Libya Spends Foreign Reserves To Offset Oil Losses

During Wednesday's televised meeting, Essam al-Jehani of the Political Bureau of Barqa, one of the eastern groups, demanded the government hand power to a "federated council" where seats are allocated equally between Libya's three regions. A future system for the country would then be decided by a referendum.

The Tobruk meeting came after a 10-day ultimatum given last month by Zidan to the militia to open the terminals expired. The government however appeared to have no response ready for when the terms of the ultimatum were not met.

Zidan said during the new conference that he didn't want "bloodshed," but vowed, "the government will not stand with its hands tied forever."

The standoff over the terminals is one of many challenges to the central government. The country has no strong army or police, and has been struggling to control armed groups formed mainly of former anti-Gadhafi rebels. Some militias are driven by political agendas and alliances in parliament, while others are backed by certain cities, tribes or regions.

Last month, Washington said it is planning to train 5,000 to 8,000 Libyan soldiers in the continuing effort to improve security. A stronger army is seen as key to reining in the militias.

McCain reaffirmed the US pledge to train Libyan troops in his visit. "It (progress) can only been achieved by the cooperation of assistance of the United States and other friends in Europe and in the region," he said.

The senator meanwhile thanked Zidan and the Libyan government for their cooperation in the investigation of a 2012 attack on the U.S. consulate in Benghazi which killed Ambassador Chris Stevens as well as three other Americans, blamed on a hard-line militia.


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