February 28, 2004

Judge Miriam Goldman Cedarbaum dismisses charge of securities fraud against Martha Stewart, which was based on unusual application of federal law; it was most serious charge against her; Stewart still faces four criminal charges based on accusation that she lied to and conspired to deceive federal investigators about reasons she sold 3,928 shares of ImClone Systems, company headed by Dr Samuel D Waksal, on Dec 27, 2001; prosecutors contend that she sold shares after receiving tip, passed on by assistant to her former broker and co-defendant Peter E Bacanovic, that Waksal was trying to sell his own shares of ImClone; Waksal is serving seven-year prison sentence for crimes including securities fraud (M)

Armed rebels come within 25 miles of Port-au-Prince, Haiti; Bush administration says it is pursuing diplomatic resolution, but Pentagon is drawing up plans for possible intervention by Marines; State Dept says administration is in 'very close touch' with French government, which has called for Pres Jean-Bertrand Aristide to resign and has offered to take part in multinational effort to stabilize Haiti; looters pillage warehouses at port, and at least four people are killed in violence sweeping city; map; photos (M)

US Conference of Catholic Bishops pres Wilton D Gregory, after release of two reports on sexual abuse of children by priests, declares that bishops have faced problem, come clean and swept church of abusers; reports include analysis based on figures from bishops and religious orders and prepared by John Jay College of Criminal Justice; it tallies 4,392 reportedly abusive priests and ways and sites in which they violated 10,667 children; second report lays out causes of crisis; it was written by members of National Review Board of Catholic laypeople appointed by bishops; former federal prosecutor Robert S Bennett was chairman of that group; board's report says 'there must be consequences' for leaders who failed to stop abuses and that bishops should hold one another accountable in future; critics want bishops to release names of offending priests, many of whom are living anonymously in civilian world as result of church's new 'zero tolerance' policy; graph; photo (M)

Progress in Nuclear Talks The United States, North Korea and four other nations appeared ready on Saturday to work toward a nuclear-free Korean peninsula, but left details unresolved. PAGE A5 Hastert Relents on Deadline The speaker of the House, J. Dennis Hastert, reversed himself and said he would accept a 60-day extension of the deadline for a commission studying the 9/11 attacks. PAGE A8

New York Mets general manager Jim Duqette's special assistants Bill Livesey and Al Goldis bring scouting talents and experience during 10 seasons with other major league teams to Mets; photos (M)