development does not interfere with traffic using the tunnel and excluding the site of any building for which a lease may be granted as set out i sub-paragraph (7) below.
(7) The Company to be granted for a period conterminous with the franchise a lease of, and to pay a premium at the rate of $250 per square foot in respect of, land for the erection of such buildings as may he agreed between the Director of Public Works and the Company as being necessary for the efficient operation of the franchise (other than toll booths, which, it is assumed, would be of simple anc or two storey construction). Such premium to be payable, at the Company's option, by equal enoual instal- iments over the period of the franchise, less the last year, with interest at 1%. Zon: Clown Rent at $5,000 per acre per annum to be charged for the land on which the toll booth stand, and Government to be entitled if it so desired in connexion with the exercise of its development righu under sub-paragraph (5) to relocate the existing toll booths either separately or as part of a building erected in the exercise of its development righti. (8) The Company to pay to Government the sum of $12 million as a contribu
tion towards the cost of construcling roads and other engineering works which would not otherwise be required or would cost less if the tumpel were not built. This sum to be paid in 2 equal consecutive biennial Instal- ments without interest commencing 24 months from the start of construction. Government undertakes to complete sufficient road works to enable the tunnel to operate as soon as it is complete and hopes to complete all ancilliary works by this time.
(9) The Company to raise not less than 25% of the capital cost of the tunne in the form of equity capital exclusive of any equity capital that may be contributed by Government
(10) Government to be given the option of taking up to 25% of any equity capital of the Company and, if Government takes up not less than 10% thereof, to be allocated seats on the Board of Directors of the Company in the same ratio as the amount taken up bears to the total issued equity capital (fractions of a seat not to count) but in any case no less than two
sents.
(10) (@) The Company to apply for and take all reasonable steps to obtain
quotation of its shares on the Hong Kong Stock Exchange before the second andiversary of the opening of the tunnel for traffic or such longer period as may be agreed by the Governor in Council.
(b) The public to be given an opportunity to participate in not less than 25% of the equity capital of the Company which shall be provided pro rata by all shareholders if called upon.
(12) Rates to be payable by the Company in accordance with the provision
of the Rating Ordinance.
(13) The Company to furnish to Government before any major contract is let or commitments are entered into for construction, a complete statement of its fencing arrangements,
(14) The Governor in Council to have power to approve or disapprove the fare
structure but not so as to deny the Company a reasonable return on capital. The initial basic fare structure shell be: $2.50 for a private cur, $$100 for a double-decker bus and $7.50 for a lorry.
(13) Goverment to have powers to take over the undertaking in the event of serious default on the terms of the franchise with such compensation for the assets as may be determined by arbitration less such penalty as the Governor in Council may deem appropriate, and to impose penalties by way of fines for lesser infringements,
(16) On termination of the franchise the physical assets of the Company to revert to Government wilbout compensation, except that the cost of any
machinery and equipment purchased in the final 5 years with the agreement of Glovemment to be reimbursed at the depreciated value for faland Revenue purposes,
(17) Government to have powers to impose safely requirements and to enable the Police to control traffic provided that within the tunnel the Company would be required to provide its own policing arrangements for which by laws would be enacted.
(18) The tunnel to be completed within 5 years from the date on which the offer of a franchise by the Government is accepted by the Company or such extended period as the Govemer in Council may allow, failing which the franchise to terminate without compensation.
(19) The Company to permit on request electric power cables, telephone and other communication cables, water, and other pipes to be run through the tunnel if technically possible, provided the capital cost of installation is borne by the owners. The Company to be entitled to charge a reason- able fee for providing such facilites, such fee to be determined in the absence of agreement by arbitration. Government does not guarantee any wayleave for any public utility to or from the tunnel.
(20) The Company, on request by the Colonial Secretary and if necessary, to give priority to Crown vehicles ie, vehicles on His Excellency the Governor's establishment, vehicles of H.M. Armed Forces and those of the Police and Fire Services including ambulances and such other vehicles as the Colonial Secretary may from time to time consider warrant priority, and no other priority shall be given.
(21) (4) The Company to be permitted, subject to the agreement of Govern.
ment, to advertise on the tunnel structure and toll booths,
(6) The Company to be permitted, subject to the agreement of Government, to advertise on the approaches of the tuonel Ae, the areas for which the Company is responsible for construction as defined in sub-paragraph (25) below but excluding any development carried out by Government in exercise of Government's development rights as stated in sub- paragraph (6).
(c) Permission to advertise may be refused where this would interfere with safety requirements or where in the opinion of the Colonial Secretary it may be unsightly or unsuitable.
(22) During construction of the tunnel the Company to take all reasonable steps to minimize interference with shipping and barbour traffic and to comply with such safety precautions as may be required by the Director of Marine. Any spoil which is dredged to be disposed of as approved by the Director of Public Works and aller the tunnel construction is complete the sea bed including any protective mound or backfilling shall be restored so as to be at least 40 feet below Mean Low Water Ordinary Spring Tide where the sca bed is now 40 feet or more below Mean Low Water Ordinary Spring Tide and elsewhere shall generally be in accordance with the prodle shown in drawing T.2. in Volume II of the Joint Consulting Engineers Report of April 1961.
(23) Any ancillary land which may temporarily be made available for the con- struction of the tunnel to allrast permit fees or rents at the standard rates prevailing at the time or at such rents as the Government may determine. The manner in which such land is used to be subject to such conditions as the Director of Public Works may determine and to be restored to its original state on termination of use.
(24) The tunnel and its approaches to be regarded as a road within the meaning of the Road Traffic Ördinance 1957 except insofar as this is incompatible with the legislation governing the franchise.