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I’m pretty sure AJE was the only tubular K-member ever made for our cars. My advice would be to start cutting up the stock one. That area where the oil pan hits can be cut out and boxed in, and should give you enough clearance without losing any strength.
 
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Wouldn't lowering the K member an inch move the control arms and rack in a similar manner, making this a mute point? Or is there a reason that wouldn't be done?

And then to compensate raise the engine mounts up an inch.
Yes, this would be a much preferable method compared to lowering just the rack. Doing this does slightly alter the suspension geometry as you changed the distance between the upper and lower control arm mounts, but this is far less detrimental to handling than moving just the rack, and if it really bothered you, you could drill new holes lower down to lower the UCA inner mounting points by the same amount as you shimmed the K-member, which would bring all the suspension geometry back to factory.
 
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