I'd advice you to track down the debuts by MASQUERADE & POLE POSITION - I haven't heard the full album by GALAXY but from the samples I heard they're very similar to my 2 recommended bands...
I think it'll be very hard to find something similar to "Scratch N Sniff" though...That one's very unique. But the bonus tracks off the re-issued "Matter Of Attitude" album (also by FATE) are from 1990 like the "Scratch" album.
Another advice is RAW SILK - "Silk Under The Skin" - Not the worlds best production but one hell of a melodic act. Similar to a lot of those Scandinavian bands like TREAT, SKAGARACK, DALTON etc.
The "new" Swedish bands DREAMHUNTER & AMAZE ME (debut only) are very close to perfection according to my ears. I think you'll like 'em!
You also mention BLUE TEARS....If you like that kind of music you also need the debut from MICHAEL SWEET in your collection