7D21 is a date code that means the tractor left the assembly line on April 21, 1967. B069616 is the serial number, and the B at the beginning means that it was assembled at the plant in Basildon in the UK. 069616 is a low serial number, but the European serial numbers are not as well documented as the US serial numbers are. I do have a document that shows that the Basildon export serial numbers were in the B08xxxx range at around April 1, 1968, so 069616 is probably correct for 4/21/1967.
There should be a third number on that flat spot on the bell housing, but it is probably up in the rough part of the casting and will not be as easy to find or read. That third number is the model number and will tell us whether it is supposed to have live or trans PTO. The 3000 with the 8 speed transmission could have either type of PTO.
Transmission driven PTO means that when the PTO lever is in the "engaged" position, that the PTO only gets power when the clutch pedal is all of the way out and the transmission is also getting power, but the transmission could be in neutral or in any gear and the PTO will still get power as long as the clutch is out.
Live PTO means that the tractor has a dual stage clutch, and when you let the clutch pedal half way out the first stage of the clutch is engaged, which provides power to the PTO only, and when you let the pedal out the whole way both stages are engaged so that the transmission and the PTO both are receiving power. Again, it shouldn't matter whether the transmission is in neutral or any particular gear.
With either type of PTO the speed of the PTO should be directly proportional to the engine rpm's.
In either case, it sounds like the coupling or the linkage from the handle to the coupling is not working correctly. You should be able to remove the round plate that the PTO handle is mounted on to see what's going on inside there.
There should be a third number on that flat spot on the bell housing, but it is probably up in the rough part of the casting and will not be as easy to find or read. That third number is the model number and will tell us whether it is supposed to have live or trans PTO. The 3000 with the 8 speed transmission could have either type of PTO.
Transmission driven PTO means that when the PTO lever is in the "engaged" position, that the PTO only gets power when the clutch pedal is all of the way out and the transmission is also getting power, but the transmission could be in neutral or in any gear and the PTO will still get power as long as the clutch is out.
Live PTO means that the tractor has a dual stage clutch, and when you let the clutch pedal half way out the first stage of the clutch is engaged, which provides power to the PTO only, and when you let the pedal out the whole way both stages are engaged so that the transmission and the PTO both are receiving power. Again, it shouldn't matter whether the transmission is in neutral or any particular gear.
With either type of PTO the speed of the PTO should be directly proportional to the engine rpm's.
In either case, it sounds like the coupling or the linkage from the handle to the coupling is not working correctly. You should be able to remove the round plate that the PTO handle is mounted on to see what's going on inside there.