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 | 
|                                                                  |  | 1999              |  | 2000  |   |  | 2001  |  | 2002  |   |  | 2003  |  
|Net income in accordance with US GAAP                             |  | 2,449             |  | 3,418 |   |  | 4,468 |  | 3,261 |   |  | 1,369 |  
|                                                                  |  |                   |  |       |   |  |       |  |       |   |  |       |  
|Adjustments:                                                      |  |                   |  |       |   |  |       |  |       |   |  |       |  
|Income tax under HK GAAP                                          |  |                  |  |      |   |  |      |  | 634   |   |  | 748   |  
|US GAAP adjustments related to taxes:                             |  |                   |  |       |   |  |       |  |       |   |  |       |  
|Deferred tax accounting                                           |  | 49                |  | 574   |   |  | 724   |  | 128   |   |  | 15    |  
|Tax effect of adjustments                                         |  | 72                |  | (9    | ) |  | 160   |  | (35   | ) |  | (637  | )
|                                                                  |  |                   |  |       |   |  |       |  |       |   |  |       |  
|Income before tax in accordance with US GAAP                      |  | 2,570             |  | 3,983 |   |  | 5,352 |  | 3,988 |   |  | 1,495 |  
|                                                                  |  |                   |  |       |   |  |       |  |       |   |  |       |  
|Fixed charges:                                                    |  |                   |  |       |   |  |       |  |       |   |  |       |  
|Interest expenses                                                 |  | 1,680             |  | 1,942 |   |  | 1,870 |  | 1,748 |   |  | 1,636 |  
|Amortization of debt discount or deferred debt costs              |  | 32                |  | 46    |   |  | 53    |  | 23    |   |  | 24    |  
|Representative portion of interest in operating lease expenses(1) |  | 13                |  | 6     |   |  | 5     |  | 4     |   |  | 4     |  
|                                                                  |  |                   |  |       |   |  |       |  |       |   |  |       |  
|Total fixed charges (B)                                           |  | 1,725             |  | 1,994 |   |  | 1,928 |  | 1,775 |   |  | 1,664 |  
|                                                                  |  |                   |  |       |   |  |       |  |       |   |  |       |  
|Less: fixed charges capitalized                                   |  | 383               |  | 797   |   |  | 1,029 |  | 621   |   |  | 104   |  
|                                                                  |  |                   |  |       |   |  |       |  |       |   |  |       |  
|                                                                  |  | 1,342             |  | 1,197 |   |  | 899   |  | 1,154 |   |  | 1,560 |  
|                                                                  |  |                   |  |       |   |  |       |  |       |   |  |       |  
|Earnings before taxes and fixed charges (A)                       |  | 3,912             |  | 5,180 |   |  | 6,251 |  | 5,142 |   |  | 3,055 |  
|                                                                  |  |                   |  |       |   |  |       |  |       |   |  |       |  
|Ratio of Earnings to Fixed Charges (A)/(B)                        |  | 2.27              |  | 2.60  |   |  | 3.24  |  | 2.90  |   |  | 1.84  |  
|                                                                  |  |                   |  |       |   |  |       |  |       |   |  |       |  

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|(1) |  | The balance represented one third of operating lease expenses of the Group.
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