You might be able to install a 1985 CA air filter in the spot where yours sits. Since in CA, you can find them in the junkyard. I did so in my 1984 300D. I posted details w/ photos and Wix PN for 2 filters you can stack, instead of the very expensive "correct" filter element.

The tube in your hand appears to be the oil drain for the factory air cleaner (from "oil separator"). It runs to a stub on the upper oil pan, next to the turbo drain tube. 1985 CA engines don't have that, so yours is a 1982-84 (or rare earlier turbo) or 85 federal. I ran a tube from the 85 CA rubber tee separator on the PCV tube to that drain (instead of into the turbo, as 85 CA did).

If the oil leak/spray is from just in front of your left index finger (2nd photo), that is the oil supply to the turbo and is at full pressure, I think. The gasket is cheap and easy access, unlike the fun you get in changing the lower oil gasket.

__________________
1984 & 1985 CA 300D's
1964 & 65 Mopar's - Valiant, Dart, Newport
1996 & 2002 Chrysler minivans