I would possibly try Fluorescent Penetrant Inspection. We use this and a skilled inspector can detect even very small defects very accurately. Many aircraft service centers have the ability to do this. I am sure there are other industries as well. Fluorescent is dye penetrant inspection but uses a fluorescent penetrant and a black light to detect cracks. I cannot tell you how this would work on Damascus barrels but in theory it should provide some good results.
Phil
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