TRIPOLI / BENGHAZI, Libya - Libya's rebel leader on Tuesday gave forces loyal to Muammar Gadhafi a four-day deadline to surrender towns still under their control or risk a military showdown.

"By Saturday, if there are no peaceful indications for implementing this, we will decide this matter militarily. We do not wish to do so but we cannot wait longer," Mustafa Abdel Jalil, head of Libya's interim council, said at a news conference.

Libyan rebels signed at least two contracts to buy French wheat using funds unfrozen in France earlier this month, four sources close to the deals said on Tuesday.