The first thing I did after that, was return the needle to it's previous position. That's not actually quite #3, more like #3½ (in-between #3 & #4). This is what it looks like,

- Org = preferred position (~#3).jpg (16.86 KiB) Viewed 65 times
and the reason it's like this is because I had lost the original clip into the engine a long while back. The steel clip it has now is so small that hopefully it won't cause any damage. The original did cause damage. Below the steel clip is a 2mm nylon bush to stabilise the needle, and I hope that bush won't cause any damage either in the event something happens. One can hope.
Looking at the drawing of the 30n3-1 carburettor in the Haynes manual, there is an 'O'-ring on top of the carburettor's throttle housing, in the lid that screws on. I didn't have that. It cannot leak much across that very fine thread, but I had an 'O'-ring that fitted fine, so I installed that. And adjusted the throttle cable for the lid coming up a bit. Then I found that the 'O'-ring made no difference, so I was back to where I started - but left the 'O'-ring in.
Next I focussed on the idle adjustments in this carb. Until then I had: Pilot 2½ out, Bypass 3½ out, idling at about 1300RPM. That ran fine, but it surged. I then tried to lower the idle (against the idea to reduce the amount of mixture it gets on the overrun), and I arrived at:
Pilot: 1¾ & Bypass: 2¾, idling at about 1000RPM. It ran pretty well, but cold starting was a bit more difficult. I did about 70 miles with that, and it still surged. Initially I thought it was a bit less, but probably that was just wishful thinking.
So then I went back to the 'Standard' setting: Pilot: 2½ & Bypass: 4, idling at about 1400RPM. The take-up is better than with the low idle, and for the surging it does not appear to make any significant difference. The bike runs fine, but it still surges going downhill w/ the throttle closed.
Not sure where to go next. Maybe another carburettor (in which you can close-off the flow better), maybe back to reeds? Or maybe just pull the clutch.
EDIT:
Not satisfied with this, I figured: you should be able to reduce the surging by reducing amount of mixture. So I went back to the idle settings, and lowered the Bypass. If you do that, the RPM reduces, but also it starts to run poorly & 4T, so then you also close the Pilot a bit. It then starts to run well again, and the RPM increases a bit, but stays lower than before. I went down to the lowest it would still run, which was: Pilot: 1 & Bypass: 1⅞, idling at about 600RPM. By then the charge indicator lights firmly, of course, but it runs evenly & doesn't stall. Might even be 500RPM, can't say for sure as the needle wiggles a lot (cable damaged a bit).
Anyway, at these low settings, for all practical purposes the surging is gone, so let's try that for a while.