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Here are the pictures; notice how thick the barrel is!
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That's because it was built by Brno, instead of Mattel.
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I concluded that it really is more than a flare launcher.
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Indeed.
From what I understand, it was meant to be a flare rifle and riot gun, with some suggestion that it may have also been considered for line-launching on boats.
Talk of mortars, grenades, etc. seems to only come from the American side of the Atlantic.