Optimism in Libya on Talks With Remaining Loyalists.

TRIPOLI, Libya -- Rebel negotiators have resumed talks with loyalist holdouts in the desert town of Bani Walid in an effort to persuade them to surrender peacefully before a Sept. 10 deadline set by the interim government, Libyan officials said Monday. Striking notes of increasing confidence, rebel officials announced they had made progress on several nonmilitary fronts. A group of rebel officials took a visiting United Nations envoy on a tour of their main detention center, Jadida Prison, while others announced that water service had been restored to Tripoli, the capital. Also, the government's acting economy minister said badly needed cash had begun flowing in from abroad after some of the country's foreign bank accounts were unfrozen. [ABSTRACT FROM AUTHOR]