Hey Snub,
1) There should be some clearance between a shaft and bushing. This is called a Running Clearance -- something you can look up in Machinery's Handbook. If your shaft is ø13.93 mm and your bore is ø14 mm, then your clearance is 0.07 mm (i.e. .0028 inches). You really only need to cut that in half to get a good running fit.
2) There is no problem cutting oillite bronze so long as you use sharp tools. The warnings you hear are really for dull tools that will "mush over" the pores.
3) One solution would be to knurl the shaft and then turn it down to very slightly oversize and finish it to size using abrasives (which will round the "corners" of the knurl to keep them from digging into your bushing). Another solution would be to turn down the diameter slightly (say 1.5/1 mm or so for a nominal ø14 mm), press on a sleeve, and machine the sleeve to the desired size.
When I began my apprenticeship, I asked Herr Meister Muller the difference between an apprentice, a journeyman, and a master. His reply was, "An apprentice, he makes a mistake and knows not what to do. A journeyman, he makes a mistake and can repair it. A master, he sees the mistake before he makes it and avoids it." (A) I have yet to find a better definition set than this; and (B) after more than 40 years, I am still only a journeyman...