Depends on how new / old it is. D203 is the mod limiter on the newer ones, and if it is a really new one, it is a surface mount diode mounted under a metal shield on the solder side of the board. The ones before 1999 or so were D14.
Don't cut it! Add a 1K resistor in series. It will be PLENTY LOUD! Also, don't fool with the coils. You can mess up the 54Mhz trap, and also the TX bandpass.
Just add the 1K 1/4 watt resistor in series with either D14, D203, or the D203 on the solder side depending upon the series of the radio, and leave it alone.
Oh, and an electret condenser mic is needed with this radio. Either use the stock mic, which won't sound bad, or make sure you use a replacement electret mic with it. If you try to use a dynamic, the audio will sound horrible, and very low. Worst case scenario, you could also use a power mic, but keep it adjusted properly.