BENGHAZI, Libya, 22 August 2007 — Libyan leader Muammar Qaddafi’s son has outlined plans for political reform and the country’s first constitution since his father seized power 38 years ago and tore up the old monarchist charter.

“We want to strengthen the current system and make it more efficient,” Seif Al-Islam, viewed as a likely successor to Qaddafi senior, said in a speech at a mass rally in the Mediterranean city of Benghazi late on Monday.

On an economic and social level, Seif also said the oil-rich North African country planned to devote $80 billion to development and spoke of the need to increase the battle against illegal immigration.

Exactly a year ago, Seif drew the ire of the regime’s veterans after strongly criticizing the “mafia” of bureaucrats opposing reform and questioning their control of the “people’s committees.” Then, he bluntly broke a taboo by denying that “people’s power” — the basic tenet of his father’s system outlined in the colonel’s “Green Book,” — actually existed in Libya.

On Monday, he said in his televised speech to a crowd of about 40,000 people that Libya’s system was “a good system in theory” but suffers from “certain faults.” He stressed that the first declaration of the 1969 revolution, led by a group of military officers headed by Col. Qaddafi, must be the “basis of all constitutional text in Libya.”

Libya has gradually been opening up to the West since Qaddafi renounced weapons of mass destruction ambitions in December 2003, inviting bids from international players to explore for oil and gas and expanding the local media.

Qaddafi’s son has immense influence despite no official political position. He also denies having any political ambitions, declaring that “Libya will not become a dynasty or a monarchy, nor a dictatorship.”

In his speech, Seif appeared to be trying to ease tensions with the regime’s strongmen while gently exposing his plan for reforms without upsetting the conservative veterans around Qaddafi.

And while he expressed backing for the father’s idea of “direct democracy” — a system of “people’s committees” with a monopoly on all political debate — he said the new constitution would extend political discussion and guarantee more independence.

Certain “red lines” could not be crossed. These included the role of his father and the oil-rich country’s adherence to Islam and Shariah (Islamic law). “Our next challenge is to set up a series of laws, which we can call constitution or social contract or something else. The important thing is to have a contract that will organize the lives of Libyans,” Seif said.

“First, there are red lines that we must reach agreement on,” he said, quoting in order: “Islam and application of Shariah law... security and stability in Libya, unity of the national territory, and Muammar Qaddafi.” The laws should guarantee the independence of the central bank, the high court, the media and civil society, he said. He called for a “national dialogue embracing all the Libyan people to reach the ideal formula as soon as possible.”

Qaddafi, in his 60s and in theory only a “guide” giving advice, preaches “people’s power” through the “people’s committees.” His son, however, stressed the need to widen political dialogue beyond those committees, something that has up to now been banned.