Re: Flushing out gear box...??
Electric Shift models take a special type of gearcase oil. It's a Type C Electric Shift Oil. it might be tough to find it anywhere, but at your local outboard dealer. A parts house might sell it, but a lot of those guys don't know squat about outboards, just cars.
Your model is the last year of 40hp Lark built. The following year Lark was the "newly designed" 50hp looper with twin carbs. I like the older style like what you have though. A lot simpler to work on and right now, these models are a dime a dozen. If that lower unit ever craps out on you, you can easily find a manual shift model for under $100 and swap parts over to it, to make it run. Your type of motor has been in production since 1958 and they were a workhorse.