Vespa Ciao rear wheel disengaged?

Jo C. /
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Trying to help a friend with his new barn-find single speed 77' Ciao.

The rear pulley doesn't seem to be engaged with the transmission at all, like, I can spin the pulley all day and the rear wheel is effectively in neutral.

Is there a disengage on the rear hub somewhere? Or has something in the transmission gone wrong?

I've heard legends of a rod I'm supposed to pull or push on the rear hub to engage the transmission, but where it at though?

Thanks!(edited)

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