A proposal from hepatitis C sufferers that the state pay uniform compensation to all people who contracted the disease through tainted blood products was rejected Thursday by Health, Labor and Welfare Minister Yoichi Masuzoe, leaving their out-of-court settlement talks near collapse.
Meanwhile, Prime Minister Yasuo Fukuda indicated that there is still room for flexibility in the government's position, saying he did not think the talks are yet over.
It is estimated that some 10,000 people in Japan were infected with the disease via tainted blood products, even though the U.S. Food and Drug Administration had banned the products in 1977 due to their risks.