Groo - back in '97, I flew on several Peruvian airlines, and was peeved that they wouldn't allow a Swiss Army knife in the cabin. I thought it was kind of silly, because I'd flown to Peru from the U.S. with it in my pocket. But what they would do was cabin check it ... almost exactly as you described it. I got a claim tag, and my Swiss Army knife flew stored in the cockpit with the crew.
Apparently, that's how police and military are able to fly with a gun - it's claimchecked and flown in the cabin. Well, anyway, it was in '97. No idea what they're doing now.
Dave