Congrats, Roy, that certainly is a nice one! Did you get it out of the US?
The scabbard is a late replacement. I'm sure Jose can make a suitable one for this beauty.
I agree that the rust needs to be removed. However, in this case this needs special efforts not to loose the remaining inlay (seems to be silver). I'd suggest to remove as much rust as possible by very careful picking in the engraved lines with already missing inlay (start with wooden picks and use fine iron pins if needed - avoid scratches from steel needles though); also use very fine steel wool for cleaning rust off the blade surface (take care around the katik/gangya area to evenly clean everything including - as much as possible - hidden crevices since you won't be able to disassemble the asang-asang).
Once the blade looks almost clean, I'd give it a fine polish and continue with quickly staining the blade with hot vinegar (applied and rubbed in with a tough brush) which will also remove rust in tiny crevices, especially around the inlay. Even if you're really careful, there's still a good chance that some of the inlay may come off. However, this can be reapplied (take before and after pics to help solving the puzzle).
You could also apply lacquer to protect the inlay (can be removed again later) but this would also protect any remaining rust and IMHO more risky in the long run. You may want to use this for protecting the surface of the asang-asang, the ferule, and the silver covering the katik though.
BTW, the hole in the right-hand side of the ivory pommel probably once had an ivory peg securing it to the wooden core of the grip (this is usually a bit more hidden under the wrapping - just my best guess). Try to find a suitable piece of old ivory to replace it if possible.
Regards,
Kai
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