Leon,
Most of the OHV Dougie engines that I have split (with or without copper mallet!) tends to leave the ball bearing behind in the flywheel side of the case. the odds are about 50-50 on the timing chest side. This is suggestive that the outer race was intended to be a interference fit. If so, the inner race should be a slip or a light tap fit. This would make sense as the aluminum crankcase would be expected to expand more than the steel camshaft, and so would be fitted with the tighter fit to compensate. Both should not be an interference fit, or assembly would be difficult, as you surmise.
0.0005 inch interference on a 12mm shaft actually seems like a lot, and I would expect to be the maximum interference permitted. I would expect something like 0.0002 inch, or better yet 0.0002 inch clearance and make it a interference fit in the case (by about 0.001). But you are stuck with what you got. So you will have to install the ball bearings onto the camshaft, and then heat the crankcase to assemble over the cam bearings.
The later engines (i.e. OC, TT, DT) use a 0.625 i.d. x 1.375 o.d. x 0.2813 wide inch dimension bearing (size R10, still available) for the camshaft.
-Doug