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Mike,
It sounds like the system is not going into closed loop. Have you tried testing the main temperature switch that triggers closed loop ? It is on the right timing chain cover and is normally closed, contrary to the Bentley manual. The ground connection should be open above 59 F.
In my experience, 14 mpg in town and a slight hunting at idle are normal for a 81 SC. When the car was new the EPA combined rating was 16 mpg. Highway cruise at 60 mph should be closer to 25 mpg.
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Paul
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