I *think* this is what you need: KH-230476
It kinda makes it seem like it's a bushing that's pressed into the block instead of a big brass nut like the K241-K341 engines use. I've never had a 7 or 8 hp engine apart, so I don't know for sure. The service manual isn't clear, either. If you can take a picture with the governor arm off, I might be able to confirm what you need.
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