I have exactly the same engine from a boat of the same year. (You're a lucky man to have that engine, one of the best small marine diesels ever built.) Not only that, when I went to try hand starting my engine, I discovered that the handle wouldn't even begin to clear the structure of the galley counter the engine is under. It has clearly never been hand started.
I've inquired about hand starting these engines and responses vary. Some say you can do it, barely. Some say, forget it. I did learn that they have been started by taping together all the flashlight batteries on the boat. I can believe this in view of how easily my engine starts, even first thing in the spring.
I opted to just remove the hand start mechanism from my engine. This opens up the access to the engine mounted fuel filter and other things considerably. I figure the engine is hard enough to hand start that I don't want to be distracted by being tempted to try in in an emergency. Better to turn attention directly to sails or anchors.
The drill for dead batteries is to sail into a port and go ashore in a dinghy to buy a 40 buck auto battery. I'm also going to buy one of those portable battery, emergency light units. If they will start a car, they ought to get this engine going.
That doesn't cover starter or other electrical problems. However, after removing the hand start gear, I found that the lower sprocket has a hex nut holding it on. All that the big kludge of starting gear does is increase the cranking speed and move the crank up to what would be a more convienient position in many vessels. I'm going to try getting a socket that fits this nut welded to a long shaft that runs out into the cabin where there is room for a crank with longer throw. The sprocket doesn't turn when the engine is running so, as long as it doesn't kick back, there should be no hazard when the engine starts.
Whatever way you hand start it, it will be a two person operation because you have to pull both compression releases, get the engine turning, and then let the levers go. The only way I can see to do this single handed is to run cables from them to some kind of release you can kick with your foot as you crank.
You can see the hand starter system sproket just to the left if you scroll down to the engine room picture on this page:
http://home.roadrunner.com/~rlma/StriderFuelSystem.htm
BTW replacing the engine mounted fuel filter element on that engine is hard because of insufficient clearance. It's fairly simple to make a plate that offsets the filter about 1/4" outboard and 1/2" up and there is enough slack in the tubing lines to do so. This eliminates the need to unbolt the filter and flex the lines to get the bowl off, something you really don't want to do when rolling around underway and needing the engine in a hurry.
Put in a fuel system like that shown on the rest of the page and you'll probably never have to change that filter except once in the spring anyway though.