So what engine would this bike have come with ?
stateside versions of that bike sold by eastern enterprises were sold with a 3hp, or as a roller only, many other companies did the same with them. I have only seen adds with complete bikes from Keystone. Somewhere I think I have an add with the round number plate from keystone, but I cant find it offhand to verify what it had for HP. the add I have with the integral square forkplate (same bike different year) lists it has having a 3.5hp through Eatons. Those bikes were Taiwanese imports and the engines were fitted by the Company that purchased them usually.
an HS40 is externally the same size/shape with only difference of exhaust placement so if your block didn't get damaged during the bending of the valves and you can salvage, It would be a good fit other than having a slightly older look than a 1971/72 version engine would have had.