Re: Water leak around spark plug
If your motor is mainly used in salt water, it may be corrosion. I have a '70 85 hp. It's a 4 banger with a siminlar problem. I assume your's is a 3. Below is a photo of a 4 cylinder block with the block cover off. I'm not sure if your's is the same, but I'll explain what I found in mine. In the photo, notice the machined flat area at each of the plug holes. Corrosion can eat away at the diameter of the flat spots right down to the plug socket. The cover plate and the gasket have wider plug openings. Corrosoion will eat the flat spots beyond the gasket and water will pass through the space between the plug hole and cover hole allowing water to escape.
I'm no expert here! Some one that is better qualified may be able to offer a fix!... Me, I got a new block