Hi Nigel,
find another inspector, please!
My Mach 1 still has the red Pony indicator and no inspector has ever complained about that! And don't let you be forced to another unecessary changes to your car! I still have the original taillights, hazard warning light indicator and so on... The only thing that had to be changed thanks to the German law is the position lamp in the front. They don't have to glow orange. You can keep the lower turn signal lights, have to change the headlights to H4 standard with integrated parking lamps. The original parking lamps/grille lamps have to be non functional as orange front light is (officially) is not allowed here. But nothing else! You have to find a more experienced inspector!