The engine in question "should" be the older Peugeot single cam version of my engine (the image which you have earlier linked to) which I thought was an 8-valve, not 16. It's termed "RHZ" by Suzuki.
Here is a link to some technical info.
The block should be iron without liners, so I'm unsure why it can't be bored out other than sourcing oversized pistons. Seems to me a better bet might be to import a used engine or rebuilt short block from the UK.
