Re: 1961 Merc 400 - Spark Plug Gap
Autolite 295 is equivalent to a J8 which is too hot a plug unless you're idling all the time.
Autolite 354, NGK B6S, or Champion J6C would be the correct plug.
They are 3/8"-reach with the correct heat range and cut-back ground electrode for use in a 2-cycle engine.
Gap 'em around .030".
HTH.........ed