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Your Steering Box Uses The "early" Burman O-ring & Metal Flat Washer (the same as in my 1970 JrZ), The O-Ring Is Held In Place By The Metal Washer, The Washer Is Lightly Press Fit Into The Box, It Looks like You Have Damaged The Area Where The Washer Presses In (and that will have to be repaired), I Got A New O-Ring & Washer (I damaged the washer when removing it) Not To Long Ago From Larry At APE In California.
-John
-John