- Associated Press - Friday, August 22, 2014

WASHINGTON (AP) - By rejecting demands for a nine-digit payment to save kidnapped American journalist James Foley, the United States upheld a policy choice that some European and Arab governments have long found too wrenching to make themselves: ruling out ransom to rescue any citizen held captive by militant organizations, in hopes the tough stand will make Americans safer from kidnapping and attacks by extremists.

Foley’s beheading by the Islamic State extremist group intensified a debate within the Obama administration and with American allies abroad about whether to pay ransoms to al-Qaida and other organizations, at the risk of encouraging more abductions and funding militancy.

For al-Qaida and some other militant bands, ransoms paid to free kidnapped Europeans over the past decade have surpassed donations from private supporters as a source of funding, according to the United States and Britain.

The British government, like the U.S., adheres to a longstanding policy against paying ransoms to extremists.

Foley’s Islamic State captors had demanded $132.5 million (100 million euros) from his parents and political concessions from Washington. Neither obliged, authorities say.

The Islamic State also demanded a $132.5 million ransom each for two other American hostages the militants are holding, according to a person close to the situation who spoke late Thursday on condition of anonymity because he was not authorized to discuss the information by name. The demand to the families of each hostage came only once, late last year.

Foley, 40, a freelance journalist from New Hampshire, was killed within the past week inside Syria, where he had been held since his disappearance there in November 2012. Extremists revealed his death in a video released Tuesday showing his beheading.

Extremists said they killed Foley in retaliation for what by Thursday were 90 U.S. airstrikes since Aug. 8 targeting Islamic State positions in northern Iraq. But the ransom demands began late last year, even before the Islamic State, one of the world’s most financially prosperous extremist groups, had begun its brutal march across much of western and northern Iraq.

Whether or not it was their primary motive in killing the freelance reporter, the Islamic State militants - already savvy self-promoters on Twitter and in slickly produced videos - since then have moved squarely to the front of the U.S. agenda and international attention, said Matthew Levitt, a counterterror expert at the Washington Institute think-tank.

It’s “the kind of coverage you can’t really buy,” Levitt said. “From their perspective, this has been a tremendous success.”

A senior Obama administration official said Thursday the Islamic State had made a “range of requests” from the U.S. for Foley’s release, including changes in American policy and posture in the Mideast.

At the State Department, deputy spokeswoman Marie Harf said the militancy - which controls a swath of land across northern Syria and Iraq - has collected millions of dollars in ransoms so far this year alone.

“We do not make concessions to terrorists,” Harf told reporters. “We do not pay ransoms.”

“The United States government believes very strongly that paying ransom to terrorists gives them a tool in the form of financing that helps them propagate what they’re doing,” she said. “And so we believe very strongly that we don’t do that, for that reason.”

The issue of payments by American families or U.S. corporations is now under debate within the Obama administration, according to a U.S. official familiar with the conversations, who spoke on condition of anonymity because he was not authorized to discuss them by name.

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