Is it true the FNC was a top contender during the Small Arms Replacement Program?
Absolutely! The FNC is an interesting design that came out of Fabrique Nationale de Guerre in Herstal, Belgium during the late 1970's. It was first adopted by Indonesia (Pindad) in 1982, soon after followed by Sweden (AK5) and of course, Belgium. The FNC was indeed one of the frontrunners during the Canadian Small Arms Replacement Programme (SARP) Trials, which closely followed the NATO Cold Weather 5.56mm Ammo Trials conducted in Eastern Canada (CFB Gagetown, NB) during a typical Canadian Winter 1981/82. The Summer troop trials occurred in June of 1982 and the FNC ran neck and neck with the M16A2 for the rifle most favoured by the soldiers conducting live-fire and field training exercises. The FNC apparently finished slightly ahead of the M16A2-designate during the cold weather portion of the Trials, however the Canadian Government could not secure a favourable or cost-effective licensing agreement with FN which would allow for transfer of the Technical Data Package for manufacture of the FNC in Canada by Diemaco as the designated national center for Small Arms Production and Development. Colt USA undercut FN's price and the rest is history. At the end of the day, the performance of the FNC and the M16A2-designate were effectively equal, and all that set them apart were the economics of the manufacturing deal to be worked out at the national government level. The M16A2 actually made far more sense for Canada than the FNC, as the USA's closest ally. It is interesting to note that the Galil rifle was also a contender during the Canadian SARP Trials, but fared less well than the M16 and FNC throughout the process.
The FNC was FN's effort to modernize its production lineup with a rifle chambered in the new NATO-standard 5.56x45mm cartridge. The FNC was the first mass-produced small arm to make use of Robotic fabrication on the assembly line, with key welds for the Rails within the sheet steel Upper Receiver being robotically-welded. These welds are highly visible on the exterior of the FNC Upper Receiver as no effort is made to blend them into the Receiver's surface. The Rifle features a Flash Eliminator and Barrel contoured to fire NATO-standard 22mm Rifle Grenades, and the Gas Block features a Grenade Launching Sight which acts as a Gas System Cut-Off when rotated up into the Grenade firing position. The Gas System of the FNC provides for "Normal" and "Adverse" settings, with the adjustment conveniently made by the Left Thumb of a Right-handed firer, with the switch placed well away from the heat of the Gas Block itself. The Lower Receiver is machined from Billet Aluminum and lacks protective rails around the Magazine Release as well as any chamfering or flaring of the entrance to the Magazine Well, although the lack of these features does not appear to be an issue. The FNC "Para" Model features the excellent, rock-solid, Foldiing Buttstock lifted directly from the FNC's older big brother, the FN FAL Para. The FNC does have some ergonomic shortcomings, as was common for some reason preceeding the 21st Century. For instance, the Change Lever (Safety/Selector) cannot be reached with the Thumb of the firing hand when properly gripping the Pistol Grip. Rather, it is intended that the Change Lever be operated by the Support Hand.
Here is a photo with a bit less surface reflection in it...