Mine is a 85 740 Turbo too, and I have the same problem right now. I am planning on changing the water pump today.
In my case the leak is visable if I turn the rpm up to about 2000 when then engine is cold. I suppose the fact that the thermostat is closed when the engine is cold increases the pressure especially at higher rpms. My leak is just above the pump and the water evaporates when the engine is hot so there are no puddles. You might want to give that a quick check because it's an easy test, just keep your hands away from those belts.
Randy
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