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Need to concentrate on the shift piston.----Shift piston bore.----Oil pressure and shift control valves.----The damage on the forward gear clutch dog indicates there are issues with those items.---The spring puts this thing in forward and no damage can occur as shown in your pictures !

Your location ?----Model # of your motor ?----Post pictures.----I did not know of a unit made in Belgium.-----Perhaps it is not the original gearcase?

#20 is a thrust bearing.----Reverse gear floats on #29.-----None of these items have anything to do with reverse gear shifting , unless there are parts missing. !----Are you prepared to do some simple inspection on this lower unit ??

There is no bronze bushing in the reverse gear as far as I know. ---And #71 is a thrust washer.

There is no " bushing " in reverse gear.-----Reverse gear does NOT touch the propshaft ( axle )----Ask your mechanic to explain that theory !

No---Item #10 is the shift piston.----For reverse it needs more oil pressure to compress the spring.-----If someone fooled with solenoid adjustment that could also be an issue.---Clean the shift piston bore.---Replace o-ring item #8

Correct , the E-tec behaves like a 4 stroke for part of the revolution of the crankshaft.---Therefor saves a lot of fuel.

Electric shift units are well designed, very reliable, easy to trouble shoot and repair.---That is my opinion, some will argue and disagree.

The engine block will not fit on a motor of 1973 and newer.----Sounds like an issue with shift piston bore.----So clean the bore.----Test shift function before installing the lower unit on the motor.

The 2 stroke engine is a wonderful machine.----But many folks (newbies ) have a poor understanding of how they work !

Try a higher quality oil if the smoke bothers you.

???----On a 2 stroke the gas would still go out the exhaust to be wasted as well.----Not rocket science.----P;ease review your understanding of how a carbureted 2 stroke works !

Gear lube stays good for years on end.----No need to change it every 6 months.----If no water is getting in there is no worry.

Hurry to ----crowley marine----Just order the parts.

Test the spark before putting distributor back in place.

Rings are shown to be available at your local dealer.----Your location ?

Guessing gets expensive.----Do some tests on stator and trigger.----Also charge battery / load test battery and take starter apart for cleaning and ohm test.

You cannot safely run one of those motors with carburetor issues.----A plugged carburetor means you might be starving 2 cylinders of oil.----And it needs a new water pump impeller every 3 to 5 years.

Something is not right.----First check settings on tachometer.

Part # 18 and 19 and 23 ??------Perhaps look at these same parts ( descriptions ) for the 1984 model 70 HP.