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Hello Kitty,
Yes you're right there. The Saginaw-GM reasoning is for my car 1994 940. The OP is invited to delve a bit deeper into what are the components of his power steering system for his 1997, who made them and what are their recommendations.
My suggestion for using synthetic fluids to lessen the leak is on par with what everyone here suggests. The logic is that synthetics may stand heat better (thanks to their uniform molecules) and become less thin-out during usage, thus causing less leak. The sealing part is done by the seals at the rack as fluid don't seal by themselves. A similar system of sealing is there at the brake caliper - fluid also at high pressure but only during braking (maybe thats why its rarely leaks) and the sealing is done by the square rubber O ring inside the bore.
Amarin.
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