Armed Forces of the North (Conseil de Commandement des Forces Armées du Nord or CCFAN), a structure set up in 1972 by Hissène Habré and Goukouni to represent northern elements in FROLINAT, continued to refuse negotiations with the CSM over the release of the French archaeologist hostage, France began dealing directly with the rebels. Malloum's government reacted to this embarrassment by demanding the departure of 1,500 French troops, at a time in late 1975 when Chad's military situation was beginning to worsen. Throughout 1976 and 1977, the military balance of power shifted in favor of FROLINAT as Libya provided the rebels with substantially more weaponry and logistical support than ever before. Faya Largeau was placed under siege twice in 1976, and then in June 1977 Bardaï fell to the CCFAN. Goukouni and Habré The sharp increase in Libyan activity also brought to a head the power struggle within the CCFAN between Goukouni and Habré. In 1971 Habré had left his position as a deputy prefect in the Tombalbaye government to join Goukouni's rebels. Goukouni and Habré, ambitious Toubou leaders from two different and competing clans, became bitter rivals, first within the CCFAN and later within all of Chad. In the CCFAN, the key issues dividing the men were relations with Libya and the handling of the hostage affair. Habré opposed vigorously all Libyan designs on the Aozou Strip and favored retaining the French hostage even after most of the ransom demands had been met. Goukouni felt that priority should go to the conflict with the CSM, for which Libyan assistance could be decisive, and that the kidnapping had already achieved more than enough. Habré finally split with him in 1976, taking a few hundred followers to fight in Batha and Biltine prefectures and retaining for his group the name Armed Forces of the North (FAN). Goukouni and his followers prevailed (the CCFAN released the hostage to French authorities in January 1977). As the military position of the CSM continued to decline in 1977, Malloum's political overtures to the rebel groups and leaders became increasingly flexible. In September Malloum and Habré met in Khartoum to begin negotiations on a formal alliance. Their efforts culminated in a carefully drafted agreement, the Fundamental Charter, which formed the basis of the National Union Government of August 1978. Malloum was named president of the new government, while Habré, as prime minister, became the first significant