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In a news release accompanying the Expert Group's Preliminary Report, Malcolm Chisholm did not commit to the recommendations but indicated that there were complex medical, legal and financial considerations the Executive were currently looking at.

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The Scottish Executive Cabinet agreed that £25,000 be paid to those currently alive with Hepatitis C and a further £25,000 to those who developed cirrhosis. A review of costings revised the figures to £20,000 and £25,000.

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The Scottish Executive Cabinet sought legal advice from the Advocate General of Scotland on the resolution of the issue regarding devolved powers and the proposed compensation scheme.

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Charles Lister emailed Hazel Blears's Private Office to advise her of the Scottish compensation announcement and confirm that Government's position remained that "a special financial assistance package for this group is not justified."

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In a memo from Jill Taylor to Hazel Blears, it was recommended that the Government position remain that compensation was not payable to people with haemophilia who contracted Hepatitis C.

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Handover notes prepared by Charles Lister stated that England was maintaining the "no compensation" line but Scottish ministers had weakened on the issue, and that they were currently awaiting legal advice on whether they could legally challenge the Scottish position.

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A background note from Richard Gutowski to Sammy Sinclair stated that although some recipients of blood products had been "inadvertently infected" prior to the 1984 viral inactivation of blood products and the introduction of donor screening in 1991, there was no justification to move away from the existing line to take.

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Richard Gutowski had discussions with senior officers in the Health Protection Division prior to advising the new Secretary of State on 17 June 2003 that there was no justification to move away from the existing line to take regarding "inadvertent" infections.

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The Law Officers' opinion on the proposed Hepatitis C compensation scheme was received.

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The Secretary of State formed the view that they would have to go down the compensation (ex-gratia) route given the circumstances.

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A meeting with the Chief Secretary to the Treasury and the Secretaries of State for Scotland and for Work and Pensions on the devolved nation's position on compensation took place.

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The Treasury said no additional funding would be available.

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A meeting between the Scottish Executive and Department for Health regarding ex gratia payments took place where it was stated that a UK-wide scheme was preferred, but Wales and Northern Ireland had not yet been informed of developments.

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The Treasury wrote to John Reid setting out its position in relation to the ex gratia scheme.

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John Reid wanted a UK Scheme, especially an English Scheme, and wanted to work with the other devolved nations on this.

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Once John Reid reached the decision on ex gratia payments, he was not faced with any resistance from officials.

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John Reid's considerations in relation to his decision to reversing the Government's policy on Hepatitis C compensation occurred soon after taking up his role as Secretary of State.

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Sir John Major perceived that nothing wrong was done.

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The Government was aware that Hepatitis C was associated with drug use.

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The CMO led work on rising NHS litigation costs and the clinical negligence system and rejected the case for a 'no-fault' compensation scheme.

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