Nice frame, definitely worth looking after! No, you'd be surprised how bad surface rust can look, but when you get down to it is really superficial. I thought this 1966 Claud Butler 531 frame was probably a goner, but stripped it back to bare metal to check, A quick sanding with aluminium oxide paper and wire wool and no trace of rust remained. A quick home respray, new decals and it now looks like new. No need to go so drastic on yours, that's just a paint chip that' needs attention. Nowadays I cover such small chips with clear nail polish (borrowed from the wife!) to keep the water out.

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