What was going on when I was born?

The Soviet Union formally advised Britain today that Moscow regarded the war zones around the Falkland Islands as unlawful. In a statement read to the British Ambassador, Sir Curtis Keeble, at the Foreign Ministry, the Soviet Union also rejected what it described as warnings by Britain to the Soviet Union and denied any involvement in the conflict between Britain and Argentina. The statement carried no suggestion of any Soviet threat to use military or other active means to lift the British blockade. Briton Expresses Surprise A British spokesman said Sir Curtis ''expressed surprise at the terms of the oral statement, which he considered ill-founded.'' (In Washington, the State Department withheld official comment on the Soviet statement, but one official said that it was consistent with Moscow's ''position of growing support for Argentina.'' Page 4.)

A Federal district judge overturned the bribery conviction of former Representative Richard Kelly today, saying the Government had used ''outrageous'' tactics in the undercover Abscam inquiry. Judge William B. Bryant said that agents of the Federal Bureau of Investigation, posing as representatives of wealthy Arab sheiks seeking immigration assistance, should have stopped importuning Mr. Kelly after he rejected their initial bribe offers. Instead, the judge said, they persisted in applying pressure on the Florida Republican until he finally accepted $25,000 and stuffed it into his pockets. Judge Bryant's evaluation of the Abscam inquiry differed from those of judges in New York and Pennsylvania. Lawyers said that the conflicts among the rulings increased the likelihood that the Supreme Court would review the tactics of the investigation, including such questions as how the Government selected its targets and whether the agents offered excessive inducements to commit crimes.

Visiting a farm for the first time since he took office, President Reagan found out at first hand today that not everyone is happy with the way his policies have brought food prices down. Sitting on a bale of hay, surrounded by about 300 dairy farmers and other residents of Landenberg, Pa., Mr. Reagan heard a torrent of complaints about his Administration's recent proposal to reduce dairy price supports. In response, he pledged that he would not ''pull the rug out all at once'' by seeking drastic new reductions in supports. First-Hand Complaints Mr. Reagan also heard the farmers complain about high interest rates, foreign competition and curbs on American exports. So, what had been billed by the White House as a colorful opportunity to photograph the President turned into a dramatic illustration of his political difficulties with farmers.

Two Dominican Republic diplomats have been accused of conspiring with several other men to smuggle millions of dollars' worth of heroin into the United States. The charges were disclosed by Federal authorities yesterday before a hearing began in United States District Court in Brooklyn for one of the diplomats, Dante Sanchez, a vice consul. According to a Federal prosecutor, Mr. Sanchez was arrested May 6 outside the office of the Dominican Consulate, 1270 Avenue of the Americas, at 51st Street, and is being held in $1 million bail. The prosecutor, Joan Azrack, said the 25-year-old Mr. Sanchez had limited diplomatic immunity that did not cover the drug case. She identified the other official as Rafael Pena, the first secretary at the Dominican Mission to the United Nations. Because Mr. Pena has full diplomatic immunity, she said, he cannot be arrested unless the Dominican Republic waives his immunity. She said the Dominican Government had not yet responded to a United States request for a waiver.

A Communist Party official in Guangdong Province was dismissed from his job at a petroleum plant and expelled from the party recently for ''feudal thinking'' after he and his wife - they already had six daughters -tried once more to produce a son. Elsewhere in this coastal province, two women were locked up for 15 days as ''sorceresses'' for inciting pregnant women at their farm commune to flee from family-planning workers. All but 9 of the 325 women with unauthorized pregnancies were later given abortions and intrauterine devices. Those incidents, reported by the Canton radio, are but two skirmishes in a desperate battle that the provincial authorities have been waging over birth control. Harsher reports reaching Hong Kong last summer charged that thousands of pregnant women in eastern Guangdong were rounded up and forced to have abortions.

The cease-fire negotiations over the Falkland Islands halted abruptly today when Sir Anthony Parsons, the British delegate, disclosed that he was flying back to London tonight for fresh talks with his Government. According to diplomatic sources, the bargaining here has bogged down over a British attempt to revive part of its control over the islands. Argentina has resisted this effort, insisting that London should agree to United Nations administration until the islands' fate is settled. A British envoy said there were so many stumbling blocks that it was difficult to focus on one. But he added that the issue of the temporary administration of the islands was a problem.

A Federal appeals court ruled today that the undamaged nuclear reactor at Three Mile Island could not be restarted until the Government assessed the ''psychological stress'' on people who live near it. The court acted in a suit brought by residents of the area who said the nation's worst commercial nuclear accident, at a second reactor on Three Mile Island, had caused some to suffer intense anxiety, tension and fear, accompanied by physical symptoms. The 2-to-1 ruling by the United States Court of Appeals for the District of Columbia requires the Nuclear Regulatory Commission for the first time to consider psychological effects before permitting a nuclear plant to operate. The court backed down slightly from an interim ruling it issued in January that would have required the commission to consider the social and economic effects on the nearby community of Middletown, Pa.

Producer prices edged up only one-tenth of 1 percent in April, continuing the trend of a significant slowdown in price increases, the Labor Department reported today. The Producer Price Index for Finished Goods, which is a rough measure of the inflation that consumers will face in the future, had dropped one-tenth of 1 percent in the preceding two months. Over the past 12 months, this index was up only 3.1 percent, the lowest 12-month increase since 1976. At the same time, however, the economy continued to decline in April, extending the recession that most economists have said played a key role in reducing the rate of inflation while pushing the unemployment rate to a 40-year high of 9.4 percent.

A Soviet destroyer or large frigate was on fire today in the Baltic Sea, 22 miles off Latvia, the Swedish coastal authorities said.

If there is any consolation for the Rev. Billy Graham amid the furor caused by his remarks here this week about Soviet tolerance of religion, it must lie in the fact that he joins a long tradition of visitors who have come away with rosy views of the Soviet system. Ever since 1917 there have been examples of public figures, lawyers, diplomats and journalists who sojourned here and left with favorable impressions, only to be ridiculed for their credulity by those familiar with the less palatable aspects of life under Communist rule. The reasons are many. Some came here with an ideological commitment, ignoring or rationalizing away whatever did not accord with their positive views. But many more were the victims of Soviet duping, or of their own naivete. Some had the honesty to acknowledge their gullibility later, while others went to their graves insisting that they, and not their detractors, had grasped the essence of the system.

An unpaid ombudsman, raising charges of possible fraud and corruption, has resigned from the International Communication Agency. Agency officials and a Presidential advisory commission say they have found nothing so far to substantiate the allegations. The charges were made by Arthur E. Imperatore, a wealthy New Jersey trucking executive and Reagan campaign contributor who served for nearly six months as the unpaid, voluntary ombudsman at I.C.A., formerly called the United States Information Agency.

While South Africa's attention was focused this week on proposals for constitutional revisions that would give some nonwhites a role in the central Government, the ruling National Party was busy pushing a new version of its body of security laws through the all-white Parliament. The new acts, which will add to the many restrictions already placed on political demonstrations as well as on the reporting of what are deemed to be matters of internal security, were presented as a refinement of the existing security laws. The authorities thus retain their full arsenal of arbitrary powers to ban organizations and publications; to silence individuals and bar them from political activities, or to detain them indefinitely without any charge or recourse to lawyers or the courts. The Government of Prime Minister P.W. Botha draws a connection between the proposed political changes and the maintenance of such controls. ''In times of reform, the conflict potential is normally higher than in other times,'' the Minister of Internal Affairs, Jan Christian Heunis, told foreign journalists. ''Because we are a society in transition, it is unavoidable that tensions will rise.''