Why is C used in many optimization libraries?

The FORTRAN 77 code could be converted to free source form with a tool and put in a module along with modern Fortran wrappers. The module can be declared PRIVATE with only the wrappers given the PUBLIC attribute, so that the FORTRAN code is inaccessible outside the module.

I am wary of rewriting code and introducing more bugs, but people will differ on this, based on how good they are at programming in general and how well they understand the algorithms in a domain.

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