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I would replace paper caps in the radio if it uses them...then, you may want to try feeding an external signal into the audio amp stage (like from a portable radio...use a .047 600 volt cap in hot lead from headphone jack, ground of jack to radio ground....use isolation transformer on radio if "hot chassis".)
With the external signal connected to the volume control and the Telefunken tuner stage tuned off station, listen to see if the signal from the external radio drops out...this will confirm problem is in audio section.
Another possibility is bad capacitors inside IF transformers....but using the external signal test will divide the set up as far as a likely trouble source.
Does the radio use pushbuttons for mode selection...have you cleaned the switch contacts and volume/tone controls?
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