I cannot see , hear or feel this motor.----Questions in post # 2 may seem silly to you !----Answering will only help you.----I have a bunch of these powerheads and they are easy to rebuild / repair or part out.-----Post picture of the STOP on that rod under the flywheel.----Picture with throttle...
Information is needed here.-----Post the results of a compression test.-----Does spark jump a gap of at least 3/8" ( 1 cm ) on both leads ?----Then again it might be as simple as the throttle plate opening too early.
Remove cylinder head.----You have a bad gauge , bad head gasket , or a motor that needs lots of work ( overhaul ) I say.----A VRO fuel pump runs off crankcase PRESSURE pulses.-----The wires are for the warning system.
Should not be hard to find the pump.--Your location ?------Not sure if yours used 2 pumps or just 1------And you might want to test / inspect / clean the distributor cap.-----New one appears to be about $300 beer tokens.
This topic comes up time and again.------It is the nature of a 2 stroke engine like that.----See the confused owner of a 63 model SEA KING motor in recent postings.----I have said it many times.--- 2 strokes and the concept of oil mixed with the gas is not well understood !
Looks like a 1972 model.----Those 2 locations are for diaphragm , PRESSURE operated fuel pumps.----Do a complete evaluation of this motor before spending any beer tokens.----Post the actual compression values.-----Compression test can be done with a rope on the flywheel.----Will need a new water...