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The Haemophilia Society issued the final version of the report which it had commissioned on Hepatitis C and haemophilia.

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John Horam asked for more information about the likely costs of a scheme limited to those who developed cirrhosis.

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A letter from Kevin Guinness to John Adey provided more information about the likely costs of a scheme limited to those who developed cirrhosis.

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A memo from Ben Dyson to Mrs Weatherseed stated that the Permanent Secretary counselled "extreme caution", telling the Minister that "The unfortunate truth is that this is a very slippery slope."

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A memo from Marguerite Weatherseed to Mr Dyson stated that the Permanent Secretary's points on the question of introducing compensation for people with haemophilia with Hepatitis C had been noted and would be borne in mind by the Parliamentary Under-Secretary of State for Health.

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In a briefing for a meeting between the Haemophilia Society and John Horam, the Society sought to emphasise "the social, psychological, economic and medical impact on individuals and their families".

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A briefing for the Minister noted that the Haemophilia Society had been "encouraged by what they perceive to be a softening in Ministers' position".

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Following the meeting the Haemophilia Society provided further information about their proposals to the Department of Health.

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The Secretary of State told John Marshall MP that he did not consider that no-fault compensation of £40 million would be an appropriate use of health resources.

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A briefing note prepared in advance of that meeting included a reference to Stephen Dorrell's evidence to the Health Committee in July 1995 which "acknowledged that payment to the HIV group was illogical."

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Charles Dobson wrote to colleagues noting that the precedent set by the HIV scheme was "indeed a problem, but I didn't think we had ever gone so far in public!"

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Paul Pudlo (Department of Health) acknowledged that the Secretary of State had consistently opposed any form of no-fault compensation but interpreted his position as being that it was preferable to live with the anomaly of the HIV scheme than to remove it by making it the norm.

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John Marshall MP wrote to the Prime Minister John Major to ask whether help could come from the contingency fund rather than the Department of Health's existing budget.

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The Prime Minister John Major suggested that the Government had given the question of compensation very careful consideration. He expressed great sympathy but John Major said it was better to spend money provided for healthcare on current patients. Rather than people who "received the best possible treatment available at the time".

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John Horam met John Marshall MP and stressed it would be very difficult to justify "payments of this magnitude".

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Judgment was delivered by the High Court in a case involving the transmission of CJD by human growth hormone.

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Advice was produced for John Horam regarding the High Court judgment on CJD and the Hepatitis C payment.

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John Horam requested a brief round-up of the current issues on blood product issues and for advice on whether any amendments should be made to the proposed response to the Haemophilia Society's letter seeking financial assistance for people with haemophilia infected with Hepatitis C.

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The decision not to make any form of payments for those infected with Hepatitis C was communicated to the Manor House Group.

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Reverend Tanner reiterated that the Haemophilia Society's request had been for a "compassionate approach to the strong moral arguments involved", which would not set a precedent for no-fault compensation.

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