Fixed!

Someone actually sent me the official procedure (thanks!), but I decided to improvise my own repair without the factory parts. I would not have suffered cold feet until spring, if I knew this was going to be so easy. MB made it easy to access the back of this fuse block. This can be a major hassle on other cars.

Parts:
Waterproof fuse holder ($3.50 at a local auto parts store)
30amp fuse
Heat shrink tubing


Steps:
1) Remove fusebox access cover and 'long' cover.
2) Unscrew 2 screws near front to release fuse block.
3) Unscrew 2 terminals that attach to fuse 12 mounting (or 11 in my case)
4) Separate the 2 wires from the bundles to give them as much slack as possible.
5) Cutoff terminals and any overheated wire (first 2 inches in my case)
6) Locate a pair of unused rubber 'grommets' on side of fuse box. I had several to choose from, but used a pair on the passenger side. Cutoff tip of grommets, and pass wires through. Even the shorter one should extend 3 or more inches.
7) Solder splice wires to fuse holder pigtails, and heatshrink joint. I attached fuse holder to side of nearby hood switch with wire ties.

Anyways, if anyone out there has a car that somehow missed this 1987 recall, this is one way to fix it on the cheap.

I wonder if it still would have been a free repair at the dealer?
Of course, it was not even worth the hassle of dropping it off for such an easy repair.

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1986 300E 5-Speed 240k mi.