Oregon's child welfare agency has agreed to pay $7 million to settle a lawsuit filed on behalf of two children who were nearly starved to death by foster parents the state approved for them. The Yamhill County foster parents who for years withheld food from the two preschoolers and subjected them to other abuse, John and Danielle Yates, are each serving 2 ½ years in prison. According to the lawsuit, caseworkers and their supervisors ignored complaints and obvious problems during the 2 1/2 years the children lived with the couple. A state review of the case found that a caseworker saw the emaciated children less than a month before doctors at Randall Children's Hospital determined they suffered from chronic starvation. But the caseworker did nothing. At Randall, the lawsuit says, doctors found the children resembled victims of a famine: their ribs visible, their bellies protruding and their brain development severely affected.