If the compensator is not leaking fuel into the crankcase, there is no need to bypass it. Its function is to adjust the fuel delivery based on its viscosity (=BTU value) so that the engine power output remains the same for a given position of the "gas" pedal.
It has nothing to do with the engine's ability to burn a particular fuel.
It only works for the fuels listed in the TM and actually works against fuels like biodiesl and veggie oil.
Biodisel and veggie oil have about the same BTU value as gasoline, but has a higher viscosity, so the compensator lowers the delivery "thinking" that it is dealing with a higher BTU fuel. Hope that makes sense.
BTW, the TM 9-2815-210-34-2-1 lists the 1A engine as a 175 HP engine....that's why I was wondering about the title....