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CNN Live At Daybreak

Stem Cells; Making Families; 'Jaws' 30th

Aired May 20, 2005 - 05:30   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.


CAROL COSTELLO, CNN ANCHOR: A little bit more information to tell you on that late word into CNN that authorities in Idaho may have a break in the case of those two missing children. Here's what we know. There may, may have been a sighting of 9-year-old Dylan Groene and his 8-year-old sister, Shasta. As you know, they've been missing since Monday when the bodies of their mother, brother and their mother's boyfriend were found in their home in Coeur d'Alene.
Now police got a tip that the children may have been spotted in an Idaho store yesterday. And that has prompted a look out for a tall man driving a light-colored, full-size van with Washington State plates. Don't know who this man is.

Here's the tip line number 208-446-2292. You can also call this number 208-446-2293.

So here's the situation, two missing children, three people murdered and precious little to go on, despite that new information this morning. Searchers are using dogs and horses and a helicopter. They've combed the woods and the fields around the home, divers have searched the ponds and the wetlands and the missing children's distraught father issued this plea.

(BEGIN VIDEO CLIP)

STEVE GROENE, FATHER OF MISSING CHILDREN: Can you stop?

I'd like to thank the law enforcement community for their tireless efforts in this matter. I'd also like to thank the media and the general public for all your concerns and all your prayers.

I'd like to address my children's abductors or abductor, please, 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.

Thank you.

(END VIDEO CLIP)

COSTELLO: Police say Robert Roy Lutner, once considered a person of interest in this mystery, passed a lie detector test. They say they don't believe he had anything whatsoever to do with the murders.

We'll keep you posted. Important news now on stem cell research. Scientists say they've taken a major step in the search for a cure for some debilitating diseases. That word comes after leading researchers announce they've successfully cloned a series of human embryos.

Lawrence McGinty has more for you.

(BEGIN VIDEOTAPE)

LAWRENCE MCGINTY, ITV NEWS (voice-over): In the lab they're taking giant strides. Last year they cloned human embryos for the first time. Now they've cloned embryos designed to genetically match particular individuals. Why, because they could use cells from the clones to treat those people.

PROF. GERALD SCHATTEN, UNIVERSITY OF PITTSBURGH: Kidney disorders, heart disease, lung disease, skin disease, muscle diseases, perhaps strokes, perhaps Alzheimer's. Theoretically, this will be bigger than discoveries of vaccines or antibiotics.

PROF. WOO SUK HWANG, SEOUL NATIONAL UNIVERSITY: This report brings the science a giant step forward.

MCGINTY: Professor Woo Suk Hwang is the man who did the research. His laboratory in Seoul is now the world leader in cloning human embryos. What they did this time is being called very significant.

First they remove the genetic material from a fertilized egg, replacing it with genes from the donor. Then they shock the egg to stimulate it into developing. The hope is cells from the early embryo that results can be used to treat the donor because they're genetically identical.

Theoretically, you could have taken skin cells from Christopher Reeve, who suffered terrible spinal damage, cloned them into embryos and used the cells to repair his spinal cord.

All that is in the future, and it's controversial. The scientists here at Newcastle University will find out after they announce they've become the second laboratory in the world to clone human embryos.

Lawrence McGinty, ITV News.

(END VIDEOTAPE)

COSTELLO: Fascinating story.

For more on the impact of this research, let's head live to London. Standing by is Dr. Stephen Minger who is the head of the stem cell lab at King's College.

Good morning -- doctor.

DR. STEPHEN MINGER, KING'S COLLEGE: Good morning. COSTELLO: This is just absolutely amazing.

MINGER: Yes, I know, it's...

COSTELLO: It's so hard to explain simply. But, in essence, what does this mean?

MINGER: Well what it means is that now it's definite that it is possible to clone human embryos and to take cells from a living adult patient and use the techniques that Hwang's group has perfected to generate cell lines which would be genetically matched to us. So, for instance, we could take a cell from you and create a cell line that is genetically identical to you and then use those cells at some point in the future for therapy...

COSTELLO: So do those...

MINGER: ... and not have to worry about rejection or having to use immune suppressive drugs.

COSTELLO: Do those cells create an embryo that can eventually turn into a human being?

MINGER: Probably not. I mean it does turn into a blatisis (ph). But if implanted, it's doubtful that that would ever result in a human being. And if it did, we know from animal experiments that have been done, where we've created cloned cows, cloned rabbits, cloned pigs, that almost with certainty every one of those has some sort of abnormality, either genetic or epigenetic abnormality. And so if a human was cloned by reproductive means, most certainly it would be born with growth developmental abnormality.

In this country, we have a complete ban on reproductive cloning. So this technology would never be used in that way. It would only be used for therapeutic purposes.

COSTELLO: Well can this technology be used here in the United States? Does that solve the problems, you know,...

MINGER: Well...

COSTELLO: ... that some people have with -- go ahead.

MINGER: In the private sector, yes, people could use this technology. Certainly this can't be done with NIH money. Researchers who have NIH research grants would not be able to do something to the replacement.

But in the private sector in the U.S., as far as I can tell, there seems to be no prohibition against this one way or the other, although there have been bills in the Senate and in Congress to try to block this.

COSTELLO: So out in California, where they're funding their own stem cell research, it could, theoretically, be used there?

MINGER: Yes. Yes.

COSTELLO: Interesting.

MINGER: I mean you have to understand, I mean what Hwang's group has done, really, has really pushed the field forward in a very large way. Last year when they did this work, they were only able to make one cell line from about 250 eggs and the efficiency was very, very low.

Now what they've done is created 11 cell lines from less than 200 eggs and it's pushed the efficiency up to about 7 percent. This brings this technology within the realm of feasibility.

The major limitation, at the moment, using embryonic stem cells is we still have to learn how to take cells that want to turn into every cell type in the body and learn how to control their differentiation into specific cell types. But this certainly does create -- it's certainly feasible now that we could develop cell lines that are personalized for people that we want to use them in.

COSTELLO: OK. And I know that this research can be used to grow replacement parts for the human body, but can it also be used to cure diseases, like diabetes and...

MINGER: Well they can't be used to grow replacement parts. I mean I think that's really well into the future. We're talking really about cell based therapy. So for Parkinson's Disease, for Type 1 diabetes, for cardiac disease where we already know in human patients that replacing cells that have been damaged is therapeutically effective.

The major limitation, at the moment, is the shortage of tissue. So we have ilitronsponse (ph), for instance, where we know that replacing cells that make insulin can, in many cases, take people with pretty severe Type 1 diabetes and take them completely off of insulin. But there's just never enough tissue to treat more than a handful of patients.

What stem cell biology is designed to do is create an almost inexhaustible source of cells that could be used for cell therapy. So we're nowhere near growing organs from stem cells.

COSTELLO: So...

MINGER: But certainly cell therapy is possible.

COSTELLO: So there have been no human tests?

MINGER: No. To date, as far as I know, nobody is close to the clinic at all. I think we're minimally 5 to 10 years away from clinical trials. Now there may be, in some countries, you know, hidden away people doing human embryonic stem cell transplants. But to the best of my knowledge, nobody has applied either to the NIH or FDA or here in Europe for an application to use these cells in human patients.

COSTELLO: Well thank you, Stephen Minger from King's College in London, clarifying things for us. And we certainly appreciate it.

In the meantime, CNN has learned that President Bush is threatening to veto possible new legislation on stem cell research. The House is working on a bill that would broaden the limits of embryonic stem cell research beyond the limits set by the White House in 2001. The House bill would lift the restriction that says only work with existing lines of embryonic stem cells are eligible for federal funding.

A number of American families have adopted children from Asia. But just ahead, we'll look at a new program that helps children orphaned in China stay in China.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

COSTELLO: This is going to make a lot of news later today. Take a look at these new pictures out of Saddam Hussein in prison. You see the title there, tyrant's in his pants. Shows the deposed leader in his underpants. The picture splashed on the cover of the British tabloid "The Sun."

The U.S. Department of Defense has condemned the release of these photographs. There are more inside this paper. Officials are vowing an aggressive investigation and steps to assure the breach never ever happens again. But be sure we'll be hearing a lot more about this later today.

Your news, money, weather and sports. It's 5:42 Eastern. Here's what's all new this morning.

There's been a possible sighting of those two children missing from an Idaho home where three people were killed. Investigators say a tall man was spotted with the two children and those two children do resemble Dylan and Shasta Groene. They were seen leaving a Montana store in a light-colored van.

Army recruiting operations are on a 24-hour suspension today. The so-called stand down was ordered so recruiters can be advised about law of governing enlistment procedures. It's in response to allegations of improper tactics by some recruiters.

In money news, China is about to raise export tariffs on clothes and textiles. This comes amid growing complaints from the United States and Europe about the surge of Chinese goods in their markets. The increase takes effect next month.

In culture, those midnight showings of the new "Star Wars" movie proved to be real moneymakers. The long lines led to ticket sales totaling $16.5 million. And that's just for the film's first few hours.

In sports, the San Antonio Spurs survived a scare to eliminate the Seattle Sonics and move on to the Western Conference finals. Center Tim Duncan was injured early, but he stayed in the game and hit the game winning shot with just a half second remaining. Good for him -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Hey, good morning, Carol.

(WEATHER REPORT)

COSTELLO: Jackamo running in that race.

MYERS: You bet he is.

COSTELLO: It'll be exciting.

Thank you, Chad.

Perhaps you know someone who has adopted a child from China. One American woman adopted her daughter from there in 1997, and now she's started a project to place many Chinese children with Chinese families.

But as we learn from CNN's Tara Duffy, it's not easy.

(BEGIN VIDEOTAPE)

TARA DUFFY, CNN CORRESPONDENT (voice-over): Meet 6-year-old Jong May (ph) -- she's the one in yellow -- her new brothers and her new mother, former factory worker Yang Yuming.

YANG YUMING, FOSTER MOTHER (through translator): When they first came, they cried all the time, and now every day they're getting better.

DUFFY: In a country known for its policy of limiting families to only having one child, 49-year-old Yang and her husband are the proud new foster parents of four, yes four, children.

YUMING (through translator): I think the project will benefit the children and they will have someone constant to look after them.

DUFFY: Foster parents are a new concept in China. The one-child policy made caring for orphans a legal challenge in a society where adoption was already unpopular. In fact, it's the one-child policy, combined with a traditional preference for boys, that is leading to the growing numbers of children in institutions, most are abandoned by their parents, girls or children with disabilities.

Like Yang's children, who are considered unadoptable, but they have a new home, thanks to American Jenny Bowen, Executive Director of the Half the Sky Foundation.

JENNY BOWEN, HALF THE SKY FOUNDATION: I felt very strongly that there was a way that we could bring that kind of loving attention and care to children who will remain institutionalized.

DUFFY: Jenny's foundation is truly a labor of love. Eight years ago, she and her husband read an article about the state of Chinese orphanages. They decided to adopt here.

BOWEN: And what we found is in a year's time, with the love that parents give to a child by nature, she just blossomed. She became a different child.

DUFFY: Her foundation began by working to improve conditions in orphanages. Now it's helping to promote the idea of foster care in China.

(on camera): And as for the hard work of the volunteers and staff of the Half the Sky Foundation, a celebration for the opening of this center, which will serve as a home for these children and the foundation hopes will also serve as a model for the care of children in orphanages in China.

(voice-over): Volunteer Liza (ph) Kuhn brought her 11-year-old adopted Chinese daughter, Gabi, back for a look at where she came from. She also met the children in this foster program.

GABI GUIYING KUHN, ADOPTEE: It doesn't matter who their parents are as long as they've got a family to love them.

LIZA KUHN, MOTHER: Thank you.

DUFFY: And now children, like Jong May, have just such a family.

Tara Duffy, CNN, Scario (ph), China.

(END VIDEOTAPE)

COSTELLO: And still to come on DAYBREAK, the first-of-its-kind thriller had moviegoers scared out of the water 30 years ago. We will take you back to the beginning for how "Jaws" jolted the nation.

(COMMERCIAL BREAK)

COSTELLO: The FCC has ordered Internet phone companies to provide 911 service. Internet phone providers have been given four months to hook up customers to the same emergency 911 service as regular LAN lines. The FCC responded to complaints from families unable to reach emergency dispatchers over Internet phones. Under the order, Internet providers must make sure 911 calls are routed to local emergency dispatchers.

All right, it's time to read some e-mail now. A very interesting question we're posing this morning.

MYERS: Yes, well obviously we had that little story about the recruiting problem in Colorado. The recruitment, obviously, have been three months now behind the quota. What's your solution?

Carol, we've had some great e-mails here.

One from Larry (ph), if we didn't have a president that misled the country into war in Iraq, recruitment would not be an issue.

Thank you, Larry.

Change prison time to military time. That was from James (ph) in Salt Lake City.

That's kind of interesting.

Two year mandatory service for everyone, your choice, military or conservation corp., that's from Rich (ph) in Kalamazoo.

How about let's not just keep going to war. That was from Treece (ph).

And also now from Brian (ph), recruiters should not have to stoop to unethical means. If people get a better look at the good sides of joining the military, there is free enlistment bonuses, college money, health care, job training. Perhaps if the press didn't paint such a bad picture of the military, people would be encouraged to join on their own free will.

So it's the media's fault -- Carol.

COSTELLO: Interesting.

Here's one from John (ph) from Stuart, Florida. And I wanted to pull this off because he says he's in favor of the draft. Must include our young women, as well as men, and be mandatory for all socioeconomic classes, for the privileged, as well as the poor. Then we'll have some real activist parents and then we won't be rushing into war.

You know part of the problem that recruiters face is that parents talk their kids out of enlisting, for obvious reasons,...

MYERS: Sure.

COSTELLO: ... because, you know, but there are many other parents, of course, who encourage their kids to go to serve their country. But it's a tough deal for recruiters. It really is these days.

MYERS: Absolutely, no question about it.

COSTELLO: And I know it's easy to blame the media, but there's a lot of violence over there.

MYERS: Well sure. And you know they tried extra money, they tried more bonuses, they tried so many things that I can't imagine, but you know they are going to have to figure this out on their own. It's nothing that probably that you and I are going to figure out on TV here. But those guys need to work on it.

COSTELLO: Well they are. They have a one-day stand down.

MYERS: Yes.

COSTELLO: And they're going to try to retrain their recruiters to do their jobs better and, of course, ethically as well.

MYERS: And thanks to all the military out there serving our country right now.

COSTELLO: I know.

MYERS: It's not about you guys.

COSTELLO: Such courageous people.

MYERS: Yes.

COSTELLO: They're awesome.

Still to come on DAYBREAK, it was a movie theme that captured attention worldwide. Just two notes, but everybody knows them. And if you want to, everybody can hear it again. Coming up, CNN's Sibila Vargas will take us back 30 years.

(COMMERCIAL BREAK)

COSTELLO: CBS is pulling the plug on its Wednesday night version of "60 Minutes." The network says the cancellation is not related to the last year's ill-fated story about President Bush's military record, oh no. The show was unable to verify documents used in that story, if you recall. CBS says the decision was all about ratings.

The movie mogul brothers who turned Miramax into a Hollywood powerhouse are taking their talent to a new studio. Bob and Harvey Weinstein are splitting with the Walt Disney owned Miramax to join Rainbow Media. The new deal gives the brothers control over film, television and distribution rights.

And, gosh, it's hard to believe and, gosh, I feel old. It has been 30 years since the summer of "Jaws," 30. The shark thriller that transformed moviemaking in Hollywood and transfixed the entire nation and spawned, of course, that candy gram skit on "Saturday Night Live."

CNN entertainment correspondent Sibila Vargas takes us back to the day.

(BEGIN VIDEOTAPE)

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT (voice-over): The music and the mayhem. For 30 years now, people have been jolted by "Jaws."

UNIDENTIFIED MALE: That scared the bejesus out of me.

VARGAS: Hard to believe then that before the movie opened in 1975, Universal Studios was worried.

TOM SHONE, AUTHOR, "BLOCKBUSTER": The producers were convinced that they made the biggest herky, because the shoot of the movie had been so troubled and it had gone so over budget.

VARGAS: Over budget mainly because the mechanical shark playing the lead role kept breaking down.

CARL GOTTLIEB, CO-WRITER & CO-STAR, "JAWS": The world was collapsing around us and the shark wasn't working and the actors were fractious and the crew was muttering.

VARGAS: Carl Gottlieb, author of "The Jaws Log," co-wrote and co-starred in the film. He still marvels at how a young director named Steven Spielberg kept his cool.

GOTTLIEB: He held it all together. He improvised in ways that nobody was aware.

VARGAS: Spielberg made a virtue of the shark's failure to perform.

STEVEN SPIELBERG, DIRECTOR: I resorted to Hitchcockian rule, which is basically shooting the water and suggesting the shark without showing it. Having the pier go out and turn around by itself and come back again.

VARGAS: That increased the suspense, which became evident during early test screenings.

GOTTLIEB: The people screamed and then they screamed again and then they jumped in their seats.

VARGAS: Then the film opened to the public and a movie industry legend was born.

SHONE: "Jaws" mania kind of swept the country in a sort of extraordinary kind of grass roots way.

GOTTLIEB: There was a shark on the cover of "TIME" magazine, and it just grew in the public consciousness.

SHONE: It really became like this kind of cultural event.

GOTTLIEB: It played and played and played and people just kept coming.

SHONE: For the amount of money that "Jaws" made, you know it just completely changed the course of Hollywood moviemaking. Immediately the first response, can we do it again and how many times can we do it, and what about next summer? And so it was the beginning of kind of Hollywood's sort of endless summer.

VARGAS (on camera): "Jaws" went on to earn an astonishing $470 million worldwide in 1975, and that's not even accounting for inflation. Those numbers will surely increase when a special 30th anniversary edition of the movie comes out on DVD in June.

Sibila Vargas, CNN, Los Angeles.

(END VIDEOTAPE)

COSTELLO: And you can get more entertainment news every night on "ShowBiz Tonight." That's at 7:00 p.m. Eastern on Headline News.

And the next hour of DAYBREAK starts right now.

One plus one equals one. The winds of change are in the works in the airline industry. We'll tell you what changes to expect.

Then, sticker shock. When you buy a car, you want to know how it performs. But what about those crash test results?

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 - 05:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A little bit more information to tell you on that late word into CNN that authorities in Idaho may have a break in the case of those two missing children. Here's what we know. There may, may have been a sighting of 9-year-old Dylan Groene and his 8-year-old sister, Shasta. As you know, they've been missing since Monday when the bodies of their mother, brother and their mother's boyfriend were found in their home in Coeur d'Alene.
Now police got a tip that the children may have been spotted in an Idaho store yesterday. And that has prompted a look out for a tall man driving a light-colored, full-size van with Washington State plates. Don't know who this man is.

Here's the tip line number 208-446-2292. You can also call this number 208-446-2293.

So here's the situation, two missing children, three people murdered and precious little to go on, despite that new information this morning. Searchers are using dogs and horses and a helicopter. They've combed the woods and the fields around the home, divers have searched the ponds and the wetlands and the missing children's distraught father issued this plea.

(BEGIN VIDEO CLIP)

STEVE GROENE, FATHER OF MISSING CHILDREN: Can you stop?

I'd like to thank the law enforcement community for their tireless efforts in this matter. I'd also like to thank the media and the general public for all your concerns and all your prayers.

I'd like to address my children's abductors or abductor, please, 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.

Thank you.

(END VIDEO CLIP)

COSTELLO: Police say Robert Roy Lutner, once considered a person of interest in this mystery, passed a lie detector test. They say they don't believe he had anything whatsoever to do with the murders.

We'll keep you posted. Important news now on stem cell research. Scientists say they've taken a major step in the search for a cure for some debilitating diseases. That word comes after leading researchers announce they've successfully cloned a series of human embryos.

Lawrence McGinty has more for you.

(BEGIN VIDEOTAPE)

LAWRENCE MCGINTY, ITV NEWS (voice-over): In the lab they're taking giant strides. Last year they cloned human embryos for the first time. Now they've cloned embryos designed to genetically match particular individuals. Why, because they could use cells from the clones to treat those people.

PROF. GERALD SCHATTEN, UNIVERSITY OF PITTSBURGH: Kidney disorders, heart disease, lung disease, skin disease, muscle diseases, perhaps strokes, perhaps Alzheimer's. Theoretically, this will be bigger than discoveries of vaccines or antibiotics.

PROF. WOO SUK HWANG, SEOUL NATIONAL UNIVERSITY: This report brings the science a giant step forward.

MCGINTY: Professor Woo Suk Hwang is the man who did the research. His laboratory in Seoul is now the world leader in cloning human embryos. What they did this time is being called very significant.

First they remove the genetic material from a fertilized egg, replacing it with genes from the donor. Then they shock the egg to stimulate it into developing. The hope is cells from the early embryo that results can be used to treat the donor because they're genetically identical.

Theoretically, you could have taken skin cells from Christopher Reeve, who suffered terrible spinal damage, cloned them into embryos and used the cells to repair his spinal cord.

All that is in the future, and it's controversial. The scientists here at Newcastle University will find out after they announce they've become the second laboratory in the world to clone human embryos.

Lawrence McGinty, ITV News.

(END VIDEOTAPE)

COSTELLO: Fascinating story.

For more on the impact of this research, let's head live to London. Standing by is Dr. Stephen Minger who is the head of the stem cell lab at King's College.

Good morning -- doctor.

DR. STEPHEN MINGER, KING'S COLLEGE: Good morning. COSTELLO: This is just absolutely amazing.

MINGER: Yes, I know, it's...

COSTELLO: It's so hard to explain simply. But, in essence, what does this mean?

MINGER: Well what it means is that now it's definite that it is possible to clone human embryos and to take cells from a living adult patient and use the techniques that Hwang's group has perfected to generate cell lines which would be genetically matched to us. So, for instance, we could take a cell from you and create a cell line that is genetically identical to you and then use those cells at some point in the future for therapy...

COSTELLO: So do those...

MINGER: ... and not have to worry about rejection or having to use immune suppressive drugs.

COSTELLO: Do those cells create an embryo that can eventually turn into a human being?

MINGER: Probably not. I mean it does turn into a blatisis (ph). But if implanted, it's doubtful that that would ever result in a human being. And if it did, we know from animal experiments that have been done, where we've created cloned cows, cloned rabbits, cloned pigs, that almost with certainty every one of those has some sort of abnormality, either genetic or epigenetic abnormality. And so if a human was cloned by reproductive means, most certainly it would be born with growth developmental abnormality.

In this country, we have a complete ban on reproductive cloning. So this technology would never be used in that way. It would only be used for therapeutic purposes.

COSTELLO: Well can this technology be used here in the United States? Does that solve the problems, you know,...

MINGER: Well...

COSTELLO: ... that some people have with -- go ahead.

MINGER: In the private sector, yes, people could use this technology. Certainly this can't be done with NIH money. Researchers who have NIH research grants would not be able to do something to the replacement.

But in the private sector in the U.S., as far as I can tell, there seems to be no prohibition against this one way or the other, although there have been bills in the Senate and in Congress to try to block this.

COSTELLO: So out in California, where they're funding their own stem cell research, it could, theoretically, be used there?

MINGER: Yes. Yes.

COSTELLO: Interesting.

MINGER: I mean you have to understand, I mean what Hwang's group has done, really, has really pushed the field forward in a very large way. Last year when they did this work, they were only able to make one cell line from about 250 eggs and the efficiency was very, very low.

Now what they've done is created 11 cell lines from less than 200 eggs and it's pushed the efficiency up to about 7 percent. This brings this technology within the realm of feasibility.

The major limitation, at the moment, using embryonic stem cells is we still have to learn how to take cells that want to turn into every cell type in the body and learn how to control their differentiation into specific cell types. But this certainly does create -- it's certainly feasible now that we could develop cell lines that are personalized for people that we want to use them in.

COSTELLO: OK. And I know that this research can be used to grow replacement parts for the human body, but can it also be used to cure diseases, like diabetes and...

MINGER: Well they can't be used to grow replacement parts. I mean I think that's really well into the future. We're talking really about cell based therapy. So for Parkinson's Disease, for Type 1 diabetes, for cardiac disease where we already know in human patients that replacing cells that have been damaged is therapeutically effective.

The major limitation, at the moment, is the shortage of tissue. So we have ilitronsponse (ph), for instance, where we know that replacing cells that make insulin can, in many cases, take people with pretty severe Type 1 diabetes and take them completely off of insulin. But there's just never enough tissue to treat more than a handful of patients.

What stem cell biology is designed to do is create an almost inexhaustible source of cells that could be used for cell therapy. So we're nowhere near growing organs from stem cells.

COSTELLO: So...

MINGER: But certainly cell therapy is possible.

COSTELLO: So there have been no human tests?

MINGER: No. To date, as far as I know, nobody is close to the clinic at all. I think we're minimally 5 to 10 years away from clinical trials. Now there may be, in some countries, you know, hidden away people doing human embryonic stem cell transplants. But to the best of my knowledge, nobody has applied either to the NIH or FDA or here in Europe for an application to use these cells in human patients.

COSTELLO: Well thank you, Stephen Minger from King's College in London, clarifying things for us. And we certainly appreciate it.

In the meantime, CNN has learned that President Bush is threatening to veto possible new legislation on stem cell research. The House is working on a bill that would broaden the limits of embryonic stem cell research beyond the limits set by the White House in 2001. The House bill would lift the restriction that says only work with existing lines of embryonic stem cells are eligible for federal funding.

A number of American families have adopted children from Asia. But just ahead, we'll look at a new program that helps children orphaned in China stay in China.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

COSTELLO: This is going to make a lot of news later today. Take a look at these new pictures out of Saddam Hussein in prison. You see the title there, tyrant's in his pants. Shows the deposed leader in his underpants. The picture splashed on the cover of the British tabloid "The Sun."

The U.S. Department of Defense has condemned the release of these photographs. There are more inside this paper. Officials are vowing an aggressive investigation and steps to assure the breach never ever happens again. But be sure we'll be hearing a lot more about this later today.

Your news, money, weather and sports. It's 5:42 Eastern. Here's what's all new this morning.

There's been a possible sighting of those two children missing from an Idaho home where three people were killed. Investigators say a tall man was spotted with the two children and those two children do resemble Dylan and Shasta Groene. They were seen leaving a Montana store in a light-colored van.

Army recruiting operations are on a 24-hour suspension today. The so-called stand down was ordered so recruiters can be advised about law of governing enlistment procedures. It's in response to allegations of improper tactics by some recruiters.

In money news, China is about to raise export tariffs on clothes and textiles. This comes amid growing complaints from the United States and Europe about the surge of Chinese goods in their markets. The increase takes effect next month.

In culture, those midnight showings of the new "Star Wars" movie proved to be real moneymakers. The long lines led to ticket sales totaling $16.5 million. And that's just for the film's first few hours.

In sports, the San Antonio Spurs survived a scare to eliminate the Seattle Sonics and move on to the Western Conference finals. Center Tim Duncan was injured early, but he stayed in the game and hit the game winning shot with just a half second remaining. Good for him -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Hey, good morning, Carol.

(WEATHER REPORT)

COSTELLO: Jackamo running in that race.

MYERS: You bet he is.

COSTELLO: It'll be exciting.

Thank you, Chad.

Perhaps you know someone who has adopted a child from China. One American woman adopted her daughter from there in 1997, and now she's started a project to place many Chinese children with Chinese families.

But as we learn from CNN's Tara Duffy, it's not easy.

(BEGIN VIDEOTAPE)

TARA DUFFY, CNN CORRESPONDENT (voice-over): Meet 6-year-old Jong May (ph) -- she's the one in yellow -- her new brothers and her new mother, former factory worker Yang Yuming.

YANG YUMING, FOSTER MOTHER (through translator): When they first came, they cried all the time, and now every day they're getting better.

DUFFY: In a country known for its policy of limiting families to only having one child, 49-year-old Yang and her husband are the proud new foster parents of four, yes four, children.

YUMING (through translator): I think the project will benefit the children and they will have someone constant to look after them.

DUFFY: Foster parents are a new concept in China. The one-child policy made caring for orphans a legal challenge in a society where adoption was already unpopular. In fact, it's the one-child policy, combined with a traditional preference for boys, that is leading to the growing numbers of children in institutions, most are abandoned by their parents, girls or children with disabilities.

Like Yang's children, who are considered unadoptable, but they have a new home, thanks to American Jenny Bowen, Executive Director of the Half the Sky Foundation.

JENNY BOWEN, HALF THE SKY FOUNDATION: I felt very strongly that there was a way that we could bring that kind of loving attention and care to children who will remain institutionalized.

DUFFY: Jenny's foundation is truly a labor of love. Eight years ago, she and her husband read an article about the state of Chinese orphanages. They decided to adopt here.

BOWEN: And what we found is in a year's time, with the love that parents give to a child by nature, she just blossomed. She became a different child.

DUFFY: Her foundation began by working to improve conditions in orphanages. Now it's helping to promote the idea of foster care in China.

(on camera): And as for the hard work of the volunteers and staff of the Half the Sky Foundation, a celebration for the opening of this center, which will serve as a home for these children and the foundation hopes will also serve as a model for the care of children in orphanages in China.

(voice-over): Volunteer Liza (ph) Kuhn brought her 11-year-old adopted Chinese daughter, Gabi, back for a look at where she came from. She also met the children in this foster program.

GABI GUIYING KUHN, ADOPTEE: It doesn't matter who their parents are as long as they've got a family to love them.

LIZA KUHN, MOTHER: Thank you.

DUFFY: And now children, like Jong May, have just such a family.

Tara Duffy, CNN, Scario (ph), China.

(END VIDEOTAPE)

COSTELLO: And still to come on DAYBREAK, the first-of-its-kind thriller had moviegoers scared out of the water 30 years ago. We will take you back to the beginning for how "Jaws" jolted the nation.

(COMMERCIAL BREAK)

COSTELLO: The FCC has ordered Internet phone companies to provide 911 service. Internet phone providers have been given four months to hook up customers to the same emergency 911 service as regular LAN lines. The FCC responded to complaints from families unable to reach emergency dispatchers over Internet phones. Under the order, Internet providers must make sure 911 calls are routed to local emergency dispatchers.

All right, it's time to read some e-mail now. A very interesting question we're posing this morning.

MYERS: Yes, well obviously we had that little story about the recruiting problem in Colorado. The recruitment, obviously, have been three months now behind the quota. What's your solution?

Carol, we've had some great e-mails here.

One from Larry (ph), if we didn't have a president that misled the country into war in Iraq, recruitment would not be an issue.

Thank you, Larry.

Change prison time to military time. That was from James (ph) in Salt Lake City.

That's kind of interesting.

Two year mandatory service for everyone, your choice, military or conservation corp., that's from Rich (ph) in Kalamazoo.

How about let's not just keep going to war. That was from Treece (ph).

And also now from Brian (ph), recruiters should not have to stoop to unethical means. If people get a better look at the good sides of joining the military, there is free enlistment bonuses, college money, health care, job training. Perhaps if the press didn't paint such a bad picture of the military, people would be encouraged to join on their own free will.

So it's the media's fault -- Carol.

COSTELLO: Interesting.

Here's one from John (ph) from Stuart, Florida. And I wanted to pull this off because he says he's in favor of the draft. Must include our young women, as well as men, and be mandatory for all socioeconomic classes, for the privileged, as well as the poor. Then we'll have some real activist parents and then we won't be rushing into war.

You know part of the problem that recruiters face is that parents talk their kids out of enlisting, for obvious reasons,...

MYERS: Sure.

COSTELLO: ... because, you know, but there are many other parents, of course, who encourage their kids to go to serve their country. But it's a tough deal for recruiters. It really is these days.

MYERS: Absolutely, no question about it.

COSTELLO: And I know it's easy to blame the media, but there's a lot of violence over there.

MYERS: Well sure. And you know they tried extra money, they tried more bonuses, they tried so many things that I can't imagine, but you know they are going to have to figure this out on their own. It's nothing that probably that you and I are going to figure out on TV here. But those guys need to work on it.

COSTELLO: Well they are. They have a one-day stand down.

MYERS: Yes.

COSTELLO: And they're going to try to retrain their recruiters to do their jobs better and, of course, ethically as well.

MYERS: And thanks to all the military out there serving our country right now.

COSTELLO: I know.

MYERS: It's not about you guys.

COSTELLO: Such courageous people.

MYERS: Yes.

COSTELLO: They're awesome.

Still to come on DAYBREAK, it was a movie theme that captured attention worldwide. Just two notes, but everybody knows them. And if you want to, everybody can hear it again. Coming up, CNN's Sibila Vargas will take us back 30 years.

(COMMERCIAL BREAK)

COSTELLO: CBS is pulling the plug on its Wednesday night version of "60 Minutes." The network says the cancellation is not related to the last year's ill-fated story about President Bush's military record, oh no. The show was unable to verify documents used in that story, if you recall. CBS says the decision was all about ratings.

The movie mogul brothers who turned Miramax into a Hollywood powerhouse are taking their talent to a new studio. Bob and Harvey Weinstein are splitting with the Walt Disney owned Miramax to join Rainbow Media. The new deal gives the brothers control over film, television and distribution rights.

And, gosh, it's hard to believe and, gosh, I feel old. It has been 30 years since the summer of "Jaws," 30. The shark thriller that transformed moviemaking in Hollywood and transfixed the entire nation and spawned, of course, that candy gram skit on "Saturday Night Live."

CNN entertainment correspondent Sibila Vargas takes us back to the day.

(BEGIN VIDEOTAPE)

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT (voice-over): The music and the mayhem. For 30 years now, people have been jolted by "Jaws."

UNIDENTIFIED MALE: That scared the bejesus out of me.

VARGAS: Hard to believe then that before the movie opened in 1975, Universal Studios was worried.

TOM SHONE, AUTHOR, "BLOCKBUSTER": The producers were convinced that they made the biggest herky, because the shoot of the movie had been so troubled and it had gone so over budget.

VARGAS: Over budget mainly because the mechanical shark playing the lead role kept breaking down.

CARL GOTTLIEB, CO-WRITER & CO-STAR, "JAWS": The world was collapsing around us and the shark wasn't working and the actors were fractious and the crew was muttering.

VARGAS: Carl Gottlieb, author of "The Jaws Log," co-wrote and co-starred in the film. He still marvels at how a young director named Steven Spielberg kept his cool.

GOTTLIEB: He held it all together. He improvised in ways that nobody was aware.

VARGAS: Spielberg made a virtue of the shark's failure to perform.

STEVEN SPIELBERG, DIRECTOR: I resorted to Hitchcockian rule, which is basically shooting the water and suggesting the shark without showing it. Having the pier go out and turn around by itself and come back again.

VARGAS: That increased the suspense, which became evident during early test screenings.

GOTTLIEB: The people screamed and then they screamed again and then they jumped in their seats.

VARGAS: Then the film opened to the public and a movie industry legend was born.

SHONE: "Jaws" mania kind of swept the country in a sort of extraordinary kind of grass roots way.

GOTTLIEB: There was a shark on the cover of "TIME" magazine, and it just grew in the public consciousness.

SHONE: It really became like this kind of cultural event.

GOTTLIEB: It played and played and played and people just kept coming.

SHONE: For the amount of money that "Jaws" made, you know it just completely changed the course of Hollywood moviemaking. Immediately the first response, can we do it again and how many times can we do it, and what about next summer? And so it was the beginning of kind of Hollywood's sort of endless summer.

VARGAS (on camera): "Jaws" went on to earn an astonishing $470 million worldwide in 1975, and that's not even accounting for inflation. Those numbers will surely increase when a special 30th anniversary edition of the movie comes out on DVD in June.

Sibila Vargas, CNN, Los Angeles.

(END VIDEOTAPE)

COSTELLO: And you can get more entertainment news every night on "ShowBiz Tonight." That's at 7:00 p.m. Eastern on Headline News.

And the next hour of DAYBREAK starts right now.

One plus one equals one. The winds of change are in the works in the airline industry. We'll tell you what changes to expect.

Then, sticker shock. When you buy a car, you want to know how it performs. But what about those crash test results?

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