fighting to the finish. the war wages on in parts of tripoli where gadhafi loyalists continue to hold out. hello. i'm here at the cnn center. welcome to our viewers in the united states and right around the world of our special coverage of the crisis in libya. rebels say he was in their custody. but just hours ago, saif islam, the son of moammar gadhafi spoke outside a hotel in tripoli and his message was clear. the government remains in control of the libyan capital. >> translator: there have led through the sea and through other means gangs of people who are sabotaging and you could see the people of libya are standing and had to have broken the spine of those rats and gangsters, just -- today we'll go to the hot spots of tripoli, in tripoli, and we'll reassure the people that things are fine in libya. >> now, saif gadhafi says his father remains in tripoli despite speculation that he may have fled the country. still, there's been no sign of the long-time libyan leader. the chairman of the national transitional council says the real moment of victory will be when gadhafi is captured. [ gunfire ] meanwhile, the battles are far from over. pro gadhafi enforcers still control pockets of the capitol of tripoli and nearly towns. overhead, nato jets continue their bombing runs and there's also reports that pro gadhafi had scud missiles coming from the libyan leader's hometown. >> it seems beyond belief that the high-profile son of moammar gadhafi making an appearance outside the government-controlled hotel came after news of his aparent capture. matthew chance spoke with saif gadhafi and matthew talked about the encounter with anderson cooper a short time ago. >> he seemed very relaxed. he seemed, you know, looking quite good, actually, for a man who was supposed to have been custody for the last 48 hours. he said that was a trick. he made the point that the rebels have come into tripoli. he said that gadhafi forces had broken their backbone and given them a hard time before the door closed and he drove off. but he drove off in a motorcade into tripoli, clearly, into an area which is very much under control of the forces of his father. >> and you say -- he said the opposition had fallen into some sort of trap. what did he mean? the opposition was claiming besides capturing him but that they controlled 90% of tripoli. >> they are saying that. and, you know, i think there are questions tonight about to what extent that's the case. it's very difficult for us here in the hotel to verify how much of tripoli's controlled by the rebels and how much is controlled by gadhafi but i can tell you this, saif gadhafi got into that motorcade and drove off through the gates of the hotel into this area immediately around the hotel, the gadhafi compound is in this area. there are other key installations in this area and he was driving around with pretty limited security. a couple of other cars filled with bodyguards. didn't have like huge armored car or anything like that. he seemed confident. he also said -- get into the car and i'll take you to the hotter areas, supposedly, of tripoli, the implication that there are areas that are being talked about as being in rebel hands but he wanted to show us that these areas were safe to drive around. we didn't take the opportunity for various reasons but, nevertheless, he did come across as very confident, indeed, anderson. >> it would seem a multi-vehicle white land rover convoy would be a tempting target for nato planes overhead. the fact that he's driving around at night does seem to show a certain amount of confidence. >> it does. he told reporters who gathered at the hotel earlier, that he was going to be giving a press conference. we didn't know -- we didn't know he was not in captivity so we're all taken aback and skeptical that this would happen but our skepticism was confirmed when we went down at 11:30 at night to get ready for the press conference, he just didn't turn up so we thought it was just spin being put out by the rebels. but then he rocked up to the hotel entrance i few hours later, about 1:30 in the morning we were all really surprised. what was really surprising of everything, he was still in tripoli. he was still -- he was free and he said his father, moammar gadhafi was still in tripoli, as is the rest of his family, trying ing ting t ing ting to t they had been taken captive. >> at this time are you hearing gunfire or sounds of combat? and if not, when was the last time you did? >> it was about, you know, three or four hours ago, shortly before saif gadhafi turned up at the hotel. previous to that there have been enormous gun fights. ferocious gun fights. grenades exploding. huge explosions of all kinds around the come pound, the moammar gadhafi compound. it's been under heavy bombing the last several months but more particularly, the last 72 hours as the rebels entered tripoli. but after saif gadhafi made his appearance at the riox hotel the whole situation seems to have changed. we now have electricity. a few hours ago we were sitting in the searing heat because there were no air conditioners or running water. it's pitch black in the hotel. no lights outside and no lights inside and now, the generators have gone back on again and it seems that, at least in this area, this pocket of tripoli, around the rio dpchlt hotel and the gadhafi compound the government have really succeeded in defending this pocket and have re-established their control. control, by the way anderson, they never really lost in this particular area. >> matthew chance there. as both sides fight for control the battle rages on. sarah has been following the fighting between rebels and forces loyal to gadhafi. she spock to becky earlier. >> we left the city is along with some rebels who went to have their evening meal. it was not safe to stay in the city overnight from what we assessed the rebels telling us we were not allowed to go down to green square, which is now they have renamed or want people to call it murder square. they say they've gotten control of about 90% of the city, but we heard quite a bit of fighting and gunfire toward the square and towards, also, gadhafi's come compound. so certainly, the battle for tripoli is not over. the rebels back very, very cautious. any time there's rumor of a sflieper everyone goes running no matter where they are, even if there are few buildings around them there's a real fear of snipers and for good reason. apparently, the rebels say 24rr7 snipers in if area shooting from the tops of buildings and it's hard to see. now that it is dark this becomes a very difficult war and, remember, the rebels are less equipped than any force you might be thinking about. these are people, many of them who have come from their neighborhoods from other parts, also, of the country. not just tripoli. so some of these fighters do not know the city of tripoli and are reliant on the locals to get them around. so important to note that the night battles can be very difficult, very confusing, so it makes people very suspicious and makes things very tense as night fa falls in the city of tripoli, becky. >> sara, you say the rebels rely on locals because they don't know the area and this has pushed into urban wayou are war this point. how well supported are the rebels? >> it's hard to gauge that. when i say they rely on locals that know the area, knows are other rebels they've been training with. not just stopping at someone's door and saying where is this area of town or that area of town? they have tried to train as much as they can for what they knew would be urban warfare and i think the one thing that really surprised them was that they did not face the kind of numbers moammar gadhafi had promised would rise up or fight on his behalf. they were surprised they were able to get so far into the city so quickly. once they got there, though, that's when a bit of the trouble started because they were not quite sure what they were dealing with and it was eerily quiet. over the past 24 hours as we've seen these things unfold, this morning there was quite a bit of driving up and down the street and this afternoon, more and this evening, celebration and families coming out. as nightfall comes things get quiet in the city. people sort of retracting and trying to see what is going on around them. very difficult. the power is out in a couple of places in the city. so it is very difficult to know just how much of a fight is left in the gadhafi forces. and just how far the rebels will be able to go when it is this dark and it's very difficult to navigate the city. >> now, after a six-month long battle, no one specificsed events in libya to move this quickly. gadhafi's 42-year grip on power appears to be over and for many libyans who have known anything else other than life under the leader they are heavy teams. colleen has more on what many libyans have been saying. >> as the events in tripoli and across libya unfold we're hearing from people who are living in the libyan capital and they have a front seat view on this historic moment. >> years have gone by and we've missed out on so much. people's morale is really high still. we're just waiting for it to all be over. >> this is something that we've all been dreaming of forever. the second this starts, everyone is so happy. it's something we've been waiting for. we were living in fear for the past four decades and now you can go out and say what you want or feel and i can talk on the phone and say what i think without worrying that they'll come and take me. >> here are celebrations in benghazi in the east. thousands gathering to celebrate the rebel advances on sunday at freedom square. we got this footage to cnn i report and we also talked on the phone. >> everyone has been waiting for this day for moammar gadhafi to get out. everyone is waiting for that very minute. they can capture the son. they can catch sure confidants of gadhafi but until they have gadhafi captured dead or alive, people are still, even in benghazi, are somewhat apprehensive. he's been a bogeyman to everyone. a chance his followers might take up arms is still very real. >> if you are in libya, you can show us the scene on the ground. you can share your story. logon to c dmchnn ireport.com. put your own safety first. if you can get to the website we'd love to hear from you. this is something from a blog her libya. a blogger who has not been able to blog since april of this year, went ahead and posted something. here it is. i'm safe and well in libya. it's been a long, hard six months but i made it. the internet has been turned on and i'm slowly sifting through over 2,000 e-mails. thanks to all who have commented, e-mailed, worried and prayed for me, i will update just as soon as i can, just so busy celebrating. again, that from a blogger we've been following, really, since the beginning of the protest so great to see that post come up. we'll keep you up to date on the very latest right here on cnn. back to you. >> colleen, thank you. the libyan capitol as we've seen is in turmoil. >> we have a tripoli resident on the line with us right now to describe what exactly is going on. we're only going to identify him as ihab for his own safety. tell us what you're seeing and hearing around you right now? >> right now, the mood has gone back to being pretty quiet. the rebels have come back in but earlier on tonight, we had similar scenes to you were showing from the night before when the people came through in tripoli. this time it was from the other side of tripoli. you had people from the -- about 1,600 come in. and everyone is slowly start -- and in our particular area, to see the soldiers that, pretty much, have saved the town and have come to have -- and freeing tripoli. so there was a lot of celebration. a lot of heavy gunfire in the air. so the mood was very, very buoyant. >> so you're saying that there's 1600 people from misrada, are these reinforcements for the fighters who are already there in the capitol of tripoli? >> yes. these are initial reinforcements. there were people from tajur. and through the organization, there was actually, probably, quite a bit more that were on the coastal road up to the capital -- for safety reasons we didn't -- it was just so good. the people could see that the rebels were retreating slowly and they would join up with the rest to make a final push on the very center of tripoli. >> and ehab, let me ask you. these 1600 additional fighters that have arrived in the capital, do we know the next step? the next push and how that will, itself, play out? >> from speaking to the people on the ground that were there and that we've seen, we should be expecting a final push at some point today, actually. no particular time was given but we were told maybe after prayer that the push could start. but this is in coordination with the nato strikes. so whenever they seem to get the go-ahead that's when they make the push. >> and ehab, the big question is precisely, where is moammar gadhafi . what's the word on the streets? >> it seems that the guy -- he's very unpredictable. but maybe for once he might be right in the fact that as he calls it, he calls the rebels "the rats" it may be that they are in his original compound with his family. >> ehab, earlier on this evening, u.s. time, we saw the scenes of saif al islam gadhafi outside the hotel where the international journalists are holed up. this is the same opposition that the council said was in custody. it's raising questions about the credibility of the opposition. first of all, have you heard the news yourself? what do you make of it? >> we were very well aware of the news. it filtered through very quickly. as far as we know, from what we've heard on the ground, there's nothing actually officially confirmed. news was filtering through the rebels. we haven't had an official statement to confirm that saif is actually beyond capture. so as far as we're concerned, the only reason we haven't seen anything official and on tv, we never actually believed that saif al islam had been captured. same for his brother mohammed. >> ehab, as the ntc, national transitional council moves to tripoli and tries to form a government, what are your biggest fears as they try to do that in the days and weeks ahead? >> well, for us, if i'm honest, you certainly go past the stage of fear right now. it's the point of no return. so we just hope that this gets done as quickly as possible and in the shortest period of time. mainly for the safety because we're still hearing stories of some other areas of tripoli that are very close to the compound where there is some fear that there is pro supporters mixed in along with the rebels, normalcy vilians are talking about here, that haven't rose up yet. they're so close and they're in fear of what the retaliation might be. >> okay. ehab, a resident of tripoli, also manning a checkpoint there in the capital. joining us on the phone and giving us valuable information about the current situation in the capitol. he said 1600 fighters have joined those opposition fighters already in the capital. reinforcements. he said the next stage in this push to take total control of the capital could come later today. essentially, within hours. interestingly, he said all of this being coordinated with nato. >> very interesting. also this issue of saif al islam appearing in tripoli hours ago, interesting his take on it. it was never confirmed as it were, is what he's saying. that he was in the custody of the opposition. so he's taking that approach as maybe this is just the form of battle as it were and rumors flying? unclear. very fluid but many questions being asked. the whereabouts of moammar gadhafi are not known but already, plans being made to help the governments and the country's next government. and while some libyans show their content for their longtime leader we'll sloo the latest world reaction to these stunning events. stay with us. the u.n. is urgently looking at ways to help shape libya's future. ban ki-moon has called a meeting with the african union, the eu and the arab league and he says the u.n. is ready to assist. >> this is a hopeful moment but also, there are risks ahead. now is the time for all libyans to focus on national unity and reconciliation and inclusiveness and determined to ensure that the united nations does everything it can to promote an orderly transition, responding to the aspirations of the libyan people for peace, democracy and opportunity. >> the french president, nicklas sarkozy talked with the prime minister by phone. he along with the french foreign minister praise what they call, the determination and courage of the libyan rebells. >> translator: it is obviously for us i matter of great satisfaction. we want to help the libyan people rid themselves of a dictatorship. france took risks but these were calculated risks and the cause was just. >> we also heard from u.s. president, barack obama, the president warned of the danger of reprisal as power changed hands and the importance of reconciliation. and he had a message for moammar gadhafi . >> i want to emphasize that this is not over yet. as the regime collapses, there's still fierce fighting in some areas. and we have reports of regime elements threatening to continue fighting. although it's clear that gadhafi's rule is over he still has the opportunity to reduce further bloodshed by explicitly reling kwishing the power and causing throws that are fighting to lay down their arms for the sake of libya. >> we have this report on how the u.s. could help libya's national transitional council. >> reporter: right up to the last minute before libyan opposition forces launched their assault on tripoli, officials close to moammar gadhafi reached out to the u.s., in a desperate attempt to stop the attack. that's what a senior state department official tells cnn. assistant secretary of state, jeffrey feldman says there was a sense of desperation, an attempt by the regime to buy time. the libyans claim they wanted to negotiate but refused to talk about moammar gadhafi leaving power, he says. now as the rebels try to consolidate their military gains in tripoli, the opposition national transitional council in benghazi is trying to activate plans for a political transition. first priority, security. >> we don't need any more civilian life lost in libya. >> reporter: u.s. officials say they are encouragedbly reports the rebels have set up checkpoints around public buildings to promote public safety. tripoli does not look like baghdad looked after the fall of saddam hussein with widespread looting, assistant secretary feldman says. next step? an interim tlort. >> the transitional national council would broaden and become an interim government that would represent a broad cross-section of libyans from different u walks of life and different parts of the country and different political backgrounds. >> but tribal loyalties control the oil revenues and over libyan government assets including $30 billion worth frozen by the u.s., could cause rifts in the opposition. a former undersecretary of state warns -- things could turn ugly. >> i think we'll have to expect to see a slow transition, perhaps a chaotic transition. perhaps, unfortunately, a violent transition, that wouldn't be surprising at all. >> getting the interim government is critical, the state department says. that government would lead the process of writing a constitution and moving towards elections, the building blocks of democracy. something libyans have been deprived of for more than four decades under moammar gadhafi . cnn, the state department. >> now, months of turmoil in libya has put its oil industry on hold. >> what will the rebels' advance on tripoli mean to the market? we'll look at this vital component of libya's economy. the sons