ERNEST Borel will go into the Hongkong FA Cup final in confident mood after beating Michelotti 3-0 in a First Division match at Mongkok Stadium last night. FA Cup-holders Borel, who take on Eastern in the final on June 20, won in a canter to avenge a 2-1 defeat by Michelotti in their first league encounter in January. Borel took the lead in the 33rd minute when midfielder Ng Kam-hung cut in from the left and saw his right-foot shot deflect off a defender and loop into the net. Right-back Wu Yiu-kwok steered in the second in the 67th minute and substitute Lau Ping-kwan completed the scoring 10 minutes later. Borel team manager Tsui Kwok-on was very satisfied with his side's performance in their last outing before the final. ''There wasn't anything at stake as far as the league was concerned but it was important to show the right attitude and take the game seriously,'' he said. ''And by winning 3-0 I think we achieved that. ''Now we must prepare hard for the final and give it a great try against Eastern.'' Tsui said the management would decide after the final which foreign players they would like to keep for next season, although experienced right-back Clive Goodyear will return to England tomorrow to begin a career as a physiotherapist. He will miss the final because of suspension. But Tsui denied that the future of the club in the First Division rested on the result of the final. Michelotti, who have been struggling to maintain payments to their players all season, handed over cheques before last night's game covering two months' pay, plus bonuses. And chairman Alfred Yuen insisted the club would start next season, with new financial backers but still known as Michelotti. Team manager Sammy Yu is believed to have resigned. Michelotti will offer a new deal to centre-half Richard Lant, who combines playing football with teaching at Island School, and to British Forces' sweeper Pat Russell. Midfielder Mark Grainger, like Lant a semi-professional, will return to his studies in the UK next season, while full-time professionals Tony Sealy, Alan Walsh and John Bottomley have been told they are clear to sign for other clubs. Added Yuen: ''Until we know the budget for next season we are not sure what is happening with the overseas players. But we are interested in signing players from Holland and Australia.'' In the other match last night, South China and Happy Valley drew 2-2. The Caroliners led 1-0 at the break with a goal from right-winger Loh Wai-chi but Valley struck back twice through Australian centre-forward Kris Trajanovski. He equalised in the 57th minute with a low left-foot shot on the run and headed Valley in front 10 minutes later when he got on the end of a cross from left-back Pang Chi-tong. Valley's victory hopes ended, however, when centre-half Lam Chi-wah headed a cross from South China left-winger Lee Fuk-wing into his own goal in the 76th minute. On the transfer front, Sing Tao midfielders Paul Murray and Billy Bone are having talks with Happy Valley and Rangers respectively. A meeting of the senior clubs next week will decide whether to increase the number of overseas players next season from five to six, whether to decrease the number of points for a win from three to two and whether to allow the Hongkong Sports Institute tostep up from the youth league to the senior clubs' reserve division.