In quite a few cases, the insistance to change nothing seems hardly more than an excuse to me, even in a museum setting. Under perfect storage conditions even red rust may be stable and not active. However, history has proven again and again that conditions are unlikely to stay perfect for centuries. Moreover, these conditions are more than likely to damage any wood or horn which may be attached to such a piece of iron - so, you'll have to decide on a compromise anyway.
Under usual collector's conditions (and many museums are not better equipped or cared for if at all), I regard active rust as an serious infection which needs to be treated (like any museum worth its name would kill off any bugs by fumigation/gas/heat treatment).
I agree with Ward that to preserve the topographic patterning one should avoid anything that may cause abrasion of the steel like sandpaper and, especially, power tools! I'd also be hesitant with even fine sand since it can scratch the steel. Why not only use very fine steel wool, oil and lots of elbow grease to stay on the safe side of things? Top it off with a quick etch and I'm sure you won't regret the restoration!
Regards,
Kai
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