TNAG-0097-FCO40-133-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 142

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Para. 4 (c)

It is not clear whether earnings mean

gross earnings or net earnings before appropriation;'

and, if the latter, exactly how it is defined in

relation to "other charges".

Furthermore it is

not clear if it is to be applied year by year

or over the whole period up to any date, retro-

spectively if necessary, There are three charges

payable to the Hong Kong Government which would

cause difficulty if not excluded from this clause.

In all three cases the Government is acting in its

public capacity as distinct from its role as private

shareholder.

(1) Certain payments for land granted

to the company, the capital value of which is to

be repaid by instalments over a period.

(2)

Royalty.

This is to be levied for

two purposes:

(a)

(b)

As payment for way-leaves and certain

land not covered by (1) above.

To cover compensations which may be

payable to the Ferry companies

in respect of investments they have

made since the intention to allow

construction of a tunnel was announced.

The Government has accepted respons-

compensation

ibility for this debin whether

or not royalties are sufficient to

meet it.

!

/(3)