06 May 2011

ROME/TRIPOLI: Libyan rebels won a financial lifeline potentially worth billions of dollars from a group of Western and Arab countries Thursday, as NATO planes struck forces loyal to Moammar Gadhafi in the west.

Ministers from an anti-Gadhafi coalition called the Libya contact group, including the United States, France, Britain and Italy, as well as Qatar, Kuwait and Jordan, agreed in Rome to set up a fund to help the rebels, who are desperately short of cash.

U.S. Secretary of State Hillary Clinton said Washington would seek to unlock some of the $30 billion of Libyan state funds frozen in the United States to help the rebel movement.

A senior U.S. official said Washington hoped to free up a substantial sum to meet humanitarian needs but it would only be a small fraction of the $30 billion frozen by Washington.

Italy, host of the Rome meeting, said a temporary special fund would be set up to channel cash to the rebel administration in its stronghold of Benghazi in eastern Libya.

Kuwait pledged $180 million, while Qatar promised $400-to-$500 million. France said it was evaluating its contribution to the fund, which should be operational within weeks.

In Zintan, southwest of Tripoli, a rebel spokesman said NATO planes struck Gadhafis forces near weapons depots west of the rebel-held town.

Around eight to 10 missiles landed there. A witness who was near the area confirmed that, the spokesman, Abdulrahman, told Reuters by telephone. He said the area was 30 kilometers from Zintan. Earlier, Abdulrahman said pro-Gadhafi forces had fired about 50 Russian-made Grad rockets into Zintan Thursday.

Near the border with Tunisia, a rebel fighter told Reuters there was intense fighting between rebels and pro-Gadhafi forces in the area of the village of Ghezaya.

Rebels on the border say they are preparing for an attempt by Gadhafis forces to retake the crossing.

There are several dead and injured on both sides, the rebel, called Wissm, told Reuters by telephone.

As the fighting has generally descended into a stalemate, the rebel Transitional National Council says it needs up to $3 billion to keep going in the coming months.

Efforts to unblock Libyan state assets frozen in overseas accounts or to allow the rebels to get past U.N. sanctions that prevent their selling oil on international markets have been held up so far.

Britain said it had no plans to contribute to the fund set up for the rebels because it already had made a very substantial contribution to humanitarian assistance.

British Foreign Secretary William Hague said in Rome: What came through from this meeting was the united determination now to intensify the military pressure, the diplomatic pressure and the economic pressure on the Gadhafi regime.

Asked what Tripoli thought of renewed calls by Clinton for Gadhafi to step down, Libyan government spokesman Mussa Ibrahim said it was not up to the U.S. or any other foreign country to decide who should lead the Libyan people.Rebel spokesman Mahmoud Shammam said the rebels had only enough funds to pay for their immediate needs in food, public salaries and medicine until the end of May. They needed $2 billion to $3 billion in urgent funding, he added.

Josette Sheeran, head of the U.N. World Food Program, said Thursday Libyas food supplies could run out in six to eight weeks. If we do not address the larger gaps in the food system in Libya particularly eastern Libya well have to envision a fairly massive humanitarian operation, she said in an interview.

An aid ship defied shelling by Gadhafis forces to rescue over 1,000 people from Misrata but was forced to leave behind hundreds desperate to flee the fighting.

The International Organization for Migration said the boat later arrived safely in Benghazi. Dazed and emotional migrant workers evacuated on the boat described cowering in fear from relentless shellfire and a desperate scramble to board the vessel as it pulled away. I did not know if I would ever get out, I thought I was going to die, said Prince Amalkwah, a 24-year-old Nigerian electrician.

Misratas port is a lifeline for the city, where food and medical supplies are low and snipers shoot from rooftops. In all about 13,000 people have been rescued by 13 ships.

At a meeting in Tripoli Thursday, about 2,000 tribesmen representing 850 tribes demanded a halt to NATO airstrikes and for an end to the fighting.

The insurgents trying to topple Gadhafi after 41 years in power had hoped for a swift victory, akin to the overthrow of the leaders of Egypt and Tunisia by popular uprisings. But his better-equipped forces halted the rebels westward advance from Benghazi and the front line is now largely static.

Copyright The Daily Star 2011.