After 5 years of trying to eliminate this problem and installing a new WALBRO carburetor in addition too many adjustments and technicians advising head removal, I decided to remove all the protective metal sheathing around the engine and inspect the fins and cooling ducts. It seems this KOHLER engine is very sensitive to its air cooling system. After removing all the debris after 23 years and re-assemble, the engine runs great. I presume the surging was caused by vapor locks in the fuel intake. Go Figure !!!