That lever is a valve lifter, the correct use of which is an art in itself.
normally the levers fitted above clutch and brake are magneto advance and choke.
Just had another look at the frame which does not have a sidecar lug as far as I can see so that make the front bit of the frame from a 1941 -on G3L with teles not girders.
Can you see how deep the hole you are digging is yet?
As for the idea of rebuilding an M20 from one shagged engine?
? seen the price of M20 tinware?
Matchless G3L stuff is Just as scarce; I have a WD G3L and am glad I hav ehad it for so long; my neighour has an immaculate and genuine WD M20, asking price £45OO, they are becoming scarce, there is not even one on Milweb.
If you really want a wreck to play with for 2k theres loads of crap on ebay to play with.
yes you can get repro parts, then you find there is a lot more you cant get.
As for building bikes out the back door of the Matchless factory, as another ex Matchless factory worker, I reckon someone is having his leg pulled.
and lastly.I repeat that frame is from two different bikes, whats the point of renovating it?
Pulling the covers off a Jap bike to polish them is childs play to this boat anchor you are lumbered with.