G'day Bon _Scott,
Yep, for steel rings a light hone/deglaze is OK for the cast iron bore. Not really necessary unless the bore is visibly glazed, though.
Valve clearances are the same as for the kool-bore engine; IN 0.005-0.007" EX 0.009-0.011".
By the way, this is the correct Service Manual for this 1984 vintage engine - free download for ODK members, about 5MB.
https://www.outdoorking-forum.com.au/forum/u...20and%20Repair%20Instructions%201984.pdf