In a letter sent to victims last month, Sanlu and 21 other dairy companies offered 200,000 yuan for families whose children died, 30,000 yuan for serious cases such as kidney stones and acute kidney failure, and 2,000 yuan for less severe cases.

Parents of victims who do not accept the one-time compensation are asked to sign a document. They can seek retribution through lawsuits.

More than 3,000 victims in Shijiazhuang, the capital of Hebei Province, where the headquarters of Sanlu is located, have accepted the compensation package, the local government told Xinhua.

"Some parents were reluctant to accept the compensation package at the beginning, but they were persuaded and have since changed their minds," a spokesman of the Shijiazhuang government said.

Xinhua reporters have interviewed more than a dozen parents in Shijiazhuang during the past week. All took the money despite their complaints.

"Sometimes my child bleeds during urination. Sanlu must be responsible for that," said Jia Jiwen, a father in Shijiazhuang.

He said he did not accept the compensation until he was sure there was a fund to cover future medical expenses for his child.

Dairy producers agreed to do this for all sickened children until they reach the age of 18.

There were some parents in other parts of the country who rejected the pay-off from dairy companies, saying it wasn't enough compensation for what their children had suffered. They plan to pursue legal options.

(Xinhua News Agency January 16, 2009)