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The fuel filter looking thing is the distributor vent. Air is pulled from there, through the distributor cap and into the crankcase. Otherwise there is a possibility that crankcase fumes can come up into the sparky environment of the distributor and cause it to explode. I have seen photos of this happening, so it's more than just a theoretical possibility.
For a master cylinder try any of the forum sponsors. SNG Barratt, Coventry West etc.
Last edited by Jagboi64; 10-18-2016 at 04:25 PM.
Reason: typo
I picked up a MC rebuild kit from terrysjaguar. Most of the jag parts places carry them. Usually you'll just need to replace the seals and top ports ( all in the kit I got ). If you find any wear or damage internally you could hone it out, but I'd replace it at that point.
Buy a new M/C, say I. Be safe. The old one will almost certainly be rusty inside. I expect your calipers will need doing/replacing too, as will the three flexibles> Also very carefully check the hard lines for rust, particularly the line to the rear and those on the rear cage.
Greg