PARIS – An Islamist gang that claims to be holding two French journalists in Iraq demanded a $5 million ransom yesterday as part of a disturbing set of new conditions for their release.

Although France is believed to have paid hostage-takers in the past, the ultimatum from the Islamic Army in Iraq also included demands that any Western government would find difficult, if not impossible, to meet. The statement, posted on the Internet and purporting to come from the kidnappers’ “higher command,” called for acceptance of a truce with Osama bin Laden and guarantees “not to engage militarily and commercially” in Iraq.

The first of the non-financial conditions appears to refer to a bin Laden “offer,” made to European nations in April, for a suspension of terrorist attacks in return for their withdrawal from Iraq and Afghanistan within three months.

But any idea of democratic governments negotiating with Mr. bin Laden or his al Qaeda network was dismissed as preposterous.

Doubts were raised yesterday about the latest statement’s origins. But if it is authentic it will be the gloomiest development since the French hostage crisis began.

Officials in Paris, already urging “extreme prudence,” were shocked into initial silence by the pronouncement. Until yesterday, France had been holding out hope that Georges Malbrunot, 41, of Le Figaro, and Christian Chesnot, 37, from Radio France Inter-nationale, and their Syrian driver, Mohammed al-Joundi, would soon be freed unharmed.

In the atmosphere of cautious optimism it has often been overlooked that the same group claiming to have captured the French journalists also admitted responsibility for the execution of the Italian journalist and aid worker Enzo Baldoni. Mr Baldoni’s opposition to his government’s involvement in Iraq had failed to save his life.

Over the weekend, the kidnappers of Mr. Malbrunot and Mr. Chesnot were said to be split between those persuaded that they should be allowed to go and those demanding their murder as coalition “agents.”