There's a strong precedence in the region for HK smallarms. Aside from Pakistan manufacturing various iterations of the MP5 & G3, Thailand, Malaysia, Burma and even Papua New Guinea were using the HK33 and/or HK53 at some stage so there's already a presence that may have a positive influence on a decision to use the XM8 family.
I don't think you need to enforce the disassociation with smallarms in use by the military though, if I remember right, the Project did use such items as the M16A1, M203 and M60 which were very much in use with the US military at the time.
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