Ram, thank you for telling me what my knife, very similar, actually is. Bought years ago at a local antique show & don't even remember what they said it was, except it was from the East.
My collecting background is in antique guns, where one is very sensitive to possibly removing any original bluing or case hardening colors.
One must use something softer than the iron.
In my experience the best thing is a piece of copper or brass.
Good old bronze wool for the kitchen, if you can find it, works well with your favorite oil.
Stating what is the "best" penetrating oil is a little like positively identifying the Best brand of Whiskey.
Well, I'm not shy so I would use automatic transmission oil from your local auto parts store. This fluid itself is a cleaner, according to a good Automotive friend. Kroil is very good. Many people (not me!) like WD-40
Anyway, use copper or bronze wool and oil to scrub off the rust without damaging the color which you like.
I first learned this about 1961 cleaning crud off of an American Springfield M1873 caliber .45-70 rifle with a color case-hardened breech block. I was happy to see the case colors appear after I cleaned it with, I believe, a copper penny and whatever gun oil I had, probably Hoppe's No. 9.
So tomorrow I shall photograph my own "foldable writing nail" & post it.
What is the pointed wire used for?
Should you choose to include a dissertation on this blade of yours I will include it in my personal collection catalog.
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