September 25, 1998

Iran drops death threat imposed on British author Salman Rushdie in 1989 by Ayatollah Ruhollah Khomeini, and Britain responds by restoring full diplomatic relations; Foreign Min Kamal Kharrazi asserts that Govt 'has no intention, nor is it going to take any action whatsoever, to threaten the life of the author of The Satanic Verses or anybody associated with his work, not will it encourage or assist anybody to do so'; although an Iranian foundation continues to offer $2.5 million bounty for death of 51-year-old Indian-born British author, whose novel Kharrazi says still offends Iranians, Kharrazi says his Govt dissociates itself from any reward that has been offered; Rushdie, interviewed in London, says 'It's over' and 'The fatwa will be left to wither on the vine' (M)

Morgan Stanley Dean Witter & Co reports 5 percent dorp in net income for its third fiscal quarter, but it beats analysts' expectations; firm earned $645 million; cites losses of more than $200 million in developing country fund that it manages; chart (M)

Dave Anderson Sports of The Times column notes that Chicago Cubs are still in National League wild-card playoff race but they have not won World Series since 1908; photo (M)

New York Yankees beat Tampa Bay Devil Rays, 5-2; victory is Yankees 111th in 159 games, surpassing club record of 110 set by 1927 Yankees, who played 154 games; Yankees have matched American League record set in 1954 by Cleveland Indians, who also played 154-game season; photo (M)

City Councilman Thomas K Duane and other leaders in Greenwich Village are asking Giuliani administration to cancel Halloween Parade or move it to another neighborhood; they say it has grown too large and unruly and has become flash point for bias crimes against homosexuals; Community Board 2 will hold hearing next month on future of parade (M)