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If indeed the set was designed to decode a stereo signal (you can't be sure unless there is a stereo switch), then the problem is in the decoder circuitry. Anything that old is pure analog, so you have to check for the pilot 19 kHz signal being detected and doubled (or synchronizing) to 38 kHz to achieve the L-R signal.
Maybe a simple alignment will make it work. Trace out the circuit and try to guess which alignments you need to tweak. Don't adjust anything unless you know what you are doing.
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