TNAG-1515-FCO40-2076-Bridges-and-tunnels-in-Hong-Kong-1986 — Page 313

MINIMAL HKD

FED TRED NEWS D

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7. GOVERNMENT'S PRINCIPAL OBJECTIVES WERE LOW AND STABLE TOLLS ON THE ROAD CROSSING AND FOR THE PAIL CROSSING TO BE LEASED TO THE MASS TRANSIT RAILWAY CORPORATION ON TERMS SUCH THAT LEASE PAYMENTS WOULD MOT EXCEED INCREMENTAL REVENUE ATTRIBUTABLE TO THE NEW RAIL CROSSING. TO ACCOMPLISH THIS GOVERNMENT WAS PREPARED TO CONSIDER ITS OWN DIRECT FINANCIAL BENEFITS (IN PARTICULAR ROYALTY AND DIVIDENDS) TO BE OF SECONDARY IMPORTANCE. THESE GOALS WERE ACCOMPLISHED AND THE WINNING BID BY THE NEW HONG KONG TUMMEL CONSORTIUM WAS FOR THE COMMUNITY AND FOR THE MASS TRANSIT RAILWAY CORPORATION AN ATTRACTIVE ONE, AND SUBSTANTIALLY IN ADVANCE OF THESE MADE BY ITS COMPETITORS.

3. TWO SEPARATE FRANCHISES WILL BE AWARDED FOR THE PAIL CROSSING OF 22 YEARS AND FOR THE POAD CROSSING OF 30 YEARS. IT IS EXPECTED THAT CONSTRUCTION WILL BEGIN IN THE SPRING OF 1986 WITH COMPLETION IN

1982.

YOUDE

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CONFIDENTIAL