CONFIDENTIAL
146
Note on Cross Harbour Tunnel, Hong Kong
In 1959 business interests in Hong Kong formed a
company to investigate the possibilities of a link
between Hong Kong and Kowloon. A study was completed
(by Scott, Wilson Kirkpatrick and Freeman, Fox Ltd.) in
1961 which confirmed that such a link was technically and
financially feasible. In 1963 the Hong Kong Government
said that it had no objection to the construction of a
tunnel (but not a bridge). In 1965 the Hong Kong Legislative
Council passed a Resolution approving the grant of a 30-year
exclusive franchise to the Company for the construction of a
four-lane tunnel on payment of a 121% royalty on gross
operating receipts. In addition the Company was to pay
for the way leave rights on and rent for Crown land
and to contribute to the cost of connecting roads. Not
less than 25% of the capital cost of the tunnel was to
be in the form of equity capital and the Government had
the option of taking up to 25% of any equity capital.
Resolution also laid down an initial fare structure for
use of the tunnel.
The
2. The authorised capital of the Cross Harbour Tunnel
Company, Limited (£625,000) was to be increased to £7 million
to be held in the following proportions:
LAST PAPER
3.
Wheelock Marden & Co., Ltd.
371%
Hutchison International Ltd.
371
Hong Kong Government
121%
Hong Kong and Shanghai Bank
10%
Minor Shareholders
21%
In inviting tenders to build the tunnel the Tunnel
CONFIDENTIAL
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