Search This Blog

Taxes still a stumbling block in US debt talks

After months of effort, president Barack Obama and congressional Republicans are right back where they started as they try to avert a looming debt default: arguing over taxes.

With a 'grand bargain' to tame the national debt seemingly off the table, Obama, House of Representatives Speaker John Boehner and other top leaders will try for a more modest deal when they resume their discussions at the White House on Monday afternoon.

But negotiators will have to confront a divide over taxes that has prevented them from reaching a deal so far. Democrats say new tax revenues need to be part of the equation, while Republicans say they won't back any increase in taxes.

A highly anticipated Sunday meeting broke little new ground. Obama and his fellow Democrats repeated the need for a 'balanced' approach, while Republicans restated their position that tax increases would further burden the already shaky economy. Senate Democratic Leader Harry Reid lectured Republicans for backing away from tough decisions, sources said, while Boehner was largely silent.

One source familiar with the meeting described it as a 'frank exchange of views' — Washington-speak for 'acrimonious.'

The post-meeting rhetoric seemed to bear this out.

'It's baffling that the President and his party continue to insist on massive tax hikes in the middle of a jobs crisis,' said Don Stewart, a spokesman for Senate Republican Leader Mitch McConnell.

Reid's spokesman, Adam Jentleson, said: 'The stakes are too high for Republicans to keep taking the easy way out.'

Time is running short to break the impasse.

The Treasury Department has warned that it will run out of money to cover the country's bills if Congress does not raise the $14.3 trillion (8.9 trillion pound) debt limit by August 2. Failure to do so could push the country back into recession, send shock waves through global markets and threaten the dollar's reserve status.

The real deadline is even closer. Participants say a deal should be in place by July 22 to ensure Congress has enough time to act, and Obama has told lawmakers to be prepared to meet every day this week.

Aides to Boehner and Obama had spent much of the past week discussing an ambitious budget deal that would have reformed the tax code and popular social spending programs and scaled back annual defence and domestic spending.

The goal was the $4 trillion in budget savings, measured over 10 years, that budget experts say is needed to keep the national debt at a sustainable level.

Source : New Age

Global economy signals slowdown: OECD

Leading eurozone countries and China are showing clear sign of slowdown and the United States and Japan could be slipping towards a downward slope, the OECD said on Monday.

France, Germany, China, India and Brazil were already on a path of slowdown, the OECD said on the basis of leading indicators pointing towards future trends.

The United States, Japan and Russia were at turning points following a period of growth, the Organisation for Economic Cooperation and Development said.

But the OECD said that Japanese data should be 'interpreted with some caution' owing to the difficulty in interpreting data because of disruption caused by the earthquake in March.

Last month, the indicators signalled slowing growth by OECD countries with the exception of the United States.

Source : New Age

Euro falls further against dollar in Asia

The euro fell further against the dollar in Asia Monday on recurring fears of contagion from the ongoing debt crisis in the eurozone.

The single European unit dropped to $1.4188 in Tokyo afternoon trade from $1.4258 in New York late Friday. The European single currency retreated to 114.59 yen from 114.91 yen. The dollar fetched 80.76 yen against 80.55 yen.

The euro lost ground against the dollar on Friday despite a bleak US employment report for June, as fears that the eurozone debt crisis would spread to Italy dampened sentiment, dealers said.

Traders sold Italian debt and Italian banking stocks as they worried about the possibility the country would be undermined by the same debt concerns as those hitting Greece, Portugal and Ireland.

'The euro is weak amid worries about Italy,' said Teppei Ino, analyst at the Bank of Tokyo-Mitsubishi UFJ. 'The liquidity crisis is not expected now, but the market is closely watching upcoming European events.'

The market remained jittery ahead of a top European officials' meeting later in the day and the release this week of results of 'stress tests' being carried out on Europe's banking system.

Source : New Age

Oil price falls below $95

Oil prices fell below $95 a barrel Monday in Asia amid signs the US economy is struggling.

Benchmark oil for August delivery was down $1.33 to $94.87 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Crude gave up $2.47 to settle at $96.20 on Friday.

In London, Brent crude shed 87 cents to $117.46 per barrel on the ICE Futures exchange.

On Friday, the US labour department said that employers added the fewest jobs in nine months and the unemployment rate rose to 9.2 per cent in June, undermining investor optimism that the world's biggest economy was improving.

'The report was negative from just about every angle of approach,' energy consultant The Schork Group said in a report. 'That's hardly what you would expect in the second year of an alleged economic recovery.'

Before the dismal jobs report, oil had rebounded from $90 two weeks ago on expectations global supplies will tighten and demand will improve during the next 18 months.

'Although the employment data delivered a significant body slam to energy markets, we're still reluctant to rule out one more run at the $100 area,' Ritterbusch and Associates said in a report. 'The energy market absorbed the important monthly employment figures well enough to make another push within the next several sessions.'

Source : New Age

RUET teachers’ assoc poll today

Election to the nine-member executive committee of the Rajshahi University of Engineering and Technology Teachers' Association will be held today.

Two panels of teachers will be vying in the election to be held at the mechanical engineering department lab at the university between 10:00am and 1:00pm, RUET sources said.

Official sources said pro-Awami League teachers under blue panel and progressive teachers society under white panel will contest in the polls while the BNP-Jammat-backed teachers would not take part in the race.

Professor Nirendranath Mustafi, head of mechanical engineering department, will vie for the post of president from the Blue panel Professor NHM Kamruzzaman Sarker Hero of civil engineering department will vie for the post of general secretary.

White panel candidate for the post of president is Profess Tarifuddin Ahmed of civil engineering department and for the post of general secretary is SM Abdur Rajjak of electrical and electronics engineering department.

Source : New Age

Developers asked to abide by rules

Rajdhani Unnayan Kartri-pakkha on Monday called upon leaders of real estate sector to abide by the relevant laws in their own interest.

Rajuk chairman M Nurul Huda said this at a meeting with leaders of the Real Estate and Housing Association of Bangladesh and the Bangladesh Land Developers Association in the conference room of the Rajuk.

Referring to the construction rules 2008, private residential land development rules 2004 and the wetland conservation act of 2000, Huda asked the REHAB and BLDA leaders not to publicise the projects that were not approved by Rajuk.

During the meeting, REHAB and BLDA leaders requested early processing of their proposals, involvement in policy formulation and making current laws realistic.

The Rajuk chief assured them that he would try his best to improve the situation by reorganising the regulatory body and passing on their requests to the policymakers.

Sheikh Abdul Mannan, member planning of Rajuk, told the meeting that groundwater level in Dhaka was falling fast, and if nothing is done now it may be irreparable in future.

Source : New Age

Change in temperature unlikely

Light to moderate rain or thundershowers accompanied by temporary gusty wind is likely at a few places over the Rajshahi, Sylhet, Chittagong and Barisal divisions and at one or two places over the Dhaka and Khulna divisions till 6:00pm today.

Day temperature may remain nearly unchanged over the country, the Meteorology Office said in a forecast on Monday.

The sun sets in Dhaka today at 6:49pm and rises tomorrow at 5:19am.

The country's highest temperature, 35.7 degrees Celsius, was recorded on Monday in Chuadanga and the lowest, 24.4 degrees Celsius, in Saidpur.

Source : New Age

1,150 bottles of Phensedyl seized, one held

A truck assistant was arrested early Monday in the capital for carrying contraband Phensedyl.

The detective branch police arrested Towhinur Islam, 21, assistant of a maize-laden truck from Dinajpur, near Shah Ali of Mirpur in the city and seized 1,150 bottles of Phensedyl.

The police said a DB police team, led by Dhaka Metropolitan Police senior assistant commissioner Sadira Khatun, on information, challenged the truck with her force at about 2:30am.

The truck-driver escaped the scene before the detectives could get down from their vehicle.

They searched the vehicle and found the bottles of Phensedyl in a gunnysack and arrested the assistant.

Sadira said the bottles of banned syrup were being transported from Hili in bordering Dinajpur and they also seized the truck.

'We have arrested a carrier only, but we are on drive to arrest the cartel,' Sadira said.

Towhinur Islam, who used to do farming in a remote village in Dinajpur, however, denied his involvement in transporting banned codeine syrup.

He claimed the truck driver, Mohammad Shamim, 30, might have loaded the bottles in the truck.

Source : New Age

1,150 bottles of Phensedyl seized, one held

A truck assistant was arrested early Monday in the capital for carrying contraband Phensedyl.

The detective branch police arrested Towhinur Islam, 21, assistant of a maize-laden truck from Dinajpur, near Shah Ali of Mirpur in the city and seized 1,150 bottles of Phensedyl.

The police said a DB police team, led by Dhaka Metropolitan Police senior assistant commissioner Sadira Khatun, on information, challenged the truck with her force at about 2:30am.

The truck-driver escaped the scene before the detectives could get down from their vehicle.

They searched the vehicle and found the bottles of Phensedyl in a gunnysack and arrested the assistant.

Sadira said the bottles of banned syrup were being transported from Hili in bordering Dinajpur and they also seized the truck.

'We have arrested a carrier only, but we are on drive to arrest the cartel,' Sadira said.

Towhinur Islam, who used to do farming in a remote village in Dinajpur, however, denied his involvement in transporting banned codeine syrup.

He claimed the truck driver, Mohammad Shamim, 30, might have loaded the bottles in the truck.

Source : New Age

5 Cotton warehouses burnt in Tongi

A fire gutted five cotton warehouses at Mill gate area of Tongi in Gazipur early Monday.

The on duty station officer of Tongi fire service, Md Abdullah Al Arefin, said that the fire broke out at about 5:30am on Monday. The five cotton warehouses in Mill gate area owned by Md Shajahan, Md Khorshed Alam, Md Sultan Hazi, Abul Basar and Siru Dash were completely gutted while a large quantity of raw cotton made from jute were burnt.

Being informed, the fire fighters went to the spot and brought the situation under control after two hours hectic effort.

The fire might have originated from electric short circuit, said the Tongi fire service on duty officer. 

Source : New Age

Man jailed for life in rape case

A court in Khulna on Monday convicted a man and sentenced him to life term rigorous imprisonment in a rape case of a 14-year-old girl.

The court also fined him Tk 50 thousand for raping the girl and Tk 25 thousand for kidnapping her.

According to the prosecution, the convicted person kidnapped the girl from Ishak Road under Jessore Sadar police station on September 24, 2009 and raped her. The police rescued her from Kaliganj upazila in Jhinaidh after one month of abduction and arrested Shishir.

The victim's father lodged a case with the Jessor Sadar thana in this connection on the day. Sub-inspector of the thana, Mustafizur Rahman, submitted charge sheet against eight persons before the court on November 27, 2009.

After examining the records and witnesses, judge Md Sekandar Ali of Khulna Speedy trial Tribunal delivered the verdict on Monday against Shishir Ghosh and released other seven as the allegation against them was not proved, court sources said.

Source : New Age

Mango trader’s murder protested in Natore

A protest rally against the death of mango trader Mosharaf Hossain and his gayebana Janaza were held at Central Eidgah Maidan in Natore on Monday where hundreds of leaders and workers of Awami League and general people attended.

Wearing black badges, they also brought out a mourning procession and paraded different city streets before terminating at Central Eidgah Maidan.

Addressing the rally briefly, the speakers demanded immediate arrest and punishment to the attackers of Mosharaf Hossain.

The rally was addressed, among others, by district AL president Sajedur Rahman Khan, vice-president and public prosecutor Sirajul Islam, general secretary Hanif Ali Sheikh and Juba League president Shariful Islam Ramzan.

The speakers prayed for salvation of the departed soul.

Mosharaf Hossain, a mango supplier of Dhaka's Badamtali Ghat, received critical burn injuries on Wednesday night in Tebaria area near Natore town on the first day hartal.

Subsequently he succumbed to his injuries.

Source : New Age

1,480 recruited in 29th BCS catch

The government has appointed 1,480 candidates who were finally selected to the 29th Bangladesh Civil Service batch.

The public administration ministry in a circular announced the recruitments on Monday.

The appointees have been asked to report to their designated offices on August 1.

Of the 123,745 examinees, who took the August 2009 preliminary test of the 29th BCS examinations, 5,062 made it through to the final round.

This year, the education cadre got the highest appointment followed by agriculture.

A total of 653 candidates secured jobs in the education cadre while 204 in agriculture, 197 in health, 177 in administration and 33 got jobs in police cadre.

Source : New Age

Young man found dead in Narail

Body of a young man was found in Narail on Monday morning.

The deceased was identified as Firoz Mollah, 30.

The police said a gang of unidentified miscreants called Firoz out of his over cell phone on Sunday night and chopped him indiscriminately with sharp weapons near Chasra-Gabtala bus stand area early morning on Monday.

Source : New Age

Old man killed in Mehendiganj

An old man was slaughtered in his own house at Mehendiganj upazila in Barisal on Saturday night.

The police said unidentified miscreants killed Hossain Ali, 65, taking the opportunity of his family members' absence at the house at Dadpur village in the upazila. 

The police recovered the body and send it to Barisal Sher-e-Bangla Medical College Hospital for autopsy.

Local people said the deceased had disputes with his relative Karam Ali over land property.

A case was filed.

Source : New Age

Water levels in some rivers fall

Water levels in major rivers of the country excepting the Brahmaputra-Jamuna are in falling trend, a release of Flood Forecasting and Warning Centre said on Monday.

The Brahmaputra-Jamuna river system is in rising trend while the Ganges-Padma and Meghna river system are falling trend, it added.

The Surma at Kanaighat and Kangsha at Jariajanjail are flowing above their respective danger levels by 29cm and 9cm recoded at 6:00am.

Monitoring the water levels at 73 stations, the FFWC said 32 stations recorded a rise and 35 registered a fall across the country.

Water levels at four station remained steady while at two others were marked above the danger-level.

Significant rainfall was recorded in different stations— 42mm at Rangpur station, 27.5 mm at Kurigram station, 22.6 mm at Teknaf and 19mm at Sunamganj.

Source : New Age

One killed in post-election violence in Cox’s Bazar

A man was killed and another six were injured in an armed attack on Sunday at Pookkhali union in Cox's Bazar.

The deceased, Maulavi Shamsol Huda, 55, son of Master Amir Hamza, was a resident of Modyo Pookkhali village at Pookkhali union under Cox's Bazar Sadar upazila.

Maulana Faridul Alam, chairman-elect of the Pookkhali union parishad, claimed that the deceased was his supporter and accused his rival group led by Rafique of the killing.

According to the police and witnesses, an armed group attacked Shamsol Huda and his friends and neighbours, while they were returning home from Muslim Bazar at Pookkhali union on Sunday night, after the UP election had been held on the day.

They said that 8-10 men in masks raided on them with machetes and fled as the local people advanced, hearing the screams of the victims. 

They had taken the injured to Cox's Bazar Sadar Hospital, where Shamsol Huda died.

The body was sent to the hospital morgue for autopsy and a case was filed with the Cox's Bazar Sadar police.

Source : New Age

Two killed as truck, human-hauler collide

At least two people were killed and 12 others injured when a truck collided with a human-hauler at Madhabdi in Narsingdi on Dhaka-Sylhet highway Monday.

The deceased, Nasima, 35, of Towadi village at Narsingdi Sadar upazila, was a passenger of the hauler and Jalil, 45, a vegetable trader of Matra village of Dhaka, was on the truck.

The police and local people said that a Dhaka-bound truck, loaded with vegetables, ran into the Narsingdi-bound human-hauler coming from Purinda at Birampur under Madhabdi union of Narsingdi Sadar upazila in the morning.

The local people took the victims to Narsingdi Sadar Hospital, where the doctors declared Nasima and Jalil dead.

Eight of the injured, namely Tara, Momen, Ripon, Fajila, Salam, Yasin, Badal and Sourabh, were referred to Dhaka Medical College Hospital as their condition deteriorated, while the rest got admitted to the Sadar Hospital.

The bodies were sent to the Sadar Hospital morgue for autopsy.

A case was filed with the Narsingdi Sadar police.

Source : New Age

Pilot project to update voters’ roll begins today

The Election Commission today begins a pilot project to update the electoral roll of two places, aiming to gather experience for launching a countrywide voters' roll updating campaign in August for the next general elections.

The pilot project will collect information about the people who will turn 15 in August through door-to-door visits.

Election commissioner M Sakhawat Hussain on Monday said the pilot project would be implemented in Kaliganj upazila of Gazipur district and Potnitola upazila of Naogaon to gather responses of the voters.

He said the new voters would have to provide some additional information, like the national identity card numbers of their parents, for enrolment. 'The additional information will have to be collected through door-to-door visits,' he added.

Based on the experience of the pilot project, the commission will decide whether to collect information about the already registered voters by filling in the forms anew or to gather information about the new voters only during the fully-fledged voters' roll updating campaign, said an official of the EC secretariat.

The EC will also consider whether to collect or not some additional information about the 8.57 crore voters already registered in the fresh forms during the campaign.

The typos in names in the national ID cards, however, will not be corrected.

The commission is planning to collect information about the people who will turn 18 in January 2014 so that there remains no need for further updating of the electoral roll before the next parliamentary polls, officials at the EC secretariat said.

The commission is legally bound to start updating the electoral roll on January 2 every year and also to update it before every general election.

Although the list of the people who turned 18 on January 1, 2011 and became eligible to be voters and the list of the people who had died till that date should have already been updated but the commission did not begin the task by the time specified in the law.

More than 10 lakh prospective voters were denied their franchise in the union council polls as the EC had failed to start updating the voters' roll on January 2 this year.

Around 13 lakh new voters and about the same number of left-outs had been enrolled every year in the past in accordance with the last updates.

The commission stopped registering voters after updating the voters' roll in July to November 2009, except enrolling the people who badly needed national identity cards as voters on special considerations.

Source : New Age

Mohiuddin Bablu, accused of murders, handed over to UK

Bangladeshi-born British citizen Mohiuddin Bablu, accused of fleeing the UK in 1997 after committing several murders and imprisoned in Bangladesh for the last 13 years in an arms case, was handed over to concerned British authorities on Monday.

Officials of the British police and the British High Commission in Dhaka were handed over the 40-year-old Bablu by the Dhaka Central Jail authorities at about 2:30pm, after which he was driven straight to Shah Jalal Airport to catch a flight to London.

The superintendent of Dhaka Central Jail, Partha Gopal Banik, told New Age that they had handed over Bablu to British detectives after completion of all the necessary formalities.

'Bablu was sentenced to 10 years of imprisonment in an arms case but had to stay in the jail for 13 years as the British authority requested the government not to release him, saying that he was accused of murders in London,' said Partha Gopal.

He said that British intelligence agents had received Bablu from the jail authority and taken him to the airport under tight security.

Mohiuddin Bablu fled Britain in 1997 after killing a man in London, said the police.

Bablu, after returning to Bangladesh, was arrested by the police for possessing illegal arms and sentenced to 10 years of imprisonment, said sources in Dhaka Central jail.

He was handed over to the British authority under the Extradition Act 1974, said Partha Gopal.

Joint secretary Kamal Uddin Ahmed of the home affairs ministry told reporters that Bangladesh's high commission in London would provide legal support to Bablu as the accused is also a Bangladeshi citizen.

He said that the High Court had also asked the government to hand over Bablu to the British authority as he was accused of several murders.

Source : New Age

Power agencies slow in providing new connections

Only about 30 per cent of the total number of eligible applicants have been provided new power connections since 7 November, 2010, said an official of the Power Division.

He said that five power distribution agencies had provided 2,28,883 new connections from November, 2010 to June 20 this year, though 7,67,875 applicants had already paid all the charges for installation of power lines.

After suspending new power connections from April to October 2010, the government decided to give power lines to consumers on condition that they install solar panels.

The authorities asked new domestic consumers, who want power lines with capacity of more than two kilowatts, to obtain three to five per cent of their electricity requirement from solar panels.

Last month the government decided to provide new connections in phases until December to applicants who had paid all the installation charges by June.

The Dhaka Power Distribution Company's managing director, Mohammad Abdus Sobhan, said that power distribution agencies would be able to hit the government's target of providing new power connections.

When he was asked about the reason for the slow rate of providing new power connections, he said that his company was ready to provide new lines but the consumers were delaying the setting up of solar panels.

The officials of the four other power distribution agencies gave the same excuse.

According to a report of the Power Division, only 2,844 applicants out of about 2.30 lakh, who had been provided power connections, had set up solar panels with a total capacity of 0.45MW.

The report also said that the new consumers had increased the demand for power by 331MW.

An official of the Power Division said that the country's power generation was expected to rise by 1,000MW by December, matching the increased consumption after eight lakh new connections are given by year's end.

Source : New Age

DMP chief asked to bring Farroque to HC today

The High Court on Monday asked the commissioner of Dhaka's Metropolitan Police, Benazir Ahmed, to bring opposition chief whip Zainul Abdin Farroque to the court this morning as the police had reportedly stopped him from coming to the court to seek bail in a case lodged on charge of assaulting the police.

The bench of Justice Nozrul Islam Chowdhury and Justice Anwarul Haque passed the order after Farroque's lawyer Moudud Ahmed told the court that the police had kept Farroque confined in a private hospital when he was supposed to appear in the court which was scheduled to hear his plea for bail.

The same bench told Moudud Ahmed that it would hear Farroque's plea for bail in connection with a case that the police had filed against him on charge of obstructing the police from discharging their duty on July 6 during the 2-day hartal called by the Bangladesh Nationalist Party and its allies.

Deputy attorney general Mohammad Ullah Kislu told New Age, 'I informed the DMP commissioner of the court's order as per its directive, and he told me that he would comply with the order.'

Moudud told reporters that he had filed a petition for Farroque's bail at about 2:30pm and the court had told him that the matter would be heard at about 4:00pm. Farroque was asked to come to the court from the hospital where he was admitted after being brutally beaten up by the police.

But the police stopped Farroque from appearing at the court for the bail hearing, he added.

On July 6, the very day that Farroque became the victim of police brutality, sub-inspector Nazmul Kabir lodged a case with the Sher-e-Bangla Nagar thana, accusing Farroque, BNP lawmaker Syeda Asifa Ashrafi Papia and some unnamed people of assaulting the policemen and obstructing them from performing their duty. The same thana refused to entertain ABM Ashrafuddin Nizan and other BNP stalwarts who went there to lodge a case against the concerned police officials.

On July 10, Nizan filed a case with a Dhaka court, accusing Dhaka Metropolitan Police's additional deputy commissioner Harun-or-Rashad, assistant commissioner Biplob Sarkar and some 25 to 30 unnamed policemen of attempting to kill Farroque.

After hearing the BNP's case, metropolitan magistrate AK Azad asked the DMP commissioner to investigate the incident and submit the report to the court by August 10.

The police case filed against Farroque and others is now being 'investigated' by the Detective Branch.

Source : New Age

Rebels must talk to Gaddafi govt: France

France's defence minister said it was time for Libya's rebels to negotiate with Muammar Gaddafi's government, signalling growing impatience with progress in the conflict.

Gaddafi's son, in an interview with an Algerian newspaper on Monday, said his father's government was in talks with the French government. There was no immediate comment from Paris.

French defence minister Gerard Longuet said on Sunday the rebels should not wait for Gaddafi's defeat, while signalling that Paris' objective was that the Libyan leader must leave power eventually.

Washington said it stood firm in its belief Gaddafi must go.

The messages from two leading members of the Western coalition opposing Gaddafi hinted at the strain the alliance is under after more than three months of

air strikes that have cost billions of dollars and failed to produce the swift outcome its backers had expected.

The rebels have refused to hold talks as long as Gaddafi remains in power, a stance which before now none of NATO's major powers has publicly challenged.

'We have ... asked them to speak to each other,' Longuet, whose government has until now been among the most hawkish on Libya, said on French television station BFM TV.

'The position of the TNC is very far from other positions. Now, there will be a need to sit around a table,' he said.

Asked if it was possible to hold talks if Gaddafi had not stepped down, Longuet said: 'He will be in another room in his palace with another title.'

Soon after, the State Department in Washington issued a message that gave no hint of compromise.

'The Libyan people will be the ones to decide how this transition takes place, but we stand firm in our belief that Gaddafi cannot remain in power,' it said in a written reply to a query.

It also said the United States would continue efforts, as part of the NATO coalition, to protect civilians from attack and said it believed the alliance was helping to up the pressure on Gaddafi.

In an interview published on Monday by the Algerian El Khabar newspaper, Saif al-Islam, a son of the Libyan leader, said his father's administration was in talks with the French government.

Speaking from Tripoli, the newspaper quoted him as saying: 'The truth is that we are negotiating with France and not with the rebels.

'Our envoy to Nicolas Sarkozy said that the French president was very clear and told him 'We created the rebel council, and without our support, and money, and our weapons, the council would have never existed.

'France said: 'When we reach an agreement with you Tripoli, we will force the council to cease fire',' he was quoted as saying.

Gaddafi has been holding on to power in the face of rebel attacks trying to break his 41-year rule, NATO air strikes, economic sanctions and the defections of prominent members of his government.

With no imminent end to the conflict in sight, cracks are emerging inside the NATO alliance. Some member states are balking at the burden on their recession-hit finances, and many are frustrated that there has been no decisive breakthrough.

But even countries which support a political solution have not answered the question of how a deal can be hammered out when the rebels and their Western backers say Gaddafi must go while the Libyan leader himself says that is not up for negotiation.

Strains over how to proceed in Libya are likely to surface on Friday when the contact group, which brings together the countries allied against Gaddafi, gathers in Istanbul for its next scheduled meeting.

There was no immediate reaction to the French minister's comments from the rebel leadership at its headquarters in the eastern Libyan city of Benghazi.

On the ground, rebel forces trying to march on Tripoli have made modest gains in the past week, but the fighting on Sunday underlined it would be a long slog.

Gaddafi's forces launched a heavy artillery bombardment to try to push back rebel fighters who last week seized the village of Al-Qawalish, 100 km  south of Tripoli.

Al-Qawalish is a strategic battleground because if the rebels manage to advance beyond it they will reach the main highway leading north into the capital Tripoli.

A rebel fighter in the village, Amignas Shagruni, said shells had been landing repeatedly over the past 24 hours from pro-Gaddafi forces positioned a few kilometres to the east. But he said: 'No one was hurt, thank God.'

During a 20-minute period while Reuters visited the frontline east of Al-Qawalish, at least five shells landed. However, they did not appear to be well targeted.

Libyan state television reported on Sunday that NATO forces had struck an 'educational institution' in Tripoli. Jamahiriyah Television quoted a military spokesman as saying there were 'human and material' casualties in the air strike in the district of Tajoura, but gave no specific details.

Libya has been convulsed by a civil war since February when thousands of people, inspired by revolutions in neighbouring Egypt and Tunisia, rose up against Gaddafi's rule.

Hundreds of kilometres to the northeast of Al-Qawalish, another force of rebels is trying to push toward Tripoli, though they too are facing tough resistance.

Fighters from the rebel-held city of Misrata, about 200 km east of Tripoli, have fought their way west to the outskirts of Zlitan, the first in a chain of coastal towns blocking their progress toward the capital.

NATO launched its bombing campaign in March after the UN Security Council authorised the use of all necessary means to protect civilians who rose up against Gaddafi.

Gaddafi says the rebels are armed criminals and al Qaeda militants. He has called the NATO operation an act of colonial aggression aimed at stealing Libyan oil.

Source : New Age