Yes, you can fill in that front license plate area with a delete panel available at all MB dealers for about $89.00 There's a good picture of what it looks like on a 300CE at this link:
http://www.dhc.net/~pmhack/mercedes/300CE902.HTM
If you have trouble finding it, try calling Smythe Mercedes Benz in San Jose, CA. Sorry, don't have their #.