You may have to just face the fact that upper tail gate is not going to get any better and buy a new one if it is rusted so bad that it will not latch. You can make the repairs as already posted but these are only stop gap fixes. The previous owner of my RRC left the problem go so long that the handle fell off and was lost. So when I got the truck I had to spring for a new handle and a tailgate frame.
Just about every aftermarket Land Rover parts dealer has them in stock, you can even get them with new glass.
Hope this helps.
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"Your only supposed to blow the BLOODY DOORS OFF" The Italian job 1969.
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