The tubular bars need to be as smooth as possible otherwise the banjo and tail stock will be a pain to move, my blue variant CL3 bars are still nicely chromed and I still have to wax them to get the banjo to move smoothly. I'd try to spin the bars and then use different grades of paper until they are shining, finish off with some scouring pads and wax. See here for some ideas on cleaning up a tube.
Startrite Mercury 10speed advice Otherwise just wrap the paper round the bars and go for it. When I cleaned up my old startrite drill I wrapped the tube in some towelling and vinegar...see
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Probaby best to dismantle the tail stock and wire brush everything, if it still looks bad then you could try soaking the parts in some vinegar or other rust disolver. Grease and reassemble, make sure the morse taper is clean. Hopefully the centre currently fitted has stopped it rusting or it may be stuck fast, you need a long bar to poke through from the other side to knock it out. It may take quite a wack if its been there for a while.
The rest is cosmetic and some wire wool and wd40 or oil will clean it up.
The headstock bearings look to be sealed for life type so if they grumble they will need replacing, they're cheap and relatively easy to replace. I presume you've already run it but it should be smooth and quiet.
I'm not sure about the motor, I've certainly never lubricated my blue CL3 motor, nothing is mentioned in the manual.
Final job is to make sure the top of the tool rest is smooth, just use a metal file to clean it up.
The stand looks like it would benefit from a good wire brush, ideally one on a disk grinder or drill and then a coat of hammerite or similar.
There's loads of restorations on here so have a search and you'll find all sorts of ideas and solutions...