CONFIDENTIAL

17. What function does the Chief Secretary have in Hong Kong?

18. What is the ICAC?

Roughly equivalent to Permanent Secretary of a UK Government Department, but responsible for all Departmental interests in Hong Kong Government.

An independent body directly responsible to the Governor. It represents a powerful force against corruption and malpractice in the public and private sectors.

Consists of 3 departments: Operations, Corruption Prevention and Community Relations.

Intention is that they should.

19.

Will interests of

British firms be represented on the Group?

20.

Will interests of Hong

Kong firms be represented on the Group?

21. Will deliberations of Group be published?

Intention is that they should.

No. It would be

inappropriate to publish proceedings of a Group established to advise the Governor.

THE SELECTION SCHEME

General

22. The Scheme will be elitist and divisive?

23. Who will benefit most?

24.

How will a majority for the private sector be achieved?

No. Will cover a wide range of walks of life. It is selective in that it aims to capture the best of those identified by Hong Kong as being "key" to the territory's future prosperity and stability.

The majority of places are expected to go to the private sector.

The Selection Scheme has been designed to achieve this result on basis of statistical probability.

CONFIDENTIAL

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