Waterlift Muffler Manifold Connection

[knitchie]

I recently purchased a Catalina 30 with an A4 engine. It has a waterlift exhaust system and I have noticed a small bubbling leak in the joint where the muffler intake is attached to the iron exhaust piping. In my configuration, the iron pipe from the manifold mates with a connection at the top of the muffler. The connection includes a 3" long piece of 2" reinforced rubber hose clamped at both ends. The leak is between the muffler and the lower end of the hose; I see very small bubbles in one location. I can unclamp the hose, but nothing moves; hose, muffler or iron pipe. Around the connection, I also see some hard whitish cement/glue. Obviously, I need to attend to this, but I'm not sure what I'm looking at.
1) Before I cut if off, does anyone know what is under the rubber hose? How does the iron exhaust pipe connect to the muffler? Is the rubber hose the primary connection or secondary?
2) Are my suspicions that the hard whitish cement/glue is probably the POs attempt to fix a bigger leak well founded, or would this installation require it anyway?
3) Does this sound like a repairable leak, or a muffler & exhaust pipe replacement?
Thanks