There's no formula that will tell you the horsepower by only knowing the cubic inch displacement.
A Farmall Cub 4 cylinder is roughly 60 cubic inches and is almost 9 hp and a 113 cubic inch A/B/BN engine is roughly 15 hp. Or.... how about a 672 cubic inch Mack diesel that's only 175 hp?
Compression ratio, rpm, cam specifications, etc. all play a role in determining horsepower.
I would guess that little mil-spec parallel twin to be in the 6 hp range (think two 8 cubic inch 3hp Briggs engines hooked side-by-side) and probably about the same torque rating as a "good" 10hp single,
depending on the weight of the reciprocating assembly.