7jinxed7,
That pair of circles on opposite sides of the case is Sellier & Bellot's headstamp. I've seen claims both that it is and that it is not corrosive. I suspect it may be, and have written S&B to get a definitive reply, if their records tell the tale, but as yet have no answer. Keep in mind they won't initiate corrosion until the humidity is above around 70%. Hatcher's Notebook has the exact range. The specific relative humidity at which the potassium chloride starts rust changes with temperature. If you don't keep the gun in a damp environment, you may not see it.
I got a case of the 1060 rounds of that S&B ball with the 1982 headstamp about 20 years ago. I put them through my M1A with no corrosion symptoms. I was cleaning with Sweet's 7.62 at the time, which includes water and ammonia, so it would remove potassium chloride deposits and neutralize any acids. Today I strongly recommend Bore Tech Eliminator, as it is water-based, non-toxic, non-ammonia, odorless, and it removes copper faster than about anything else (I don't even try to use brass rods or jags with it as they are attacked rapidly and turn the patch blue). It also quickly gets carbon out, so for high power rifle not shooting lead, it covers the bases. I've tried just about every bore cleaner ever made, and this stuff is just a better mouse trap for jacketed bullet shooting. Read the reviews on Midway and you'll discover much the same observation from others.
That S&B surplus ammo is lousy stuff. It is labeled .308W on the head instead of 7.62, so it isn't military in the normal way that's done. I suspect the 143 grain bullet is a big part of the problem, but haven't reloaded any to prove it. But I also suspect this ammo was stored in very poor conditions because I have some cases that have corroded through the brass from the neck to the bullet. Of the portion of the ammo I have that looks good on the outside, about one in 20 rounds fire either too weakly to cycle the M1A, or just barely cycle it. Pulling some of the cartridges down, the powder seems to be almost glued in place and has to be removed with a scraper stick. There is no bullet sealant in these rounds, and I suspect moisture damage to the powder.
Smokeless powder makes a reddish dust if it breaks down far enough to consume all of the antacid carbonate they mix in. That reddish coloring is from acid evolving. The acid could etch the zinc out of brass, leaving it reddish looking on the inside of the case; that, or, you've got some of the red dust planted there.
The acid could initiate your surface rust, if the temperature of combustion didn't destroy it. But a lot of things can bring that about. I've even found rust in barrel blanks before. All it takes is humidity and not enough of an effective corrosion inhibitor.
I would pull enough of the cartridges to check conditions inside the cases. If you've got powder deteriorating it will likely smell acrid and you may see the red dust on it. Such rounds should be pulled and the powder dumped, at least. If the cases look etched, they should be tossed, too. If you want to try to make the bullets shoot, you probably can.
I would take a larger caliber bore mop and get the chamber and bore wet with Kroil or PB Blaster and let it sit for a day then run patches through and rub the chamber or other red spots off with a patch that has JB Bore paste or Brasso or tumbling media polish on it. In the M1A, you can run a cleaning rod in and then screw the bore mop on. As an alternative, Hoppe's used to make a chamber brush rod with a flexible Nylon shaft that I've used in Garands and M1A's a lot. I hope they still make it. In any event, in a couple of days the rust will be loose from the penetrating oil and you can polish it out. If you want to, you can layer patches onto an undersize brush and polish the chamber further with Flitz.
Contrary to popular misconception, a polished chamber does not dramatically increase bolt thrust, but rather, by requiring a greater length of brass to keep holding onto the case for the head to stretch back, it actually distributes the pressure ring over greater case length, making it much less thin and less likely to initiate a separation. (Varmint Al's web site has an animated FEA model of the .243 Winchester showing how the brass in the polished chamber stretches the case head back without getting a well defined pressure ring.)