Some friends on AR15.com advised me that the threads were to allow the use of a "shredder" to be used along with some blanks loaded with wooden bullets. The designers were worried that the wooden bullets in the blanks might harm other soldiers when fired, so they designed a shredder to break up the wooden bullets.
When these rifles were imported to the USA, someone designed this flash suppressor to cover the threads and make the rifle "look better". Other than that, it doesn't really do much, as the recoil from the 6.5 X 55 is not very harsh and the powder burns well in that long barrel.
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