This is a strange optical instrument, but I think that it's kind of cool. It was used for aligning fixed 20 mm guns, on german fighters. It was manufactured by "Optische Werke, C. Reichert" "Bvf". The rod was inserted into the barrel of the gun, and then the optical sight was used to aim the specific gun. The tiny flag, is a remove before flight flag. I hope that you like it.
Stig Erik
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