Thank you all for your advice. Took the lens to 2 local camera techs. And both concur it is the cement that has deteriorated.
One of the techs (old guy trained in Germany by Rollei) took apart the lens and confirmed this. Said in all his years, he has never seen this in a Leica lens before. Japanese lens yes, but not in a German lens.
So I guess this is a goner :(