Exhibit 7.4

MTR Corporation Limited

Computation of

Ratio of Earnings to Fixed Charges

Based on US GAAP

(Expressed in millions of HK$)

	Year ended December 31
	2000		2001	2002		2003		2004
Net income in accordance with US GAAP	3,418		4,468	3,261		1,369		3,874
Adjustments:
Income tax under HK GAAP	—		—	634		748		700
US GAAP adjustments related to taxes:
Deferred tax accounting	574		724	128		15		—
Tax effect of adjustments	(9	)	160	(35	)	(637	)	78
Income before tax in accordance with US GAAP	3,983		5,352	3,988		1,495		4,652
Fixed charges:
Interest expenses	1,942		1,870	1,748		1,636		1,470
Amortization of debt discount or deferred debt costs	46		53	23		24		32
Representative portion of interest in operating lease expenses(1)	6		5	4		4		3
Total fixed charges (B)	1,994		1,928	1,775		1,664		1,505
Less: fixed charges capitalized	797		1,029	621		104		48
	1,197		899	1,154		1,560		1,457
Earnings before taxes and fixed charges (A)	5,180		6,251	5,142		3,055		6,109
Ratio of Earnings to Fixed Charges (A)/(B)	2.60		3.24	2.90		1.84		4.06

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