Andy..I've worked on a lot of 70 diesels and when they have "diesel slobber" like yours it's usually worn cylinder bores and worn piston rings. You can put a hotter t-stat in them and take them out and work them hard and it will clear up temporarily, but let them idle again for 10 minutes and it's right back. Should be easy to get it running again but the original problem will still be there. If it has sentimental value you should plan to have it overhauled and keep it. Price the parts and machine shop costs before you start the project.
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