Mercury 35/40HP 2 Cylinder Outboards Service Manual PN 90-42794--1, Page 83Get this manual
Powerhead Reassembly Install oil seals into lower end cap as follows: 1Apply bead of Loctite Type "An to outer diameter on lower end cap oil seals (a)2Use suitable mandrel and press one oil seal (lip facing down) into end cap until firmly seatedRemove any excess loctite3Press second oil seal (lip facing down) until firmly seated on first oil sealRemove any excess loctite4Lubricate oil seals lips with light oilLubricate O-rings seal (b) with light oil and install in groove