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,

Families of the eight deceased hostages whose remains are still in Gaza are still waiting for answers. A short while ago, they reiterated that Hamas knows the location of their loved ones and urged Prime Minister Benjamin Netanyahu to ensure that the nation is using every means at its disposal to bring them all home.

Hamas engages Turkey and Egypt to stabilize Gaza, signaling possible arms concessions, while the US pushes a UN-backed ceasefire and crisis plan, with Rafah tunnels a key test for diplomacy. Hamas appears to be trying to trot out its remaining leaders to urge diplomacy as a path to resolving tensions in Gaza.

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

Hamas said it would consider giving up missiles and rockets as part of a ceasefire with Israel, a sign the group is prepared to make further concessions toward the US-brokered roadmap for peace.

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.