Britain is working to unfreeze Libyan assets blocked from embattled Libyan leader Muammar Gaddafi, British Foreign Secretary William Hague said in London on Wednesday.

Britain is involved in diplomatic negotiations at the UN to unfreeze Libyan assets "which ultimately belong to the Libyan people," Hague said shortly after chairing a National Security Council meeting, shortly after France reportedly confirmed it was seeking to do the same thing.

"There is a lot to do, and there will continue to be a lot to do over the next weeks and months," Hague said, adding that the situation in Libya would "remain difficult for some time."

The minister said Colonel Gaddafi's regime "has clearly lost control of most of the Libyan capital."

"It is time now for Col. Gaddafi to stop issuing delusional statements and to recognise that control of the country is not going to return," he said.

He said Britain would continue to provide humanitarian aid to Libya, and would be "highly actively engaged in the NATO operations, which must continue as long as there is a need to protect the civilian population of Libya."

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