Someting that you should never ever do with a brushed motor is lube the commutator. Unless you have a Taycol whose brushes really do need regular oiling.
The simplest way to make it compatible with a modern controller and get the benefits of modern control is to invest in a pair of Schottky Diodes, as suggested in the link I offered earlier.
As the motor works, it may be that the conroller is at fault. Since it was of its time, it could well be repairable with a screwdriver and file (I'm not familiar with that one), unless there is another problem. One such problem might be that the control just won't work with a modern radio – I would not reccomend using a radio that old anyway, technical sandards and legal requirements have changed a lot. Without going the diode route, a double switcher would give basic forward – off – reverse and work from a modern radio.
After writing that, I looked for the "MFA Electro boat throttle". It looks like a considerably later, but still early, electronic box. It could well be that it was dropped in as a modern replacement for whatever was there before, found to be incompatible with the motor, and the whole project consigned to the attic. The ESC, provided its plug will fit a modern receiver, should be testable needing little more than a battery and a modern motor and, as a way of keeping life fairly simple, a servo tester.
Edited By Malcolm Frary on 30/07/2020 15:14:11
Edited By Malcolm Frary on 30/07/2020 15:25:16