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Im sorry that is above theimpeller you cannot put a sleeve there you will not be able to install theimpeller.
I believe some of these shafts are coated ( nickel carbide ? ) ----It appears to be flaked off for some reason.-----Just install a speedy sleeve and be done with it !
After being able to spend a little more time looking andlearning a little more about this engine it appears that the part number labeled#64 is missing. What is the Spacer needed for? (yes, I’m going to replace it,just curious about its function)
Keeps water from shooting up the driveshaft tube and away from the bottom main bearing seal etc.