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Michael Palmer informed Susan Deacon, that officials had already written to SNBTS, Department of Health and haemophilia clinicians in Scotland requesting detailed information on events raised by Margaret Smith MSP on 6 August 1999, and provided a draft reply from the Minister to Margaret Smith MSP.

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Susan Deacon told the Inquiry how at this point she had to examine properly what had happened in the 1980s around heat treatment and wished to set out the facts "as best we could in the public domain."

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Susan Deacon's office advised that discussions around compensation were very much a PR exercise and it was unlikely to ever be paid. In her oral evidence, Susan Deacon refuted using these words herself.

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Michael Palmer, Dr Keel, Lynda Towers and Sandra Falconer met Professor Ian Franklin of SNBTS and Drs Robert Perry and Ron McIntosh of PFC to discuss the investigation of circumstances surrounding the safety of SNBTS blood products from Hepatitis C.

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Fax from Jane Kelly of PFC to Mike Palmer at the Department of Health, Scottish Office, including a document titled Factor VIII Concentrates manufactured by SNBTS (1974-1999).

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Background Notes on the Development of Hepatitis-Safe Factor 8 concentrates were produced by SNBTS.

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Michael Palmer wrote to the SNBTS National Director regarding the investigation of circumstances surrounding the safety of SNBTS blood products from Hepatitis C.

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Dr Robert Perry wrote to Michael Palmer providing Background Notes on the Development of Hepatitis-Safe Factor VIII Concentrate by SNBTS.

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Professor Lowe and Professor Ludlam confirmed that it was normal practice within their centres to inform patients of the result of a test if they were found to be HCV positive.

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A briefing note from Michael Palmer to Susan Deacon, Minister for Health and Community Care, recommended that she emphasise to the Haemophilia Society that the Health Department was at arm's length from SNBTS, and that the Health Department aimed to report on its investigations within a month, with the Scottish Executive issuing its conclusions as soon as possible thereafter.

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Susan Deacon, Minister for Health and Community Care, assured the Haemophilia Society that issues raised by the Society would be investigated.

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Michael Palmer's report of the meeting on 14 September 1999 described how it became clear during the meeting that there were other strands of inquiry which the Haemophilia Society wished the Scottish Executive to pursue in its investigation, including the information provided to patients by clinicians. He reported that the Minister, Susan Deacon, assured the Society that these issues would also be investigated, although this would take longer than the expected month.

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First Minister of Scotland, Donald Dewar, expressed concern about the potential financial exposure should compensation for infection with Hepatitis C be paid.

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The Haemophilia Society expressed concern that some patients had been tested for Hepatitis C and not told the results and that in many cases there was delay in being told.

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Following a meeting with the Haemophilia Society Susan Deacon widened the Scottish Executive investigation to consider what information was provided to patients.

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An email sent by Karen Jackson on behalf of Donald Dewar expressed concern about the financial exposure to the Government of compensation payments.

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Susan Deacon's office advised that the matter was a PR exercise and compensation was unlikely to be paid.

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Karin Pappenheim wrote to Susan Deacon expressing the hope that communication between the Minister and the Haemophilia Society would continue and emphasised the importance of impartiality.

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The Scottish Executive investigation was expanded to consider information given to patients about the risks of contracting Hepatitis C/non-A non-B Hepatitis and the alleged delay in informing people with haemophilia that they were Hepatitis C positive after they had been tested.

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It was the expectation, as communicated to the Haemophilia Society, that the necessary evidence relating to the investigation would be examined within a month.

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