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Peter,What is happening is the gears take the oil around to the discharge hole but as they pass the discharge hole there is still oil between the teeth. The smallest clearance is right when the tooth of one gear is directly in the recess of the adjacent gear so a small bleed channel needs to be cut or ground from that mesh point back to the discharge port. It can be done with a small burrito in a hand grinder.
Peter,Here's the drawing for the oil pump for my flathead engine. I did an overlay in color to show the gears in the pump cavity and the bleed port. The bleed port is .047 from the centerline of the pump body. You can see how it allows the residual oil to be evacuated just before the gears come into full mesh.
Hi Peter..... I did mine a little different...