An Iraqi group which kidnapped seven foreign hostages has issued a new 48-hour deadline to the captives' Kuwaiti employer.

Qatar-based al-Jazeera TV reported that the hostages, including three Indians, three Kenyans and an Egyptian, worked for the Kuwait and Gulf Link Transport Company.

The group, calling itself the Black Flags, extended the deadline, but also demanded compensation to families of victims in Fallujah and the release of Iraqi detainees from American and Kuwaiti prisons.

The kidnappers threatened to start beheading the hostages from Saturday unless the Kuwaiti company withdraws from Iraq and closes its offices there.

They also demanded that India, Kenya and Egypt withdraw their personnel from Iraq, vowing to behead one hostage every 72 hours if their demands are not met.

None of these countries are part of the multinational forces in Iraq.

The latest hostage taken was an Egyptian diplomat Mohammed Mamdouh Helmi Qutb in Baghdad.

In response, Egypt says it will not send troops to Iraq.

(CRI July 24, 2004)