Gil Hibben Rambo III Bowie

In August 1985 Stallone told Jimmy that once again he wanted him to design the knives for the new Rambo movie. Lile provided a prototype for Stallone and according to Marilyn Lile, Stallone's comment to Jimmy when he saw the prototype was "WOW!"
The Rambo III prototype was an entirely different knife than those used in the first two movies.
Only seven or eight of these prototypes and numbered knives were ever produced. Some were stamped "First Blood III" and some "Rambo III".
While waiting for Stallone's selection and approval of the prototypes Jimmy recieved a letter from Stallone: "At this date, i decided to go a different route and concept in developing a Rambo III 'look'." As simple as that. Since Jimmy and Sly had always worked on a handshake agreement, their relationship was effectively severed. Obviously disapointed, but being the Southern gentleman that he was, Jimmy politely sent Stallone a letter and asked him to return his prototype and wished him well on Rambo III.
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Gil Hibben Rambo III Bowie
Rambo III Bowie and Hollow Handle
Gil Hibben Rambo III Knives 
Originally Sly went with the Hollow handle prototype knife that Gil sent to him. When filming began it was the minefiled scene that they shot first, and the hollow handle knife can be seen in some of these scenes. Sly then changed his mind and went with the Bowie. You can see the two knives here side by sidep
A new direction:
The new direction that Stallone took was with Master Cutler Gil Hibben. An extremely accomplished knifesmith and mastercraftsman, Gil sent Sly a selection of prototypes, most noticeably a hollow handle design keeping with a survival knife theme and a large Bowie.  
Sly chose the Hollow handle design with the sawteeth on the spine as the knife for Rambo III. Filming started with the minefield scenes being among the first, you can actually see the hollow handle knife being used in the final cut of the film, but shortly after filming had started Sly changed his mind again and decided instead that the large Bowie design should be the knife for Rambo III. Some twenty knives were sent to Sly for the movie Rambo III. Some were used and some were not.