Exhibit 7.4



MTR Corporation Limited



Computation of

Ratio of Earnings to
Fixed Charges

Based on US GAAP

(Expressed in millions of HK$)



|                                                                  |  |         |  | As of December 31 |  
|----------------------------------------------------------------- |  | ------- |  | ----------------- | -
|                                                                  |  |         |  | 1998              |  
|Net income in accordance with US GAAP                             |  |         |  | 1,556             |  
|                                                                  |  |         |  |                   |  
|Adjustments:                                                      |  |         |  |                   |  
|US GAAP adjustments related to taxes:                             |  |         |  |                   |  
|Deferred tax accounting                                           |  |         |  | 372               |  
|Tax effect of adjustments                                         |  |         |  | (170              | )
|                                                                  |  |         |  |                   |  
|Income before tax in accordance with US GAAP                      |  |         |  | 1,758             |  
|                                                                  |  |         |  |                   |  
|Fixed charges:                                                    |  |         |  |                   |  
|Interest expenses                                                 |  |         |  | 1,123             |  
|Amortization of debt discount or deferred debt costs              |  |         |  | 26                |  
|Representative portion of interest in operating lease expenses(2) |  |         |  | 23                |  
|                                                                  |  |         |  |                   |  
|Total fixed charges                                               |  | (B)     |  | 1,172             |  
|                                                                  |  |         |  |                   |  
|Less: fixed charges capitalized                                   |  |         |  | 473               |  
|                                                                  |  |         |  |                   |  
|                                                                  |  |         |  | 699               |  
|                                                                  |  |         |  |                   |  
|Earnings before taxes and fixed charges                           |  | (A)     |  | 2,457             |  
|                                                                  |  |         |  |                   |  
|Ratio of Earnings to Fixed Charges                                |  | (A)/(B) |  | 2.10              |  
|                                                                  |  |         |  |                   |  

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|(1) |  | Due to the adoption of SSAP 34, Employee Benefits, issued by the Hong Kong Society of Accountants, which became effective on January 1, 2002, a restatement of the 2001
financial data was necessary. See Note 42A of Notes to the Financial Statements.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) |  | The balance represented one third of operating lease expenses of the Group.
|--- |  | ---------------------------------------------------------------------------