You can enter library files in the <objfiles> field. Be sure to include the .LIB file name extension; otherwise, LINK386 assumes a .OBJ extension.
With libraries entered in the <objfiles> field, LINK386 adds every module in the library to your output file. With libraries entered in the <libraries> field, LINK386 adds only those required to resolve external references.
The effect of entering a library this way is the same as if you had entered all of the library's module names into the <objfiles>field.