Re: Need help with 1975 7.5 Mercury outboard
Here is the parts list for your s/n:
MERC 75 - Mercury, Mercruiser, Force, etc. Parts Lookup
If the drain holes are the 1/8th size, they are to drain water, preventing it freezing inside the case. Depending on the amount of oil present. it may possibly indicate a leaking seal under the waterpump or in the shift shaft seal area. You could drop the LU and see if there is oil present in either of those areas or just check the condition and level of oil in the gearbox.
The Flush plug is to fit an attachment so that a water hose can be attached to flush the engine and you will see it listed under MISCELLANEOUS PARTS/ACCESSORIES.
Here is a picture of onewhich was sold on ebay:
Mercury Quicksilver Outboard Flushing Device 24789A1 New | eBay
Gerry