Oh, and just to clear up a couple earlier comments... that engine will cool JUST FINE even with NO thermostat. It might run COOLER than it's supposed to, and take longer to warm up, but it will not overheat just because it doesn't have a thermostat.
It is likely that a previous owner removed the thermostat because it was overheating but the problem was some other blockage and not likely the thermostat (unless it was defective, but I'm guessing not). They might have still had enough flow at the time that it took longer to overheat, but it would have eventually overheated because they weren't resolving the real issue. If you use the engine in salt water, then you probably should rinse the head cooling passages with rydlyme or something else (as Matt noted earlier) and it will help clear the problem.
And the diagram flashback posted DOES match your engine.