Cylinder questions

I've stripped down the engine in my recent Lince acquisition. The inside of the crank case, bottom of the piston, barrel spigot - everything in the top and bottom end is heavily carbonised, there are carbon deposits blocking the transfers, even, like lumps of coal...
The barrel itself is very mucky and bit rusty outside too and for some reason quite a lot of silicon has been smeared around.
The bore itself is basically spotless though and measures up as standard. I've tried a new piston and rings in it and the tolerances are spot on.
What can cause this level of carbonisation?
What's the best way to clean up the cylinder? I don't really want to blast it as I'm not planning on a rebore.

The barrel itself is very mucky and bit rusty outside too and for some reason quite a lot of silicon has been smeared around.
The bore itself is basically spotless though and measures up as standard. I've tried a new piston and rings in it and the tolerances are spot on.
What can cause this level of carbonisation?
What's the best way to clean up the cylinder? I don't really want to blast it as I'm not planning on a rebore.