The HAC is supposed to drop down fuel flow on injection pump at high altitude.Correct, with the 3B you are not directly linked to the fuel rack of the injection pump. The diaphragm controls the rack position.
Adjusting the HAC or "fuel screw" (BJ60s don't usually have a HAC in Canada) changes amount of fuel delivered right across the full range of the fuel map. The HAC is the high altitude compensator and is supposed to adjust fuel delivery dependending on elevation.
Without HAC your engine will smoke a lot at high altitude.
This system is only for non turbo toyota diesel engine.
Turbo engine are less subject to smoke at high altitube.