What was going on when I was born?

The Department of Consumer Affairs began the strict enforcement of laws on unlicensed outdoor cafes yesterday. The move was an attempt to control at least one element of the increasing encroachment on sidewalk space by restaurant owners, florists, peddlers, fruit and vegetable stands, newsstands and others whose sprawling displays often force pedestrians to walk in the street. It was not an auspicious beginning, however. The crackdown quickly broke down, to the delight of a crowd that had assembled to watch Consumer Affairs officials, police officers and sanitationmen confiscate eight white formica tables in front of Lo Spuntino Restaurant, at 117 Mulberry Street in the heart of Little Italy.

''I shall, I think, spend half the time in tears.'' - Prince Charles. (A8:1.)

William Wyler, the movie director whose career began in 1929 and included such films as ''Ben Hur,'' ''Wuthering Heights'' and ''The Little Foxes,'' died of a heart attack yesterday at his home in Beverly Hills. He had just returned from London, where he had been honored in a retrospective series by the British Film Institute. He was 79 years old. Mr. Wyler won three Academy Awards as best director, a record surpassed only by John Ford, who won four, and matched by Frank Capra. Mr. Wyler was nominated 13 times, the three Oscar-winning films being ''Mrs. Miniver'' (1942), ''The Best Years of Our Lives'' (1946) and ''Ben Hur'' (1959). Among his other film credits were ''Jezebel,'' ''The Desperate Hours,'' ''Roman Holiday,'' ''Friendly Persuasion,'' ''The Children's Hour,'' ''The Collector'' and ''Funny Girl.'' Before ''Funny Girl,'' he was to have directed ''The Sound of Music.'' He had begun casting and preproduction work on that film, which became one of the biggest hits of all time. But he decided, according to his daughter Judith Sheldon, ''that he just didn't feel comfortable with the material, and didn't want to make a musical. I'm sure he regretted that later.''

The Reagan White House and the Democratic leadership of the House of Representatives battled today for the votes that would assure victory tomorrow when the House chooses a tax bill. Partisans on both sides said the contest between the Administration's tax bill and the one fashioned by Democrats on the Ways and Means Committee was a toss-up. ''We don't think we're ahead yet,'' David R. Gergen, the senior White House spokesman, said tonight. ''The President will work the phones tomorrow,'' before the House votes, he added.

City and state correction officials yesterday told a Federal judge who is considering how to ease the overcrowding of jails in New York City that neither of their systems could safely handle any more inmates. This leaves to the judge, Morris E. Lasker of Federal District Court in Manhattan, the decision as to which overcrowded system will have to take more prisoners, and how soon. While there is a third possibility - for Judge Lasker to issue an order resulting in the release of prisoners - there was no indication in the court hearing yesterday that he would do so. Benjamin Ward, New York City's Commissioner of Correction, summed up the situation facing the judge this way in his testimony: ''Where will the riot take place?'' Ruling Expected Today Judge Lasker is expected to hand down at least a tentative ruling today on New York City's request that the state be ordered to accept all prisoners who belong in its prisons within 48 hours after transfer papers are completed. In New York State, municipal jails are used to hold people accused of crimes, but not yet convicted, and those sentenced to less than one year. Those sentenced to more than a year go to state prisons. But all over the state, at every level, prisons and jails are already full, over capacity or a hairs-breadth from being full.

EAST HAMPTON, L.I. ALTHOUGH eastern Long Island has long been celebrated for its potatoes and ducks, the area has also, thanks to an abundance of markets that have sprouted up over the last two decades, become an incomparable source of freshly harvested produce from the soil and oceans and lakes. Twenty years ago it was difficult to find a sprig of fresh basil and dill around here. Today these are not only commonplace, but there is also an abundance of arugula, hands of fresh ginger roots, fresh coriander, monkfish, blackfish, eels and squid. Lobster, mussels and clams in all sizes are to be had for the asking. Fresh Long Island corn is now in season, and many of the tomatoes available at the best sources are greenhouse-grown from special seeds. Farm-grown tomatoes have also started to arrive.

International The resignation of an ambassador created a stir. The departure of Robert G. Neumann as Ambassador to Saudi Arabia was announced amid reports that his resignation had been forced after a dispute with Secretary of State Alexander M. Haig Jr. Friends and critics of the foreign policy analyst said he had expressed criticism of statements made by Mr. Haig about Middle East policy and had said that Washington should ''crack down'' on Israel for its recent military actions. (Page A1, Columns 1-2. ) Emergency feed grain aid to Poland will be supplied by the United States. Warsaw was granted a $50 million loan to buy 350,000 metric tons of corn to feed livestock. (A3:1-3.)

A truck carrying 600 lithographic reproductions of paintings by Pablo Picasso valued by the owner at $480,000 was hijacked by two gunmen yesterday afternoon when the driver stopped at a traffic light in Queens about a mile from the Queensboro Bridge, the police said. Besides the lithographs, each signed by Picasso's granddaughter, Marina Picasso, the truck was also carrying $50,000 worth of cashmere sweaters destined for Bergdorf-Goodman and several cartons of women's shoes, the police said. Bernard Gerstel, the driver of the 20-foot-long silver van with green cab, was unhurt. Herman C. Finesod, the president of the concern that owns the Picasso reproductions, Jackie Fine Arts at 950 Third Avenue, said there were 40 copies each of 15 paintings in the truck in two sealed cardboard cartons about four feet high and two feet deep.

The Reagan Administration and the Democratic leadership of the House battled for votes on tax cut legislation, with both sides saying the outcome of today's vote was too close to call. (Page A1.) More than taxes are at stake in today's vote. Democratic leaders view it as a test of their ability to control the House. (A1.) The Administration and Democratic bills are compared. (D13.)

Conoco advanced by 1 3/4 points, to $90.25, on the New York Stock Exchange yesterday in the wake of an announcement by Joseph E. Seagram & Sons that next Saturday it would begin paying $92 a share for Conoco stock already sent in under its $4.1 billion cash tender offer. In another development on Conoco, in Washington, the Federal Trade Commission complained that the antitrust division of the Justice Department was violating a 43-year-old agreement between the two agencies in trying to wrest control of jurisdiction over the Mobil Corporation's bid for Conoco. A letter signed by the F.T.C.'s acting chairman, David Clanton, and endorsed by the entire independent Federal agency, was sent to William Baxter, Assistant Attorney General in charge of the antitrust division. This, in effect, was a Federal agency battle over ''turf'' with the F.T.C. insisting in its letter that it has ''very considerable expertise with respect to the companies involved and the markets about which antitrust issues might arise.''

In 1976, MCA Inc.'s gruff chairman, Lew R. Wasserman, failed in his attempts to acquire Sea World, a theme park based in San Diego. And last year, his bid for Cedar Point, an Ohio amusement park, was rejected. So this year, MCA has announced that it will build its own entertainment complex in Florida, a $170 million Eastern copy of its highly successful Universal Studios Tour in California. Called Universal City Florida, the 423-acre movie-oriented recreation complex will be built in Orlando, just 10 miles north of where Walt Disney Productions built Disney World more than a decade ago. Originally, estimates for the project were about $100 million. But expanding expectations for the park's use have increased that estimate.

The resignation of Robert G. Neumann as Ambassador to Saudi Arabia was announced today, amid widespread reports that his action had been forced after a dispute with Secretary of State Alexander M. Haig Jr. Secretary Haig told reporters this morning that Mr. Neumann, who had served in his post only two months, ''has resigned for personal reasons and those reasons are for him to describe.'' David R. Gergen, a White House spokesman, said, ''I am informed that I can say he was not fired, and there have not been differences in policy.'' Mr. Neumann himself instructed a secretary to say he did not wish to speak to the press. However, some friends and some critics of the 65-year-old foreign policy analyst said they believed that Mr. Neumann had been forced to resign after saying to one or more Senators that he believed some statements about Middle East policy made by the Secretary of State on television had been ''unfortunate.''