Dadette123 - When water is poured down the overflow hole it exits on the ground just by the axle. The trunk seal was one of the first things I eliminated.
Snook - I hosed down the tail-lights but did not detect a leak. I doubt that it is in this area because the leak is upstream, around the trunk hinge area.
I put a bead of flowable permatex silicon windshield sealant around the glass area of the rear window seal today to completely eliminate the seal. Thanks for the responses so far.

Jazz 84 300D Turbo