Libya govt accepts Chavez plan, Venezuela says, Posted by Meosha Eaton

* Arab League also considers proposal for peace commission
* Chavez is old friend of Libya's Gaddafi (Adds quote, byline, background)

By Frank Jack Daniel

CARACAS, March 3 (Reuters) - The Libyan government has accepted a Venezuelan plan that seeks a negotiated solution to the uprising in the North African country, a spokesman for President Hugo Chavez said on Thursday.

Information Minister Andres Izarra also confirmed the Arab League had shown interest in Chavez's proposal to send an international commission to talk with both sides in Libya.

"Libya accepts the proposal to work for a negotiated end to the conflict accompanied by an international commission," Izarra told Reuters. "Venezuela will continue its contacts in the Arab world and elsewhere to find formulas for peace in Libya."

Chavez, a former soldier who casts himself as an anti-imperial revolutionary, is a close friend of Libyan leader Muammar Gaddafi and says he believes reports of repression by Gaddafi are exaggerated.

Reports that Chavez's proposal was being taken seriously by Arab leaders pushed down oil prices after a days-long rally on worries the escalating violence in Libya will hit supplies.

Earlier, the chairman of the rebel National Libyan Council entirely rejected the concept of talks with Gaddafi. Arab League President Amr Moussa told Reuters no decision had yet been taken on the Venezuela plan but that it was under consideration.

Gaddafi struck at rebel control of a key Libyan coastal road for a second day but received a warning he would be held to account at The Hague for suspected crimes by his security forces.

(Editing by Bill Trott)

Bloodshed in Libya, moves for talks in Bahrain, Posted by Meosha Eaton

* More than 100 killed in Libya
* Protesters said to take over town
* Bahrain focuses on talks led by prince


TRIPOLI/MANAMA, Feb 20 (Reuters) - Security forces in the Libyan city of Benghazi killed dozens of people as they fought to crush an uprising against leader Muammar Gaddafi's rule, the bloodiest of multiple revolts now rocking the Arab world. Witnesses said Benghazi was in a state of chaos, with government buildings ransacked and troops and police forced to retreat to a fortified compound, from where snipers picked off demonstrators.

In the Gulf kingdom of Bahrain, thousands of anti-government protesters camped over Saturday night in a Manama square. But after days of violence in the Sunni-ruled island state, the mood appeared to be more conciliatory with talks due to take place on Sunday between the opposition and the crown prince.
Unrest also hit Yemen, Morocco, Oman, Kuwait, Algeria and Djibouti over the weekend as people took to the streets demanding political and economic change. Authorities in Saudi Arabia detained activists trying to set up the kingdom's first political party.

The clamour for reform across a region of huge strategic importance to the West and the source of much of its oil began in Tunisia in December. The overthrow of President Zine al-Abidine Ben Ali then inspired Egyptians to rise up against strongman Hosni Mubarak, sending him packing on Feb. 11. The tide has challenged leaders of countries long backed by the West as well as erstwhile enemies. While each has its own dynamics, from religion to tribalism, all seem united by frustration over economic hardship and a lack of political freedom.

BLOODSHED IN BENGHAZI