  with  Sections 1 or 3 hereof,  as the case may be. 

         3. If,  during  the  Partnerships'  Initial  Offering  Period,  you are
notified in writing  jointly by the Parties  that  subscriptions  for fewer than
400,000 Units of each of Spectrum  Strategic and Spectrum  Technical and 200,000
Units  of  Spectrum  Balanced  (1,000,000  Units  in the  aggregate)  have  been
subscribed  for and not  rejected by the General  Partner,  that the offering of
Units has been  terminated,  and that no Initial Closing will be held, you shall
transmit to the  Depositor,  as soon as  practicable  but in no event later than
three business days after receipt by you of such notice, an amount  representing
the full amount of all  subscription  funds that shall have been  deposited with
you hereunder,  together with any interest earned on the Fund in accordance with
Section 2 hereof. You shall at the same time give notice to the Depositor of the
aggregate  amounts of  subscription  funds and/or  interest so returned.  

         4. The Parties  further agree with you as follows:  

                  (a) Your duties and  responsibilities  shall be limited solely
to those  expressly set forth in this  Agreement and are  ministerial in nature.
You shall  neither be subject to nor obliged to  recognize  any other  agreement
between,  or other direction or instruction of, any or all of the Parties or any
Subscriber even though reference thereto may be made herein; provided,  however,
that with your written  consent,  this  Agreement  may be amended at any time or
times by an instrument in writing signed by the Parties. 

                  (b) You are authorized,  in your sole discretion, to disregard
any and all notices or instructions  given by any of the Parties or by any other
person,  firm, or  corporation,  except only such notices or instructions as are
hereunder provided for and orders or process of any court entered or issued with
or  without  jurisdiction.  If the  Fund  or any  part  thereof  is at any  time
attached,  garnished,  or  levied  upon  under  any  court  order or in case the
payment,  assignment,  transfer,  conveyance,  or  delivery of the Fund shall be
stayed or enjoined by any court order, or in case any order, judgment, or decree
shall be made or entered by any court  affecting  the Fund or any part  thereof,
then and in any such event you are authorized,  in your sole discretion, to rely
upon and comply  with any such  order,  writ,  judgment,  or decree that you are
advised by legal  counsel of your own  choosing is binding  upon you, and if you
comply with any such order, writ, judgment, or decree you shall not be liable to
any of the Parties or to any other  person,  firm, or  corporation  by reason of
such  compliance  even  though  such  order,  writ,  judgment,  or decree may be
subsequently reversed,  modified, annulled, set aside, or vacated. 

                  (c) You shall be fully  protected  in relying upon any written
notice,  demand,  certificate,  document,  or instrument believed by you in good
faith to be genuine and to have been signed or presented by the proper person or
persons  or Party or  Parties.  The  Parties  shall  provide  you with a list of
officers  and  employees  who  shall  be  authorized  to  deliver   instructions
hereunder.  You shall not be liable  for any  action  taken or omitted by you in
connection herewith in good faith and in the exercise of your own best judgment.

                  (d) Should any  dispute  arise with  respect to the  delivery,
ownership,  right of possession,  and/or  disposition of the subscription  funds
deposited  with  you  hereunder,  or  should  any  claim  be made  upon any such
subscription funds by a third party, you, upon receipt of written notice of such
dispute by any of the Parties or by a third party,  are  authorized and directed
to retain in your  possession all or any of such  subscription  funds until such
dispute  shall  have been  settled  either by mutual  agreement  of the  parties
involved  or by final  order,  decree,  or  judgment  of any court in the United
States.  

                  (e) If for  any  reason  funds  are  deposited  in the  escrow
account other than by transfer of immediately available funds, you shall proceed
as soon as practicable to collect checks,  drafts, and other collection items at
any time deposited with you hereunder.  All such collections shall be subject to
the usual  collection  agreement  regarding  items  received by your  commercial
banking  department for deposit or collection;  provided,  however,  that if any
check,  draft, or other collection item at any time deposited with you hereunder
is  returned  to you as being  uncollectable  (except  by  reasons of an account
closing),  you shall attempt a second time to collect such item before returning
such item to the Depositor as uncollectable. Subject to the foregoing, you shall
promptly  notify  the  Parties  of any  uncollectable  check,  draft,  or  other
collection  item  deposited  with you hereunder and shall  promptly  return such
uncollectable  item to the  Depositor,  in which case you shall not be liable to
pay any interest on the  subscription  funds  represented by such  uncollectable
item.  In no event,  however,  shall you be  required or have a duty to take any
legal action to enforce  payment of any check or note deposited  hereunder.  

                  (f)  You  shall  not be  responsible  for the  sufficiency  or
accuracy of the form,  execution,  validity,  or genuineness of documents now or
hereafter  deposited with you hereunder,  or for any lack of endorsement thereon
or for any  description  therein,  nor shall you be responsible or liable in any
respect  on  account  of the  identity,  authority,  or  rights  of the  persons
executing or delivering  or purporting to execute or deliver any such  document,
or endorsement or this Agreement. You shall not be liable for any loss sustained
as a result of any investment  made pursuant to the  instructions of the Parties
or as a result of any liquidation of an investment  prior to its maturity or the
failure of the Parties to give you any  instructions  to invest or reinvest  the
Fund or any  earnings  thereon.  

                  (g) All notices required or desired to be delivered  hereunder
shall be in writing and shall be effective when delivered  personally on the day
delivered,  or when given by  registered  or certified  mail,  postage  prepaid,
return  receipt  requested,  on the day of receipt,  addressed as follows (or to
such other address as the party entitled to notice shall hereafter  designate in
accordance with the terms hereof):

                   if to a Partnership, the Partnerships or the General Partner:

                   Demeter Management Corporation
                   Two World Trade Center, 62nd Floor
                   New York, New York  10048
                   Attn:    Mr. Mark J. Hawley
                            President

                   if to the Depositor:

                   Dean Witter Reynolds Inc.
                   Two World Trade Center, 62nd Floor
                   New York, New York  10048
                   Attn:    Mr. Mark J. Hawley
                            Senior Vice-President

                   in either case with a copy to:

                   Cadwalader, Wickersham & Taft
                   100 Maiden Lane
                   New York, New York  10038
                   Attn:    Edwin L. Lyon, Esq.

                   if to you:

                   Chemical Bank
                   450 W. 33rd Street, 15th Floor
                   New York, New York  10001
                   Attn:    Mr. Paul Gilkeson

Whenever,  under the terms hereof, the time for giving a notice or performing an
act falls on a Saturday,  Sunday, or legal holiday,  such time shall be extended
to the next  business day. 

                  (h) The Depositor  agrees to indemnify,  defend,  and hold you
harmless from and against, any and all loss, damage, tax, liability, and expense
that may be incurred by you  arising  out of or in  connection  with your duties
hereunder,  except as caused by your gross  negligence,  bad  faith,  or willful
misconduct, including the legal costs and expenses of defending yourself against
any claim or liability in connection with your  performance  hereunder.  

                  (i) You shall be paid by the Depositor for your services a fee
of $3,000 in advance for each Fee Period (as defined  below) and such other fees
relating to the  administration of the Fund that shall be agreed upon by you and
the General Partner,  including, but not limited to, a fee for (a) investment of
funds and (b) transmission of funds due to a rejection of a Subscriber  pursuant
to Section 1(d) hereof.  "Fee Period" shall mean each  consecutive  twelve month
period during the term of this  Agreement  with the first such period  beginning
from the date of this  Agreement.  

                  (j) It is understood that you may at any time resign hereunder
as Escrow Agent by giving written  notice of your  resignation to the Parties at
their  address set forth above at least 20 days prior to the date  specified for
such  resignation  to  take  effect,   and  upon  the  effective  date  of  such
resignation,  all property then held by you hereunder  shall be delivered by you
to such person as may be designated jointly by the Parties in writing, whereupon
all your  obligations  hereunder shall cease and terminate.  If you shall resign
prior to the  conclusion  of any Fee  Period you shall pay to the  Depositor  an
amount  equal to the product of $3,000 and a fraction,  the  numerator  of which
shall be the number of days  remaining in the Fee Period and the  denominator of
which shall be 365.  If no  successor  Escrow  Agent has been  appointed  or has
accepted such  appointment by such date, all your  obligations  hereunder  shall
nevertheless cease and terminate.  Your sole responsibility  thereafter shall be
to keep safely all property then held by you and to deliver the same to a person
designated by the Parties hereto or in accordance with the directions of a final
order or judgment of a court of competent jurisdiction.  

         5. This Agreement shall be governed by and construed in accordance with
the law of the  State of New  York and any  action  brought  hereunder  shall be
brought  in the  courts of the State of New York,  sitting  in the County of New
York. 

         6. The undersigned Escrow Agent hereby acknowledges and agrees to hold,
deal with, and dispose of, the Fund  (including any interest earned thereon) and
any other property at any time held by the Escrow Agent  hereunder in accordance
with this Agreement.

If the foregoing Agreement is satisfactory to you, please so indicate by signing
at the place provided below.

                                   Sincerely,

                                   DEAN WITTER SPECTRUM BALANCED L.P.

                                   By:      Demeter Management Corporation


                                   By:     /s/ Mark J. Hawley           
                                      --------------------------------
                                         Mark J. Hawley
                                         President

                                   DEAN WITTER SPECTRUM STRATEGIC L.P.

                                   By:      Demeter Management Corporation


                                   By:     /s/ Mark J. Hawley               
                                      --------------------------------
                                         Mark J. Hawley
                                         President


                                   DEAN WITTER SPECTRUM TECHNICAL L.P.

                                   By:      Demeter Management Corporation


                                   By:     /s/ Mark J. Hawley               
                                      --------------------------------
                                         Mark J. Hawley
                                         President

                                   DEAN WITTER REYNOLDS INC.


                                   By:     /s/ Mark J. Hawley               
                                      --------------------------------
                                         Mark J. Hawley
                                         Senior Vice-President
Accepted:

CHEMICAL BANK


By:  /s/ P.J. Gilkeson                    
     --------------------------------
     P.J. Gilkeson
     Vice President