3020 hydraulic oil

I dont have a bleed line that comes from the hydro pump to behind the right side battery box and it leaks oil worse than it has before. When the oil leaks it looks to have little tiny bubbles. Im just wondering if it is bubbles or some traces of water. It is also on the dipstick. Does this hurt anything. This is a 3020 1965 syncro. Thanks!
 

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