U.S. formally recognizes Libyan rebels in bid to press Kadafi

The Obama administration on Friday formally recognized Libya’s leading rebel group as the country’s legitimate government, a move designed to increase pressure on Libyan leader Moammar Kadafi, while freeing up foreign-held funds for the cash-starved rebels.

Appearing at an international conference in Istanbul, Turkey,Secretary of State Hillary Rodham Clinton said the United States was joining 29 other countries in granting official recognition. She said the administration now recognized the council as the “legitimate government authority for Libya,” and would treat it that way until an “interim authority” takes over.

The administration has resisted taking this formal step for months, because of concerns that the loosely organized council could include dangerous militants, and because of worries that the group didn’t meet legal definitions of a sovereign government.

But the pressure to recognize the government has built steadily because of the council’s dwindling reserves of cash. Without formal recognition, it is difficult for foreign governments to free up Libyan assets frozen by foreign governments under United Nations authority.

The move also comes at a time when Western governments are increasingly desperate to wind down the three-month-long Libyan war and finally force Kadafi from power.

Another key topic at the meeting, diplomats said, was how to negotiate a deal that would win Kadafi’s consent to give up power. Western governments originally pressed for Kadafi to go into exile abroad, but in recent days sentiment has been growing that Kadafi could be offered internal exile in Libya.