What was going on when I was born?

Senator Bob Dole, the chairman of the Senate Finance Committee, today denounced as a ''horror story'' a $100 million leasing arrangement for New York buses and commuter rail cars. The arrangement, between the Metropolitan Transportation Authority and Metromedia, the broadcasting company, was worked out last December under the Economic Recovery Tax Act of 1981. The act allows transit agencies to to raise money be transferring, through the sale of their equipment, depreciation benefits that they, as government agencies, cannot take advantage of. The M.T.A., which pressed for passage of the act, has said that it can save hundreds of millions of dollars through leasing arrangements.

Britain's freeze of Argentine assets inside British territory has produced confusion and dismay in the international banking system, where America's freeze of Iranian assets in 1979 is still vividly remembered. The British decision, which followed Argentina's seizure of the Falkland Islands last week, involves banks around the world to a much greater extent than the Iranian case did. This is because Argentina has international debts of $32 billion, which is far more than the deposits frozen by the Bank of England. By comparison, Iran's debts were well below the $8 billion level of assets that were frozen by the United States after American hostages were seized at its embassy in Teheran.

International A peaceful end to the Falklands crisis was sought by Secretary of State Alexander M. Haig Jr., in meetings with senior British leaders, but the Government of Prime Minister Margaret Thatcher continued to issue threats against Argentina. On his arrival at Heathrow Airport Mr. Haig conceded that ''the situation is very tense and very difficult'' and he said that he had no ''American-approved solutions in my kit bag.'' (Page A1, Column 6.) The danger of war is waning, according to the Argentine Foreign Minister, Nicanor Costa Mendez, who spoke about the Falkland crisis on his return home from Washington. Nevertheless, there were reports that Argentina continued to pour troops and equipment into the islands. (A1:5.)

The Brooklyn Democratic leader, Meade H. Esposito, yesterday called on Representative Frederick W. Richmond, the subject of a Federal investigation, to ''resign immediately for the good of the Democratic Party.'' Mr. Esposito, a sponsor of Mr. Richmond's transition from a wealthy businessman to a holder of a public office, , said he was ''very upset'' about a Federal grand jury inquiry into various facets of the Brooklyn Democratic Congressman's activities. He said that he had asked Mr. Richmond to resign at a luncheon Wednesday and that Mr. Richmond had responded that he wanted time to think about it. Mr. Esposito said the Congressman had acknowledged that several friends and associates had also urged him to resign. No Plan to Resign, Aide Says A spokesman for Mr. Richmond, Michael Kahan, said that Mr. Richmond ''absolutely does not intend to resign.'' He added that he did not think Mr. Esposito sought Mr. Richmond's resignation. ''It was not reported to me that way,'' he said. He added that he had spoken to Mr. Richmond, but that he was ''unavailable - he's out of town for the weekend.''

Secretary of State Alexander M. Haig Jr. met with senior British officials tonight in his search for a peaceful way out of the Falklands crisis, but the Government of Prime Minister Margaret Thatcher continued to issue threats against Argentina. When the talks broke up, Mr. Haig said that his ''very long and very detailed discussions'' had left him ''highly impressed by the firm determination of the British Government.'' He and his aides spent more than six hours with Mrs. Thatcher and her senior associates, exploring the issues affecting the controversy. Defense Minister John Nott, who on Wednesday night announced the imposition of a naval blockade on the Falklands, said explicitly today that British ships would sink any Argentine ship, civil or military, remaining within a 200-mile radius of the islands after 5:01 A.M. Monday, British summer time. That is 12:01 A.M. in the Falklands and 11:01 P.M. Sunday, New York time.

The violinist Josef Suk will play works by two famous Czech forebears when he appears with the Chamber Music Society of Lincoln Center tonight at 8 and Sunday afternoon at 5 in Alice Tully Hall. Mr. Suk is a great-grandson of Antonin Dvorak and grandson of Josef Suk, the composer whose name he bears. Mr. Suk will be the principal violinist in Dvorak's ''Cypresses,'' joined by Leslie Parnas, cellist; Walter Trampler, violist, and Ida Kavafian, violinist. Performing with him in his grandfather's ''Elegie'' will be Charles Wadsworth, pianist, and Mr. Parnas. Schubert and Haydn are also on the program. Tickets are $10. Centercharge: 874-6770. PARK AVE. RUG SHOW The Hajji Baba Club is a rug-collecting society whose members have been particularly interested in the weaving traditions developed by nomadic and village people in what is now known as the ''rug belt'' of Asia. In honor of the club's 50th anniversary, the Asia Society, Park Avenue at 70th Street, is exhibiting 50 choice Oriental rugs. Some were intended as floor coverings, others to decorate the walls of tents or as surfaces for daily prayers. The show runs through June 20. Admission is $2.

Sakharov's wife says he is denied health treatment A2 Crucial sea-law parley opens A3 How the call for nuclear strategy shift evolved A4 Anti-nuclear groups forge a tentative alliance A5 Around the World A7 O.A.S. postpones debate on Falkland crisis A8 Nuclear subs will spearhead British naval force A8 Spain and Britain defers talks over Gibraltar A8 Government/Politics Justice agency ends inquiry on U.S. intelligence chief A28 Senator Weicker opens door to an independent candidacy B2 Washington Talk Briefing A14 Congress: Sluggishness marks both houses pending a budget A14 A priest's ''obsession'' with Asian-American children A14 GOOD FRIDAY Parking - Alternate-side rules suspended. Sanitation - Regular collections. Federal, state and municipal offices - Federal offices open; state and municipal offices closed in New Jersey and Connecticut, open in New York. Post offices - Open; regular mail delivery. Banks - Open in New York; most in New Jersey and Connecticut closed. Stock and commodity markets - Closed. Transportation - Regular schedules, some extra cars. Libraries - Open. Schools - Closed.

Mayor Koch has selected Michael I. Sovern, the president of Columbia University, to head a new panel charged with recommending changes in New York City's Charter, the municipal equivalent of the Constitution. The primary responsibility of the panel, known as the Charter Revision Commission, will be to propose a way of electing at-large City Council members that does not violate the United States Constitution. Two recent Federal court rulings declared that the present way of electing two Council members from each borough and giving all 10 of them equal voting power violated the constitutional provison of one man, one vote, because of the wide disparities in the boroughs' populations. Suit Filed on City Board In addition, the Charter Revision Commission could be faced with the difficult task of making the city's Board of Estimate conform to the same constitutional provision. A lawsuit contending that the board is also in violation -again because of the differences in borough populations - has been filed in Federal District Court in Brooklyn, and a decision is expected soon.

The Reagan Administration is proposing 14 changes in the Clean Water Act, among them deletion of the rule that mandatory national standards must be established for treatment of industrial toxic wastes. Legislation drafted by the Environmental Protection Agency, which was circulated today by environmental groups, also proposes a fouryear delay in the 1984 deadline for industry to install the ''best available technology'' to treat such wastes. However, the draft legislation would not permit individual companies to obtain waivers of the ''best technology' ' rule, a change urgently sought by some sectors of industry. Nor would the draft lessen the law's protections for the nation's wetlands; there has been considerable lobbying by industry for an easing of rules limiting building, dredging and other activities there.

The Metropolitan Transporation Authority is negotiating with two more foreign companies to buy subway cars following its purchase last month of 325 subway cars from a Japanese manufacturer. M.T.A. officials are talking to representatives of Bombardier Inc. of Canada and Francorail, a consortium of French companies, as well as to an American manufacturer, the Budd Company of Troy, Mich., about the purchase of 825 cars. The authority concluded a $274.5 million deal with Kawasaki Heavy Industries Ltd. of Japan for 325 cars on March 17. The United Steelworkers of America and the Specialty Steel Industry of the United States, in a joint statement in Washington last week, called the Kawasaki transaction ''a very dangerous precedent'' that was ''certain to result in even greater future harm to our workers and industry.''

William J. Bennett, chairman of the National Endowment for the Humanities, said today that a documentary shown on public television this week was ''unabashed socialist-realism propaganda'' and not an appropriate project to have received Federal funds. The program was seen Monday night in New York on WNET-TV. Mr. Bennett said in an interview in his office that the program, which he said portrayed present-day Nicaragua in a manner that ignored human-rights violations there, had received Federal funds through block grants to the Wisconsin Committee for the Humanities, which gets virtually all of its funds from the humanities endowment. Patricia Anderson, executive director of the Wisconsin committee, said that its involvement had consisted of a grant that it, in turn, had given to the Madison Area Campus Ministry, one of the organizations that commissioned the documentary, ''From the Ashes ... Nicaragua.''

Argentina's Foreign Minister said today that ''the danger of war with Britain is fading.'' Speaking at the airport upon returning from Washington, the Minister, Nicanor Costa Mendez, said he was ''very optimistic'' about the chances of a peaceful settlement of the crisis with Britain over Argentina's seizure of the the Falkland Islands, a British colony. Mr. Costa Mendez said he based his optimism on the diplomatic effort begun today by Secretary of State Alexander M. Haig Jr., who flew to London to explore the possibilities of negotiations. The Secretary is due here after his London mission is completed.