Philanthropist and businessman Armand Hammer, known for the closeness and longevity of his ties to the Soviet Union, will donate his entire collection of personal papers and correspondence to the Library of Congress, it was announced yesterday.

Daniel Boorstin, the librarian of Congress, who relinquishes that role on Monday, called the 89-year-old Hammer "the major nongovernmental figure in our relations with the Soviet Union since the revolution. He's also had a spectacularly varied career and been his own man. He's made his own decisions about how he was going to relate to the Soviet Union . . . He's the sort of person who could only happen in America."

Hammer, the chairman and chief executive officer of Occidental Petroleum Corp., a physician turned businessman, is a longtime patron of the arts and a substantial supporter of numerous causes including cancer research, but he is best known for his dealings with the Soviet Union, which have survived the fluctuations of official diplomatic ties.

Yesterday, Hammer was in Beijing and could not be reached for comment. Earlier this week, he was in the Shanxi province for the opening of the An Tai Bao Coal Mine, a joint venture between the People's Republic of China and Occidental that company Vice President Jack King says is the largest such venture between that country and a U.S. corporation.

The library expects to get from Hammer his correspondence, personal papers, and films and recordings documenting his meetings with various world leaders. Although no date has been set for delivery of the papers, the library is planning a special exhibit of some of the materials on the occasion of Hammer's 90th birthday, May 21, 1988.

The donation is made with the condition that for the remainder of Hammer's lifetime, the documents may only be seen with his permission. And for the first 10 years after his death, his literary executors must approve all requests to use the papers. The restrictions are fairly common for donated personal documents, according to Boorstin.

The library already has the personal papers of most American presidents and many world leaders, and Hammer's papers should complement those, Boorstin says. "The value of the papers is their content and context," Boorstin says. "Every time we get another collection, all of the previous papers become more valuable -- they're illuminated in another way. Also, anytime we get papers like this, it encourages other people to donate their papers."

Boorstin added that gifts of other prominent collections are expected.

"We're getting the Bob McNamara papers," Boorstin said, referring to former secretary of defense Robert McNamara. "I think we're getting the {late admiral Hyman} Rickover papers, too."

In related Library of Congress news, Boorstin was feted with a surprise party Thursday on the Neptune Plaza of the library where, he said yesterday, "I shook 2,000 hands." And yesterday afternoon, incoming Librarian James Billington was given a party at the Woodrow Wilson Center, where he has been director.

Boorstin will not physically leave the library after Billington is sworn in on Monday. Boorstin will become librarian of Congress emeritus. "They created that by act of Congress for me," Boorstin says. "I'll have a study and some clerical assistance and a parking place -- most important. It's nice to have a parking place."

Boorstin receives no salary in his new position.