INTERMEDIATE GEAR SPINDLE

I just have to ask this knowledge bank, I think this looks a bit strange but it has obviously worked and the spindle is not loose. Measured in the hole on the inside of the case, the distance from the circlip down to the end of the spindle is about 5 mm, is this correct?

That is how the cases are 750 and 850.
That spindle does not look seated but there is normally a good 16.5 mm of engagement in the engine case so with the spigot in the timing cover it is well supported.

Edit.
Because nothing is to much trouble I got a picture, this is 20M3S but they are all but the same.
You might notice the orientation of the circlip which has most likely been there for close to 50 years.