Muammar Qadhafi could stay in Libya if he gives up power, France said on Wednesday, signalling a new effort to find a diplomatic solution to a five-month-old war that has failed to oust the resilient leader. But Qadhafi's foreign minister swiftly dismissed the proposal, saying Qadhafi's departure after 41 years in power was not a matter for discussion.
On the battlefield, rebels seeking to defeat Qadhafi suffered heavy casualties in fighting for the eastern oil hub of Brega, a town they must capture if they are to advance towards the capital, Tripoli.
Eighteen rebel fighters were killed and up to 150 wounded in the latest clashes with forces loyal to Qadhafi for control of Brega, a doctor at a rebel-controlled hospital said.
"Yesterday, it was a disaster," Dr Sarahat Atta-Alah told Reuters at Ajdabiya hospital in eastern Libya on Wednesday. Rebels have said they have encircled Brega, but fighters said they were still coming under fire from pro-Qadhafi forces.
French Foreign Minister Alain Juppe said foreign powers were now ready to let Qadhafi stay in Libya if he stepped down. Juppe told French LCI TV that a UN envoy had been asked to co-ordinate contacts with the Qadhafi camp, after weeks of rumours about meetings with Qadhafi emissaries in Paris and elsewhere.
"One of the scenarios effectively envisaged is that he stays in Libya on one condition which I repeat - that he very clearly steps aside from Libyan political life," Juppe said.