Democrats will nominate their 1992 presidential candidate in New Orleans or New York. "This is a tough decision to make," Democratic National Committee Chairman Ronald H. Brown said yesterday after the party's convention site-selection committee recommended that either of the two cities host the 1992 convention.

Brown said he will visit both cities next week and expected "some tough negotiations" before making his choice next month.

The 46-member site-selection committee visited four cities this year, including Houston and Cleveland. Cleveland was the "emotional favorite" of many members, but the city lost out because of its shortage of hotel rooms.

Brown, who said that he did not "have a personal choice," added that he does not believe "the site sends a major political message."

New York, host to the 1976 and 1980 Democratic conventions, made the strongest financial bid, offering the Democrats $22 million in cash and services compared with $12 million from New Orleans. But Madison Square Garden is regarded by many as too small for the more than 5,000 delegates and alternates, thousands of guests and members of the news media.

But not to worry. The New York City postmaster has offered space in the huge post office across the street from the Garden as work space for some of the reporters.