Development began around 1967 when NATO launched the idea of adopting a second standard small-caliber ammunition. Three competitors were then nominated: one American, another Belgian, and finally the German Heckler & Koch. NATO quickly lost interest in caseless ammunition but the West German Government held on. During 1968–1969, the government of what was then West Germany started a feasibility study into a future assault rifle and three contracts were awarded respectively to Diehl, IWKA Mauser and Heckler & Koch (based in Oberndorf). The terms of reference (specifications) were very general, calling for an improved infantry weapon with a better hit probability than any then in existence, yet fulfilling the FINABEL (named after France, Italy, Netherlands, "Allemagne", Belgium and Luxembourg) range and rate of fire characteristics. The designers were given a free hand as to the methods used, but Heckler & Koch realized that the only way to obtain any significant improvement was to radically change the approach.