My understanding of this problem (which necessarily only comes from my experience) is the relay is up to the task. The under-engineered part is the spade connector itself and its ability to retain the crimp force on the harness wire over 20 years. It is a tail-chasing problem, because the heat takes the spring force out of the connector and its crimp, increasing the contact resistance, increasing the heat.
So replacing the items that suffer damage from proximity, like the relay or the connector shell, won't help much, if done alone. Offloading the relay with a second relay will be effective if that relay's spade terminals are new and properly crimped. A second benefit is, the auxiliary relay is cheap and plentiful at your local auto parts store, so if for some reason the rewiring isn't up to snuff, you're not out looking for another k-jet relay.
Another effective fix is to use a new terminal and a short length of new wire, spliced into the overheated one a few inches up the loom, cutting out the oxidized copper. Most of us do not own the correct crimping tools to install the barbed, snap-in female spade terminals, so we solder them, a whole lot easier to do with fresh material.
There are two places in a 240 with this same problem repeatedly reported - the k-jet fuel relay socket, and the 86+ headlight relay socket. Here's an example of the headlight relay.

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Art Benstein near Baltimore
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