i want to use this datto for hill climbs and classic car rallys but want to keep it with a stock motor.
You can use either an L16 or L18, doesn't matter. If you use a L16 you'll have a Class B PRC car, or an L18 will give you a class C PRC car. Increasing the displacement of the stock L16 to more than 1600cc will give you a class C PRC. CAMS don't car what your chassis is stamped as P510 or H510. You can use either engine.
I'd do your homework properly on whether you really want to build a historic rally car or a PRC rally car. I think the cut off date is 1968, so if you want a historic 1600 then you will need a pre 68 shell. Most historic events have a non-turbo pre-1980 PRC class anyway, and the PRC rules give you the freedom to build a much more competitive car.