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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