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Sam Galbraith, Minister in the Scottish Office, agreed to adopt a similar position in Scotland as in England, namely, not to offer compensation to those infected with Hepatitis C through NHS treatment.

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A memo from Michael Palmer to the Minister for Health and Community Care, Susan Deacon, explained the BBC was planning to run a story regarding claims for compensation from people with haemophilia who had contracted Hepatitis C. It was to be claimed that in Scotland the heat treatment required to kill the virus was not introduced until a year after it was applied in England, and that that was negligent.

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A memo from Michael Palmer to the Minister for Health and Community Care, Susan Deacon, stated that although there was a period between 1986 and 1987 when Scottish products were not as safe from Hepatitis C as English products, it was not due to negligence on part of the SNBTS and it was not feasible to import safer English product, because not enough of the product could be produced for domestic English consumption.

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A memo from Michael Palmer to the Minister for Health and Community Care, Susan Deacon, included a line to take in response to a BBC story regarding claims for compensation from people with haemophilia who had contracted Hepatitis C.

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A memo from Michael Palmer to the Minister for Health and Community Care, Susan Deacon, informed her of legal advice in England suggesting that the Department of Health would probably be liable for a failure to introduce for screen for Hepatitis C as quickly as it should have done. The advice suggested compensation should be paid to anyone anyone who contracted the virus between May 1991 and September 1991 when screening became universally available, and this was a considerable shift in policy.

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A memo from Michael Palmer to the Minister for Health and Community Care, Susan Deacon, repeated that "The Government's position has been that there is no fault on the part of the NHS because patients received the best treatment available given the state of knowledge at the time."

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In a press release from the Haemophilia Society, Philip Dolan, speaking on behalf of Scottish members, appealed to the Scottish Parliament "who could decide to act now for Scottish people with haemophilia and HCV."

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Margaret Smith MSP, convener of the Health and Community Care Committee, wrote to Susan Deacon calling for an immediate Executive Inquiry to allay public fear and concerns about the safety of Scottish blood products.

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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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