One more thing I'd like to mention is I'm pretty sure those didn't come from the factory with a fuel pump. They were gravity fed. So maybe try bypassing the pump and see what happens. Make sure the fuel tank and strainer are clean.
Also, that little opening you mentioned with a white smoke coming out of is the breather. I'd say that's normal for an engine with a far amount wear.
Maybe you've done this already but if you still have problems you might want to check the carb float level. There's a spec in the book.
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