http://www.bbc.co.uk/news/world-africa-14336122
Shady business this. As the article itself points out there aren't really enough details to work out what actually happened. Reminds me a bit of the assassination of Francois Darlan in Algeria during WW2, which remains unclear to this day (http://en.wikipedia.org/wiki/Fran%C3%A7ois_Darlan#Assassination).
On a wider scale everything seems to be proceeding in the right direction, albeit slowly, in Libya. The UN, USA and Western Europeans continue to support the rebels despite Russia's grumbling. Recognising the rebels and expelling Libyan diplomats was an especially strong symbolic gesture as usually the UK makes a point of only recognising such groups after they have attained governmental power.
It is harder to make out how the military campaign of the rebels is going. The Economist and the BBC are sparse with exact details suggesting that no one really knows (possibly including the Libyans themselves). However, so long as the rebels continue to benefit from diplomatic and military support from the UN it is difficult to see how Gaddafi will avoid being forced into negotiations or even surrendering power completely in the long term.
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