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Mumbles,
Definitely not the Thunderbolt ignition. There should be wires that run from that wiring terminal to a kill switch to ground out the ignition to kill it. Looks like you only have the wires that run to the points? I can get pictures from my 200 if you need them.
Points should be gapped at .018. (It’s a Phelons ignition system).
Hope you are able to salvage that lower unit. If yours shifts up for forward and down for reverse, your limited to 1966-early 1969 for replacements. Late ‘69 forward shift like and OMC and will not work, and the 200s from 1964 and ‘65 ar a little different (no zinc anode, different water pick up). I had to replace mine … it was a drawn out process.
JP