2. Clause 2 contains definitions including one of

the "railway works" which describes these.

3. Part II grants a franchise to the Road Company

to construct the immersed tube and all the other works in

the project apart from the railway works and to maintain

and operate these for a period of 30 years from the start

of construction. It also grants the Rail Company (which

is, initially, the Road Company) similar rights in respect

of the railway works. These are granted for 18 years and 6

months from the rail operating date.

4. Part III deals with assignments, transfers and

mortgages.

Clause 7 permits the New Hong Kong Tunnel

Company Limited to assign its franchise rights in the

railway to the Eastern Harbour Crossing Company Limited.

Clause 8 deals with the transfer of the rail operating

rights from the Rail Company to the Mass Transit Railway

Clauses 9 and 10 prohibit the assignment or

Corporation.

other disposal of the franchise rights except with the

prior consent of the Governor in Council. The Governor in

Council, however, need not authorize the hypothecation of

the franchise rights by way of security, but the security

cannot be enforced without his consent.

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