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does thrust washer fit in retainer plate- 1984 35 hp

according to service manual it shows the only thrust washer on these lower units fits between bearing housing and retainer plate. Thrust washer is tapered on one side so to appears to sit in center of retainer plate. has anyone ever worked on 1984 Evinrude 35 hp and is placing it in retainer plate tapered side to gears correct? service manual does not address this . can anyone shed light I attached a photo.
 

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Bearing thrust washer ( 34 ) fits in the bearing housing ( 1 ) and should be obvious from wear marks as to which way it goes..----Flat side of retainer plate goes against snap ring.
 
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Hi Tim Thanks for reply, but thrust washer diameter is larger and will only sit on top of bearing housing to big to recess inside of bearing housing receiver thats why I was unsure of placement.. I took a pic for you to see.
 

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Is it possible this had wrong thrust washer installed and ran perfect ? thinking maybe just order new one which looks a lot like the one I have now. Just sdoes not seem right they would engineer it to just sit on top of bearing housing
 
This is what it is supposed to look like, these are in poor shape, but they were handy for the photo.IMG_20211211_203146919_compress69.jpgIMG_20211211_202951533_compress30.jpg
A trained eye will see, however, that this is pre 1984, the detent spring bore is the giveaway. This uses the 2 dog shift sleeve, not the 3 dog.
 
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It's possible that the larger thrust washer was installed by someone who didn't know better, and then the retainer assy was not tightened all the way in. Of course this washer supplies proper pinion gear to reverse gear clearance, so make sure the gears are not messed up. It probably wasn't run much in reverse, or maybe not run very long at all, with this configuration.
 
Yep! when I got it back from marina guy i never started it because I noticed a lot of in and out play on prop shaft which I never had before, also when you placed it into reverse prop and shaft would move out about 1/4 inch and not fully go into reverse gear. Paid 180.00 dollars for new seals and I should of just did it myself. Not going back there when I picked it up it looked like they were closing down and going under. Nobody left in jersey that wants to work on these old engines anymore
 
Happy to help, my friend. I work on a few lower units here as I also mig weld aluminum. Lotsa rocks in our area lakes.
 
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