United States recognizes Libyan rebels as legitimate government

ISTANBUL — The United States granted Libyan rebel leaders full diplomatic recognition as the governing authority of Libya on Friday, a move that could give the cash-strapped rebels access to more than $30 billion in frozen assets that once belonged to Moammar Gaddafi.

“The TNC has offered important assurances today, including the promise to pursue a process of democratic reform that is inclusive both geographically and politically,” Secretary of State Hillary Rodham Clinton said, referring to the rebels’ Transitional National Council, in an explanation of the decision to other foreign ministers.

The U.S. announcement was accompanied by an agreement among all of the nations at a meeting of 30 Western and Arab nations to similarly recognize the rebel council after five months of fighting that has failed to oust Gaddafi.

The move came after a plan was outlined by Libyan rebel leaders seeking to dispel doubts among Western powers about their capability to govern. The Libyan rebel representatives sent to Istanbul to make their case for recognition expressed exuberance after the announcement but also weariness and frustration at the limited help they have received.

With hair matted in sweat and heavy bags under his eyes, Ali Tarhouni, the rebels’ minister of finance and oil, noted that the international recognition the rebels received Friday would not result in an immediate infusion of funds, which they desperately need.

“All it has brought is more pledges for money,” he said. “If we had as much money as we have had pledges these past few months, we would have no problems.”

Beside him, the rebels’ minister of information, Mahmoud Shammam, added that the opposition needs needs money but that it more desperately needs weapons, which most Western powers have refused to supply. The rebels might be barred from using money in frozen assets to buy weapons, he said.

News that the United States would recognize the rebel government as the legitimate authority in Libya spread quickly in the rugged desert mountains south of Tripoli, where rebel fighters have been fighting Libyan troops. “We are very happy to hear this,” said Omar Gazayah, a teacher in the rebel town of Zintan who commands 230 fighters. “But we are waiting for actions, not just words and declarations.”

Gazayah said the rebels need money for fuel, medicines and weapons. “We hope this recognition means that America and NATO will put more pressure on Gaddafi — more pressure politically and with the military.”

So far, Kuwait and Qatar have given the rebels roughly $100 million. France on Friday renewed a previous pledge to unfreeze $250 million in assets in coming weeks for the rebels, and Italy pledged to unfreeze $100 million.

The United States did not pledge a specific amount, because the money is tied up in legalities, including U.S. and U.N. sanctions, U.S. officials said.

The United States could tell banks to transfer frozen assets directly to the TNC, but that could run into U.N. sanctions still in place. An alternative being considered by U.S. officials and Libyan rebels is using those assets as collateral for loans that rebels could use as funding.