Clotho no disrespect but with any of the centrifugal clutch kits on the market added to a HT you still have the stock manual clutch in the system. With the Zoom centrifugal clutch kit that I have the stock manual clutch must be used for starting (unless I add a pull start kit) and also when I shut down the engine I have to disengage the manual clutch or I won't be pedaling very far. All Happy Time's do have a 4:1 reduction gearbox transferring power to the driven wheel, without serious design alterations there is no way we'll ever get around that I'm afraid. IMHO 35 km\h on your 49cc is a safe speed on well maintained roads, hope you still wear a helmet though and use your hand signals etc etc. My Tsunami 80 will easily hit 45 km\h over a distance of about 500 meters but I never go much beyond 30-35 km\h...I feel safe at those speeds and this is where my engine is smoothest as well. When I ride I always wear my helmet which has a rear view mirror attached to it, padded leather palm cycling gloves, full coverage shoes, eye protection etc and I follow the rules of the road for Ontario cyclists to a T for my own safety and to set an example of how we can co exist safely with regular vehicular traffic. I tend to think the Alberta rules were developed with the friction drive kits in mind...hence maybe why they have a picture of what appears to be a rack mounted friction drive bike shown. It's sucky that lawmakers zone in on a particular design when it comes to certain things but then again as educated as the lawmakers in any of our provinces are it would be tough to be up to speed on everything that comes on the market these days.
Cheers and ride safe friend
PS: Was just looking at your Felt...very nice build! Some nice country roads to cruise the day away on out your way it appears too.