G'day John,
Why not ream .702" straight through the two bushes and that way they will be in alignment. I have run across them out of kilter. I have two shafts here and yes they are .700". Why Vincents picked odd sizes like this is beyond me. The speedometer drive gearbox is another weird size too. The I know that there would have been an explanation but it really is perplexing. 3/4" would have been more applicable as I have sheared two K/S shafts in my time.
I would imagine that it would have been brought about by ease for manufacture. The shaft has 40 splines. A standard dividing head has 40 turns per 360 degrees. The best possible size for this to work is .700" diameter.