What was going on when I was born?

The Koch administration proposed legislation yesterday that would require that works of art be included in every newly constructed or substantially reconstructed municipal building open to the public. Under a bill submitted to the City Council, 1 percent of the first $20 million of capital construction costs and one-half of 1 percent of any amount in excess of that would be devoted to the commission or purchase of art works, with an expenditure ceiling for any one building set at $400,000. Mayor Koch said the bill reflected the beliefs of such advocates of the move as Doris Freedman, president of the Municipal Art Society, and the late City Councilman Antonio G. Olivieri that ''art can enhance the urban environment, that artists must be active participants in the creation of our city and should be paid for their contributions.''

Senator Daniel Patrick Moynihan charged today that the White House and the Justice Department had ignored the Senate Intelligence Committee's repeated requests for confidential files relating to the business dealings of the Director of Central Intelligence, William J. Casey. ''For the past two days we have been urgently trying to find out whether the Director of the C.I.A. has been involved in illegal activities that would make him unfit to hold his office,'' the New York Democrat shouted, waving his arms for emphasis at a hearing by the Intelligence Committee. The panel is examining whether Mr. Casey was involved in questionable stock market practices in the late 1960's. Today it sent a letter to the White House and the Justice Department asking for all material and relevant documents from an F.B.I. background check of Mr. Casey. The letter was signed by Mr. Moynihan, the committee's ranking minority member, and the committee chairman, Senator Barry Goldwater, Republican of Arizona.

''I'm as much an Englishman as Prince Charles is. India's not my home.

The stately, orderly preparations for the royal wedding a week from tomorrow were disrupted tonight when the Spanish Government announced that King Juan Carlos and Queen Sofia had declined their invitation to the ceremony as an act of protest. Their decision resulted from the plan of Prince Charles and Lady Diana Spencer to board the royal yacht Britannia at Gibraltar for a two-week honeymoon cruise in the Mediterranean after spending their first two nights as husband and wife at Broadlands, the country estate of the late Earl Mountbatten of Burma at Romsey in Hampshire. Gibraltar, a two-square-mile enclave near the southern tip of the Iberian Peninsula, has been a British naval base and crown colony since the early 18th century and has long been a subject of dispute between the two nations. It is one of Spain's most emotional political issues, with leaders of most political parties demanding that the British withdraw.

The Chrysler Building. The Texas School Book Depository in Dallas. The old Boston Naval Shipyard. Philadelphia's Bellevue Stratford Hotel. All have been rehabilitated with the help of Federal tax incentives that would be greatly expanded under tax bills now moving through Congress. Proponents of the more generous incentives hope they will combat the flight of industry to the Sun Belt, and induce business to remain in the urban centers of the Northeast and the Middle West.

A table yesterday showing gains and losses in Congressional districts resulting from the 1980 census contained one error and one omission. Florida gains four House seats, for a total of 19; Indiana loses one seat, dropping from 11 to 10.

Border conflict with Cameroon produces conflict in Nigeria A2 Moscow court sentences dissident to 4 years A2 Honky-tonk area of Tokyo has raucous tone but no crime A3 Britain's nonwhites resent being treated like outsiders A3 Imminent death of I.R.A. man may bring new Irish elections A3 Italian prosecutor demands life sentence for Mehmet Ali Agca A6 Salvadoran troops, in assault on rebels, first land in Honduras A8 Government/Politics Administration rejects Chicago integration plan A12 Dissident beats Mayor's choice in Philadelphia House race A12 House panel recommends exten- sion of Voting Rights Act A19 3 Mayors assail Albany for delay on revenue-sharing accord B2 Parking revenue rises with fewer meters B3 John A. Esposito is optimistic about his uphill mayoral race B3 Brooklyn's president says a cen- sus recount is ''bizarre'' B3 Lawmakers and courts redefine child rights and foster care B4 General Around the Nation A12 Judge refuses to drop charges in Hillside Strangler case A12 Obituaries Dr. Abram Kardiner, a student- patient of Freud's A19 News Analysis Steven R. Weisman discusses out- come of summit meeting D1 Drew Middleton on expansion of the American fleet A7 Steven V. Roberts discusses So- cial Security battle A15 Living Section Food A choice selection of takeout food C1 Eggplants and me: a story of abundance C1 Kitchen Equipment C2 At a Dallas cafeteria, it's mil- lionaire's pie C3 60-Minute Gourmet C3 Eating raw fish can pose dan- gers C8 Best Buys C9 Wine Talk: Intense flavor from stubborn soil C13 Living In rural America, the summer county fair is a family rite C1 Metropolitan Diary C2 Defrosting? Don't use an ice pick C4 Personal Health: The male midlife crisis C8 New Yorkers, etc. C14 Arts/Entertainment William Burroughs, the author, records for British label C15 Koko Taylor records ''From the Heart of a Woman'' C15 Songwriters, Hall and Oates, find their sound C15 Meryl Streep and Kevin Kline in ''Sophie's Choice'' film C21 ''The Inheritance'' with Domi- nique Sanda, at the Cinema 3 C18 William Mathias composes an- them for royal wedding C18 Survey compares Broadway and Off Broadway audiences C19 WPIX-TV market-testing a soap opera for youths C23 House-Senate committees raise spending for arts agencies C23 Aspen Chamber Symphony at Mostly Mozart festival C24 Sports Saumell prevented from riding in New York by legal maneuver B4 Argentine trotter bucking long odds in International B4 No progress reported in baseball talks B5 Ex-Army sergeant hopes to land Jet kicking job B5 Francis of Patriots retires for personal reasons B5 Nadia Comaneci scores two 10's and wins gymnastics gold B5 Clerc wins final in United States pro tennis B6 Red Smith remembers Red Bad- gro B7 Editorials/Letters/Op-Ed Editorials A22 Delaying planes isn't much Dispensable pork Westway bugaboos Letters A22 James Reston: notes from the cel- lar A23 Russell Baker: and a time for rioting A23 Gary Hart: a plea for arms talks soon A23 Martin E. Marty: we're no holier for our ''holy war'' A23 Harry Rositzke: industry and the K.G.B. A23

Americans' personal income grew only sixtenths of 1 percent in June for the third straight month, the Commerce Department reported today. It was viewed as a continuing sign of a sagging economy, Personal spending, however, rose nine-tenths of 1 percent last month, despite persistently high interest rates that often tend to hold down consumer purchasing. In comparison, personal spending grew two-tenths of 1 percent in May and declined one-tenth of 1 percent in April, the Commerce Department said in its new report.

Despite a request from the United States asking that France delay the acquisition of Texasgulf by its Government-controlled oil company, the French concern started to make payments yesterday for Texasgulf's tendered shares. The Committee on Foreign Investment in the United States, an interagency body led by the Treasury Department, had requested that the $2.87 billion tender offer from Societe Nationale Elf Aquitaine be delayed until it finished a review of the takeover, which involves one of the world's largest producers of sulfur. Considered a Commercial Matter The French Government decided not to interfere with the transaction because it was a commercial matter, according to Wall Street sources.

A clergyman in Brooklyn's 77th Precinct says he is going to buy a gun for protection, even though another minister in the neighborhood was arrested several years ago for keeping a sawed-off shotgun under his pulpit. One resident of the area covered by the police precinct has bricked up a window in his house in an attempt to keep out burglars. On another block, tenants of an apartment building formed a patrol to guard against burglars, thieves and vandals, but it was disbanded because its members were too frightened to continue patrolling. On Easter Sunday, uniformed police officers were assigned to protect churchgoers from muggers and purse snatchers. Led the City in Homicides Even in a city full of crime, the 77th Precinct, which includes parts of Crown Heights and Bedford-Stuyvesant, stands out as a highcrime area. There, among the boarded-up tenements, the gaudy little stores and the residential neighborhoods of old brownstones and small row houses, 88 people were killed last year - 16 in one three-block area.

Paul A. Volcker, the chairman of the Federal Reserve Board, today outlined plans for further cutbacks in the growth of the money supply, warning that efforts to escape from high interest rates by abandoning policies of restraint would merely stir greater inflation and be self-defeating. ''Sustained monetary restraint, by encouraging greater confidence in the price outlook, will in time help bring interest rates lower,'' he told the House Banking Committee, adding that the ''fundamentals of the situation suggest rates should be going lower.'' That they are not, he commented, reflects the depths to which inflationary expectations have been engrained in financial markets, in wage bargaining, in pricing and other economic decisions.

International Israel linked a cease-fire in Lebanon to a broad withdrawal by forces of the Palestine Liberation Organization. The Israelis rejected a United States appeal for an immediate truce and reiterated their longstanding refusal to deal with the P.L.O., but they authorized Philip C. Habib, the special American envoy, to act as an intermediary in negotiations with Lebanon. (Page A1, Column 6.) U.S. diplomatic efforts were pressed to promote a truce in southern Lebanon. A senior Reagan Administration official said that preliminary reports from a meeting between Prime Minister Menachem Begin and Mr. Habib offered ''some basis for forward movement'' toward a cease-fire. (A1:5.)