Iraq militants set deadline over French hostages

8.15am

DUBAI - A purported statement by Iraqi militants holding two French journalists hostage demanded a US$5 million ($7.8 million) ransom on Monday and set a 48-hour deadline.

The statement, posted on a website in the name of the Islamic Army in Iraq, punctured a mood of cautious optimism in France that Christian Chesnot and Georges Malbrunot would be freed soon.

The militants had previously planned to release the men but attacks had prevented them from doing so, said the statement.

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

He told RTL radio the situation in Iraq was "worrying" but added: "Nothing is calling into question the confidence we have in a favourable outcome of the situation."

Video tapes in the name of the Islamic Army in Iraq have been sent to the Arabic television station Al Jazeera showing the two men since they were seized on August 20.

Monday's statement 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.

The statement said the group would accept just one of its demands being met, but issued a warning against any attempt to attack it.

"We warn you not to bombard us as you did ... on the day when we intended to deliver (the hostages) to you," it 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.

The kidnappers originally demanded the French government revoke a law banning Muslim headscarves in state schools, but Paris refused and the law went into force last Thursday.

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

The secretary-general of the Union of French Islamic Organisations, Fouad Alaoui, who went to Iraq to help secure the release of the journalists, said the talks were in the "delivery phase" but a surge of violence had complicated the situation.

"(Iraq) is in complete chaos, so that poses major difficulties," French defence minister Michele Alliot-Marie told LCI television.

"All we can say today is that we have reliable indications that allow us to think they are in good health and that (their) release is possible."

- REUTERS

Herald Feature: Iraq