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American Morning

New Developments in Search for Missing Children in Idaho; Hunt for Osama Bin Laden May be Gaining Momentum

Aired May 20, 2005 - 07:00   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.


BILL HEMMER, CNN ANCHOR: Good morning. There are new developments in the search for those two missing children in Idaho. Their father pleading for their return.
(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Please release my children safely. They had nothing to do with any of this.

(END VIDEO CLIP)

HEMMER: In a moment, the father will join us, so will the sheriff's department with a possible lead in this case.

A rare early-season hurricane slamming into Central America. Now, tracking toward the Gulf of Mexico.

And word the hunt for Osama Bin Laden may be gaining momentum with more arrests reported on this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING, with Bill Hemmer and Soledad O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, welcome everybody.

Also ahead this morning, U.S. officials strongly condemning some new photos that show Saddam Hussein in prison in his underwear.

HEMMER: Haven't seen him like this before, have we? Those photos released this morning, causing quite a stir, as you can imagine, not just the Pentagon, also from London, and we'll get some reaction from Baghdad on that as well this morning.

Jack Cafferty has got the Question of the Day this morning.

Good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning.

At a time when the Army is having trouble meeting its recruiting goals, the federal government is working on redefining the role of women in combat. We'll take a look.

HEMMER: All right, Jack, thanks.

Let's start in Idaho this morning. There is word this morning that those two missing children may have been spotted nearby. Police are now following eyewitness descriptions to find 9-year-old Dylan and 8-year-old Shasta Groene. Their mother, brother and her boyfriend were found beaten to death Monday in Coeur D'Alene, Idaho.

(BEGIN VIDEOTAPE)

HEMMER: We're now joined by Shasta and Dylan's father, Steve Groene.

Who do you think would want to harm your children?

STEVE GROENE, MISSING CHILDREN'S FATHER: Bill, I really have no idea. I have really no connection to Brenda and Mark's circle of friends. You know, my connection remained just with my children, who Brenda was the custodial parent. You know, my connection with them was just purely that, you know. I would come out and get my children on my visitation times and drop them off when our weekend together was done.

HEMMER: What would you like to say to your children?

GROENE: If they can see or hear me, I want them to know that -- and I know that they know, I love them and I need them back with me. Everybody's praying for them, and all I can tell them is just, please, hang in there. This will be over soon. They're coming home.

HEMMER: Steve, I know you came out publicly yesterday, and putting a human face on the missing two children here. And certainly at a time when they need the help the most. With you also out there today is Captain Ben Wolfinger, who is back with us also, and, captain, we welcome you back here as well.

CAPT. BEN WOLFINGER, KOOTENAI CO. SHERIFF'S DEPT.: Good morning, Bill.

HEMMER: There was a reported sighting on Thursday of these two children in northern Idaho. Do you give this report much credibility, captain?

WOLFINGER: Well, we're still kind of weighing that. They weren't able to find the vehicle Thursday evening. We put an attempt to locate out on the description of the vehicle, particularly focused on the northern Idaho, western Montana and southern Canada area. Every law enforcement agency, and quite frankly, a lot of public are looking for the van. And you probably have that information.

Unfortunately, here at the scene we don't have a fax information to get all the information out to us.

HEMMER: On the screen it says a tall man, light-colored van, Washington license plates, but I imagine that's not enough description for you to go on, right?

WOLFINGER: Yes, that's -- well, I'm sure that that's enough description for a lot of vans with a white male in it, with a Washington license plate to get stopped in northern Idaho or western Montana.

HEMMER: Captain, Robert Roy Lutner was this person of interest, who was not considered a suspect, by the way. He says a number of people were at this barbecue on Sunday night. How many does he say?

WOLFINGER: Bill, you know, they haven't given us that information out here at the media center. The detectives have been working that information, and quite frankly, I'm going to give them the time to work it. I'm not going to bother them. It's much more important that they're trying to find the children than out here visiting with me.

HEMMER: You know, captain, you're saying, and you said it again yesterday, you want these people to come forward. Why have they not come forward?

WOLFINGER: Well, I don't know, after the plea yesterday if they have or haven't. We'll find out a little bit later this morning. But if you think about it, if you're at someone's house and at a barbecue, and then later the next day, find out they've been harmed, you thought, gee, I have nothing to do with it, I was there much earlier, why would you want to actually go to the police? I think we need to put that invitation out there and that's what we did yesterday, that request, and we'll see what that response is later.

HEMMER: We know from the autopsies now, the coroner's report, captain this killing was brutal at this home. Blunt force trauma, fractured skulls. Does that tell you anything about what happened Sunday night?

WOLFINGER: Well, it certainly tells us it was a grisly scene, and that's a very traumatic incident. Something that, you know, I'm sorry that those children ever had to be around. So that's what it tells me, and I'm sure it tells the investigators a lot more. But we're going to leave that with the experts.

HEMMER: Yes, you just said something there. Do you believe the children witnessed this?

WOLFINGER: Well, we really think the children were at the house and had to witness something with this grisly scene. You can't imagine, and it's a small home, that they didn't hear or see something.

HEMMER: You asked this question yesterday, too, captain. I want to repeat it for our audience here. Why would the killer come in, kill three people and take two children. Are you any closer to answering that question?

WOLFINGER: You know, we're not, Bill, and that's the sad part. But I'll tell you what it does do, Bill, is it gives us hope. That question is what gives us hope, that those children are alive and well out there, and they're going to come home.

HEMMER: Thank you, Captain, good luck. And Steve Groene, good luck to you as well. GROENE: Thank you very much, Bill.

(END VIDEOTAPE)

HEMMER: The captain will not disclose the weapon used in those killings, and the father has been given a lie-detector test. Earlier in the week, he was given that. Police say he has checked out clean -- Soledad.

O'BRIEN: The Pentagon is launching an investigation into just who gave a British tabloid pictures of Saddam Hussein behind bars. One of the photos, which was published in "The Sun" today, shows the former Iraqi leader in his underpants. The U.S. says the pictures are against U.S. military policy and a possible violation of human-rights guidelines. But the U.S. does say that the pictures are authentic. "The Sun" says it got the pictures from military sources who are looking to deliver a blow to the Iraqi resistance.

A major development in stem-cell research to talk about this morning. Word that scientists in South Korea have successfully cloned human embryos, specifically to create stem cells.

What makes the research important is that these embryonic stem cells are an exact genetic match for sick or injured patients. Scientists there hope that someday, stem cells will be used to cure a variety of diseases and repair damage from many types of injuries.

In this country, debate over stem cells rages on. A House bill that would expand public funding for embryonic stem-cell research is bringing the issue to the foreground once again. CNN's Ed Henry live at the White House for us this morning.

Ed, good morning to you.

ED HENRY, CNN CORRESPONDENT: Good morning, Soledad.

O'BRIEN: Walk us through the specifics of the debate.

HENRY: That's right, the stakes are being raised in a rare political battle between the White House and some fellow Republicans on Capitol Hill. CNN has learned that as early as next week, the White House is planning to issue a veto threat of that house legislation that you mentioned, that would expand public funding of embryonic stem-cell research here in the United States beyond the limits set by the president four years ago.

In fact, two officials here at the White House are telling my colleague, Dana Bash, that this veto threat could come from the president himself. That is a clear sign of how serious the White House is treating this. Officials here say they fear that this legislation, which now has about 200 cosponsors in the House, is picking up steam in the Senate, could end up passing the Republican- led Congress by veto-proof margins. That's why they think a veto threat could stem the tide a bit and bring this back to the president's favor. The president's policy limits federal funding for this research to sell lines that are already in existence. There are some scientists, though, who feel that since some of the cell lines are contaminated, that this is not going far enough, and those scientists have pretty powerful allies, people like Nancy Reagan, who have lobbied and said they believe expanding this stem cell research could stem the tide of Alzheimer's Disease. Others of course lobbying for more research to beat Parkinson's Disease and other ailments. That argument is resonating with some Republicans on the Hill who feel that the life benefits from this research could outweigh the other life issues here. And that's why all of a sudden, even though coming out of this last election, a lot of Republicans on the Hill have been marching in lockstep with the White House on a lot of issues, we're seeing a rare bit of defiance on the Hill on this issue.

But I can tell you, White House officials say they may have a secret weapon of their own. The current first lady, Laura Bush, who is the daughter of an Alzheimer's patient, has previously said that she believes and wants to make clear to the American people the president does not oppose stem-cell research. He's just concerned about expanding the federal funding of it. And White House officials are now telling CNN they're considering using Laura Bush once again as a lobbyist -- Soledad.

O'BRIEN: Ed Henry at the White House for us. Ed, thanks.

HEMMER: Ten minutes past the hour now. We're on terrorist's trail in Pakistan, where police say they have dealt another blow to Al Qaeda. Authorities say two Al Qaeda members were picked up in a small town about 250 miles south of Pakistan's capital, Islamabad, one of the men, said to have had direct contact with top leadership in Al Qaeda.

Meanwhile, Pakistan saying Osama Bin Laden is on the run with his terror network paralyzed.

What's behind all this? To the Pentagon this morning, here's Barbara Starr sorting through it all. Good morning there.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Bill.

Well, behind the scenes, an awful lot of folks in the military and intelligence communities are talking about one thing. Is the hunt for Osama Bin Laden getting warmer?

(BEGIN VIDEOTAPE)

STARR (voice-over): a number of knowledgeable, present and former intelligence officials tell CNN it would not surprise them if Osama bin Laden is found soon. But are those statements just hype?

There are reasons for cautious optimism. Intelligence officials say Al Qaeda has been shaken by recent events. The working assumption in many intelligence quarters is that since the capture of Al Qaeda's alleged No. 3, Abu Farraj Al Libbi, Bin Laden has moved hideouts.

UNIDENTIFIED MALE: Bin Laden and his entourage probably feel some necessity to move around. They're probably taking precautions. But once they begin to move, then there is always the possibility of seeming some dust kicked up and getting some leads.

STARR: Pakistani troops recently searched known Al Qaeda safehouses and found evidence of hasty departures, according to U.S. officials. One intelligence source says it's an indicator Al Qaeda feels vulnerable. Military sources tell CNN Pakistani troops are now deep into the tribal areas in previously unsearched locations.

A CIA drone firing a Hellfire missile killed another Bin Laden associate, Hassan Al Yemeni (ph), inside Pakistan earlier this month. Why bother to kill him? Bin Laden has a similar tribal background as Al Yemeni and may have trusted him enough to let him get close.

UNIDENTIFIED MALE: Something that would add credence to the notion that this attack -- the hellfire attack on Al Yemeni was related in some way to Bin Laden's actual presence.

STARR: But shaken up or not, few believe Bin Laden will get sloppy.

UNIDENTIFIED MALE: My hunch is that his communications at this point are so tightly buttoned down that you're not likely to engage him.

STARR: And just this week, Defense Secretary Donald Rumsfeld who watches the hunt for Bin Laden daily, said he's not willing to make any predictions about when Bin Laden will be caught -- Bill.

HEMMER: Barbara Starr from the Pentagon this morning.

(WEATHER REPORT)

HEMMER: In a moment here, we knew the tsunami was big, but now we're only learning just how big it actually was, and now even the experts are shocked by this. That story is up in a moment.

O'BRIEN: And the U.S. Army temporarily halting all recruiting operations. We're going to tell you why, just ahead.

HEMMER: Also, the intriguing story here. A man on death row asking for more time so that he can save his sister's life. That story and more, as we continue on a Friday morning, here on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: An Indiana death row inmate is getting a clemency hearing today. The parole board's decision will be influenced by his unusual request. Gregory Scott Johnson is trying to stay alive long enough to donate a portion of his liver to his dying sister.

Chris Lawrence has our report.

(BEGIN VIDEOTAPE) CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): Gregory Scott Johnson is asking the state of Indiana for a reprieve, to find out if he could donate part of his liver to his sick sister, Debra. Johnson was sentenced to die for murdering an 82-year-old woman in her own home.

GREGORY SCOTT JOHNSON, DEATH ROW INMATE: I've done so much harm out there, my life is all that I have to pay them.

LAWRENCE: Doctors could do a split-liver transplant, just taking a piece of his liver out, but that's not as good as a full transplant. One doctor familiar with the case is confident he can find Johnson's sister another liver, and says, she'd get the next organ that comes up in her blood group. Whole livers are harvested from a donor after the person has died. But Johnson is scheduled to die by lethal injection, which could make his unsuitable.

JOHNSON: They're not killing me to harvest an organ. I'm volunteering the organ, whether they kill me or not.

LAWRENCE (on camera): This kind of case has come up before in other states. Prison officials have argued, what happens if something goes wrong during the surgery? They could be forced to indefinitely keep a death row inmate alive.

ALICE NEWMAN, JOHNSON'S MOTHER: This is something no mother should have to go through.

LAWRENCE: Johnson's mother supports her daughter's wish to receive a piece of her brother's liver.

NEWMAN: I would feel like a part of Scott was still with us.

LAWRENCE: The first step would be a blood test. If Johnson's not compatible with his sister, the other arguments are irrelevant. If they're a match, and if his liver is needed, it would be up to the parole board and Indiana's governor to decide if Johnson gets the extra time he's asking for.

Chris Lawrence, CNN, Chicago.

(END VIDEOTAPE)

O'BRIEN: The parole board is expected to make a recommendation later today. Johnson's execution is scheduled for Wednesday -- Bill.

HEMMER: Well, Soledad, major news to tell you about on the airline front today, what it could mean for your frequent-flyer miles too. Andy has that, "Minding Your Business," back in a moment here, right after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. More on the merger of these two major airlines. It is a done deal. And the Maytag man about to get a new boss. Here's our boss, Andy Serwer, "Minding Your Business." What's happening?

ANDY SERWER, "FORTUNE" MAGAZINE: Wow. I just got a promotion, huh? I kind of like that. I'll be telling you what to do a little bit later.

Let's talk about a couple of big deals on Wall Street this morning. First of all, Bill, you're right, a deal we talked about yesterday, the merger between U.S. Air and America West appears to be done. Let's talk about a couple of the details. It will be called U.S. Airways, taking that name. Nation's fifth largest carrier. Frequent flyer miles, very important. Yes, they're good, and they will be combined into programs. There will be some route cuts. More details on that over the coming weeks, of course. This is the first merger since 9/11. and people have been anticipating this would happen, and there may be more to come.

Meanwhile, an airline executive telling Congress that the industry will lose $5 billion this year. It's lost $32 billion since 9/11. Unbelievable.

The other big deal, Maytag, that venerable maker of appliances, being bought out by a private Wall Street buyout firm, Ripplewood Holdings, $1.3 billion. The Newton, Iowa maker of refrigerators, stoves, washers, dryers, Hoover vacuum cleaners had trouble over the last couple years competing. Most of its manufacturing is in the United States. G.E. and Whirlpool have a lot offshore. Stock's been down 45 percent this year.

Let's check out some of the most great pitchmen in the history of advertising. There they are, the Maytag repairmen. It's been going on since 1967 and I sure hope they keep that guy.

HEMMER: Who's your favorite up there?

SERWER: I like the first guy, who is that, Jesse White, the original.

O'BRIEN: I liked Gordon Jump.

SERWER: You like Gordon Jump from WKRP?

O'BRIEN: In Cincinnati.

SERWER: That's right.

HEMMER: Thank you, Andy.

SERWER: You're welcome.

O'BRIEN: Time for the "Cafferty File." The question is about women and the military.

CAFFERTY: Indeed it is. Thanks, Soledad.

The House Armed Services Committee passed a measure yesterday that would bar women from direct ground combat. It requires the Pentagon to seek congressional approval before changing the assignments of military women. The Army says it already upholds the Pentagon's policy, which prohibits women from serving in direct combat. When the units they support are called into battle, the women are ordered to stay behind. Trouble is, in Iraq, there is no behind the lines anywhere. The nature of the insurgency means troops, men and women, can come under attack from any direction at any moment, any time. While the Army has missed its recruiting targets three months in a row, it's ironic that there are concerns that the troops are already stretched too thin, and now they're trying to limit the participation in the war of a portion of the people who are wearing our uniform.

The question is, should women be allowed to serve in direct ground combat? The address is am@CNN.com.

O'BRIEN: It's an interesting question, and I guess they're revisiting now, just because, specifically, of Iraq and the fact that there is no front line?

CAFFERTY; Either that or they got nothing else to do in the House Armed Services Committee.

O'BRIEN: Extra time, OK.

SERWER: Yes.

HEMMER: Well, it is a slow day for the Army today. They're suspending recruiting for a day to examine the policies and the procedures.

CAFFERTY: How will they notice the difference? They're not getting anybody to join.

HEMMER: What, their goal is 80,000 on the Army side? See how close they are throughout the morning.

Thank you, Jack.

O'BRIEN: Thanks.

Much more AMERICAN MORNING still to come.

Ahead on "90-Second Pop," book smarts or street smarts. The Donald picks miss right. But will another women, Martha, outshine Trump in the boardroom?

Millions will flock to see "Star Wars" this weekend. But if you're not yearning to see Yoda, what other movies are worth seeing? Our take ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired May 20, 2005 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. There are new developments in the search for those two missing children in Idaho. Their father pleading for their return.
(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Please release my children safely. They had nothing to do with any of this.

(END VIDEO CLIP)

HEMMER: In a moment, the father will join us, so will the sheriff's department with a possible lead in this case.

A rare early-season hurricane slamming into Central America. Now, tracking toward the Gulf of Mexico.

And word the hunt for Osama Bin Laden may be gaining momentum with more arrests reported on this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING, with Bill Hemmer and Soledad O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, welcome everybody.

Also ahead this morning, U.S. officials strongly condemning some new photos that show Saddam Hussein in prison in his underwear.

HEMMER: Haven't seen him like this before, have we? Those photos released this morning, causing quite a stir, as you can imagine, not just the Pentagon, also from London, and we'll get some reaction from Baghdad on that as well this morning.

Jack Cafferty has got the Question of the Day this morning.

Good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning.

At a time when the Army is having trouble meeting its recruiting goals, the federal government is working on redefining the role of women in combat. We'll take a look.

HEMMER: All right, Jack, thanks.

Let's start in Idaho this morning. There is word this morning that those two missing children may have been spotted nearby. Police are now following eyewitness descriptions to find 9-year-old Dylan and 8-year-old Shasta Groene. Their mother, brother and her boyfriend were found beaten to death Monday in Coeur D'Alene, Idaho.

(BEGIN VIDEOTAPE)

HEMMER: We're now joined by Shasta and Dylan's father, Steve Groene.

Who do you think would want to harm your children?

STEVE GROENE, MISSING CHILDREN'S FATHER: Bill, I really have no idea. I have really no connection to Brenda and Mark's circle of friends. You know, my connection remained just with my children, who Brenda was the custodial parent. You know, my connection with them was just purely that, you know. I would come out and get my children on my visitation times and drop them off when our weekend together was done.

HEMMER: What would you like to say to your children?

GROENE: If they can see or hear me, I want them to know that -- and I know that they know, I love them and I need them back with me. Everybody's praying for them, and all I can tell them is just, please, hang in there. This will be over soon. They're coming home.

HEMMER: Steve, I know you came out publicly yesterday, and putting a human face on the missing two children here. And certainly at a time when they need the help the most. With you also out there today is Captain Ben Wolfinger, who is back with us also, and, captain, we welcome you back here as well.

CAPT. BEN WOLFINGER, KOOTENAI CO. SHERIFF'S DEPT.: Good morning, Bill.

HEMMER: There was a reported sighting on Thursday of these two children in northern Idaho. Do you give this report much credibility, captain?

WOLFINGER: Well, we're still kind of weighing that. They weren't able to find the vehicle Thursday evening. We put an attempt to locate out on the description of the vehicle, particularly focused on the northern Idaho, western Montana and southern Canada area. Every law enforcement agency, and quite frankly, a lot of public are looking for the van. And you probably have that information.

Unfortunately, here at the scene we don't have a fax information to get all the information out to us.

HEMMER: On the screen it says a tall man, light-colored van, Washington license plates, but I imagine that's not enough description for you to go on, right?

WOLFINGER: Yes, that's -- well, I'm sure that that's enough description for a lot of vans with a white male in it, with a Washington license plate to get stopped in northern Idaho or western Montana.

HEMMER: Captain, Robert Roy Lutner was this person of interest, who was not considered a suspect, by the way. He says a number of people were at this barbecue on Sunday night. How many does he say?

WOLFINGER: Bill, you know, they haven't given us that information out here at the media center. The detectives have been working that information, and quite frankly, I'm going to give them the time to work it. I'm not going to bother them. It's much more important that they're trying to find the children than out here visiting with me.

HEMMER: You know, captain, you're saying, and you said it again yesterday, you want these people to come forward. Why have they not come forward?

WOLFINGER: Well, I don't know, after the plea yesterday if they have or haven't. We'll find out a little bit later this morning. But if you think about it, if you're at someone's house and at a barbecue, and then later the next day, find out they've been harmed, you thought, gee, I have nothing to do with it, I was there much earlier, why would you want to actually go to the police? I think we need to put that invitation out there and that's what we did yesterday, that request, and we'll see what that response is later.

HEMMER: We know from the autopsies now, the coroner's report, captain this killing was brutal at this home. Blunt force trauma, fractured skulls. Does that tell you anything about what happened Sunday night?

WOLFINGER: Well, it certainly tells us it was a grisly scene, and that's a very traumatic incident. Something that, you know, I'm sorry that those children ever had to be around. So that's what it tells me, and I'm sure it tells the investigators a lot more. But we're going to leave that with the experts.

HEMMER: Yes, you just said something there. Do you believe the children witnessed this?

WOLFINGER: Well, we really think the children were at the house and had to witness something with this grisly scene. You can't imagine, and it's a small home, that they didn't hear or see something.

HEMMER: You asked this question yesterday, too, captain. I want to repeat it for our audience here. Why would the killer come in, kill three people and take two children. Are you any closer to answering that question?

WOLFINGER: You know, we're not, Bill, and that's the sad part. But I'll tell you what it does do, Bill, is it gives us hope. That question is what gives us hope, that those children are alive and well out there, and they're going to come home.

HEMMER: Thank you, Captain, good luck. And Steve Groene, good luck to you as well. GROENE: Thank you very much, Bill.

(END VIDEOTAPE)

HEMMER: The captain will not disclose the weapon used in those killings, and the father has been given a lie-detector test. Earlier in the week, he was given that. Police say he has checked out clean -- Soledad.

O'BRIEN: The Pentagon is launching an investigation into just who gave a British tabloid pictures of Saddam Hussein behind bars. One of the photos, which was published in "The Sun" today, shows the former Iraqi leader in his underpants. The U.S. says the pictures are against U.S. military policy and a possible violation of human-rights guidelines. But the U.S. does say that the pictures are authentic. "The Sun" says it got the pictures from military sources who are looking to deliver a blow to the Iraqi resistance.

A major development in stem-cell research to talk about this morning. Word that scientists in South Korea have successfully cloned human embryos, specifically to create stem cells.

What makes the research important is that these embryonic stem cells are an exact genetic match for sick or injured patients. Scientists there hope that someday, stem cells will be used to cure a variety of diseases and repair damage from many types of injuries.

In this country, debate over stem cells rages on. A House bill that would expand public funding for embryonic stem-cell research is bringing the issue to the foreground once again. CNN's Ed Henry live at the White House for us this morning.

Ed, good morning to you.

ED HENRY, CNN CORRESPONDENT: Good morning, Soledad.

O'BRIEN: Walk us through the specifics of the debate.

HENRY: That's right, the stakes are being raised in a rare political battle between the White House and some fellow Republicans on Capitol Hill. CNN has learned that as early as next week, the White House is planning to issue a veto threat of that house legislation that you mentioned, that would expand public funding of embryonic stem-cell research here in the United States beyond the limits set by the president four years ago.

In fact, two officials here at the White House are telling my colleague, Dana Bash, that this veto threat could come from the president himself. That is a clear sign of how serious the White House is treating this. Officials here say they fear that this legislation, which now has about 200 cosponsors in the House, is picking up steam in the Senate, could end up passing the Republican- led Congress by veto-proof margins. That's why they think a veto threat could stem the tide a bit and bring this back to the president's favor. The president's policy limits federal funding for this research to sell lines that are already in existence. There are some scientists, though, who feel that since some of the cell lines are contaminated, that this is not going far enough, and those scientists have pretty powerful allies, people like Nancy Reagan, who have lobbied and said they believe expanding this stem cell research could stem the tide of Alzheimer's Disease. Others of course lobbying for more research to beat Parkinson's Disease and other ailments. That argument is resonating with some Republicans on the Hill who feel that the life benefits from this research could outweigh the other life issues here. And that's why all of a sudden, even though coming out of this last election, a lot of Republicans on the Hill have been marching in lockstep with the White House on a lot of issues, we're seeing a rare bit of defiance on the Hill on this issue.

But I can tell you, White House officials say they may have a secret weapon of their own. The current first lady, Laura Bush, who is the daughter of an Alzheimer's patient, has previously said that she believes and wants to make clear to the American people the president does not oppose stem-cell research. He's just concerned about expanding the federal funding of it. And White House officials are now telling CNN they're considering using Laura Bush once again as a lobbyist -- Soledad.

O'BRIEN: Ed Henry at the White House for us. Ed, thanks.

HEMMER: Ten minutes past the hour now. We're on terrorist's trail in Pakistan, where police say they have dealt another blow to Al Qaeda. Authorities say two Al Qaeda members were picked up in a small town about 250 miles south of Pakistan's capital, Islamabad, one of the men, said to have had direct contact with top leadership in Al Qaeda.

Meanwhile, Pakistan saying Osama Bin Laden is on the run with his terror network paralyzed.

What's behind all this? To the Pentagon this morning, here's Barbara Starr sorting through it all. Good morning there.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Bill.

Well, behind the scenes, an awful lot of folks in the military and intelligence communities are talking about one thing. Is the hunt for Osama Bin Laden getting warmer?

(BEGIN VIDEOTAPE)

STARR (voice-over): a number of knowledgeable, present and former intelligence officials tell CNN it would not surprise them if Osama bin Laden is found soon. But are those statements just hype?

There are reasons for cautious optimism. Intelligence officials say Al Qaeda has been shaken by recent events. The working assumption in many intelligence quarters is that since the capture of Al Qaeda's alleged No. 3, Abu Farraj Al Libbi, Bin Laden has moved hideouts.

UNIDENTIFIED MALE: Bin Laden and his entourage probably feel some necessity to move around. They're probably taking precautions. But once they begin to move, then there is always the possibility of seeming some dust kicked up and getting some leads.

STARR: Pakistani troops recently searched known Al Qaeda safehouses and found evidence of hasty departures, according to U.S. officials. One intelligence source says it's an indicator Al Qaeda feels vulnerable. Military sources tell CNN Pakistani troops are now deep into the tribal areas in previously unsearched locations.

A CIA drone firing a Hellfire missile killed another Bin Laden associate, Hassan Al Yemeni (ph), inside Pakistan earlier this month. Why bother to kill him? Bin Laden has a similar tribal background as Al Yemeni and may have trusted him enough to let him get close.

UNIDENTIFIED MALE: Something that would add credence to the notion that this attack -- the hellfire attack on Al Yemeni was related in some way to Bin Laden's actual presence.

STARR: But shaken up or not, few believe Bin Laden will get sloppy.

UNIDENTIFIED MALE: My hunch is that his communications at this point are so tightly buttoned down that you're not likely to engage him.

STARR: And just this week, Defense Secretary Donald Rumsfeld who watches the hunt for Bin Laden daily, said he's not willing to make any predictions about when Bin Laden will be caught -- Bill.

HEMMER: Barbara Starr from the Pentagon this morning.

(WEATHER REPORT)

HEMMER: In a moment here, we knew the tsunami was big, but now we're only learning just how big it actually was, and now even the experts are shocked by this. That story is up in a moment.

O'BRIEN: And the U.S. Army temporarily halting all recruiting operations. We're going to tell you why, just ahead.

HEMMER: Also, the intriguing story here. A man on death row asking for more time so that he can save his sister's life. That story and more, as we continue on a Friday morning, here on AMERICAN MORNING.

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O'BRIEN: An Indiana death row inmate is getting a clemency hearing today. The parole board's decision will be influenced by his unusual request. Gregory Scott Johnson is trying to stay alive long enough to donate a portion of his liver to his dying sister.

Chris Lawrence has our report.

(BEGIN VIDEOTAPE) CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): Gregory Scott Johnson is asking the state of Indiana for a reprieve, to find out if he could donate part of his liver to his sick sister, Debra. Johnson was sentenced to die for murdering an 82-year-old woman in her own home.

GREGORY SCOTT JOHNSON, DEATH ROW INMATE: I've done so much harm out there, my life is all that I have to pay them.

LAWRENCE: Doctors could do a split-liver transplant, just taking a piece of his liver out, but that's not as good as a full transplant. One doctor familiar with the case is confident he can find Johnson's sister another liver, and says, she'd get the next organ that comes up in her blood group. Whole livers are harvested from a donor after the person has died. But Johnson is scheduled to die by lethal injection, which could make his unsuitable.

JOHNSON: They're not killing me to harvest an organ. I'm volunteering the organ, whether they kill me or not.

LAWRENCE (on camera): This kind of case has come up before in other states. Prison officials have argued, what happens if something goes wrong during the surgery? They could be forced to indefinitely keep a death row inmate alive.

ALICE NEWMAN, JOHNSON'S MOTHER: This is something no mother should have to go through.

LAWRENCE: Johnson's mother supports her daughter's wish to receive a piece of her brother's liver.

NEWMAN: I would feel like a part of Scott was still with us.

LAWRENCE: The first step would be a blood test. If Johnson's not compatible with his sister, the other arguments are irrelevant. If they're a match, and if his liver is needed, it would be up to the parole board and Indiana's governor to decide if Johnson gets the extra time he's asking for.

Chris Lawrence, CNN, Chicago.

(END VIDEOTAPE)

O'BRIEN: The parole board is expected to make a recommendation later today. Johnson's execution is scheduled for Wednesday -- Bill.

HEMMER: Well, Soledad, major news to tell you about on the airline front today, what it could mean for your frequent-flyer miles too. Andy has that, "Minding Your Business," back in a moment here, right after this.

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HEMMER: Welcome back, everyone. More on the merger of these two major airlines. It is a done deal. And the Maytag man about to get a new boss. Here's our boss, Andy Serwer, "Minding Your Business." What's happening?

ANDY SERWER, "FORTUNE" MAGAZINE: Wow. I just got a promotion, huh? I kind of like that. I'll be telling you what to do a little bit later.

Let's talk about a couple of big deals on Wall Street this morning. First of all, Bill, you're right, a deal we talked about yesterday, the merger between U.S. Air and America West appears to be done. Let's talk about a couple of the details. It will be called U.S. Airways, taking that name. Nation's fifth largest carrier. Frequent flyer miles, very important. Yes, they're good, and they will be combined into programs. There will be some route cuts. More details on that over the coming weeks, of course. This is the first merger since 9/11. and people have been anticipating this would happen, and there may be more to come.

Meanwhile, an airline executive telling Congress that the industry will lose $5 billion this year. It's lost $32 billion since 9/11. Unbelievable.

The other big deal, Maytag, that venerable maker of appliances, being bought out by a private Wall Street buyout firm, Ripplewood Holdings, $1.3 billion. The Newton, Iowa maker of refrigerators, stoves, washers, dryers, Hoover vacuum cleaners had trouble over the last couple years competing. Most of its manufacturing is in the United States. G.E. and Whirlpool have a lot offshore. Stock's been down 45 percent this year.

Let's check out some of the most great pitchmen in the history of advertising. There they are, the Maytag repairmen. It's been going on since 1967 and I sure hope they keep that guy.

HEMMER: Who's your favorite up there?

SERWER: I like the first guy, who is that, Jesse White, the original.

O'BRIEN: I liked Gordon Jump.

SERWER: You like Gordon Jump from WKRP?

O'BRIEN: In Cincinnati.

SERWER: That's right.

HEMMER: Thank you, Andy.

SERWER: You're welcome.

O'BRIEN: Time for the "Cafferty File." The question is about women and the military.

CAFFERTY: Indeed it is. Thanks, Soledad.

The House Armed Services Committee passed a measure yesterday that would bar women from direct ground combat. It requires the Pentagon to seek congressional approval before changing the assignments of military women. The Army says it already upholds the Pentagon's policy, which prohibits women from serving in direct combat. When the units they support are called into battle, the women are ordered to stay behind. Trouble is, in Iraq, there is no behind the lines anywhere. The nature of the insurgency means troops, men and women, can come under attack from any direction at any moment, any time. While the Army has missed its recruiting targets three months in a row, it's ironic that there are concerns that the troops are already stretched too thin, and now they're trying to limit the participation in the war of a portion of the people who are wearing our uniform.

The question is, should women be allowed to serve in direct ground combat? The address is am@CNN.com.

O'BRIEN: It's an interesting question, and I guess they're revisiting now, just because, specifically, of Iraq and the fact that there is no front line?

CAFFERTY; Either that or they got nothing else to do in the House Armed Services Committee.

O'BRIEN: Extra time, OK.

SERWER: Yes.

HEMMER: Well, it is a slow day for the Army today. They're suspending recruiting for a day to examine the policies and the procedures.

CAFFERTY: How will they notice the difference? They're not getting anybody to join.

HEMMER: What, their goal is 80,000 on the Army side? See how close they are throughout the morning.

Thank you, Jack.

O'BRIEN: Thanks.

Much more AMERICAN MORNING still to come.

Ahead on "90-Second Pop," book smarts or street smarts. The Donald picks miss right. But will another women, Martha, outshine Trump in the boardroom?

Millions will flock to see "Star Wars" this weekend. But if you're not yearning to see Yoda, what other movies are worth seeing? Our take ahead on AMERICAN MORNING.

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