Gaddafi unflinching as rebel city fears counter-attack

TRIPOLI, Feb 28 (agencies): Libyan rebels awaited a counter-attack by Muammar Gaddafi's forces Monday, after the country's leader defied demands that he quit to end the bloodiest of the Arab world's wave of uprisings. Rebels holding Zawiyah, only 50 km (30 miles) west of Tripoli, said about 2,000 troops loyal to Gaddafi had surrounded the city. "We will do our best to fight them off. They will attack soon," said a former police major who switched sides and joined the rebellion. "If we are fighting for freedom, we are ready to die for it." Gaddafi is fighting a rebellion which has swept through his Mediterranean oil producing nation after uprisings toppled entrenched leaders in neighboring Tunisia and Egypt. His fierce crackdown has killed hundreds, triggering U.N. sanctions and Western condemnation, but has not turned the tide of protests. Residents even in parts of the capital Tripoli have thrown up barricades against government forces. A general in the east of the country, where Gaddafi's power has evaporated, told Reuters his forces were ready to help rebels in the west. "Our brothers in Tripoli say: "We are fine so far, we do not need help'. If they ask for help we are ready to move," said General Ahmed el-Gatrani, one of most senior figures in the mutinous army in Benghazi. Analysts say they expect rebels eventually to take the capital and kill or capture Gaddafi, but add that he has the firepower to foment chaos or civil war-a prospect he and his sons have warned of. Serbian television quoted Gaddafi as blaming foreigners and al Qaeda for the unrest and condemning the U.N. Security Council for imposing sanctions and ordering a war crimes inquiry. "The people of Libya support me. Small groups of rebels are surrounded and will be dealt with," he said. European powers said it was time for Gaddafi to stand down and Secretary of State Hillary Clinton said the United States was "reaching out" to opposition groups. Residents of Zawiyah told of fierce fighting against pro-Gaddafi paramilitaries armed with heavy weapons. "Gaddafi is crazy. His people shot at us using rocket-propelled grenades," said a man who gave his name as Mustafa. Another man called Chawki said: "We need justice. People are being killed. Gaddafi's people shot my nephew." There were queues outside banks in Tripoli on Sunday for the 500 Libyan dinars ($400) the government had promised it would start distributing to each family. From Misrata, a city 200 km (120 miles) east of Tripoli, residents said by phone a thrust by forces loyal to Gaddafi, operating from the airport, had been rebuffed with bloodshed.