BEIJING, May 24 (Reuters) - A viral disease that has broken out in eastern China's Shandong province has killed a third child, Xinhua said on Thursday, raising doubts over earlier claims that the epidemic may have been contained.

The news agency said that an 11-month-old boy had developed a fever and blisters before dying on Tuesday in a hospital in Linyi city, where 1,263 cases of "hand, foot, and mouth disease" have been reported since April.

The virus, which typically causes painful blisters around the mouth and throat and hands and feet, had already claimed the lives of a 14-month-old boy earlier this month and a two-year-old girl on April 29.

Xinhua cited the provincial health bureau as saying that the outbreak of the virus, which is highly contagious among children but not normally fatal, was "slowing down." The government earlier said it had been contained.

The local government has launched a campaign to remind parents to take preventive measures such as frequent handwashing.

Chinese bloggers in Shandong said in early May that 26 children had died in the outbreak. Local media said authorities in Linyi had denied that figure.

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