The problem is corrosion inside and outside the two nylon bushings #39. That is causing #44 King pin to be seized in #43 swivel bracket. You could get it very hot with a torch to melt the bushings, but that is no fix. It has to come apart and be cleaned and re-lubricated.
This is not the exact picture for an 8hp, but should give you an idea of what you are looking forward to.
BTW, where is the recoil starter? That could be a problem unless you want to rope it.
