Defense Secretary Donald H. Rumsfeld mischaracterized the findings of two reports on prison abuse, saying there was no evidence of abuse during interrogations. Page A6.

Rumsfeld Errs on Reports

Alan Gibson of Austin, Tex, rents van to take himself and like-minded passengers to New York City to protest at Republican National Convention; hopes to recoup cost of van and stay in city on shoestring budget while demonstrating; photo (M)

Before Days Of Marching, A Long Drive

Uneasy peace settles on Najaf as guerrillas loyal to rebel cleric Moktada al-Sadra leave Imam Ali Shrine before cordon of US troops; cede control of Shiite holy site to Grand Ayatollah Ali al-Sistani, ending bloody three-week standoff that left much of area in ruins; surrender of shrine, carried out under terms of peace deal struck by two clerics, unfolds after urgent appeal by Sadr; thousands of civilians pour into shrine, and insurgents leave without giving up their weapons; photos (M)

INSURGENTS QUIT MOSQUE IN NAJAF AFTER PEACE DEAL

Jamaica wins women's 4x100-meter relay race at 2004 Olympics; Russia wins silver and France wins bronze; US women do not finish race after Marion Jones fails to pass baton to Lauryn Williams in 20-meter handoff zone; photos (M)

A Bungled Pass Costs U.S. in Relay

Argentina men's basketball team defeats US, 89-81, in 2004 Olympics semifinals; this will be first time that US men will not win gold medal since 1988; US will play Lithuania for bronze; photos (M)

U.S. Men Yield Long Dominance Of Basketball

Russia's security service says investigators have found traces of explosive in wreckage of one of two passenger airliners that crashed simultaneously on Aug 24, and declares its downing terrorist act; Islambouli Brigades of Al Qaeda says its fighters hijacked two planes to avenge deaths of Muslims in Chechnya and elsewhere; evidence of explosive aboard plane is strongest indication yet that deliberate acts, not human or mechanical errors as Russian officials initially suggested, were involved in crashes, which killed 89 people; twin disasters would be Russia's worst act of terrorism in skies (M)

Explosive Suggests Terrorists Downed Plane, Russia Says

 Pilots Union of US Airways To Resume Wage Cut Talks  The pilots union of US Airways plans to resume talks immediately with the struggling airline, which is urging unions to grant $800 million in cuts to save it from another bankruptcy filing.     The union's leadership made the decision to return to the bargaining table at the end of a three-day meeting in Arlington, Va., the Air Line Pilots Association said. [Page C2.]

BUSINESS DIGEST

China's rapid gain in influence in Asia Pacific region ranges so broadly that it can be measured in countries as divergent as rich and distant Australia and impoverished but strategically important Myanmar; Beijing has skillfully turned around relations with Australia, and its rapid growth is sucking up resources and pulling region's varied economies in its wake; effect is unlike anything since rise of Japanese economic power after World War II; China's presence mostly translates into money, but it is leveraging its economic clout to support its political preferences; regional officials say US military supremacy remains unquestioned, but US appears to be on losing side of trade patterns; current trends show China is likely to top US trade with Southeast Asia in just few years; map; photos (M)

Across Asia, Beijing's Star Is in Ascendance

Federal Judge Janet Bond Arterton, in harshly worded decision with major importance to hedge funds and their investors, finds Long-Term Capital Management, huge hedge fund whose 1998 collapse roiled world markets, acted in bad faith when it took $106 million in tax deductions in 1996 and 1997; upholds $40 million tax bill plus penalties for gross misstatement and for understatement; effectively paints fund as abusive tax shelter; scores fund partner Myron S Scholes, Nobel prize winner, whose work was central to tax deductions in case; ruling, perhaps largest victory for Internal Revenue Service in civil tax case, is boon to agency in its effort to crack down on improper claims of tax losses or deductions (M)

Hedge Fund Is Censured And Ordered To Pay Taxes

New York Jets defeat New York Giants, 17-10, in preseason game; photo (M)

Warner Sharp in Giants' Loss to Jets

Crude oil futures prices have dropped almost 8 percent this week amid signs that some of speculators who helped push price close to $50 a barrel have begun to bail out; continuing drop in number of futures contracts betting on higher price in hands of noncommercial interests, including speculators, could help pull prices lower; graph; photo (M)

Oil Prices Slip As Speculators Start to Retreat

 Once Dominant, U.S. Athletes Falter  Marion Jones, right, who won five medals at the Sydney Games in 2000, will leave Athens empty-handed after finishing fifth in the long jump, then failing to hand off the baton properly in the 4x100-meter relay, disqualifying the American squad.     The United States men's basketball team, which had won three straight gold medals since it began using N.B.A. players in 1992, will be playing for the bronze medal today against Lithuania after losing to Argentina, 89-81. The Americans' fate was sealed when Tim Duncan, far right, fouled out.   SPORTSSATURDAY

INSIDE

More than 100 bicycle riders belonging to Critical Mass are detained after five thousand members ride through streets of Manhattan in anti-Republican, pro-environment rally; group has monthly ride advocating use of bikes as alternative means of transportation; many riders block traffic and raise ire of police, who normally tolerate their rides; photos (M)

100 Cyclists Are Arrested As Thousands Ride in Protest

International Gymnastics Federation suggests that US gymnast Paul Hamm give up his Olympic all-around gold medal to South Korean gymnast Yang Tae Young, who was awarded bronze as result of scoring error; USOC, which was to deliver letter to Hamm, refuses, and criticizes federation for asking Hamm to take responsibility for resolving situation; photos (M)

Federation Requests Hamm Give Up Gold

Dan Barry column on multitude of protest groups converging on New York City for Republican National Convention, many with similar names but different agendas and tactics; anarchist Eric Laursen helps sort out some of them (M)

About New York; Learning To Tell RANT From RAIL

FBI is investigating Pentagon official on suspicion of passing secrets to Israel; has gathered evidence that official passed classified documents to American Israeli Public Affairs Committee, major pro-Israeli lobbying group, which in turn provided information to Israeli intelligence; official, who works in Defense Under Sec Douglas Feith's office, allegedly gave Israelis sensitive report about US policy toward Iran; neither official nor anyone else associated with case has been arrested (M)

Pentagon Official Suspected of Giving U.S. Secrets to Israel

AT&T is aggressively pushing its Internet phone plan even as it is getting out of business of providing traditional phone service to consumers; has expanded service, which connects calls over broadband lines, to 170 metropolitan areas; hopes lower price will help draw customers who would have abandoned it for Baby Bells, which now offer full range of phone services; it is far from certain whether company can win control of Internet phone market; AT&T official Cathy Martine cites cost advantage of Internet over traditional service; photo (M)

AT&T Uses Its Long Past To Promote Its Near Future

Jeffrey Kalinsky, commenting on success of his very expensive and chic Jeffrey speciality stores in Manhattan and Atlanta, says he would sell stores for right price; photos (M)

Happy as a Clam But Willing to Jump Ship; Owner of Jeffrey Ponders Selling the Store

New Yorkers gird for Republican National Convention in different ways; poll finds that 84 percent of city's residents plan to stay in town during convention; six prominent New Yorkers--novelist Jonathan Franzen, businesswoman Rachelle Friedman, magazine editor Kim Hastreiter, actress Rosie Perez, football player Tiki Barber, and National Review editor Rich Lowry--share their plans; photos (M)

Who's Afraid of the Big, Bad Elephant?

Article in series Fighting for Florida notes that Palm Beach County elections supervisor Theresa LePore is under just about as much stress and scrutiny as she was in 2000 when her county became center of presidential election standoff; she designed infamous butterfly ballot, and her name figures prominently in rallying cries leading up to Aug 31 state primary; LePore is up for re-election and is facing competition for first time since she was elected in 1996; Arthur Anderson, her opponent, says she is incompetent; LePore is again facing accusations of bad ballot design, this time with county's absentee ballot; photos (M)

In Palm Beach, Results of 2000 Still Stir a Fight

Yolanda B Cuming of North White Plains, NY, mourns her son, Pfc Kevin A Cuming, who was killed in Iraq on Aug 21; her grief is commingled with anger over war she does not support, indigation and blame for Pres George W Bush and guilt at having urged Kevin to join Army because he needed some discipline; photo (M)

Death in Iraq Leaves a Mother to Grieve, and to Rage

Federal Reserve Chmn Alan Greenspan again warns federal government may have promised retirees more than economy can deliver without unduly diminishing real income gains of workers and may have to scale back programs like Social Security and Medicare, speech, Jackson Hole, Wyo; warns political leaders not to count on continued rapid rises in productivity and faster economic growth to solve problems ahead; conspicuously avoids mention of Pres Bush's proposal to partly privatize Social Security; says heightened productivity growth offers best hope of letting nation support its aging population without lowering overall standard of living; photo (M)

Warning Anew About Retiree Expectations

US commanders say 1,000 Iraqi insurgents may have been killed during three-week siege at Imam Ali Shrine in Najaf; say 11 US marines and soldiers were killed and over hundred wounded; say about 3,000 marines and soldiers took part in fight, battling between 1,000 and 2,000 guerrillas, number that varied as Iraqis joined or quit battle; two sides caused uncounted civilian casualties and inflicted tremendous damage on Najaf's Old City; photos (M)

After the Siege, A City of Ruins, Its Dead Rotting

Aug 2 article about government warning that financial institutions in New York and Washington areas are at high risk for terrorist attacks misstated year that trans-Atlantic passenger, Richard C Reid, tried to light explosive in his shoe; it happened in Dec 2001

Corrections

Roger Ames, who ran Time Warner's global music division and remained as consultant after its sale to investment team headed by Edgar Bronfman Jr, is leaving Warner Music Group; photo (S)

August 28, 2004

Headlines from August 28, 2004

Rumsfeld Errs on Reports

Before Days Of Marching, A Long Drive

INSURGENTS QUIT MOSQUE IN NAJAF AFTER PEACE DEAL

A Bungled Pass Costs U.S. in Relay

U.S. Men Yield Long Dominance Of Basketball

Billboard 200

Autobiography

Now 16

Godfather Buried Alive

Amerikaz NightMare

One Day Remains

Historical Context for August 28, 2004