France Gives Rebels $259 Million in Frozen Gadhafi Funds

France on Monday said it had given Libyan rebels 259 million dollars (181 million euros) in frozen funds that used to belong to the regime of strongman leader Moammar Gadhafi.

"The NTC (National Transitional Council) will now be able to use these funds for purchases of a humanitarian nature," the French foreign ministry said in a statement.

The NTC's new ambassador to Paris, Mansour Saif al-Nasr, said after meeting French Foreign Minister Alain Juppe that "these are funds that belong to the Libyan people" that will be used to buy "food and medicine."

The Libyan rebel movement installed ambassadors in Paris and London last Thursday, formalizing ties with its main allies in the fight to topple Gadhafi from power in Tripoli.

France and Britain are taking part in NATO-coordinated strikes against Gadhafi's military assets. Paris was the first outside state to formally recognize the rebels as the country's legitimate rulers.