Good points from unruhjonny and OPH and I do agree with all of them. I have an early version of the '71 GT-37 that is an original 455HO car, but the original block is already punched .060 over and the 197 heads have cracks in the seats, so I built a new (different) 455HO engine and replaced the original ailing M-13 3-speed trans with a BW-ST10 4-speed. The numbers block will always stay with the car. If I were in your shoes, I'd retire the original 350 under the work bench (keep it) and focus on a 400, or 400 stroker, build. I have a 400 stroker build in my '70 Lemans 4-dr sedan and it's a heck a lot more fun to drive than the 350 2-bbl. It's original 350 is "under the work bench" and don't miss it a bit. It will stay with the car when it moves down the road with a new owner. 400 engines are still out there and the best (& most affordable) platform to build on.
I wouldn't invest any money in either 350 engine unless it was a '68/'69 350HO, or as OPH said, it was a 'cream-puff' survivor car.
Your GT-37 is a great color combination from the factory and most folks won't care if the original 350 2-bbl isn't in the car. Most would prefer a non-original 400/455 that looks factory and it will add value in my opinion. I would upgrade the rear-end to a 12-bolt if you went the 400 stroker/455 route.
Dennis
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