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Hi.
in my experience, the ignition circuit of ’70-71 mercury single is a pain in the ass.
In My belgium-made single ( and twin also) Mercury, ALL the wires insulation vanished, so many short circuits came everywhere, expecially in hidden places.
My Merc 40 soon after the complete restore starts back to fail… I found the low tension wires (sealed in the stator under the flywheel) missed insulation just a bit far from where they bent when the throttle is operated, so the entire stator need to be replaced.
Also, check the thin nude copper wire on the high tension coil body … it need to be clean and OUT from the rubber coverwhen the coil is in place to ground on the cast of powerhead .