Coolant leak. There is a service bulletin about it.

 

I bought a '98 myself last October. Right after I bought it, I noticed the hole you're speaking of and a drop or two of coolant (at first I thought it was oil, but that was from dirt/coolant mixture...a closer look revealed the green tinged stuff). I was pretty concerned at the time. Several knowledgeable Super Hawk owners told me what it was.
It's a "weep hole" for the water pump. On later models Honda added a fitting and a drain hose to it.
Some people advised me that most VTRs will pass a small amount of coolant past the seals & not to worry as long as it's not excessive. They also said that often the weeping will stop on its own. This was the case for me. I'm guessing that mine sat idle for quite a bit & that the almost daily thrashing I give it now has "re-hydrated" the seals & stopped the leak. (This is just my uneducated reasoning, however.)
Don't worry about it unless you're getting a lot of coolant leakage, then you'd need water pump seals.
No worries mate...you should be fine.