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humm...which 340 heads?, are they ported?, what is the compression of the 318?, cam?, etc.?
The only real difference between the 340 heads and the 360 heads is that the 340 heads have a slightly larger intake valve.
'71 and earlier had the 2.02 . I put 1.88 360 heads on a 318 in a '77 PU truck and it screamed, especially on the highway. I would think 2.02 would be too much for a 318, probably shroud the intake valves by the block bore size.