Its a sweet truck, of course I am partial to IH stuff and own a few of them. I am willing to bet it has pretty low axle gears so putting a diesel in would mean you would need to change the axle gearing also in order for it to be able to cruise at anything close to safe speeds. I have a 1972 Loadstar 4x4 bus that I have a cummins to replace the rod knocking 345 with but am still working on getting the gearing options worked out so I will be able to drive it at anything close to hiway speeds. My bus has a 345 V-8 with a four speed manual transmission 1-1 in forth and either 6.17 or 7.17 axle gears. Its got 900x20 tires and I tried to do 55 mph when I was bringing it home, it made it half way under its own power before I had to park it and get it towed the rest of the way due to a rod knock.
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