Hi Norm,
Yes that's what I would do ,just connect the red Chonda wire to the loom.
Red is DC (regulated): It's the output of the rectifier/regulator, providing stable DC voltage.
Yellow is AC (unregulated): It's the raw alternating current directly from the stator coils.
Joining the red and yellow wires is highly likely to cause damage.
Make sure the yellow wire is properly insulated to prevent it from shorting out against the engine block or other components.
Red Wire (with diode): The red wire with a diode is almost certainly the DC (direct current) output from the charging system.
Cheers
Max.