By Nidal al-Mughrabi CAIRO (Reuters) -Hamas fighters holed up in the Israeli-held Rafah area of Gaza would surrender their arms in exchange for passage to other areas of the enclave under a proposal to resolve an issue seen as a risk to the month-old truce,

Despite Israel’s opposition to allowing the terrorists to cross, US officials have continued to pressure the Jewish state citing Hamas’s willingness to release the bodies of the remaining hostages. The United States is applying pressure on Israel to allow the terrorists caught behind the Yellow Line safe passage,

The presence of the militants, who have killed three Israeli troops, is threatening to unravel the fragile cease-fire.

USAID Office of the Inspector General is pursuing allegations that U.S. taxpayer dollars sent to the Gaza Strip were diverted to Hamas terrorists in the enclave.