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UK to unfreeze £600 million of Libyan assets

LONDON (Reuters) - Britain is releasing a further 600 million pounds' worth of Libyan assets, a spokesman for Prime Minister David Cameron's office said on Thursday.

"We are unfreezing their assets. They need to do things like pay public sector workers and the police force," the spokesman said in London as Cameron visited Tripoli with French President Nicolas Sarkozy for talks with Libya's new leaders.

Britain released around $1.5 billion (948 million pounds) in Libyan bank notes last month, flying the first consignment on an RAF aircraft to the port city of Benghazi.

Britain is pushing for a revised U.N. agreement to allow further funds to be released to the National Transitional Council, which needs cash to restore public services as it tries to stabilise Libya.

Cameron is due to announce a package of financial and logistical help for the NTC, including a two-man military liaison team which will be sent to Tripoli to help with counter proliferation.

Britain would also provide funding to help Libya track down and decommission stocks of chemical weapon agents, mines and missiles left over from the Gaddafi era, the spokesman said.

"We will be providing one million pounds to fund NGOs (non-governmental organisations)," the spokesman said. "They will work with the NTC."

Fifty of the most badly injured people in Libya's hospitals will be transferred to British hospitals to ease pressure on Libyan medical staff, the spokesman said.

(Reporting by Matt Falloon; Editing by Jon Boyle)

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