Yes, I think it is a 'shovel splice' at present and interestingly this is the method of connection recommended for joining chain to rope elsewhere and what I was hoping to repeat, not least because it is easier to work over the gypsy/capstan. It is also the connection method that seems to be most common on similar boats and I was not aware of the downside you pointed out. So, even more food for thought!
I've checked the chain size and it is actually 1/2", rather than 5/8". Petronella is a 39' steel, 15 tonne long keeled Joshua ketch currently in Portugal.
Regards
John
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