Perhaps the 'oil' was petrol that had dripped from a faulty petcock or carb, and evaporated to leave just an oily residue? I once had that problem with a B33 (I think it was). Amazingly there was no fire. I think the petrol dripped when the petcock was in the off position, leaking between runs rather than during use.
I have wondered the same thing Allan, but does evaporated petrol leave a clean looking oil residue? And still no sign of it in the dynamo drive compartment.???????
I can't remember when I ever last oiled the cable, but I will be extra careful about it in the future. Ron. Baffled!
If it's petrol you can smell it...Petrol contamination leading to mag failure is pretty common...Of the 500+ units that were refurbished when I offered a mag and dynamo rebuilding service it was a frequent problem...Ian