TOBRUK, Libya - Muammar Gadhafi's forces pushed toward the Libyan rebel stronghold of Benghazi on Wednesday, and his government predicted victory within days while world powers debated imposing a no-fly zone to help stop him.

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Foreign powers condemn the crackdown but show little appetite to support an uprising that was inspired by rebellions that toppled the Egyptian and Tunisian presidents.

Supporters of a no-fly zone to halt Libyan government air strikes on rebels circulated a draft resolution at the UN Security Council on Tuesday that would authorize one, but other states said questions remained.

The draft was distributed at a closed-door meeting by the United Kingdom and Lebanon after the Arab League called on the council on Saturday to set up a no-fly zone as Gadhafi's troops advanced against the rebels in the east.

German Ambassador Peter Wittig said after the meeting his country still had queries.

"We raised questions we felt are still not fully answered, as to the Arab participation in such a measure, as to whether the implementation of such a zone would run counter to the intention of the Arab League itself, the Arab League having pointed out that there should be no foreign intervention," Wittig said.

Veto powers Russia, China and the United States, along with Portugal, Germany and South Africa are among the members that have doubts about the wisdom of a no-fly zone for Libya.

A senior Libyan foreign ministry official said the government hoped to regain control over all rebel-held territories soon.

"We hope (it will be done) as soon as possible. I hope it will be in a matter of days," Deputy Foreign Minister Khaled Kaim said.

In a televised speech, Gadhafi taunted Western countries that have backed the imposition of a no-fly zone to come and get him.

"France now raises its head and says that it will strike Libya," he told a gathering of supporters at his Bab al-Azizia fortified compound in central Tripoli.

"Strike Libya?" he asked. "We'll be the one who strikes you! We struck you in Algeria, in Vietnam. You want to strike us? Come and give it a try."

At an evening rally in a huge tent in Tripoli, Gadhafi condemned the rebels as rats, dogs, hypocrites and traitors. As he spoke, thousands gathered in a square in the rebel stronghold Benghazi denouncing him as a tyrant and throwing shoes and other objects at his image projected upside down on a wall.

The rebels' position looked highly vulnerable after government troops took control of the junction at Ajdabiyah, opening the way to Benghazi.

"The town of Ajdabiyah has been cleansed of mercenaries and terrorists linked to the al-Qaida organization," state TV said, referring to the rebels fighting to end Gadhafi's 41 years of power.

Looking ahead with confidence to future business deals in a Gadhafi-led Libya, Deputy Foreign Minister Kaim said Libya will honor existing contracts with Western oil companies and that the crisis may influence future cooperation with them.

Earlier on Tuesday, jets fired rockets at a rebel checkpoint at the western entrance to Ajdabiyah, then unleashed a rolling artillery barrage on the town and a nearby arms dump, following the same pattern of attack that has pushed back rebels more than 160 km in a week-long counter-offensive.

Reuters