CONFIDENTIAL

working population from even a token chance of success under the

scheme. In forming a view on this proposal, Ministers will wish to consider the following points:

i) Eliminating the category "secretarial and clerical workers"

would remove only the route whereby staff from the British

Council, BTC and other British institutions would be able to

qualify under the scheme;

ii) The Governor has made a strong case that for maximum effect

on confidence in Hong Kong the scheme should be seen, as the

Secretary of State's statement said, "to embrace people from a wide range of walks of life". People should at least be

eligible in principle to apply even if there was little chance

of success;

iii) We have argued publicly that the scheme, while focussed on

key personnel, was not elitist. Eliminating the lower skill

groups would leave the scheme considerably more vulnerable to

criticism on the grounds of elitism than it otherwise would be.

(c) Key Entrepreneurs

4.

But

The Home Secretary argues that top businessmen, such as Li

Ka Shing, may not qualify under the points scheme largely

because of their age, and so the Governor should be given

discretion to disapply the age factor where he is satisfied that

individuals have an outstanding claim to be recommended. there are other factors which may disqualify such people,

including lack of formal qualifications and inadequate English.

They may also not wish to apply under a scheme where there is

any chance of failure when they may consider that they should

qualify (as the Home Secretary concedes) on their own merits.

It might be preferable for a small quota to be set aside for the

Governor's special recommendation designed to catch those whose

merits were self-evident but who, for one reason or another,

not qualify under the points scheme.

may

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CONFIDENTIAL

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