Much to their own surprise, the Small Arms Study Project run by Sven Holbars of the Alexandria Technological Institute determined that the T-5 was far from perfect. The average range of infantry combat had decreased, even in open desert country, and all major combatants had adopted the Draka/German system of dispersed infiltration infantry tactics. The full-power cartridge was superfluous at ranges within 800 meters, and 90% of all infantry engagements were at that or less. Beyond that range, crew-served weapons were more effective. Furthermore, the venerable 7.5 x 60 mm made a true selective-fire rifle impossible; a weapon light enough to be useful was uncontrollable in full-automatic mode, and the barrel overheated disastrously.
The Project therefore decided to "reinvent the wheel" and design a new weapon from the ground up. Since the rifle was merely a delivery system for the true weapon — the bullet — ammunition was the first priority. The design parameters emphasized the smallest and lightest possible round which would have good wounding characteristics with the 800-meter envelope and would still punch through the average steel helmet at that range. A small-caliber, high-velocity round was found to give the best effective combination of characteristics (a caseless round would have been even better, but this proved extremely difficult). The caliber settled on was 5 mm (about .2 inch), with a bottle-necked 45 mm cartridge case of aluminum alloy.
The gas-delayed blowback action of the T-5 and SAW-1 was used for the new rifle. The design was actually based more on the SAW-1 than the rifle, as automatic fire and an integral bipod were part of the specifications. The feed device was a matter of controversy; with the 600 rpm cyclic rate envisaged, a box clip was of doubtful use — it tended to become unmanageably bulky and unreliable with capacities over 34–40 rounds. A 75-round disintegrating-link belt, prepacked in a conical drum, was settled on, using aluminum for the belt and feed lips of the drum, and the new glass-fiber resin for the box itself; the rear face was made semitransparent, so that the soldier could see at a glance how many rounds were left. Performance was as follows:
Holbars T-6 Assault Rifle, Model 1936
Caliber: 5 mm x 45 mm
Weight: 9.7 lb.
Range: 800 yards effective, 1000 maximum
Rate of Fire: 600 rounds per minute, theoretical
Feed System: Disintegrating-link metal belt, 75 round drum
Operation: Gas-delayed blowback, automatic; optional 3-round burst
Careful engineering and extensive use of high-strength alloys reduced the loaded weight to less than 10 lbs.; combined with the low recoil force and soft action, this made the Holbars fully controllable even when fired from the hip on full automatic. A bipod was attached below the gas port, and when not in use folded into a slot on the bottom of the laminated wooden foregrip. The stock was a metal frame, with a robust folding hinge; when collapsed, it lay along the left side of the weapon. There were post-and-aperture sights, but the main system was an optical x4 sight; this was optimized for quick use, and encased in a rubber-padded "shroud." Most troops carried their optical sights permanently clipped to the weapon, although they could be removed with the standard maintenance tools. Folded, the weapon was only 30 inches long, an important point given the increased use of armored personnel carriers. The Holbars was usually carried across the chest on an assault sling.
A companion SAW-2 was developed concurrently; this was very similar, but used a 150-round drum and had a heavier quick-change barrel attached to a carrying handle. This two-weapon combination was used throughout the Eurasian war, and remained standard issue for the Domination's forces until the early 1970s.