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    A Libyan rebel fighter climbs on top of a statue inside Moammar Gadhafi’scompound in Tripoli on Wednesday.

  • Reuters reporterMissy Ryan isembraced by anunidentifiedperson next toCNN's JomanaKaradsheh afterforeign...

    Reuters reporterMissy Ryan isembraced by anunidentifiedperson next toCNN's JomanaKaradsheh afterforeign journalistswere freed atthe Rixos Hotel.

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TRIPOLI, Libya — Libyans hunting Moammar Gadhafi offered a $2 million bounty on the fallen dictator’s head and amnesty for anyone who kills or captures him as rebels battled Wednesday to clear the last pockets of resistance from the capital Tripoli.

While some die-hard loyalists kept up the fight to defend Gadhafi, his support was crumbling by the hour. His deputy intelligence chief defected, and even his foreign minister said his 42-year rule was over.

In an audio message early Wednesday, a defiant Gadhafi vowed from hiding to fight on “until victory or martyrdom.”

He may have little choice. Asked by the British broadcaster Channel 4 if a negotiated settlement or safe passage for Gadhafi from Libya was still possible, Foreign Minister Abdul Ati al-Obeidi said: “It looks like things have passed this kind of solution.”

New government takes shape

Rebel leaders were beginning to set up a new government in the capital. Their interim administration, the National Transitional Council, has been based in the eastern city of Benghazi, which fell under rebel control shortly after the outbreak of widespread protests in February.

“Members of the council are now moving one by one from Benghazi to Tripoli,” said Mansour Seyf al-Nasr, the Libyan opposition’s new ambassador to France.

Rebel officials are eager to prove they can bring a stable political future to Libya, and that their movement is more than an often-fractious collection of tribes, ethnicities and semiautonomous militias. Mahmoud Jibril, the head of the opposition government, outlined plans for a new constitution and elections and said officials were talking to the U.N. about sending up to 200 monitors to help ensure security in Tripoli.

But the capital was far from pacified. A day after rebels captured Gadhafi’s vast Bab al-Aziziya compound, the symbolic center of his regime, loyalists were firing into the compound from an adjacent neighborhood where intense clashes broke out.

Pro-regime snipers cut off the road to the airport. Tripoli’s streets were largely empty of civilians. Rebels manned checkpoints every few hundred yards, but little could be seen beyond the debris of days of fighting and weeks of accumulated garbage.

Rebels found no sign of Gadhafi after storming his compound Tuesday, but rumors of his possible whereabouts churned. White House spokesman Josh Earnest said there was no evidence he had left Libya, but rebel officials acknowledged they could not find him.

Mohammed al-Herizi, an opposition official, said a group of Tripoli businessmen has offered a $2 million reward for the arrest or killing of Gadhafi. The rebels themselves are offering amnesty for anyone who kills him or hands him over.

Fighting continued not just in Tripoli. Jibril said pro-government forces were shelling a number of southern cities. Residents of the port town of Zwara, about 70 miles west of the capital, said they had suffered through four days of shelling. All roads to the city had been cut off, and rebels said they were running low on supplies.

Prisoners, journalists freed

Late Wednesday night, al-Kabir, the rebel spokesman, said rebels released thousands of inmates from Tripoli’s notorious Abu Salim prison, many of them political prisoners who had been held there for years.

Matthew VanDyke, a writer from Baltimore missing since March in Libya, was among those who escaped, his mother said. VanDyke called her and said he had been held in solitary confinement, but fellow prisoners helped him escape to a compound where he borrowed a phone. He had traveled to Libya to write about the uprising against Gadhafi.

At the once-luxurious Rixos Hotel near Abu Salim and Bab al-Aziziya, dozens of foreign journalists were freed after being held captive for days by pro-government gunmen. As the rebels drew closer, most of the guards left, leaving just a pair of increasingly nervous gunmen. The journalists were suddenly freed Wednesday after the International Committee of the Red Cross stepped in to negotiate their release.