I went back to the shop I bought the wrong screws from and they didn't have a correct one. I went to a few others that I knew of and nobody had this particular size. One guy was more helpful than the others and took some time to measure my bolt up, he ended saying that it was probably a 1BA thread. Well we've been metric in Malaysia for a long time and none of the shops I went to had anything which fitted (these were all shops that only sold nuts/bolts and other fasteners). A quick search of 1BA bolts/screw on ebay showed a few examples but these were quite expensive! I was looking at something like USD30 (incl s and h) for a couple of screws. I posted my problems on the 'Yamaha two-strokes 1955-1979' facebook group and got some great input. I think the consensus is that Yamaha used some JIS threads.
The next option was to call a friend of mine who had a machine shop, as the threads were ok I figured he could weld some metal on the end and chuck it in a lathe and make the chamfer. Once done all that was left to do was level the end and cut a slot for a screwdriver. He was willing to do it but his place is not really nearby and he doesn't work on weekends.
I thought about it for a week and finally decided to take the most convenient option.. run a M5 x 0.8mm tap down the hole and hope that it would hold the M5 screw I bought earlier.
Taking the bull by the horns, I brought out my tap and slowly worked it in. There was no space for a proper tap-holder so I had to use a pair of vice-grips (mole-grips) to screw it in. This had to be done slowly and the tap needs to be withdrawn after one turn to clean the threads. I believe the holes go through into the crankcase and I didn't want to get any metal shavings in there! So and easy does it.
I used a thin rod with a blob of axle grease and poked it into the hole so that the shavings would stick to it and get drawn out. This is what comes out.
Trial fitting of the new M5 screw.
And this is most of the stuff out.. this will cause real carnage if it gets inside the crankcase as the main bearings sit just behind this.
Threads were finally done and a trial fitting of the screw is snug. It doesn't really take much load as the stator-plate is well supported on the sides by the crankcase casting, the main force will be in preventing the plate from spinning.. in this sense I think its fine.
Here it is installed. Above the screw just visible on the edge of the stator plate is an alignment lug cast into the crankcase, this ensures that the plate is mounted centrally. On some bikes the holes in the plate are slotted so you can play around with the spark advance if the contact point mounts do not give enough range of movement, here it is fixed. I will probably come back and check the screws after riding a few miles. If it gets loose then I'll probably need to use some thread-lock or JB-weld.
This option of tapping the holes to a different thread is really a bodge and is something I really don't like doing but the other option would simply take too long.
Here is a video of the bike running.
It has more compression and power than before (not surprising considering the condition of the bore previously!) and the increased compression has made the slipping clutch more apparent as it sometimes slips when kick-starting.
Unfortunately the noise in the crankcase is still loud so it will definitely need to be investigated.. currently sounds like the proverbial 'bucket of bolts' .
Will ride it a while and see.
Cheers!