CONFIDENTIAL

13. In preparing recommendations, and overseeing the selection scheme, the Governor will have the assistance of a high powered

Steering Group, which will be chaired by a very senior person

(probably the Chief Secretary) and which will work closely with

the Independent Commission Against Corruption, one of whose

directors may be a participant in the Group. There is the

question whether HMG should be represented on this Steering

Group. Although there will obviously be an expectation that the

selection procedures for the award of British citizenship should

be monitored by HMG to some degree, I would want to guard against too great an involvement in the operation

the operation of the selection

process. I shall consider this question further with the Foreign

Secretary in the light of further proposals from Hong Kong on the precise constitution and formal role of the Steering Group. Depending upon that role, it may be necessary to make provision

for the Group on the face of the Bill.

The Mechanics of Selection

General Allocation Scheme (GAS)

i)

Allocation of Assurances by Group

14. The scheme is set out in paragraphs 6-15 of Annex A. Using the International Standard Classification of Occupations as a

guide, HKG have divided the working population of Hong Kong into

31 broad occupational groups, each of which covers a large number of occupations. The groups, and examples of the sub-categories

within them, are set out in Annex C1.

15. Under HKG's proposals the 36,200 assurances available for the GAS would be allocated between the 31 occupational groups

according to a formula based on their respective emigration rates

over the past two years, and the overall size of the group. HKG

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