Hopes dashed for release of French hostages

Hopes that two French hostages in Iraq might soon be freed have given way to  concern after a statement of new demands for their…

Hopes that two French hostages in Iraq might soon be freed have given way to  concern after a statement of new demands for their release was posted on an Islamic website.

The statement, posted on the site yesterday and demanding a $5 million ransom for the two journalists within 48 hours, met with widespread scepticism in the French media and a call for "maximum discretion" from officials.

The statement, made in the name of the Islamic Army in Iraq that was holding the hostages, said the militants had planned to release the men but attacks by United States troops in the area had prevented them from doing so.

Videotapes in the name of the group have been sent to the Arabic television station Al Jazeera showing the two men since they were seized on August 20th.

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The group also called for a truce with al-Qaeda leader Osama bin Laden and a promise of no military and commercial dealings with Iraq - demands which appeared to be directed at France.

"We always take this type of information seriously. . . . we are trying to check its authenticity which is not established at this time," Prime Minister Jean-Pierre Raffarin said.

France was stunned by the kidnappings because it had opposed the US-led war in Iraq and has not sent troops to the country.

Scores of hostages from many countries have been seized in the past five months in a guerrilla campaign to undermine Iraq's interim government. More than 20 have been killed.