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Goober said:About the M16A2, the US Army long had a deeply entrenched and historical view which argued that carefully aimed, long-range rifle fire is superior to the high-volume but largely unaimed bursts of automatic weapons. Those who argued for aimed fire believed that good marksmanship and judicious control win battles and conserve ammunition.
The M16A1 was actually a full auto rifle, but the US Army made a few improvements and decided to go with the 3 round burst and remove full auto for the reasons mentioned above.
The C7, or C7A1 (scoped) is made by Diemaco (www.diemaco.com) and is a modified M16A2.
Actually, I'm not sure of your source, but everything I've ever read suggests that the addition of three-round burst to the M16 was a reaction to the sheer volume of ammunition consumed by US soldiers in Vietnam not exercising sound fire discipline and dumping whole magazines of unaimed fire. Refer to the pics of guys holding their M16s over top of fire trenches and spraying haphazard for an example.
The C7 family is based not on the A2, but actually on the A1. That's why they have A1 sights on the iron model. IIRC the actual design it's taken from is Colt Model 735 (or maybe it's 715), also known as the M16A1E3.