Newsday from New York, New York • 8

1 0 Eft EWAYi By Michael Fleming, Karen Freifeld and James A. Revson Is Fergie Feuding: With Royal In-law? All this talk about a feud between PrinceM Di and her sister-in-law, Sarah, Ducheee of York, is "absolute and utter rubbish. Thats what Sarahs father, Mqj. Ronald Fergu-son, told us from his home, Dumxner Down House in the English countryside. "Theres no competition.

Why should there be? You can dispel this so-called, alleged feud, Ferguson stated. The current fashion weekly reported a full-blown psychological war between the two royals over who could grab more fashion headlines. Vanity Fair's upcoming July issue goes one farther and predicts msjor competition between the easy-going Fergie and the cool, much put-upon Princess. Not so, insists Maj. Ferguson.

"Nothing has changed in their friendship. So there. Deli: Westward No Looks like Hollywood mogul Mar-Tin Davis will continue to crave deli when hes in Los Angeles and fill up on corned beef and cheesecake when hes in New York. Davis, who loads up on Carnegie Deli delicacies while in the Big Apple, was going to become partners with Carnegie owner Leo Steiner and open a California branch of the quintessential New York eatery. The West Coast Carnegie was going to be a Beverly Hills branch on Rodeo Drive, no leas.

But now, weve learned, all plans far the West Coast deli have been nixed. "What can I tell you? We just couldnt get it together, said Steiner. "Marvin is still my friend and my customer. No doubt about that. Just last week, Davis loaded up on Carnegie corned beef, dropped liver, pastrami and ruggelach.

Next plan far' Leo? A Carnegie Deli far Ronald Reagan and Co. Youve got it Leos looking into opening a Capitol Carnegie. A Rea! Landlubber Singer Dionne Warwick has thi thing about boats and water shes terrified of them. So when Better Health Living mgiiin wanted to honor her for her AIDS activism including Mass. Gov.

Mirharl Dukakis and Dr. Mathilde Krim of the American Foundation for AIDS Research on board and ready for the high seas of New York harbor. Supreme Court claiming it lost that amount in revenues while the shed stood in 'front of its doors for two years. "Hie shed was supposed to be there, to protect passe reby during contraction, but people and taxi drivers said they couldnt find it, the tea room said Owen McGi-vern, the RTRs attorney. He said the RTR sued to have the shed dismantled, and, finally after a state Supreme Coiul judge fined Macklowe $5,000 per day, the shed was shredded.

He said the case will be. tried in the fall. aboard a luxury yacht tomorrow night, Warwick freaked out. "If its on a boat, I wont be there, die said. But the yacht will still be tied up for the presentation.

"I dont care if its docked, added Warwick, who donated the proceeds from her hit song, "Thats What Friends Are For to AIDS research: The problem? Warwick doesnt swim too swell. "She can do a sort-of dog paddle but with all those diamond rings, shed go straight to the bottom, her publicist Tim Barker said. To accommodate the land-loving star, a special awards ceremony will be held tomorrow afternoon at a midtown hotel. In the evening, the cruise sans Warwick will take place with the nine other honorees Edited by James A. Revson Not So Neighborly The owners of The Russian Tea Room and the Macklowe Building next door on West 57th St.

are far from the happiest of neighbors. Since a shed was erected in front of -the RTR two years ago when the 80-story Macklowe Building was being built, the parties have done all their talking in court. The RTR has now filed a $1 million lawsuit in state Why Lifes a Beach, So NEWSDAY, MONDAY. JUNE 15, 1987 Sweat It? ping bog. People formed a line at his side.

A freighter stenciled the horizon and kids body-surfed in the Atlantic. "Maybe Bess Myerson, Len said. "But I think more people are concerned about Goetz kwnw his case is an issue. Do we have the right to defend ourselves in this city? With Myerson its just more corruption in the Koch administration. More of the Nothing is gonna top Donald Manes killing himself unless the mayor does which he wont.

Down fiirther by the shore where timid waves slapped the hard, wet sand three men stood around a cooler drinking 7-ounce bottles of Bud-weiser beer, listening to rock and roll music and checking out the girls in hikiniz who swam, strutted and sunbathed. "Biggest story to me is her, said Angelo Ca- Continued on Page 31 A hazy sun oozed from a gauzy sky onto the oily bodies that lay inert on Manhattan Beach in Brooklyn. The sand was scribbled with black veins of old sludge radios blared and pop tops whished open and the ice cream vendor melted against his wagon. "What do you think ia the biggest story in town? I asked a man named Len Berman who lay on a blanket with his girlfriend, Sally Green. "Goetz, said Berman.

"I figure he beats the attempted homicide and gets probation on the gun possession. Thats how I'd vote. A aaagnll pranend ndiy, peeking at din-awl, ed peanut butter-and-jelly sandwich. 1 dont know if Goetz is the biggsat stony in town, said Green. "Everyday when I open a paper or put the news on TV all I get is AIDS.

God Almighty, how much AIDS are they gonna feed us? I'm afraid HI catch anmathjng watching the news the way they go an. I hear women speaking about it all the time. Theyre afraid of meeting new guys. People go to clinics on their first date. Its ridiculous, for crying out loud.

But I disagree with Len about Bernie. I think they have to convict the guy. He shot four people. Why doeant the press write about something positive once in a while? Does bad news sell better? Fm tired of it. But the biggest story? I dont know.

You really think its Goetz, Len?" A guy walked by selling cans of Steoha beer for $2. Dry ice smoked from his double-lined shop-.