Return to Transcripts main page

CNN Live Today

White House Threatens Stem Cell Veto; President Bush Meets With Danish Foreign Minister

Aired May 20, 2005 - 10:59   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


DARYN KAGAN, CNN ANCHOR: And let's take a look at what's happening "Now in the News."
We're waiting on this news conference. Prosecutors expecting to announce new charges this hour in the death of this 10-year-old Indiana girl. Authorities believe Katie Coleman was killed after she witnessed a meth operation. Prosecutors plan to drop murder charges against one man and file them against another. Live coverage of the news conference is just ahead.

White House officials say President Bush would veto new stem cell legislation now in the House. The bill would expand public funding for embryonic stem cell research. A number of House Republicans support the measure.

President Bush wants research limited to cell lines already in existence. President Bush may address the veto himself possibly next week.

Sources say former Chilean dictator Augusto Pinochet has suffered a minor stroke. He was taken to a military hospital in Santiago yesterday, but reports say he has since been released. Pinochet is in the advanced stages of diabetes and has suffered strokes before.

The Army today is suspending all of its recruiting activities for 24 hours. The stand-down is to allow recruiters to review military ethics. The move is in response to reports of some recruiters using improper tactics. The Army missed its monthly recruiting goal for February, March and April.

And good morning once again. I'm Daryn Kagan.

As we kick off this hour, let's go live to Ed Henry, who is at the White House -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning again, Daryn.

That's right, the political stakes being raised in a big battle between the White House and some Republicans on the Hill over this issue of stem cell research. As we reported in the last hour, White House spokesman Trent Duffy has this morning confirmed a report first aired on CNN that the president in fact was going to issue a veto threat of some legislation in the House that's going to be voted on early next week in the House that would expand public funding for stem cell research. This veto threat, a clear sign that the White House is concerned that this legislation, which would contradict the policy the president put forth in the summer of 2001, that this legislation is picking up steam in both the House and the Senate. Just a few moments ago, the president addressed a question about this veto threat.

He also addressed a question about the fact that Saddam Hussein, this photo that we've seen all around the world of Saddam Hussein in his underwear, he also took a question about that. A little earlier, off camera, Trent Duffy, the White House spokesman, also said that the White House was briefed early this morning by senior aides about the Saddam Hussein situation.

The president fully supports the investigation of how this photo was taken of Saddam Hussein, why it was released, that it was a clear violation of Pentagon policy.

Now, let's listen in to the president himself.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The prime minister and I will be glad to answer two questions per side.

First, Mr. Prime Minister, welcome back. It is so wonderful to see you.

He is a good friend of mine. Denmark is a good friend of America.

Appreciate your contributions to trans-Atlantic ties.

The prime minister has made very constructive and helpful comments to make sure that the trans-Atlantic ties between the United States and Europe are strong.

And I want to thank you for your leadership role.

I also appreciate your clear understanding about the historic times in which we live, the times in which more and more people are becoming free. Appreciate your strong support for those who desire to live in a democracy in Iraq. I thank you for your contributions to a new democracy called Afghanistan.

I thank you for your very constructive work in helping the Palestinians develop a democratic state that can live side by side with Israel in peace.

BUSH: So welcome back. It's good to see you, sir.

ANDERS FOGH RASMUSSEN, PRIME MINISTER OF DENMARK: Thank you very much, Mr. President.

I'm happy to be back in Washington. It's my fourth visit as prime minister, which underlines that the United States and Denmark are close friends and allies. We share the same fundamental values. We are allied in our efforts to promote freedom and democracy worldwide.

And I'm happy to say in addition to this that I appreciate very much your straightforward style. I consider you a friend. And I know that with you I'll always have a very frank discussion and exchange of views. So I'm happy to be back.

BUSH: Fortunately, he's not that good a friend that I would go running with him.

(LAUGHTER)

He's one of the best runners in the world, amongst the world leaders. Yes, he's a good one.

QUESTION: Mr. President, on stem cells, specifically would you veto legislation that loosened the requirement on federal funding for stem cell research?

And secondly, what's your reaction to the news overnight about the South Korean (OFF-MIKE)?

BUSH: I am clear on embryonic stem cells -- a strong supporter of adult stem cell research, of course.

BUSH: But I made it very clear to the Congress that the use of federal money, taxpayers' money, to promote science which destroys life in order to save life is -- I'm against that. And therefore, if the bill does that, I will veto it.

QUESTION: Mr. President, how do you react to the continuing reports about mistreatment of prisoners held by American military around the world? And also, that the perception abroad that the ones that are paying for it are low-ranking soldiers but that nobody higher up is taking any responsibility?

BUSH: I think the world ought to pay attention to the contrast between a society which was run by a brutal tyrant in which there was no transparency and a society in which the whole world watches a government find the facts, lay the facts out for the citizens to see, and that punishment when appropriate be delivered.

If I'm not mistaken, I think about over 20 percent of the people thus far that have been held to account as a result of the Abu Ghraib issue have been officers. There have been over, I think, nine investigations -- eight or nine investigations by independent investigators that have made the reports very public.

I'm comfortable that we're getting to the bottom of the situation. And I know we're doing so in a transparent way.

Obviously, ours is a country that respects human rights and human dignity, and if those rights and dignity have been denied, we will hold people to account.

QUESTION: Are you worried that publication of the Saddam photo along with the Newsweek story will further inflame tensions and inspire the Iraqi insurgency and anti-Americanism in the Middle East?

BUSH: I think the Iraq insurgency is inspired by their desire to stop the march of freedom. Remember, these are ideologues that murder innocent people in order to spread their dark vision of hate. And therefore, when light begins to show up, in the form of democracy, it frightens them.

There is no future for these haters in a free world. And so they're inspired by the fact that they see democracy emerging in Iraq. That's what causes them to want to kill. They're frightened by the fact that -- and inspired the wrong way, by the way, by the fact that Afghanistan is free.

BUSH: They're seeing the people in Lebanon demand free and fair elections.

And their ideology cannot survive in a democratic society. See, the only way they can survive is to try to shake our will by killing innocent life. And that's why our strategy in Iraq is to train the Iraqis so that they, themselves, can fight off these terrorists.

Listen, eight and a half million people went to the polls, in spite of the fact that people had been killed and there was incredible intimidation. And they defied the bombers.

People want to be free, and the killers don't want them to be free. And so our strategy is to help the Iraqis realize the dream of a free society.

When the Iraqi troops are properly trained, and we're headed that direction, of course it'll take less of a coalition effort to help this new democracy get started.

QUESTION: What about the Saddam photo?

BUSH: Well, you asked me whether or not that would inspire people. You know, I don't think a photo inspires murderers. I think they're inspired by an ideology that is so barbaric and backwards that it's hard for many in the Western world to comprehend how they think.

But I would just remind people, if you want to know how ideologically grim their vision of the world is, just remember the Taliban. They said, "If you don't agree with our religious views, you'll be prosecuted; if you're a woman who seeks freedom, you'll be beaten."

So these people are motivated by a vision of the world that is backward and barbaric.

QUESTION: Mr. President, while the Danish people might support the war and appreciate the progress in Iraq, they're also curious when our soldiers will come back home.

BUSH: Yes.

QUESTION: Will you elaborate on that? BUSH: I appreciate that question a lot. And, of course, I get asked that in our own country a lot.

And my answer is it makes no sense to set a timetable. And the reason why is because it will allow an enemy to adjust.

On the other hand, as I tell our folks, is that we would like to get our troops out as quickly as possible. And the definition of that will be how soon our commanders on the ground think that the Iraqis are able to take the fight to the enemy.

I just got off of a video, which I was looking forward to briefing the prime minister on, with General Casey, who is our general on the ground -- he's the commander of the coalition forces. And he was describing to us the Iraqi training and the quality of training. And some units are in really good shape and other units need additional work.

But one other thing that's important to understand is the Iraqi government understands that, as civilian governments change, there needs to be stability in the military and a chain of command that links top to bottom.

And General Casey knows we're making progress toward establishing that chain of command.

My answer to the Danish people is, "As soon as we can possibly get it done." We've got to complete the mission. A free Iraq in the midst of the Middle East is going to be a powerful -- a powerful agent for peace.

Listen, thank you all for coming.

(END VIDEOTAPE)

HENRY: So there you have it, President Bush meeting with the Danish prime minister a short while ago. He addressed several hot- button issues, more than just a couple. He originally said he was only going to take a couple of questions.

You heard him obviously address the question about a timetable for bringing troops home from Iraq. That's something not only the United States wants to hear about, that's something obviously Danish people also want to hear about because of their contribution to the war in Iraq. The president reiterating that he does not think it's wise to set a timetable.

Secondly, on the Saddam Hussein photo question, there on camera the president used it as an opportunity to talk generally about the war on terror, talk generally about what he calls the march towards freedom. He did not specifically get into too much detail about the investigation of this photo being released, but I can tell you, as I mentioned earlier, off camera, White House spokesman Trent Duffy earlier saying the president was briefed on this photo, and, in fact, fully supports the investigation under way finding out how this photo was taken, why it was released. And the White House also saying clearly that this violated Pentagon policy.

And finally, on stem cell research, you heard from the president very clearly on the record saying that if this legislation passes in the House next week and then passes in the Senate, he will veto it -- Daryn.

KAGAN: All right. Ed Henry on Capitol hill. Thank you.

And now let's get more on what's happening on Capitol Hill in Washington and bring in John Mercurio with our "Daily Grind" column every day on CNN.

Good morning.

JOHN MERCURIO, : Good morning.

KAGAN: So we're hearing from the president he would veto that -- that bill from the House on stem cell research, additional funding for that. Are there the votes, though, in the House to override that veto?

MERCURIO: Probably not. I mean, I think the White House and the House Republicans count among 20 to 30 members of their Republican conference who would probably remain sort of loyal to the president, who would -- who would sort of abide by his, follow his wishes, and not necessarily vote to pass the bill if he's threatening veto.

I think that it's a very strong threat. It's not a threat the president uses very often. So I think it's taken pretty seriously by members of the conference

KAGAN: But what's happening with this conservative body of the House of Representatives even going after increasing funding to stem cell research? That doesn't seem like something that conservatives would be backing

MERCURIO: It is sort of an interesting move on their part. The House Republican leadership made a point earlier this week of telling members of the conference that they can "vote their conscience" on this issue, that there would be no specific leadership taken on this vote. And that, of course, frees a lot of members of the conference up to do exactly what they want.

Now, of course the White House issuing this veto threat sort of changes that dynamic and, you know, sort of opens up the question of whether or not you'll really see members voting their conscience.

KAGAN: Who knew anybody was talking about anything on Capitol Hill besides the whole filibuster debate? What's the latest on that, John?

MERCURIO: Well, a Senate continues to talk. We have a group of 12 senators, moderates from both parties, six moderates from each party, trying to continue to meet, to reach a compromise. They don't really expect anything until Monday. Senator Frist, the majority leader, saying today that he expects a vote on Priscilla Owen probably on Tuesday. That will be a test vote, and obviously the fight over the filibuster, the "nuclear option" would follow after that.

KAGAN: John Mercurio, "Morning Grind." Thank you.

MERCURIO: Thank you.

KAGAN: On to the Pentagon now. It's trying to figure out who gave those prison photos of Saddam Hussein to a tabloid? Whoever released that, we will talk about that just ahead.

Right now I'm being told we would rather -- much rather take a commercial break. We'll talk about that after this.

(COMMERCIAL BREAK)

KAGAN: To the Pentagon now. The Pentagon is trying to figure out who gave prison photos of Saddam Hussein to a tabloid. Whoever released the pictures may have violated the Geneva Convention.

Let's talk to our Pentagon Correspondent Barbara Starr about this.

Good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Daryn.

Well, President Bush and Defense Secretary Donald Rumsfeld now both informed about this situation, about photographs of Saddam Hussein, while he was in prison, being released to "The Sun" newspaper. Now, the U.S. military says it has a very aggressive investigation under way, how all of this happened.

"The Sun" newspaper is saying that the military gave them the photographs to try and discredit the insurgency. But U.S. military officials say absolutely not the case, this is not an approved release of photographs, they say. They are trying to figure out who might have gotten a hold of these pictures and released them.

There is now some very initial reaction on the streets of Baghdad as the word of this begins to circulate. Let's listen to what one Iraqi person had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (through translator): The name of the former president should be respected regardless of whether he was a dictator or a tyrant. His name should be respected all over the world no matter who or how he was.

(END VIDEO CLIP)

STARR: So what's the legal situation here, Daryn? Well, the U.S. military says, no matter what, it appears to be a breach of security.

They believe these pictures were taken more than a year ago. They say that is their initial readout, more than a year ago, when the United States military had control of Saddam Hussein as an enemy prisoner of war.

That would mean possibly there is a violation of the Geneva Convention if it was a U.S. military person who released the pictures. Not for the United States as a government, because it's not a sanctioned government release, but for whoever might be responsible.

And the military put out a very strongly-worded statement about all of this overnight from Iraq, saying, in part -- quoting -- "These photos were taken in clear violation of DOD directives and possibly Geneva Convention guidelines for the humane treatment of detained individuals."

The issue at hand, of course, is that under the Geneva Convention U.S. military personnel, the United States government, cannot release pictures of detainees or prisoners of war that would hold them up to essentially public ridicule. It's not the taking of the picture, but it is the release of the picture, officials tell us. And that is what is being investigated, who is responsible for this -- Daryn.

KAGAN: Big questions. Barbara Starr at the Pentagon. Thank you.

Questions about the markets today. Four days of rallies on Wall Street. Can it stay? In that direction we will check.

Also, hurricane season is officially under way.

All that after this.

(COMMERCIAL BREAK)

KAGAN: At the Justice Department this hour, Attorney General Alberto Gonzalez speaks at the National Missing Children's Day awards ceremony. He is honoring police and ordinary citizens for their work in finding missing children.

The latest statistics, by the way, show 58,000 children are abducted in the U.S. every year by non-family members. That's an average of 159 kidnappings a day.

And we will check in on a story related to that in just a bit, but first, let's go to Kathleen Hays at the New York Stock Exchange -- Kathleen.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

KAGAN: Want to tell you about news that is developing out of Indiana. It has to do with the murder of a 10-year-old girl, Katie Coleman, earlier this year. They believe -- prosecutors believe that this little girl came upon a meth lab and that's why she was kidnapped and ultimately murdered.

Well, earlier this year, after the -- after the murder, a man, Charles Hickman, confessed to that murder. Prosecutors today announcing they're going to drop those charges. Here's why

(BEGIN VIDEO CLIP)

STEVE PIERSON, PROSECUTOR: I have determined that the confessions and inculpatory statements made by Charles "Chucky" Hickman are false. The investigation has been unable to find any evidence to support or corroborate the presence of or participation by others who were implicated bring Hickman in the murder of Katie Coleman.

(END VIDEO CLIP)

KAGAN: And much more on that story just ahead.

Right now, other news on two missing Idaho kids. And it turns out they might, might have been spotted. The police are not quite sure yet.

A northern Idaho storekeeper told police he saw two children who looked like Shasta and Dylan Groene. He says they were with a man described as tall, driving a light-colored van. The man apparently asked for directions to a Montana town. The children were missing after their brother, their mother and her boyfriend were murdered at their home in Coeur d'Alene.

(BEGIN VIDEO CLIP)

STEVE GROENE, MISSING CHILDREN'S FATHER: Please release my children safely. They had nothing to do with any of this. Release them in a safe area where law enforcement can find them. Call the help line, let them know where they can be found. Please, we need the safe return of those children.

(END VIDEO CLIP)

KAGAN: Earlier, we reported about a man that police wanted to talk to about the case. He has now been cleared. He is no longer considered a person of interest.

The first lady is in the Middle East. Can she change how people in that part of the world view the United States?

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired May 20, 2005 - 10:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: And let's take a look at what's happening "Now in the News."
We're waiting on this news conference. Prosecutors expecting to announce new charges this hour in the death of this 10-year-old Indiana girl. Authorities believe Katie Coleman was killed after she witnessed a meth operation. Prosecutors plan to drop murder charges against one man and file them against another. Live coverage of the news conference is just ahead.

White House officials say President Bush would veto new stem cell legislation now in the House. The bill would expand public funding for embryonic stem cell research. A number of House Republicans support the measure.

President Bush wants research limited to cell lines already in existence. President Bush may address the veto himself possibly next week.

Sources say former Chilean dictator Augusto Pinochet has suffered a minor stroke. He was taken to a military hospital in Santiago yesterday, but reports say he has since been released. Pinochet is in the advanced stages of diabetes and has suffered strokes before.

The Army today is suspending all of its recruiting activities for 24 hours. The stand-down is to allow recruiters to review military ethics. The move is in response to reports of some recruiters using improper tactics. The Army missed its monthly recruiting goal for February, March and April.

And good morning once again. I'm Daryn Kagan.

As we kick off this hour, let's go live to Ed Henry, who is at the White House -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning again, Daryn.

That's right, the political stakes being raised in a big battle between the White House and some Republicans on the Hill over this issue of stem cell research. As we reported in the last hour, White House spokesman Trent Duffy has this morning confirmed a report first aired on CNN that the president in fact was going to issue a veto threat of some legislation in the House that's going to be voted on early next week in the House that would expand public funding for stem cell research. This veto threat, a clear sign that the White House is concerned that this legislation, which would contradict the policy the president put forth in the summer of 2001, that this legislation is picking up steam in both the House and the Senate. Just a few moments ago, the president addressed a question about this veto threat.

He also addressed a question about the fact that Saddam Hussein, this photo that we've seen all around the world of Saddam Hussein in his underwear, he also took a question about that. A little earlier, off camera, Trent Duffy, the White House spokesman, also said that the White House was briefed early this morning by senior aides about the Saddam Hussein situation.

The president fully supports the investigation of how this photo was taken of Saddam Hussein, why it was released, that it was a clear violation of Pentagon policy.

Now, let's listen in to the president himself.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The prime minister and I will be glad to answer two questions per side.

First, Mr. Prime Minister, welcome back. It is so wonderful to see you.

He is a good friend of mine. Denmark is a good friend of America.

Appreciate your contributions to trans-Atlantic ties.

The prime minister has made very constructive and helpful comments to make sure that the trans-Atlantic ties between the United States and Europe are strong.

And I want to thank you for your leadership role.

I also appreciate your clear understanding about the historic times in which we live, the times in which more and more people are becoming free. Appreciate your strong support for those who desire to live in a democracy in Iraq. I thank you for your contributions to a new democracy called Afghanistan.

I thank you for your very constructive work in helping the Palestinians develop a democratic state that can live side by side with Israel in peace.

BUSH: So welcome back. It's good to see you, sir.

ANDERS FOGH RASMUSSEN, PRIME MINISTER OF DENMARK: Thank you very much, Mr. President.

I'm happy to be back in Washington. It's my fourth visit as prime minister, which underlines that the United States and Denmark are close friends and allies. We share the same fundamental values. We are allied in our efforts to promote freedom and democracy worldwide.

And I'm happy to say in addition to this that I appreciate very much your straightforward style. I consider you a friend. And I know that with you I'll always have a very frank discussion and exchange of views. So I'm happy to be back.

BUSH: Fortunately, he's not that good a friend that I would go running with him.

(LAUGHTER)

He's one of the best runners in the world, amongst the world leaders. Yes, he's a good one.

QUESTION: Mr. President, on stem cells, specifically would you veto legislation that loosened the requirement on federal funding for stem cell research?

And secondly, what's your reaction to the news overnight about the South Korean (OFF-MIKE)?

BUSH: I am clear on embryonic stem cells -- a strong supporter of adult stem cell research, of course.

BUSH: But I made it very clear to the Congress that the use of federal money, taxpayers' money, to promote science which destroys life in order to save life is -- I'm against that. And therefore, if the bill does that, I will veto it.

QUESTION: Mr. President, how do you react to the continuing reports about mistreatment of prisoners held by American military around the world? And also, that the perception abroad that the ones that are paying for it are low-ranking soldiers but that nobody higher up is taking any responsibility?

BUSH: I think the world ought to pay attention to the contrast between a society which was run by a brutal tyrant in which there was no transparency and a society in which the whole world watches a government find the facts, lay the facts out for the citizens to see, and that punishment when appropriate be delivered.

If I'm not mistaken, I think about over 20 percent of the people thus far that have been held to account as a result of the Abu Ghraib issue have been officers. There have been over, I think, nine investigations -- eight or nine investigations by independent investigators that have made the reports very public.

I'm comfortable that we're getting to the bottom of the situation. And I know we're doing so in a transparent way.

Obviously, ours is a country that respects human rights and human dignity, and if those rights and dignity have been denied, we will hold people to account.

QUESTION: Are you worried that publication of the Saddam photo along with the Newsweek story will further inflame tensions and inspire the Iraqi insurgency and anti-Americanism in the Middle East?

BUSH: I think the Iraq insurgency is inspired by their desire to stop the march of freedom. Remember, these are ideologues that murder innocent people in order to spread their dark vision of hate. And therefore, when light begins to show up, in the form of democracy, it frightens them.

There is no future for these haters in a free world. And so they're inspired by the fact that they see democracy emerging in Iraq. That's what causes them to want to kill. They're frightened by the fact that -- and inspired the wrong way, by the way, by the fact that Afghanistan is free.

BUSH: They're seeing the people in Lebanon demand free and fair elections.

And their ideology cannot survive in a democratic society. See, the only way they can survive is to try to shake our will by killing innocent life. And that's why our strategy in Iraq is to train the Iraqis so that they, themselves, can fight off these terrorists.

Listen, eight and a half million people went to the polls, in spite of the fact that people had been killed and there was incredible intimidation. And they defied the bombers.

People want to be free, and the killers don't want them to be free. And so our strategy is to help the Iraqis realize the dream of a free society.

When the Iraqi troops are properly trained, and we're headed that direction, of course it'll take less of a coalition effort to help this new democracy get started.

QUESTION: What about the Saddam photo?

BUSH: Well, you asked me whether or not that would inspire people. You know, I don't think a photo inspires murderers. I think they're inspired by an ideology that is so barbaric and backwards that it's hard for many in the Western world to comprehend how they think.

But I would just remind people, if you want to know how ideologically grim their vision of the world is, just remember the Taliban. They said, "If you don't agree with our religious views, you'll be prosecuted; if you're a woman who seeks freedom, you'll be beaten."

So these people are motivated by a vision of the world that is backward and barbaric.

QUESTION: Mr. President, while the Danish people might support the war and appreciate the progress in Iraq, they're also curious when our soldiers will come back home.

BUSH: Yes.

QUESTION: Will you elaborate on that? BUSH: I appreciate that question a lot. And, of course, I get asked that in our own country a lot.

And my answer is it makes no sense to set a timetable. And the reason why is because it will allow an enemy to adjust.

On the other hand, as I tell our folks, is that we would like to get our troops out as quickly as possible. And the definition of that will be how soon our commanders on the ground think that the Iraqis are able to take the fight to the enemy.

I just got off of a video, which I was looking forward to briefing the prime minister on, with General Casey, who is our general on the ground -- he's the commander of the coalition forces. And he was describing to us the Iraqi training and the quality of training. And some units are in really good shape and other units need additional work.

But one other thing that's important to understand is the Iraqi government understands that, as civilian governments change, there needs to be stability in the military and a chain of command that links top to bottom.

And General Casey knows we're making progress toward establishing that chain of command.

My answer to the Danish people is, "As soon as we can possibly get it done." We've got to complete the mission. A free Iraq in the midst of the Middle East is going to be a powerful -- a powerful agent for peace.

Listen, thank you all for coming.

(END VIDEOTAPE)

HENRY: So there you have it, President Bush meeting with the Danish prime minister a short while ago. He addressed several hot- button issues, more than just a couple. He originally said he was only going to take a couple of questions.

You heard him obviously address the question about a timetable for bringing troops home from Iraq. That's something not only the United States wants to hear about, that's something obviously Danish people also want to hear about because of their contribution to the war in Iraq. The president reiterating that he does not think it's wise to set a timetable.

Secondly, on the Saddam Hussein photo question, there on camera the president used it as an opportunity to talk generally about the war on terror, talk generally about what he calls the march towards freedom. He did not specifically get into too much detail about the investigation of this photo being released, but I can tell you, as I mentioned earlier, off camera, White House spokesman Trent Duffy earlier saying the president was briefed on this photo, and, in fact, fully supports the investigation under way finding out how this photo was taken, why it was released. And the White House also saying clearly that this violated Pentagon policy.

And finally, on stem cell research, you heard from the president very clearly on the record saying that if this legislation passes in the House next week and then passes in the Senate, he will veto it -- Daryn.

KAGAN: All right. Ed Henry on Capitol hill. Thank you.

And now let's get more on what's happening on Capitol Hill in Washington and bring in John Mercurio with our "Daily Grind" column every day on CNN.

Good morning.

JOHN MERCURIO, : Good morning.

KAGAN: So we're hearing from the president he would veto that -- that bill from the House on stem cell research, additional funding for that. Are there the votes, though, in the House to override that veto?

MERCURIO: Probably not. I mean, I think the White House and the House Republicans count among 20 to 30 members of their Republican conference who would probably remain sort of loyal to the president, who would -- who would sort of abide by his, follow his wishes, and not necessarily vote to pass the bill if he's threatening veto.

I think that it's a very strong threat. It's not a threat the president uses very often. So I think it's taken pretty seriously by members of the conference

KAGAN: But what's happening with this conservative body of the House of Representatives even going after increasing funding to stem cell research? That doesn't seem like something that conservatives would be backing

MERCURIO: It is sort of an interesting move on their part. The House Republican leadership made a point earlier this week of telling members of the conference that they can "vote their conscience" on this issue, that there would be no specific leadership taken on this vote. And that, of course, frees a lot of members of the conference up to do exactly what they want.

Now, of course the White House issuing this veto threat sort of changes that dynamic and, you know, sort of opens up the question of whether or not you'll really see members voting their conscience.

KAGAN: Who knew anybody was talking about anything on Capitol Hill besides the whole filibuster debate? What's the latest on that, John?

MERCURIO: Well, a Senate continues to talk. We have a group of 12 senators, moderates from both parties, six moderates from each party, trying to continue to meet, to reach a compromise. They don't really expect anything until Monday. Senator Frist, the majority leader, saying today that he expects a vote on Priscilla Owen probably on Tuesday. That will be a test vote, and obviously the fight over the filibuster, the "nuclear option" would follow after that.

KAGAN: John Mercurio, "Morning Grind." Thank you.

MERCURIO: Thank you.

KAGAN: On to the Pentagon now. It's trying to figure out who gave those prison photos of Saddam Hussein to a tabloid? Whoever released that, we will talk about that just ahead.

Right now I'm being told we would rather -- much rather take a commercial break. We'll talk about that after this.

(COMMERCIAL BREAK)

KAGAN: To the Pentagon now. The Pentagon is trying to figure out who gave prison photos of Saddam Hussein to a tabloid. Whoever released the pictures may have violated the Geneva Convention.

Let's talk to our Pentagon Correspondent Barbara Starr about this.

Good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Daryn.

Well, President Bush and Defense Secretary Donald Rumsfeld now both informed about this situation, about photographs of Saddam Hussein, while he was in prison, being released to "The Sun" newspaper. Now, the U.S. military says it has a very aggressive investigation under way, how all of this happened.

"The Sun" newspaper is saying that the military gave them the photographs to try and discredit the insurgency. But U.S. military officials say absolutely not the case, this is not an approved release of photographs, they say. They are trying to figure out who might have gotten a hold of these pictures and released them.

There is now some very initial reaction on the streets of Baghdad as the word of this begins to circulate. Let's listen to what one Iraqi person had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (through translator): The name of the former president should be respected regardless of whether he was a dictator or a tyrant. His name should be respected all over the world no matter who or how he was.

(END VIDEO CLIP)

STARR: So what's the legal situation here, Daryn? Well, the U.S. military says, no matter what, it appears to be a breach of security.

They believe these pictures were taken more than a year ago. They say that is their initial readout, more than a year ago, when the United States military had control of Saddam Hussein as an enemy prisoner of war.

That would mean possibly there is a violation of the Geneva Convention if it was a U.S. military person who released the pictures. Not for the United States as a government, because it's not a sanctioned government release, but for whoever might be responsible.

And the military put out a very strongly-worded statement about all of this overnight from Iraq, saying, in part -- quoting -- "These photos were taken in clear violation of DOD directives and possibly Geneva Convention guidelines for the humane treatment of detained individuals."

The issue at hand, of course, is that under the Geneva Convention U.S. military personnel, the United States government, cannot release pictures of detainees or prisoners of war that would hold them up to essentially public ridicule. It's not the taking of the picture, but it is the release of the picture, officials tell us. And that is what is being investigated, who is responsible for this -- Daryn.

KAGAN: Big questions. Barbara Starr at the Pentagon. Thank you.

Questions about the markets today. Four days of rallies on Wall Street. Can it stay? In that direction we will check.

Also, hurricane season is officially under way.

All that after this.

(COMMERCIAL BREAK)

KAGAN: At the Justice Department this hour, Attorney General Alberto Gonzalez speaks at the National Missing Children's Day awards ceremony. He is honoring police and ordinary citizens for their work in finding missing children.

The latest statistics, by the way, show 58,000 children are abducted in the U.S. every year by non-family members. That's an average of 159 kidnappings a day.

And we will check in on a story related to that in just a bit, but first, let's go to Kathleen Hays at the New York Stock Exchange -- Kathleen.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

KAGAN: Want to tell you about news that is developing out of Indiana. It has to do with the murder of a 10-year-old girl, Katie Coleman, earlier this year. They believe -- prosecutors believe that this little girl came upon a meth lab and that's why she was kidnapped and ultimately murdered.

Well, earlier this year, after the -- after the murder, a man, Charles Hickman, confessed to that murder. Prosecutors today announcing they're going to drop those charges. Here's why

(BEGIN VIDEO CLIP)

STEVE PIERSON, PROSECUTOR: I have determined that the confessions and inculpatory statements made by Charles "Chucky" Hickman are false. The investigation has been unable to find any evidence to support or corroborate the presence of or participation by others who were implicated bring Hickman in the murder of Katie Coleman.

(END VIDEO CLIP)

KAGAN: And much more on that story just ahead.

Right now, other news on two missing Idaho kids. And it turns out they might, might have been spotted. The police are not quite sure yet.

A northern Idaho storekeeper told police he saw two children who looked like Shasta and Dylan Groene. He says they were with a man described as tall, driving a light-colored van. The man apparently asked for directions to a Montana town. The children were missing after their brother, their mother and her boyfriend were murdered at their home in Coeur d'Alene.

(BEGIN VIDEO CLIP)

STEVE GROENE, MISSING CHILDREN'S FATHER: Please release my children safely. They had nothing to do with any of this. Release them in a safe area where law enforcement can find them. Call the help line, let them know where they can be found. Please, we need the safe return of those children.

(END VIDEO CLIP)

KAGAN: Earlier, we reported about a man that police wanted to talk to about the case. He has now been cleared. He is no longer considered a person of interest.

The first lady is in the Middle East. Can she change how people in that part of the world view the United States?

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com