THE CROSS-HARBOUR TUNNEL CO., LTD.
GENERAL MANAGERS
SECRETARIES : WHEELOCK MARDEN & Co., LTD.
12TH FLOOR, UNION HOUSE, HONG KONG CABLE ADDRESS: SEATUNNEL TEL. 2 2 1111
TLX. HKG 312
CONFIDENTIAL
7th March, 1967.
GENERAL BACKGROUND - The Legislative Council of Hong Kong passed a Resolution in August 1965 granting a franchise to construct and operate a 4-lane vehicular tunnel between Hong Kong Island and Kowloon. The main terms of this franchise are:-
a)
b)
c)
Franchise to run for thirty years from the date on which construction starts after which it will revert to the Hong Kong Government without compensation to the Company.
Royalty of 121% on gross operating receipts will be payable to the Hong Kong Government, which will also receive rates and Corporation Tax on the profits of the Company.
The Company will pay a sum of HK$12 million to Government as a contribution towards the cost of constructing the approaches to the tunnel.
d)
The Government has been given an option to take up to 25% in the equity capital of the Company.
e)
A
香港隧道有限公司
The Company is obliged to offer not less than 25% of the total equity capital to the public within two years of the commencement of operations.
f) All major contracts relating to the tunnel require approval
from the Hong Kong Government.
The main shareholders of the Cross-Harbour Tunnel Company are Wheelock Marden & Co. Ltd. and Hutchison International Ltd. (both substantial Hong Kong public companies). All minor shareholders are also in Hong Kong. The Hong Kong Government will take 12 of
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