Simon,
First, let me say that I am not expert regarding plunger parts versus swingarm parts, particularly in the primary and, even less so, with regard to 4-spring clutches. Nevertheless, never one to resist sticking my neck out, I did a bit of research and came up with the pictures shown below (borrowed from
www.basmotor.se, much thanks to them). It appears to me that the plunger splined sleeve is longer than that for the swingarm by about the exact dimension of your problem. Having said that, more experienced folks than I can jump in. It does not seem to me that thread at the bottom of the thread run would be so damaged as to resist 65 ft. lb. It would just give up and get more damaged.
Anyway, whether this possibility is right or wrong. you are going to need that spacer between the crankcase and primary cover. With due respect to Bill, I recall (not near the bike right now) that it is much closer to 1/8 than 1/4. Nevertherss, you will need that 1/8-ish (and I'll enjoy eating that crow if I am wrong about the thickness.
Richard L.