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New to beetle engines and have a question regarding a pipe which comes off of the oil filler funnel and goes down through the tin ware and ends under the engine. My engine is leaking a little oil out of the end of this and I am wondering should it have a cap on it because at the moment it has nothing just a hole in the bottom and a hole through the side about 1" up.
 

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That's the condensate drain tube. Water vapour (from condensation) evaporates when the engine heats up, and condenses in the oil filler can, which acts as a separator. There should be a rubber teat with a slit in it, on the bottom of the pipe, but that's only to stop things getting up the pipe and finding their way into the engine. The hole in the side of the pipe is where a bump on the inside of the rubber teat locates, to stop it falling off.
 
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