Forces loyal to Gaddafi attacked an important town in Libya's east yesterday, sparking a rebel warning that foreign military help might be needed to "put the nail in his (Gaddafi's) coffin" and end his long rule.

Government troops briefly captured Marsa El Brega, an oil export terminal, before being driven back by rebels who have controlled the town 800 km east of the capital THpoli for about a week, rebel officers said.

The assault appears to be the most significant military operation by Gaddafi since the uprising began two weeks ago.

"We are probably going to call for foreign help, probably air strikes at strategic locations that will put the nail in his (Gaddafi's) coffin," Mustafa Gheriani, a spokesman for the rebel February 17th Coalition, told Reuters.

"They tried to take Brega this morning, but they failed. It is back in the hands of the revolutionaries. He (Gaddafi) is trying to create all kinds of psychological warfare to keep these cities on edge," he said.

Gaddafi, meanwhile, in a speech broadcast live on state television yesterday, said Libyans would die in thousands if the United States or other foreign powers enter Libya, and he was ready to discuss constitutional and legal changes without vio-

lence.

"Do they want us to become slaves once again like we were slaves to the Italians?" the Libyan leader said, referring to Libya's former colonial power. "We will never accept it. We will enter a bloody war and thousands and thousands of Libyans will die if the United States enters or Nato enters."

He again blamed Al-Qaeda for the uprising which challenged his long rule.