Time has come to address the shaft hole though the keel. Got the old strut wire brushed, and ordered a new cutless bearing and strut bolts from Classic Boat Connection. With a Google search I learned that the easiest way to remove the old bearing is to carefully use a hacksaw to cut down the length of the bearing. Then it's easy to use a screwdriver to "peal" it out.
Taking measurements from the old keel for correct placement of the rudder and strut.
With the help from a 80 year old machinist in the neighborhood, he modified my old shaft onto a extended Forstner bit. The shaft is ready for replacement regardless, and this way I can drill the 1 3/8" diameter hole through the keel accurately with the strut as the guide.
Next thing to-do, making and steam bending the 9/16" x 7/8" bottom battens.