JohnM,
On my 1987 300e I had the coolant leak from the hose you mentioned, and replacing it fixed the issue. Based on your note I emailed the dealer's service advisor to have the shop check that hose too.

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87 300e (white/black; amg body kit)
88 300ce (red/cream; amg body kit)
93 300ce cabrio (white/blue/blue top)
93 300ce cabrio (black/grey/black top)
98 ml 320 (totaled @ 137,000 miles)
99 clk320 (black/grey/black top)