British Submarines Fire on Gaddafi's Forces

The Libyan government has denied its forces were in action in Benghazi, and blamed rebels for trying to spark international military action in the country.

Angus MacSwan, a correspondent for Reuters, said: 'I saw the plane circle around, come out of the clouds, head towards an apparent target, and then it was hit and went straight down in flames and a huge billow of black smoke went up.

'It seems it was attacking the Benghazi military barracks.'

Initial reports stated the fighter jet belonged to Gaddafi's forces, but this was later denied by rebel leaders.

Explosions have been heard in the city since the early hours of the morning, with rebel fighters claiming hired mercenaries were beginning to infiltrate the city.Khalid Ahmed, a rebel fighter, said: 'They were 40 miles away yesterday, they are 12 miles away and they can be here in a half our to 90 minutes.'

A BBC correspondent also reported seeing tanks on the streets of Benghazi. Two mercenaries were killed in a firefight with opposition forces in the Benghazi suburbs.

The two men, in civilian clothes, were shot and killed and blood-soaked identity papers revealed they were Nigerian.

Libyan forces have insisted they were holding to a ceasefire announced yesterday and repeated an invitation for international observers to enter the country today to monitor it.

Deputy foreign minister Khaled Kaim told BBC Radio 4's Today programme: 'The ceasefire is real, credible and solid. We are willing to receive observes as soon as possible, even today.'

U.S. ambassador to the UN Susan Rice last night said the Libyan leader was already in violation of the UN Security Council resolution 1973, passed on Thursday, which called for an immediate end to hostilities and authorised 'all necessary measures' short of foreign occupation to protect civilians.