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US and allies eye post-Gadhafi Libya

ABU DHABI (AP) — People close to Libyan leader Moammar Khadafy have been discussing “the potential for a transition,” US Secretary of State Hillary Clinton said.

“There have been numerous and continuing discussions by people close to Khadafy, and we are aware that those discussions include, among other matters, the potential for a transition,” Clinton told a news conference in the United Arab Emirates capital following a meeting of the International Contact Group on Libya.

“There is not a clear way forward yet,” she added.

Backing up her words in Washington, US Defense Secretary nominee Leon Panetta told the Senate Armed Services Committee, he saw “signs” that sustained economic, diplomatic and military pressure would lead Khadafy to step down.

Libya crisis: Allies step up funding to rebels

"But I will not let myself be reduced to silence."

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