-..^i-'^.'i-'^' Digitized by the Internet Archive in 2009 with funding from IVIulticultural Canada; University of Toronto Libraries http://www.archive.org/details/annualreportofgoOOhong ''^:' ? ^''%'\ ANNUAL REPORT OF THE GOVERNOR OF HONG KONG TO THE SECRETARY OF STATE FOR THE HOME DEPARTMENT UNDER THE BRITISH NATIONALITY (HONG KONG) ACT 1990 Presented to Parliamentby the Secretary ofStateforthe Home Department by CommandofHer Majesty March 1992 LONDON: HMSO £3.45 net CBnad«-Hon({ Kong Resource "J? .'<2 I SlMdiniCrfUtnl.Km Ml- ^O'crM.C."'"•v.h•>^.i5 lAI CTIL NT! /^Cit 7 British Nationality (Hong Kong Act 1990) TOTHE SECRETARY OFSTATE FORTHE HOME DEPARTMENT ANNUAL REPORT ON THE BRITISH NATIONALITY SCHEME (7 NOVEMBER 1990-6NOVEMBER 1991) This report is submitted pursuant to section 4 of the British Nationality (Hong Kong) Act 1990. All the provisions ofthe Act, except section 2(2) which relates to the loss of British Dependent Territories citizenship, came into force on 7 November 1990. This report covers the first year since the coming into force of the Act, i.e. from 7 November 1990 to 6 November 1991, and deals with the followingsubjects: Paragraphs (I) Legislationand related legal instruments 2-5 (II) Application period and response 6-8 (III) Steering Committee 9-14 (IV) Processingofapplications 15-18 (V) Successful applicants 19-32 (VI) Safeguards 33 (VII) Impact ofthe Scheme 34-35 Legislation and related legal instruments 2. Under section 1(1) of the Act, you shall register as British citizens 50,000 principal beneficiariesrecommended by me underascheme made and approved in accordance with Schedule 1 to the Act. In accordance with paragraph 2(a) of Schedule 1, 1submittedaschemetoyouinOctober 1990. Theschemeissetoutin the Schedule to the British Nationality (Hong Kong) (Selection Scheme) Order 1990 which was made by the Privy Council on 20 November 1990 and came into force on 1 December 1990. Thescheme isdesigned tocoverkey people in awide range of occupations (the general occupational class), members of the disci- plined services (the disciplined services class), people who may find themselves vulnerable in the years aliead (the sensitive service class) and key entrepreneurs whohave an important contributiontomake totheeconomyofHong Kong (the entrepreneurs class). 3. Asempowered bysection 3(1)ofthe Act. I made regulationswith respect to the manner in which applications are to be made and the payment offees. The British Nationality (Hong Kong) (Recommendations for Citizenship) Regu- lations 1990 were made on 22 November 1990 and came into operation on 1 December 1990. 4. In addition, the British Nationality (Miscellaneous Provisions) (Amend- ment)Ordinance 1990waspassed bythe LegislativeCouncilofHongKongon 1 October 1990andcame intoforce on 1 December 1990. The Ordinance makesit an offence for applicants to make false statements in connection with appli- cations made under the Act aiul provides for the preservation ofcontidenliality ofinformation provided by applicants, and relatingto their identity. 1 5. Since the announcementofthe scheme bythe SecretaryofState forForeign and Commonwealth Affairs on 20 December 1989, the necessary legislative framework for implementation ofthe scheme has been enacted. The legislation and related legal instruments include: (a) the British Nationality (Hong Kong) Act 1990; (b) the Commencement Notice in respect ofthe Act; (c) the British Nationality (Hong Kong) (Selection Scheme) Order 1990; (d) the British Nationality (Hong Kong) (Registration of Citizenship) Regu- lations 1990; (e) SecretaryofState'sdirection tothe Governorundersection 1(3)oftheAct; (f) the British Nationality (Hong Kong) (Recommendations for Citizenship) Regulations 1990; (g) the British Nationality (Miscellaneous Provisions) (Amendment) Ordi- nance 1990; and (h) the Commencement in respect ofthe Ordinance. HMG HKG There was close consultation between and in preparing the legis- lation and related instruments. Application period and response 6. All applicants, unless invited to apply, were required to submit their appli- cations in the three-month period from 1 December 1990 to 28 February 1991. Applications under the sensitive service class and the entrepreneurs class were normally by invitation and the invitees were requested to submit their appli- cations within the period specified in the invitation. 7. In launching the scheme, information booklets explaining the selection method, application forms and reference manuals were made widely available. A publicity campaign was conducted to help the public understand the scheme. Hotlines were also set up in the Immigration Department to answer any queries the public had. 8. When the three-month application period closed on 28 February 1991, a total of 55,507 applications had been received in the general occupational class and 8,309 in the disciplined services class. A breakdown of the number of applications received in the general occupational classis at Annex A and that in the disciplined services class at Annex B. As at 6 November 1991, 1,950 appli- cations had been received in the sensitive service class and 298 in the entrepre- neursclass. Steering Committee 9. Inexerciseofthepowersconferredbysection3(3)(a)oftheAct. I appointed a Steering Committee to advise me on selected matters relating to the scheme. The Steering Committee is made up of highly respected members of the local communitydrawn from the business, professional, academicandpolitical fields. They are: ChiefSecretary (Chairman) Baroness Dunn SirO- W. Lee Mr. Peter Wong Hong-yuen Mr. Andrew So ProfessorCharles K. Kao Mr. Peter W. Heap Secretary forthe Civil Service Secretary for Security Commissioner, Independent Commission Against Corruption Their initial appointment is for the period from 1 December 1990 to 31 Decem- ber 1991. . 10. During the period under review, the Steering Committee has held 11 meetings. The matters put to them foradvice included: (a) the application of special circumstances points to applicants in the general occupational class and the disciplinedservices class; (b) the procedures for handling applications in different classes and the pro- ceduresfortransfer between classes; (c) the criteria for assessinggood character; (d) considerationoftheprofilesofthelistsofapplicantsinvariousclassesready for my recommendation; (e) considerationofoccupation-relatedawards, voluntaryagencies andactsof braverysubmittedbvapplicantsasworthyforpoint-scoringpurposesunder Article 14(5) ofthe Order; and (f) publicity arrangements. Criteria adopted in the application ofspecialcircumstances points in the general occupationalclass 11. When making its recommendations as to the need to allocate special circumstances points under Article 14. the Steering Committee considered the profiles ofthe potentially successful applicants in the various occupations. Rec- ommendationswere made havingregard tothe criteriasetout inthe Article, the actual points scored under the various heads, the overall success rate of the particular occupation and descriptions ofapplicant within that occupation, and any submissions made on behalf of a particular occupation or description of applicant. 12. As regards Article 14(4) and (5) in relation to the recognition of an applicant'sexceptional merit oroutstandingachievement, special circumstances points have been allocated following recommendations by the Steering Com- mittee asfollows: (a) Occupation-related achievements (maximum 30 points) Points were scored for publicly recognised and prestigious awards won in connection with an applicant's occupation. Applicants scored 10 points for each approved award received up to a maximum of 30 points for three awards. (b) Voluntary work (maximum 30 points) A maximum of 30 points could be scored for unpaid work with approved voluntary agencies in the social, medical or educational fields. Service as members of the board of directors or management committees of an approved agency for a continuous period ofnot less than three years could scoresix points. Thereafter, eachadditional yearofservicecouldscore two points. Alternatively, serviceasvolunteerhelperin approvedagenciesfora continuous period of not less than three years could score six points, provided that such service amounted to an average of not less than four hours each month. Thereafter, two points could be awarded for each additional yearofsimilarservice (c) Actsofbravery (maximum 20points) A sovereign award could score 20 points while other approved awards in recognitionofactsofbravery scored 10 points each. Applicants could score points under all three categories but the total could not exceed the maximum of50 points. . Criteria adopted in the application ofspecial circumstances points in the disci- plinedservicesclass 13. Article 22(4) of the British Nationahty (Hong Kong) (Selection Scheme) Order 1990 stipulates that up to 150 special circumstances points may be allo- cated to applicantsfrom variousdisciplined services: (a) to take account of the need to maintain the quality and staffing levels of personnel in the disciplined services; (b) to take account of the applicant's performance in service or any honours received by him in connection with that service; and (c) to moderate ageorexperience points. 14. With a view to retaining the right mix of experienced personnel in each service the SteeringCommittee recommended thatspecialcircumstancespoints , should be awarded: (a) to moderate age and/orexperience (includingallocationofpointsto recog- nise managerial orsupervisory responsibility); (b) to recognise quality of service, on the basis of performance ratings in the last three confidential reports in the service which an applicantserves; and (c) to recognisecommendationsawarded bytheQueen, the Governororhead ofservice. The method ofallocating special circumstances points for individual disciplined services has been adopted as advised by the SteeringCommittee. Processing of applications 15. The Immigration Departmentgave ahighprioritytotheswiftprocessingof applications in orderto achieve the greatest possible impact in termsofretaining key personnel in Hong Kong. However, they encountered some difficulties in ranking the applications received according to the number of points scored because a large number of applicants had not fully or properly completed their application forms. As a result, the Department had to write to such applicants and/orinterviewtheminordertoobtain the necessaryinformation. Thisprocess wascompleted in October 1991 16. After all the applications in an occupation had been ranked according to provisional points scored, the profile of the applicants was then analysed and submitted to the Steering Committee for consideration. Subject to the endorse- ment of the Steering Committee, the Immigration Department commenced interviewing the potentially successful applicants to verify the information pro- vided and initiated charactercheckson them. During the period covered by this report, the profiles of 14 occupational groups (out of a total of 20), all the 6 approved occupations and 8 disciplined services (out of a total of 9) had been considered by the Steering Committee. 17. Alistoftheoccupationsalreadyconsideredbythe SteeringCommitteeisat Annex C. It is envisaged that the remaining occupations will have been con- sidered by the committee by December 1991. 18. The verification interview is the most time-consuming step in the whole application process as all the potentially successful applicants need to be inter- viewed. The purpose of the interviews is to verif\ information provided in the application form in order to confirm or adjust the provisional points scored; to clieck documents to establish relationship between the principal applicant and his/herdependants; and, toclarify anydoubtsarisingfromthe characterchecks. It is envisaged that by the end of 1992, the majority (about 75 per cent) of the potentially successful applicants will have been interviewed. The rest will be processed in the first halfof 1993. Successful applicants 19. As at 6 November 1991, 3.443 persons had been recommended for regis- tration and issued with certificates of registration under the scheme. This included 1.202 principal applicants. 989 spouses and 1,252 minor children. The average family size was 2.86. A breakdown by class ofthe number of principal beneficiaries is as follows: General Occupational Class 155 Disciplined Services Class 83 Sensitive Service Class 933 Entrepreneurs Class 31 1.202 20. The numberofsuccessfulapplicantsregisteredsofarisnotlargebecauseof the checks built into the system to safeguard confidentiality and to minimise the A possibilityofmanipulation. These safeguardsare especially front-end loaded. more detailed description of the safeguards is covered in paragraph 34. As mentioned earlier, the intention is to interview about 75 per cent of the poten- tiallysuccessful applicantsbytheendof 1992and the rest inthefirst halfof 1993. The rate ofregistration will roughly followthe same pattern. 21. So far, no applications have been rejected. It is envisaged that the first batchofrejectionswill be issued in early 1992. Profileofsuccessfulapplicants in thegeneraloccupationalclass 22. The successful applicants in the general occupational class are generally wellqualified. Ofthe 155successfulapplicants. 138(89percent)scoremorethan 75ofapossible 150pointsforqualifications. 109(70percent)ofthem aredegree holders. Almost all of them (98 per cent) hold professional or vocational qualifications. 23. The length of experience of the successful applicants ranges from 6 to 24 years. 147 (95 percent) have 10years" experienceormoreintheirrelevantfields. 24. The age ofthese applicants ranges from 29 to54. 140ofthem (90percent) are in the prime age bandof30to41. 14(9 percent) are over41 yearsold. 25. The profiles of the successful applicants in the general occupational class registered so far show that the points system has been able to capture the candidates targetted. Profileofsuccessfulapplicants in the disciplinedservicesclass 26. The successful applicants in the disciplined servicesclass are also generally well qualified. Of the 83 beneficiaries. 49 (59 per cent) score more than 75 of a possible 150 points forqualifications. All ofthem have received education up to at least Secondary 5 level and 12 (15 per cent) of them are degree holders. All score points for professional trainingor further qualifications. 27. As regards experience, all the successful applicantsare wellexperienced in theirrespectivedisciplinedservices. Theirlengthofexperiencerangesfrom 12to over24 years. 28. The age distribution of these successful applicants ranges from 33 to 47. Some 58 (70percent) ofthem are in the prime age bandand 25 (30percent) are over41. Profileofsuccessfulapplicants in theentrepreneurs class 29. 31 principal applicants registered are in the entrepreneurs class. All these applicantswere invitedbyme toapply. Recommendationsforregistration under this class have been made taking into particular consideration the following matters: (a) the extent ofthe applicants' investment in Hong Kong; (b) the annual turnoveroftheir businesses in Hong Kong; (c) the numberofpersons employed in such businesses; and (d) theextent towhich theapplicants'emigrationwouldundermineconfidence in the economyof Hong Kong. 30. All the31 beneficiarieshavesignificant businessinterestsinvarioussectors of the economy. The retention of these entrepreneurs in Hong Kong is an important element in maintaining a high level of economic activity locally and stabilisingthe confidence ofboth residents and foreign investorsin Hong Kong. Successful applicantsscoring points forservice with "British undertakings" 31. Under the point system, employees of "British undertakings" score one point for every 6 months' relevant service up to a maximum of35 points. Ofthe 155 successful applicants in the general occupational class, 17 score points for theircurrent service with British undertakings and 2 fortheirpast service. 32. A special advisory group, chaired by the Senior British Trade Com- missioner, was set up to advise me whether certain firms or organisations could be regarded as "British undertakings" forpoint-scoringpurposes. In makingthe recommendations, the advisory group has taken into consideration factors such as the country of incorporation of the organsiation and of any controlling company; the nationality ofshareholders, managersorpartners; and, the extent to which the organisation carries on trade or has business connections with the United Kingdom. The list of approved "British Undertakings" is available for public information. Safeguards 33. Various safeguards have been incorporated in the system ofimplementing the scheme to ensure security and preventcorruption. Apart from the setting up ofthe Steering Committee to monitor the implementation ofthe scheme, other safeguards include: (a) Independent Commission Against Corruption (ICAC) ICAC have been involved from the design stage to the implementation of the scheme. Their involvement includes: (i) representation on the Steering Committee, task groups and working groups which has assisted to develop, implement and monitor the scheme; (ii) participation in devising computer systems and operational pro- cedures; and (iii) vettingstaffinvolved in the scheme andcandidatesforregistration as British citizens. (b) Legislation As mentioned earlier, the British Nationality (Miscellaneous Provisions) (Amendment) Ordinance 1990 makes it an offence for anyone involved in the processingofapplicationsto reveal information provided by applicants or relatingto theiridentity. Such officersare alsosubject to the Prevention ofBribery Ordinance. (c) Security Vetting All Hong Kong Government staffinvolved in the operation ofthe scheme are subject to security vetting by the Independent Commission Against Corruption and the Royal Hong Kong Police Force. (d) Computer Security Automated systems have been developed to process applications, which include the calculation of points, production of applicants' profiles, data analysisandproductionofmachinereadablepassports. Thesesystemshave different levels ofsecurity safeguards, e.g. the use ofindividual passwords toguardagainstunauthorisedaccesstodata. Therearealsoauditreportsof various kinds for control purposes. Officers of the Independent Com- mission Against Corruption have beenverymuchinvolved in designingthe system specifications, e.g. data security, data verification, transaction reports about record changes, and suppressing the identity ofapplicants in computerreportswherever possible.