March 13, 1984

After 11 years of legal arguments, New York City and the American Civil Liberties Union have settled a lawsuit with an agreement to place children in foster-care agencies on a first come, first served basis, regardless of their race or religion. The settlement also allows children whose parents express a religious preference to be placed in homes observing that religion. If no such placement is available and the situation is not deemed an emergency, the child will probably be put on a waiting list. It provides, too, for an outside consultant to evaluate city foster-care agencies, ranking them by the quality of the services they offer. The findings are to be used to insure that foster children have equal access to the highest- quality care available.

An article in Business Day yesterday about Castle & Cooke Inc. misstated the number of shares outstanding and their total worth, based on Friday's closing price. There are 28.2 million, worth $507.6 million.

Amin Gemayel opened the second Lebanese reconciliation conference in five months, appealing for an end to ''nine years of insane and continuous war.'' Lebanon's eight senior Moslem and Christian leaders gathered in a conference room in Lausanne, Switzerland, to hear President Gemayel deliver an opening address in subdued and almost sad tones. (Page A1, Columns 3-4.) The commander of Lebanon's Army has offered his resignation to President Gemayel as a concession to anti- Government factions, according to military officials in Beirut. They said the move could ultimately lead to a Lebanese Army closely aligned with Syria's foreign policy and security objectives. (A8:1-3.)

Four of the five Democratic Presidential aspirants campaigned in the South today as nine states across the nation prepared for a potentially crucial set of primary elections and caucuses on Tuesday. While Senator Gary Hart of Colorado answered fresh criticism of his campaign from Sunday's debate, former Vice President Walter F. Mondale said that ''this incredible momentum'' for Mr. Hart was ebbing. He vowed to continue his fight for the nomination ''clear through California if necessary.'' Mr. Mondale challenged Mr. Hart to a debate before each of the remaining primaries, but the Senator declined. ''It would be the height of arrogance of me to accept'' as long as other candidates remained in the race, Mr. Hart said. He said he would debate Mr. Mondale if the others were also invited.

TUESDAY, MARCH 13, 1984 The Economy American industry is planning to spend $343.6 billion this year for modernization and equipment, the Commerce Department said, up 13.6 percent from the 1983 total. The chief economist of the National Association of Manufacturers described the data as ''signs of a full-scale capital spending boom.'' (Page D1.) A Cabinet-level split over merger policy widened when Attorney General William French Smith strongly defended the Justice Department's opposition to an LTV-Republic Steel merger. His statement was issued the day after Commerce Secretary Malcolm Baldrige, in a newspaper article, said the ban was wrong. Mr. Smith replied that his department would decide antitrust issues on their merits, ''without regard to how popular they may be.'' (A1.)