That engine will swap with a few modifications, such as changing the flywheel, bell housing, starter, and a few other components from the 216 onto it. The position of the 235 water pump is too low for the fan to align properly with the radiator, but one of our members ("Pre-68 Dave") makes and sells an adapter plate to allow the 216 water pump to be mounted on the late model 235 engine. That corrects the fan position and allow you to use the crankshaft balancer, generator, and fan belt from the 216 on the newer engine. The 3 speed transmission and bell housing from the 1960 engine won't interchange without a LOT of modifications.
Jerry