One of the few things about the Moto Morini 3-1/2 that almost everyone agrees the factory got wrong is the footpeg placement: they are too far forward. As a result, many people install rearsets. These days, the most commonly available kit is by Tarozzi. The right side installs rather easily, but everyone has trouble with the left (brake) side because of interference with the kickstart lever. Part of the solution is to use the later style kickstart lever which hinges at the bottom and to add an extender block which is available from North Leicester Motors. This allows the kickstart lever to easily clear the folding footpeg of the Tarozzi kit. Even with the extender block, however, the kickstart lever usually fouls the non-folding toe of the brake lever. If you want to see what happens when the kickstarter is used vigorously and it hits this toe, take a look at the damage on Jim Calandro's other-wise lovely 1975 Sport.
My answer is to provide a brake lever toe which tilts up for starting, just like the the footpeg. And there is a ready-made piece at any motorcycle scrapyard: the passenger peg of a 1971 Kawasaki F6 or F7. The hinge has a nice detent built-in to hold the peg in the folded position. There are probably other years and models that would work just as well, but this one is great.
Installation involves a minor amount of "machining" which is easily done at home. For the Kawasaki peg you'll need a tap and die in 10x1.25 mm size, a tap drill bit (11/32 inch), and a hacksaw to cut off the extra length of the threaded footpeg shank. The die is used to cut threads the rest of the way down the shank of the footpeg. The tap is used to cut threads in the hole in the end of the Tarozzi brake lever arm where the toe mounts (drill it through with the tap drill first). Just screw the footpeg in all the way, leave enough thread on the other side for a washer and nut, and cut off the rest. The angle of the folding peg can be adjusted by adding a washer or shims. It should point slightly rearward in the final installation.
You may also want to use the hacksaw to cut off some of the footpeg, as it is a bit long for the application. The peg is a smooth rod 12 mm in diameter. You could have it knurled, weld on little blobs for better grip, or even cut off the end of a "real" brake lever and weld it on to make a larger contact area. You could also drill out the original Tarozzi brake toe to slide over the Kawasaki footpeg and pin it in position somehow (maybe use some bearing retainer), and keep the original appearance. I'll post a picture here when I get around to that. Here is a shot of the final result from the rear and the front.
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