Amount Of Material Removal On Spring Cut

Your hole size shouldn't be any problem as to strength. Tubing is stronger than solid in general.
Tubing is only stronger than a solid bar when you consider weight. In general, tubing will always deflect more than a solid bar with the same O.D. For a small I.D. relative to the O.D., the decrease in strength is minimal though. Here is a calculator that demonstrates the effect of increasing wall thickness. http://www.engineering.com/calculators/beams.htm#tube
 
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