Sword

The Sword is a melee weapon found in the Hong Kong area. The local Triads prefer to fight with traditional weapons which would account for their prevalence.

Tactics
It doesn't receive much use because you find the Dragon's Tooth Sword shortly afterwards, and it's superior in every way. The sword is still useful to break open the lockers within the MJ-12 Hangar though.

In-game Description
A rather nasty-looking sword.

Shifter
In Shifter, a special sword called the Prototype Nanosword Mark III can be found in the captains office on the PRCS Wall Cloud. This uses a steel blade that is kept in shape with Nanites, as opposed to the final model which was entirely made of nanites. The Mk 3 does less damage than the real DTS, but more than regular swords and only takes up 3 inventory squares.