The clearance should take into account how the engine will be worked.
If it will only be run unloaded, it may well survive with a smaller clearance than an engine that is going to be loaded.
(An engine for a model aircraft will be loaded by the propellor absorbing all the power that can be produced at a given engine speed, so would need a larger clearance to prevent seizure)
A marine propellor absorbs power at an index of (speed^2.8) so doubling speed would require nearly seven times as much power.
My young greaser rode his little moped from Sussex to Somerset to a pop concert, and returning, had to spend the night sleeping under hedge, missing a day’s work, because the engine kept slowing and stopping. It was never envisaged that it would be driven flat out for mile after mile. Fortunately, the seizures did not appear to be damaging!
One of my brother’s fitters replaced the aged engine in his car, a streaight 6, side valve, with one scrounged from a scrap yard. It was a better engine, until he drove it fast for long. We found that the pistons were cast iron, unlike the alloy ones in the original engine.
Consequenrly, because of the tighter piston/bore clearances, it was unsuited to prolonged high speed high load operation.
Howard