If there is any evidence that the chain was rubbing against anything, it should be replaced. While some Honda cam chains, like that of the 450, used a joint link (master link of sorts), I don't believe that the 350 was one of them. That said, you'll need to split the cases for removal. Not a bad job as long as you have a manual.
You could replace the tensioner parts, chain and put it back together with new gaskets and seals, but you've probably had bits of metal and plastic running through the lubrication system for quite some time. You'd be best served performing a thorough cleaning and checking everything against spec. Some parts, like valves seals, are likely bad due to age alone. Again, follow the disassembly/inspection procedures in the factory manual. They'll guide you through the process.