Re: 1975 johnson 6hp water cooling
The "blue dot" on the side of the exhaust housing is the locating "teat" for the water tube upper grommet.
One thing you could do is pull the lower unit and connect a source of water to the copper water supply tube, this will tell you if the leak is coming directly from the grommet or is just water discharge being blown thru by exhaust.
IMHO, I would just replace the gromment and be done with it. It's a critical element of the cooling system and I would want it to be correct, for peace of mind if anything else. And it's a very cheap part.
Once you have the lower unit off, grab the water supply tube and pull it out of the grommet. Then you can reach up inside the exhaust leg with a long screwdriver or set of needle-nose pliers to grab/remove the grommet. Pushing inwards on the rubber "teat" on the side will help dislodge the grommet.
Once the grommet is removed, check the hole in which is resides. I've seen 'em so built-up with salt/debris/deposits that the grommet gets sqeezed shut and the copper water pipe is squished right along with it.
If the pipe is squished, make it round again. Scrape out the hole with a screwdriver, small carbide scraper (if you've got one), or the sharp edges of a file (whatever's handy).
Spread a thin coating of Permatex No. 3 Aviation-type gasket dressing on the outside of the grommet (including the "teat"). Grab hold of the side of the grommet with your long-needle-nosed pliers and reinstall the grommet (the shoulder goes down).
Make sure you get the "teat" oriented to install thru the locating hole in the side of the exhaust housing. Once the grommet is properly seated, coat the end of the water pipe with Permatex as well, and reinstall.
The Permatex makes a good seal and provides a barrier which prevents any deposits from building-up around the grommet.
That should conclude the repairs and I expect after you reinstall the L/U and run the motor, you'll find you no longer have any leakage, & a better-functioning cooling system.
Here's a diagram which shows the grommet, same part # as the one that goes in the water pump body:
Evinrude Gearcase Parts for 1975 6hp 6504R Outboard Motor
#57 on the diagram and you can see the water tube and upper grommet in the left-side of the diagram.
HTH........ed