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Full Article Follow Reuters Facebook Twitter RSS YouTube Read Bones of bush icon Ned Kelly identified 01 Sep 2011 Five VA patients blinded by Avastin: report 01 Sep 2011 Exclusive: Perry sought to sideline nuclear waste site critic 01 Sep 2011 Exclusive: Condoleezza Rice fires back at Cheney memoir 31 Aug 2011 Police officer who had sex on duty won't face charges 01 Sep 2011 Discussed 177 Labor leaders must pay for parade if GOP banned, mayor says 121 White House to nominate Krueger as top economist 79 UPDATE 1-Obama warns Hurricane Irene flooding could worsen Watched Buenos Aires Fashion week sizzles Mon, Aug 22 2011 Lockheed Martin presents airship of the future Thu, Aug 18 2011 Experimental plane reaches 13,000 mph Fri, Aug 26 2011 Gaddafi defiant as world frees Libya funds Tweet Share this Email Print Related News World powers free up billions to rebuild Libya 2:25am EDT Comments from Paris conference on Libya 2:25am EDT Libya fighters look for desert showdown with Gaddafi 2:25am EDT Timeline: Uprising against Libya's Muammar Gaddafi 2:25am EDT Analysis & Opinion Taliban talks and Mullah Omar’s Eid message Has the African Union got Libya wrong? Related Topics World » Libya » Related Video A road map for Libya Thu, Sep 1 2011 A fragile peace in Tarhouna, Libya Libyans celebrate freedom on day of Gaddafi's coup anniversary Libyans visit ruined Gaddafi compound 1 of 10. A still image of Muammar Gaddafi is displayed to accompany his audio message broadcast by Arabic news channels Al-Arouba and Arrai September 1, 2011. Credit: Reuters/Al-Arouba and Arrai via Reuters TV By Mohammed Abbas TRIPOLI | Fri Sep 2, 2011 2:26am EDT TRIPOLI (Reuters) - Muammar Gaddafi urged his supporters to fight on as world leaders freed up billions of dollars to help Libya's new rulers rebuild a nation torn by 42 years of one-man rule and six months of civil war. "Let it be a long battle. We will fight from place to place, from town to town, from valley to valley, from mountain to mountain," Gaddafi said in a message relayed by satellite TV on the anniversary of the coup that brought him to power in 1969. "If Libya goes up in flames, who will be able to govern it? Let it burn," he said, speaking from hiding. In further comments broadcast later, he vowed to prevent oil exports, in the kind of threat that stirs fears of an Iraq-style insurgency: "You will not be able to pump oil for the sake of your own people. We will not allow this to happen," Gaddafi said. "Be ready for a war of gangs and urban warfare." Amid conflicting reports of where the 69-year-old fugitive might be, a commander in the forces of the new ruling council said he had fled to a desert town south of the capital, one of several tribal bastions still holding out. Seeking to avoid more bloodshed, opposition forces also extended by a week a deadline for Gaddafi's hometown of Sirte, on the coast, to surrender. Meeting the National Transitional Council in Paris at the invitation of France and Britain, prime backers of the Libyan uprising which followed other Arab Spring revolts, Western powers said Gaddafi was still a threat, but handed the NTC $15 billion of his foreign assets to start the job of rebuilding. "We have committed to unblock funds from the Libya of the past to finance the development of the Libya of the future," French President Nicolas Sarkozy told a news conference. "The world bet on the Libyans and the Libyans showed their courage and made their dream real," Mahmoud Jibril, the prime minister in the interim government, said as NATO air forces maintained support for NTC fighters on the frontlines in Libya. CLINTON: "WE WILL BE WATCHING" A history of tribal, ethnic and regional friction as well as divisions during the rebellion have created a wariness about the ability of the new leaders to introduce the stable democracy that is the declared goal for the potentially oil-rich nation of six million. U.S. Secretary of State Hillary Clinton said U.N. sanctions should be lifted in a responsible way and the National Transition Council (NTC) should be given Libya's U.N. seat. She said in Paris: "The work does not end with the end of an oppressive regime. Winning a war offers no guarantee of winning the peace that follows." "We will be watching and supporting Libya's leaders as they keep their stated commitments to conduct an inclusive transition, act under the rule of law and protect vulnerable populations," she added, pledging to continue military support and calling on Gaddafi and his entourage to give themselves up. Clinton also urged the new leaders to work with those who once supported Gaddafi -- something the prime minister in the ousted government, al-Baghdadi Ali al-Mahmoudi, said he was also doing, according to a report by al-Arabiya television. Other powers, notably Russia and China, have been slower to warm to Gaddafi's enemies but attended the Paris conference as international competition warms up for a share of contracts in rebuilding Libya and in exploiting its big oil and gas reserves. Russia recognized the NTC as Libya's government Thursday. "GADDAFI IN BANI WALID" Abdel Majid Mlegta, coordinator of the Tripoli military operations room for the NTC, told Reuters "someone we trust" had said Gaddafi fled to Bani Walid, 150 km (95 miles) southeast of the capital, three days after Tripoli fell. With him were his son Saif al-Islam and intelligence chief Abdullah al-Senussi, all three of them facing international war crimes charges. An Algerian newspaper said Gaddafi was in the border town of Ghadamis and phoned Algerian President Abdelaziz Bouteflika to appeal for refuge. Bouteflika did not take the call, though Algeria has taken in Gaddafi's wife and three of his children. Mlegta said Gaddafi was planning a fightback from Bani Walid and appeals to notables in the town to hand over Gaddafi had gone unanswered. He ruled out attacking the town because of tribal ties shared by its residents and many NTC fighters. Independent reports from Sirte and Bani Walid have not been available with communications cut. NTC commanders say residents are running low on supplies but many remain loyal to Gaddafi. Mohammed Zawawi, an NTC spokesman in the eastern city of Benghazi, said extending a deadline for surrender until next Saturday would save lives. "We're not in a rush to get in to Sirte," he said. "We're not going to lose casualties for it." In the desert east of Bani Walid, a Reuters correspondent saw columns of anti-Gaddafi forces on patrol but found fighters unready to mount an offensive yet. "Right now we are waiting. Everyone is ready to fight. Sirte will be liberated first, then Bani Walid," said fighter Ibrahim Obaidr. (Additional reporting by Christian Lowe in Tripoli, Maria Golovnina in Misrata, Emma Farge, Robert Birsel and Alex Dziadosz in Benghazi, Richard Valdmanis, Marie-Louise Gumuchian, Giles Elgood and Alastair Macdonald in Tunis, Justyna Pawlak in Brussels, Catherine Bremer, Brian Love, John Irish and Keith Weir in Paris; Writing by Alastair Macdonald and Giles Elgood; Editing by Jon Hemming) World Libya Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (4) Yamayoko wrote: Gaddafi’s voice is now insignificant. He is a commander without soldiers but a selfish coward who persistently asks his loyalist followers to die for him. Now even compatriot Syria refused to broadcast his message and he has to count on unmanned satellite. Sep 01, 2011 10:28pm EDT -- Report as abuse DoubleL2 wrote: This could’ve happened much earlier if only Obama was willing to get more involved. Sep 01, 2011 12:25am EDT -- Report as abuse Tato1234 wrote: see world, that’s the manipulation. What happened to the other 30 somthing messages? Sep 02, 2011 2:19am EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) 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