He, however, pointed out the MILF’s suspected links with international terrorist groups like the AlQaeda and Jemaah Islamiya remain a "touchy issue" and should be scrutinized.

In a media briefing Wednesday, Mussomeli said that the "links are there" but these could be with certain factions of the MILF and not with MILF itself.

He suggested though that the MILF leadership should assert itself and impose discipline on such factions or members who maintain linkages with terrorists, otherwise the MILF could be double-faced in its dealings and "not sincere" in pursuing peace negotiations.

He, however, did not give a time frame within which the MILF should prove that its terrorist links are not an integral part of its existence as an insurgent group.

"Right now, we remain hopeful and we believe that there is good faith on both sides and that a peace accord will be reached," he said.

Mussomeli stressed that the terrorist tag and the success of the peace talks are two different matters and one should not be taken as a requirement for the other.

"I would be very reluctant to use the terrorist tag as incentive for people to sit down and negotiate in good faith and reach a peace accord. That’s not the way," he added, pointing out "that sort of pressure and undue influence will not be productive."

A peace agreement could work well for the MILF as the US government has set aside $30 million for peace and development projects similar to programs being implemented in post-conflict areas of the Moro National Liberation Front, he bared.

However, he said, the allocation was made by the US Congress,and as such, it should be used by September 30 this year or it will revert back to the US Government Treasury.

"If September 30 comes and goes with no discernible progress, we will have to go back to Congress and request for new money. Whether we could convince Congress again to give us a similar amount of money, we however cannot guarantee," he said.