Hi aldot, here are the carburetor settings:
[Linked Image]

The idle mixture screw (which Honda calls the pilot screw) should be set to 2 turns. Note that on those Keihin BE carburetors, used on GXV120, 140 and 160 Hondas, the idle jet may be a bit prone to getting clogged. I've covered the cleaning procedure in another thread:
https://www.outdoorking-forum.com.au/forum/u...p;Words=gcv160&Search=true#Post38603

Note that the thread describes cleaning procedure for both the Keihin BE used on the OHV engines and the cheaper version used on the OHC engines. Here is a video showing how to clean the BE carburetor properly:


With regard to your original problem with idle speed, is the idle speed screw making contact with the idle stop when the speed control is set to idle? I notice that your governor spring is not in the hole shown in the workshop manual, at the speed control lever end:
[Linked Image]

Did you check that the governor arm is correctly set in relation to its shaft?
[Linked Image]


If you have issues or questions regarding the engine, please post them so that we can try to sort them out.