Re: 1977 Crysler 135 steering connection - missing part?
I never liked the transom mount steering. It usually gave problems with engine interference. That longer bolt in the engine nose may interfere when the engine is tilted all the way. In your set-up you are not missing anything. There is a "universal" at the engine end to accomodate angularity and steering. It should work correctly with a shorter bolt. However, flip over the brass colored pivot at the transom so it is closer to the side of the splashwell. In effect, this will give a longer arm and less angularity when the engine is tilted.
The boat in the avatar was originally set up with the transom mounting like yours and I broke the nose off my 55 three times.
However, if the steering arm hits the engine cowl when tilted up. then the best thing would be to make a longer universal out of aluminum.
The BEST solution would be to move the transom mounted tube into the holes on the transom clamps (assuming the steering cable is long enough) and then buy a link. However, these links are a tad pricey--like 20 bucks used. While the original equipment is 1/2 inch stock, you could make one from 3/8 diameter stainless rod.