The GXV120 (a pushrod engine, where yours is OHC) has an oil seal for the governor shaft, on the outside of the engine.
[Linked Image]

I don't know what yours has - I don't have a full manual for that one, and the short-form manual doesn't tell you. However this Honda dealer says the same 6x11x4 mm oil seal used on the GXV120, is used on the GCV160 for the same job:
http://www.2lcstore.com/catalog/item/1356855/820156.htm

Honda part number is 91231-891-003.

Post-edit: See later post in this thread. The seal is a conventional lip seal, and on GXV engines, the crankcase is bored so it can be pressed in.