THE Government is warming to a pro-China group's proposal for the 1995 elections which would mean scrapping a key part of the Patten package.

Senior officials say the Democratic Alliance for Betterment of Hongkong's plan, for an elected Election Committee based on the Basic Law, could form the basis for a compromise in any Sino-British talks on the issue.

''It should certainly be taken more seriously than other proposals that have been put forward,'' said one high-level source.

The Government favours the plan because it stresses members of the Election Committee, which will choose 10 legislators in 1995, should be elected where possible, and follows the Basic Law, with membership divided equally between politicians, professionals, businessmen and grassroots interests.