Hi,
I think it is for the wiring loom, to feed the back lights. You might find another hole a few inches from the rear cross-member ... but I can't remember if it is on top of the rail, or on the side.
When I ordered my first new chassis (Marsland S3 to fit my S1) I asked for the hole to be on the top of the left-hand rail, to avoid all the "muck and the blood, and the bullets, that drips out of the steering box, master cylinders, etc. Things always seem dark and sticky in that area. They responded by supplying a chassis with two LH top sections ... twice as many holes.
Doh! Memory is creeping back ... the S1/88" chassis had the wiring holes, at the rear of the chassis, on the side. The S3 had them on the top.... where you can't reach them.
Hmmm! Your brass exhaust nut must have fallen into the left hand chassis rail. I presume you are RHD? Do you have a matching hole on the other chassis rail?
Historical note. BMC, and it's off-spring designed their (our) cars so that one production line could handle both RHD and LHD cars on one production line. European manufacturers needed a separate track for UK cars. Land Rover?
OT note. The RAF used Morris J2 15cwt mini-buses. (Think short nose Sherpa) In the 1960s, we had to send major components to a Maintenance Unit. On receipt, they would send us a new, or reconditioned item. So we removed and dispatched the Morris forward control steering box. In due course, the new steering box arrived. The mechanic lay on the ground and shoved it vertically up the front of the truck. There seemed no way of making it fit, and we didn't have anything to compare it with.
Several days passed before it dawned on us that the truck was RHD ... and we had an LHD steering box.
At that time we still had a BAOR. Over the years, things changed, so that we could buy our spares from the local (approved ) main dealer. The service from one main dealer was so bad, that the contract was given to a one-man business operating out of a tin shack.
602
PS ... Your hole should have had a grommet ... but no grommet shown in my parts book.