THE Governor will launch a concerted attack on unemployment today by announcing a dramatic reduction in overseas workers allowed into the territory under the controversial Labour Importation Scheme. Chris Patten will tell legislators during his Policy Address that the Government intends to cut the current jobs quota of 25,000 by a third, with particular emphasis on the service sector. With 3.5 per cent of Hong Kong's workforce, or 105,000 people, currently without jobs, government sources say Mr Patten will also outline tougher criteria for employers hoping to take on overseas staff. At the same time, new measures to curb illegal workers will be announced, including a new identity card specifically for domestic helpers to help immigration officers spot those in unauthorised jobs. However, the Government remains determined to maintain some form of labour importation, despite threats of a private member's bill to scrap the entire scheme. It is adamant foreign workers are still needed, regardless of complaints from labour groups who claim the scheme has helped create the highest levels of unemployment in Hong Kong for over a decade. 'We hope this compromise will be acceptable to all parties,' a source said. The need for all sectors, including China, to 'co-operate' in the next 629 days will be the central theme of Mr Patten's fourth Policy Address, sources told the South China Morning Post. But the focus will be on domestic issues, including welfare, housing and the need to boost the territory's economic competitiveness. Mr Patten will announce a substantial increase in Comprehensive Social Security Assistance benefits, although a review of the scheme will not be complete until later this year. No new category of payments for the jobless will be introduced, but improvements will be made under the existing scheme for those who have been out of work for a considerable time. Single-parent families and the elderly are also expected to be paid more under the revised scheme, although the level of payments will be kept at subsistence levels to avoid discouraging people from working. 'There won't be welfarism,' one source said. Mr Patten will also detail government plans to boost investment in technology and skills training and co-operation with China on research and development as well as the telecommunication infrastructure. However, there are no plans to lower profits tax to stimulate investment, as demanded by both the Liberal and Democratic parties, the source said. There will also be few surprises on the China front, with sources saying the framework for co-operation had already been laid down during the recent London visit by Chinese Vice-Premier Qian Qichen. Nevertheless, China yesterday warned Mr Patten not to use his address to create further problems for the smooth transition of the territory to mainland rule. A deputy director of the Hong Kong and Macau Affairs Office, Chen Ziying, said the present momentum of co-operation should be maintained and obstacles avoided. Another deputy director, Wang Fengchao, said it was pointless for Hong Kong people to maintain a 'fantasy' that part of the newly-elected Legislative Council would straddle 1997, claiming it was 'not realistic'. However, China should already be aware of the contents of the address. A government spokesman said Mr Patten had sent a copy to Lu Ping, head of the Hong Kong and Macau Affairs Office, earlier this week, while Mr Qian was briefed in the United Kingdom. Copies will be given to Executive Councillors this morning, after which more will be sent to the local office of Xinhua (the New China News Agency). Unlike his previous speeches, Mr Patten will today 'put on the record' the achievements of three years of his administration, such as improvements in welfare and the economy, a senior official said. 'Mr Patten has one more Policy Address to go. But next year will be different when you have to consider the preparatory committee and chief executive-designate. 'There is a good opportunity to review this year,' the official said. But not all people seem convinced there have been 'achievements'. A University of Hong Kong survey found that satisfaction with the Governor's Policy Addresses has dropped from 29 per cent in the first year, to 19 per cent in the second and then 14 per cent last year.