I think your were right not to cut that red wire. I just recently did the same thing as you for my '95 and ended up using the '89 switch. If the 5-terminal permanent DRL headlight switch (without the over-ride screw) used for '95 in your U.S. 940 is the same as the one that has been used in Canada for permanent DRL then I think you'll find there is no wiring mod that can disable DRL without totally disabling the headlights. There is simply no difference between ON and OFF in that switch. Only the PARK setting gives you something slightly different. If you crack your old switch open and follow the electrical paths for each setting you'll see just how bizarre it is.