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DHSC legal advisors estimated that medical negligence was likely to be established in 20-30 cases, and up to 500 more infections was likely to have occurred at the end of 1984 or in 1985.

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The Sunday Times was sympathetic to the claims for compensation from people with Haemophilia.

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Charles Dobson reported to the Department of Health the ministers' responses and views in relation to the litigation and suggested that the Department should review its position.

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Charles Dobson sent a memo to Mr Davey in relation to the HIV litigation and the Sunday Times campaign.

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Charles Dobson prepared a paper setting out options for making more money available to "the haemophiliacs".

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Kenneth Clarke believed that the court would find in favour of the Government and it should not admit fault.

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Kenneth Clarke did not fundamentally disagree with what Mr Justice Ognall had said, which in his view were the same principles that had led the Government to provide money to the Macfarlane Trust.

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In oral evidence, Lord Clarke said everyone had concluded that an ex gratia payment was the best way of handling the matter: there was "a case for using public funds to make some compensation".

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Kenneth Clarke discussed the matter of non-discretionary payments again with the Prime Minister and payments were increased from £10,000 to £20,000 within an unchanged overall allocation of £20 million.

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The Government paid £24 million to the Macfarlane Trust to be distributed.

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Kate Lee, a solicitor acting for the central defendants, reported that counsel had considered the possibility of sending a letter informing the plaintiffs that if they discontinued against the defendants the Government would forgo its own costs. It was suggested that, viewed with the additional money being made available to the Macfarlane Trust, this "may be seen as a sympathetic gesture."

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A memo from Richard Gutowski to Kate Lee, regarding HIV litigation, expressed unease about writing to plaintiffs informing them that the Government would forgo its own costs if they discontinued against the defendants. It was felt this could be construed as overly aggressive.

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A memo from Charles Dobson to Clive Wilson expressed his view that an open letter warning the plaintiffs about costs of proceedings could be too easily misinterpreted.

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A memo from Donald Acheson to Virginia Bottomley and Kenneth Clarke urged the Government to make an ex-gratia settlement to people with haemophilia infected in relation to the HIV litigation.

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A memo from Strachan Heppell to the CMO, the Minister of State for Health and the Secretary of State set out the options for responding to the litigation.

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A note to ministers on the haemophilia AIDS Litigation invited Ministers to review the government's position in light of: (i) Mr Justice Ognall's statement to consider an out-of-court settlement; (ii) advice from Counsel; and (iii) the Regional Directors of Public Health submission.

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A submission from regional directors of public health on HIV litigation was submitted.

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Kenneth Clarke was in favour of sticking to the Government's legal defence and continuing to fight the litigation. He did not deem it necessary at that stage to send a memo to the Prime Minister.

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Kenneth Clarke sought to discuss the issues of settlement with the Chief Secretary to the Treasury.

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A memo from Stephen Bowden to Andrew Edwards outlined a phone call between the Chief Secretary and the Secretary of State for Health. They had agreed that there were no grounds for offering an out-of-court settlement in relation to people with haemophilia with HIV.

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