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The Prime Minister refused to meet with John Marshall MP, stating that the compensation for people suffering with HIV reflected the 'very special nature of the HIV virus', and that this could not be applied to those suffering with HCV.

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The Haemophilia Society published a report which it had commissioned to examine the needs of people with haemophilia and Hepatitis C.

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The Secretary of State asked for David Tonkin's case to be investigated as he had been kept in the dark by medical professionals about his HCV infection.

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David Tonkin was not told for 2 years that he had HCV.

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A letter was sent to Roy Hattersley stating that Stephen Dorrell understood the decision regarding when to inform patients was made on "purely clinical grounds" and that there was no evidence of administrative error.

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A note prepared for the Secretary of State and for John Horam, suggested that it was reasonable to suppose the published evidence was "emotively and selectively used". Some criticisms were said to be of failings of clinical management by doctors and other healthcare professionals.

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A report was published regarding the Haemophilia Society's Hepatitis C Impact Study, including lines to take on the report's recommendations.

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A draft speech was prepared by officials pertaining to assistance to individuals who had haemophilia and Hepatitis C.

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A speech indicated that John Horam would like to read the Haemophilia Society's report thoroughly and that he would be interested to hear details of the proposal made by John Marshall MP.

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A letter was sent from a Treasury official to the Department of Health, expressing concern about what had been said.

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Lord John Horam stated that he had only seen the letter from Joseph Grice to Charles Dobson on 18 December 1995 when preparing his statement for the Inquiry.

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John Horam proposed a modest amendment to the Department's standard line, to add the words "'at present'" to the words "'we have no plans to make special payments'", which led to an expression of alarm by civil servants.

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Civil servants were asked to propose an alternative form of words which would convey that he wanted to read the Haemophilia Society's report carefully.

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John Horam requested a submission setting out costed options for compensation.

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Kevin Guinness acknowledged that the Treasury was unlikely to take any steps until the Prime Minister decreed something needed to be done and that until that time the Government should continue to firmly hold the line.

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Sir Graham Hart explained his views as being that "the position which ministers had taken was justified and defensible but that the pressure to change it, notably from victims, members of Parliament and some parts of the media, was growing in strength. If the pressure on ministers continued to build up, it could reach the point at which they found their position no longer tenable: I did not think it was inevitable, or imminent."

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Officials expressed concern that John Horam may wish to alter departmental policy rather than continuing to firmly hold the line.

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Kevin Guinness asked his colleague preparing a first draft of the options paper requested by John Horam to include reference to it being a "Slippery Slope" and to stress that any payments "would have to come from less money being available for patient care."

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The submission requested by John Horam recorded that people infected through blood transfusion "would have as good cause as haemophiliacs for access to a compensation scheme" and that "if anything" the case for people infected through transfusion "is stronger because some were infected after tests were known to exist."

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Lord Horam observed it was fair to say that officials were giving him "strong warnings".

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