Hmmm, I guess I'll need to have a look at the enemy base again because I don't remember much of it.
Points taken, but I don't agree that the number of huge explosions would be particularly costly. B-movies from the likes of PM Entertainment and NuImage from the mid 1990s have enormous amounts of *huge* explosions and vehicle stunts, and while the actual budgets of those movies have never been published to the best of my knowledge, I don't think any of them exceeded $3-4 million.
I also don't think that the climactic battle as very impressive looking, but it's a while since I've seen it.
I have since found out this which could explain a lot of it. I don't know how accurate it is but it's certainly interesting:
From the Internet Movie Firearms Database:
"This 1988 sequel is an unusual movie in that its production was halted about two thirds into the shooting schedule of the film. Rambo III was scheduled to film entirely in Israel (and Thailand for the first part of the film), and many scenes were filmed in Eilat (the southern most tip of Israel between Jordan and Egypt), using Israeli armorers. However, the spectacle of a major American movie being filmed in the middle east created a lot of concern about terrorist attacks (to disrupt the production and 'send a message of the U.S.'). Before production could be completed, it is said that Israel revoked the production's permission to remain in the country (the rumored reason being security concerns and threats made to the American film crew). Not wishing for a multi million dollar film to be scrapped, then California State Senator Pete Wilson (R) (a big proponent of the film industry in California and later Governor of the state), helped the production relocate back to Southern California and Arizona. The remaining shots were completed (including many insert shots) using the same talent, but utilizing areas around the American Western Desert, most notable Yuma, AZ for the final battle and Lone Pine, CA for 2nd unit photography. The sudden change from 'accurate Soviet weaponry' (provided by the Israeli armorers) to the typical 'faux' weaponry seen in many American movies, is explained by this sudden relocation back to the U.S.A. Thus we see mocked up Browning M2 .50 cal Machine guns instead of real Soviet DShK 12.7mm MGs, etc. Stembridge Gun Rentals took over the final shoot (back in the states).
Most notably, the armored vehicles at the final battle changed from the authentic and original Soviet armored vehicles from the middle of the film, to the modified American tanks. These were provided by Veluzat Armored Vehicles out of Newhall, California. Only aficionados of tanks would notice the change. "
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