I have a 71 Merc 200 20hp and the wiring was the same way. I ordered Marine wire from West Marine and rewired mine. A harness for my motor is hard to find and expensive if you do, $180. I did mine for about $60. I used marine grade connectors which are the ones with the shrink wrap on them with some glue in it. Got them at Walmart & Harbor Frieght.
Here's some pictures https://gramps50.smugmug.com/Boats/Mercury-200-Rewire/21942701_wShkFs
i had a wiring diagram for my motor but bascly took off one wire at a time.