Hello,Matt, and welcome to the forum.
These well made pistols were produced in the mid 1920s for export from Germany.
Your pistol, late in the "O" block, was probably from about 1924.
It's better to remove red oxide by using an oil soaked steel wool or bronze wool as the abrasive. You're less likely to do damage to the rust bluing.
Marc
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 Igitur si vis pacem, para bellum -
- Therefore if you want peace, prepare for war.
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