Re: 1969 800 merc run only when starter is engaged
Sounds like maybe your ignition switch is bad.
To spark, the CDI box (on the front of the cowling) has to have power to not only the red wire (constant +12V), but the white wire (switched +12V) on the same side of the box. Note there is also a white wire on the other side of the box; that's associated with the wires coming from the distributor and you don't ever want to apply power to any of those terminals.
Anyway, if you were to attach a "hot" wire from the positive terminal of the battery to the Switched +12V terminal of the CDI box, I bet your motor would continue to run after it's started and you return the key to the "run" position.
Take heed that while the white terminal is connected directly to power, you can't turn the motor off by the ign switch so you'd have to be careful and be ready to disconnect the temp power wire if anything untoward happened.
Anyway, it's certainly symptomatic of a bad ign switch, try the jumper and let us know what happens.
HTH.............ed