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If the coming elections for the expanded City Council are indeed an exercise in the politics of openness, then there is no better example than the three-person Democratic primary in the newly configured third district, which includes SoHo, Greenwich Village, Clinton and Chelsea and has the highest concentration of homosexuals in New York City. There, Mr. Duane's main rival, Liz Abzug, 39 years old, the daughter of the former Congresswoman Bella Abzug, declared she was a lesbian shortly before entering the race. Victor Del Mastro, a dark horse candidate, is heterosexual, and Mr. Duane has now disclosed that he is infected with the virus that causes a fatal disease. 'Dear Neighbor' Letters "New York Times, 1991"