Ron, I was going on what I found in the second paragraph on p. 12 of Jan Still's Weimar Lugers. The lack of observed LP08s with full Reichswehr unit markings certainly lends credence to that paragraph. I think many collectors have interpreted that as a prohibition on LP08s for both the Army and the police but it is specific only to the Army and there is convincing evidence that the police had LP08s. However, I have not personally seen the documentation cited by Still and am also basing my opinion on the reputation of others.
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