I've known of this for many years but thought I'd take a picture, finally.

It looks to be much later than the Second World War, but nonetheless a cool little V2 single side draft carbureted engine. It looks to be about 1.6 -1.8 in capacity.

Would go alright in a 1000!

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My first thought was the Mazda V2 but that looks like an FR transmission.

FR? Fixed ratio?

It has a hitachi carb and a hitachi distributor. They have the same Hitachi shield cast on them, I don't know much about it at all to be honest.

FR means front engine, rear drive

Hmm ... Hitachi was a Nissan company but I don't recall them ever making a 2-cyl car engine.

The Gorham JC was 2-cyl but was air-cooled and pre-war

Are any casting numbers visible on the block?

It has GOA in italics on the block.

Attached is pic of the carb, hitachi?

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MMMMMMMmmmmm Mazda! early thee wheeler ute motor?
The early 1100 and 1500cc versions where v2
eg. Mazda T1100 and T1500

http://2000gt.net/Mazda/3wheelers/Mazda3wheelers06.php

but the bigger T2000 had the four cylinder.

This is the smaller 360cc version very gorgeous
http://ninjagarage.blogspot.com.au/2010/06/1964-mazda-k360.html

Turns out that had an air-cooled engine. Most of the early kei-cars were air-cooled V2s, although the Subie had a 2cyl boxer donk.

V型2気筒 水冷式 エンジン

It seems the Mazda Keis had air cooled V twins the Big T series where water cooled V twins
its most likely a Mazda Kogyo based engine or similar Army style service vehicle we dont know about as there where a few made by Third party using existing running gear.