Algeria says it will recognize the provisional authority when the NTC follows through on promises to form an inclusive government.

France said Thursday it has been cleared to release more than $2 billion in frozen Libyan assets after appealing to the sanctions committee of U.N. Security Council.  The committee has already approved similar appeals by Britain and the United States, releasing a total of more than $3 billion in seized Libyan assets to address urgent humanitarian needs.

European Union diplomats say they expect a final agreement Thursday on lifting sanctions against several Libyan ports, oil companies and more than a dozen other entities.  The move is part of an effort to help the provisional authority resume economic activities frozen under Gadhafi's rule.

Provisional authorities have set a Saturday deadline for Gadhafi and his forces to surrender and give up the final areas under their control.

One of Gadhafi's sons, Seif al-Islam Gadhafi, said late Wednesday that loyalist commanders have told him their men would fight to the death and that their morale is high.

His defiant comments contrasted with those of his brother, Saadi, who told al-Arabiya television he is ready to discuss forming a coalition government with anti-Gadhafi forces in order to stop the bloodshed. Saadi claimed he was speaking with his father's blessing.