Once home, I was able to replicate the dimmed dipped beam, dimmed main beam indicator light shining and the parking light also came on! Main beam remained main beam only and bright as did the warning light. It would appear that there is a partial short in the handlebar switch between the headlight feeds? But, I also thought that I should check inside the headlamp shell and the headlight bulb, "Just in case"!
I have never been into the headlamp shell since purchasing the bike last year. Quite how the indicators work, when the white/black feed for the right-hand indicator and the green/black feed for the left-hand indicator or connected through the rat's nest, I am not sure?

How does the Yellow/Green wire wired into the back of the parking light work? I thought it should connect the 'RED' lights warning light and then the 'HIGH BEAM' warning light, then to ground!

I have a 'blue book' and think that the wiring diagram on page 115, 'LEGENDA Mod. 350' is the one I should be using. Is this correct?
There is also a thread on the Moto Morini 500 board, with a single post in it that is very useful.

Maybe the left-hand handlebar switch isn't the problem. I wish! I intend to rewire using Japanese type soldered and crimped connectors, with covers, heat shrink and self bonding tape where necessary and the wiring diagram's, wire colours. Positive comments and advice would be appreciated.
Thank you and good health, BillR