Bonnie A. Tough
                      Certified By The Law Society As A Specialist In Civil Litigation
                      E-Mail: bat@hodgsontough.on.ca
                      Direct Dial: (416) 304-6402
                      File No.: 1024
                    
                    May 18, 2001
                    VIA FACSIMILE
                    Ms. Elaine G. Ashfield
                      Canadian Blood Services
                      Head Office/Siege social,
                      1800 Alta Vista
                      Ottawa, ON K1G 4J5
                    Dear Ms. Ashfield:
                      RE: HEP C CLASS ACTION 
                      COST RECOVERY - CANADIAN BLOOD SERVICES
                    The Joint Committee has had an opportunity to review the 
                      revised cost recovery budget proposal for the period April 
                      1, 2001 to March 31, 2002 which you have submitted.
                    As the budget document quite rightly points out, the major 
                      concern of the Joint Committee is that tracebacks be accomplished 
                      as expeditiously as possible in order that claimants not 
                      be further delayed in having their entitlement determined 
                      by the Administrator.
                    Ideally, the Joint Committee would like to see the six 
                      month time provided for tracebacks in the Traceback Protocol 
                      reduced to three months. Accordingly, the Joint Committee 
                      is prepared to recommend the CBS budget to the courts for 
                      approval subject to the understanding that we will be reviewing 
                      the results with a view to reducing the time limit from 
                      six months to three months. Our proposal would be to allow 
                      CBS three or four months of operation under the new budget 
                      and then have a meeting with you to assess the effectiveness 
                      of the increased funding.
                    The Joint Committee is concerned that CBS and the staff 
                      which will be allocated to this project understand that 
                      the project is of limited duration. If we are able to expedite 
                      tracebacks, we expect that the vast majority of the tracebacks 
                      will be completed in the next twelve to eighteen months. 
                      Accordingly we will be asking 
                    CBS at some point in the future to "wind down" 
                      its expenditures. The Joint Committee views these expenditures 
                      as primarily of a temporarily or transient nature in order 
                      to deal with the backlog of claimants requiring tracebacks.
                    
                    
                    Yours very truly,
                    
                    Bonnie A. Tough
                    BAT:kb
                    c: H. Strosberg/H. Peterson
                      J.J. Camp/S. Matthews
                      P. Lavigne
                    
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