Bob
You would probably be OK using the paper gasket if you already have purchased one, because there is a vent hole on your diff/axle casing, so there is very little pressure buildup, which can lead to gasket leaks.
On the other hand, having used Payen gaskets in the past which are supposedly a good quality product (maybe so, but they leak too), and given Healeys' justifiably notorious reputation for marking their territory, I would tend to use a non-hardening gasket sealer. You might try The Right Stuff. I think it's made by Permatex. BMW also used something called Dri-Bond, which is quite good according to a mechanic friend of mine. Subaru also has a similar product but I can't recall the name...
Dave