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Yup, Hitler youth knife.
I wouldn't touch it before consulting an antiques dealer specializing in Nazi memorabilia first.
It is way too easy to try to "fix" or "clean" an antique only to drastically reduce it's value.
This is a said tale that many a dealer will tell you.
That being said, if it were mine I would put a light coat of sewing machine oil on the blade with a light cloth to keep it from rusting any further.
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"Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience." – C. S. Lewis
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