US rejects Iraq hostage ransoms

The video from the Islamic Army in Iraq said to show a US hostage

Washington will use intelligence gathering to free US citizens held hostage in Iraq, but will not pay any ransom, President George W Bush says.

Mr Bush was asked about the fate of a US peace activist captured with two Canadians and a Briton last week.

"We of course don't pay ransom for any hostages, what we will do of course is use our intelligence gathering to see if we can't help locate them," he said.

Arabic TV has shown footage purportedly of a new US hostage seized in Iraq.

The al-Jazeera network said Iraqi insurgents had claimed the video showed a kidnapped American security consultant.

The footage showed a blond man with his hands behind his back. It also showed a US passport and bank account card.

Al-Jazeera said it could not verify the authenticity of the tape, which bore the logo of the Islamic Army in Iraq.

There have been no reports of a US security consultant being seized.

The group threatened to kill the hostage within 48 hours unless all prisoners in Iraq were released.

More than 200 foreigners and thousands of Iraqis have been abducted since the US-led invasion of Iraq in 2003.

Peace activist Tom Fox is being held hostage along with colleagues Norman Kember, from Britain, and Canadians James Loney and Harmeet Singh Sooden.

A previously unknown militant group, the Swords of Truth Brigade, has claimed they are spies and has threatened to kill them.