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  Alexander the disruption to the town when they resurfaced Townwall Street using exactly the approach you suggest was appalling. The Channel Tunnel was possible because it was bored through the solid chalk layer under the Channel that also sits blow a significant band of clay, silt and sand, what you are proposing is a very shallow tunnel through a gravel spit, a completely different engineering issue. The problem is less to do with drainage and water ingress than it is to do with lack of solid ground and the consequential instability problems for any tunnel. This could perhaps be solved by putting in substantial piles to provide a stable base, but this will add substantial time and cost to something that has a zero benefit economic case in its favour and minimal local demand. A much better and cheaper solution to reconnecting the town to the seafront are a set of wide pedestrian bridges, perhaps wide enough to plant up as green land bridges much like the one connecting each side of Mile End Park across the A12.
  It is not a cant do attitude it is a wont pi55 away the countries money on a waste attitude.

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