>> "bbc newsnight" is presented by kcet, los angeles. funding for this presentation is made possible by the freeman foundation vermont, and honolulu. the newman's own foundation. the john d. and catherine t. macarthur foundation. and union bank. >> union bank offers unique -- has put its global expertise to a wide range of companies.

>> we are a nation of explorers. we seek new ways of living, thinking, and expressing ourselves. we take risks. we learn from experience. and we keep moving forward. that is why we encourage and celebrate the explorer in all of us. and now -- >> and now >> a currency crisis. can the euro be saved. -- can be euro be saved? this week, market's tumble and britain remains on the sideline of the euro crisis. south korea accuses north korea of sinking one of its warships. the latest on the most deadly

flap in a six-year old conflict. we will hear from a man on a controversial breakthrough. and the next generation of sporting spirit. we will fall to a london mask up. -- talk to a london mascot. >> hello. the german chancellor told the international community this week -- her comments came as he and leaders from across europe came together to do with the debt crisis. with the supplies moved from germany to short selling, spelled a dim future for the euro zone. angela merkel is clearly very angry.

how did you create a relationship where you were saying actually you want britain to be part of the european discussions? but you do not believe they are in the right position, as that word? >> in an ambassador for the country, not the party. that means i do not speak on a party relations. i read into the treaty that the new government wants constructive engagement in europe. we take that for face value. >> how you see evidence of that constructive relationship? could be down to how much britain is worth -- willing to put in to help the european financial problems? >> we do not need help for the euro. >> do you not? >> is a stable and wonderful monetary unit. it works." angela merkel spoke in much more

apocalyptic terms. you cannot deny she said this. i know you want to talk up your country, but angela merkel said that the bureau was in danger. her ambassador to britain does not agree? >> out of this came a reaction. what she said, i do not read out now, but i paraphrase it. what she wants to stay is to protect the real economy, those people in it real services production should be protected from those who are just gambling. they should go to the lottery or the horses and give to charity. we want the real economy to be protected. >> ambassador, how do you want britain to proceed? you already had this promise

from a minister darling. do you think there should be another course -- a contribution from the british? >> the most important thing is that we addressed the causes of the situation. we are part of the euro zone, and britain is not a stakeholder. i would say as a member of the 27 countries of the european union, what we have heard from prime minister cameron is he is very much engaged with the coalition government to deal with the deficit. that is what is important. you have eurocurrency. you are with the bureau. -- you have your own currency. you are with the euro. this is the issue. what ever happens with chancellor mark l. -- >> -- whatever happens with

chancellor merkel -- >> britain was right to stay outside of the euro zone? >> this is the choice of the british. it is not for us to say. 60% of trade in britain is in the european union, so i would say the health of the euro zone, to represent most of the european union, is something of quintessential significance. >> thank you, ambassador, very much. more salt rubbed into the store between north and south korea. south korea has published the results of an international investigation which found that in north kirby and torpedoes sank of south korean ship -- north korean torpedo sank a

south korean ship. bass said it was obvious north korea was responsible for the explosion. we have where access to the secretive north korean state. our correspondent reports from both sides of the demilitarized border. >> the day began with leaked reports from a team of international investigators found a propeller from a torpedo on the seabed, proving north korea was behind the sinking of the ship two months ago. then the south korean minister confirm what many suspected. >> [unintelligible] >> that north korea is to blame. the families of the 46 sailors are demanding some kind of reprisal. but a response to a belligerent neighbor armed with nuclear weapons will have to be handled

carefully. the lead tenant left 10 years ago but has stayed in contact with former army colleagues. >> i made calls to the north about this incident, and actually contacted 11 people. military people are allowed mobile phones. the two said they were not sure in the other nine said it was done by the north. >> the lieutenant was part of an elite unit in the korean army, trained to target specific cities in the south. >> in an emergency, if a war starts, we were to reach where the underground tunnels or by the sea and assassinate government officials in the city. >> people in seoul have learned

to live with the threat from the thousand of -- thousands of heavy artillery pieces targeted on them from their neighbor, just 30 miles to the north. on the border, they are separated by a 150-mile demilitarized zone. with a million troops on either side and some 30,000 american troops in between, is one of the most heavily armed borders in the world. the two countries are still technically at war. an armistice, not a peace treaty, was signed at the end of the civil war in 1953. i can do it from the northern side. all visitors are told that if the americans and their client states, south korea, are the aggressors. there was apprehension in all the people i asked about the killing on -- pyongyang incident.

>> we have heard about the sunken ship any rumors connecting its u.s., but this is all speculation. -- and the rumors connecting it to us, but this is all speculation. we shall retaliate with force if the americans or supper behan's cause any trouble. we shall fight back. >> a country that cannot feed its own people maintains a standing army of more than a million soldiers. it's posturing, missile tests, and bid to rejoin the six-nation talks on ending its nuclear program had antagonized the international community. >> two years ago, in response to north korean missile testing, the stock ended the so-called open but sunshine policy bias which ended -- "sunshine policy

." today, the aid has stopped. there is chronic malnutrition. the lieutenant believes all of this could be behind the thinking of the ship. >> the goal is to get aid for the south. the usa also keeps us from coming to these six-nation talks. this is to show the world that north korea is powerful and will not be bullied. >> but do they what to send a message by what could be interpreted as an act of war? >> they have been seething for the last two years with this conservative government. in a way, they have treated them like a strict nanny. we are not going to do anything nice. until you give up your nuclear weapons, no more aid or anything like that. i can imagine the north korean

military mind saying, "bright. you think you are so big. we will send you a nasty reminder we are still here." >> what about their only ally in north korea, china? when the north korean leader met with president hu earlier this month, he secured eight, but he also might have gotten a reprimand -- he secured a, but it also might have gotten a reprimand for his actions. -- he secured aid. what in south korea and its international allies do? >> very little. certainly there will not be a military response. it will go to the united nations. will be sanctions, but north korea is also -- there will be sanctions, but north korea is already sanctioned. china provides aid.

that could hurt the north koreans. we would go into a downward spiral. it may not hurt them all that much. >> the most immediate sanctioned maybe suffered by football fans in north korea. the have thumbed their teams of departure for the world cup, but they -- they have film to bear team's departure for the world cup. negotiations have broken down under the strain of the ongoing crisis. the sinking of the ship may be an even greater ungoal for north korea. and now the international -- how should the international community response? my colleague was joined by an expert. >> this seems so far beyond reason on the part of the north koreans. what on earth do you do about north korea? >> is a very difficult question.

for me, when this incident occurred, the primary question was why? how they calculate that they will get away with it? i am not quite sure we understand now fully, but as you point out, there is very little the community can do in response to u.s.. i am anticipating that when the south korean government issues a report tomorrow, there will ultimately be three elements of response. one will be unilateral by the south korean government, primarily economic. it will probably stop all the imports of north korean material in the south koreans -- north korean military -- no. 3 and material. whether they shut down the complex where a number of south korean firms are working with north korean workers is yet to be seen. that would be of some consequence to the north koreans. secondly, a bilateral with

united states, their security allied. i would anticipate the south koreans would seek a plus-up with the united states on their intelligence-gathering capability, perhaps demonstrate additional submarine warfare capability in that area. but certainly not a military strike. as the defensive in nature. finally, i think we will see them proceed to the united nations security council, seeking said that condemnation. >> have the chinese wised up to what the problem is with a marker react? >> they have always been a problem, but the question is what are the chinese willing to do and does it interfere with their national security interests? security along their border is primary. it will not do anything that endangers that to any degree. we have seen indications the chinese are not ready to accept the ship sinking was linked to

north korea. that is their stance, the best we can hope for is the chinese will abstain, not obstruct, a u.n. security council resolution. >> thank you for enlightening us. thanks. >> you are quite welcome. >> and man made his name by putting -- by mapping the human genome has told the world about his latest project. he has copied the fundamental processes of nature. breathing life into as thimble microbe he has named "cynthia." -- a simple microbe. it is condemned as hyped-up chemistry. i will be speaking to him himself in a moment, but first here's our science editor.

>> it is a world first. a living cell, driven by synthetic dna code, but together by a computer. this new cell, nicknamed "cynthia," is a milestone for science. it is the work of a controversial scientist famous for developing the technique that helped draft the human genome 10 years ago. >> we are here today to announce the first synthetic sell. this is the first self replicating the species we have had on the planet area it also is the first species to have it down website bank noted in its genetic code. >> the doctor and his team had already he's together tiny snippets of dna. it represents a synthetic

version of the genome found in a while. they successfully inserted that dna on the back of an artificial, some. -- -- chromosome. bba is just as it is supposed to, including making -- it behaves just as it is supposed to, including making copies of itself. dna can tell synthetic organisms to carry out tasks in order. but the big bucks is likely to be in new pills. billions of dollars are going into this around the world. -- but the big bucks are going -- is likely to be in new fuels.

this is not just in the u.s., but in china, where their race for life program is underway. but should scientists do something just because they can? >> it is important to ask the big questions. we have any way to think about where light came from, because evolution is a very -- where life came from, because evolution is a very slow process. we have sped it up. we can study evolution like we could not afford. that seems to me a question well worth asking and trying to answer. >> this area of sciences and new and important, that not one, but the above meetings will occur held on the subject today. the first back there, and the second looking at carrying these artificial life forms with emerging engineering technologies. the idea is to create applications.

>> where it is going is to produce, in my view, and new industrial revolution. we have the technological tools to do things, coupled to be back -- to the fact that you're bringing together biology and engineering. this is an industrial application. >> critics argue we have not yet learned how to weigh the risks of such a novel technology. others are suspicious of what they see as a science playing god. >> i think he is being very human. he is trying to get more money invested in new technology, and he is trying to avoid regulation of the down sides. this is based on a very speculative benefits. but there are real concerns about new microorganisms might reproduce in the environment and potentially do harm. we would like to see a

moratorium but these issues are debated. >> even those who see money to be made or real potential for good in his work with a great -- science will have to get up to speed fast if it hopes to -- society will have to get up to speed fast enough to question what science is offering. >> first of all, are you playing god? >> that is a term that comes up every time there is any medical or a big break through with biology. the goal of humanity in the earliest stages is to try to control any pitcher. that is out of agriculture and domesticated animals. -- the goal of humanity and in the early stages is to try to control nature. we can understand how nature works and tried to get -- and we can try to get new handles. >> so you heard the critique

that there are concerns about the development of these microorganisms, that there should be a moratorium. would you go along with the idea of a moratorium until there's further understanding? >> we were the first ones to raise ethical questions. we asked for an ethical review before we did the first experiment. those reviews were in the journal science in 1999. there has been constant and continual review and discussion of this work. we have new committees and u.s. that look at -- in the u.s. that look at this type of research. the national academy of sciences. they review this work. there has been ongoing discussion for 15 years. i think it is an important goal for society, a discussion to continue in parallel as this work goes forward. >> is it fair to say that in the wrong hands there is a danger that >> no, that was reviewed

recently under the u.s. extensively with our report that came out of mit, a washington defense tank, and my partner participated in that. they estimated there were very few small new dangers from this. there is a slight increase in potential for harm, most people increase. but there is an exponential increase in the potential benefit for society. >> bearing? -- next, what about india? >> the first thing people see as potentially deep the vexing get next year could be developed by these processes. -- the flu vaccine you get next year could be developed by these processes. >> this week, london unveiled their mascot for them a big sign in 2012. the mascot symbolizes a spirit olympics, while teaching the

world something about the country in which it is taking place. but it is the olympic events that make you wonder if you need a drug test. yes, the presentation of the official mascot. it does back to the original games. in but, the word is thought to -- in fact, the word is thought to derive from the ancient greek term for "overprized novelty." >> is like a skateboarding dock -- duck. >> it has been long weeks since we enjoyed the mascot of the vancouver gains. as the final moments ticked by before the unveiling for the london mascot, some could hardly

contain their anticipation. >> there is patronizing rubbish. the germans, they had a sausage dog. we had all kinds of -- we had a caribbean night. then there was a character in speakers. >> someone like me needs something tangible, a mascot, to remind me. our mascots -- that clock over there is clear -- reminds me of cleopatra in all her board. over my shoulder, and napoleon mounting his words. -- mounting his horse. you have to have a sense of humor to collect mascots. >> but we can bring you this previously-unseen footage, but to be of the punishing olympic

mascot trials. -- thought to be of the punishing olympic mascot files. and here are the good luck charms at last. sticking to restrict free of not to debate, the designer said metal fell up the stadium. -- the designers said that metal fell off the stadium. one is called wenlock after a village that stage -- that staged an early olympics. and the other is called mandeville. >> we want to get more young people doing morning things for their sport -- and more things for their sports. >> but what does the mass but think of the new models that >> computer-generated.

it is the best we can do. what we have got here -- the actual olympic five rings. it was an idea by the psychologist carl youngj carlung. -- carl jung. >> as for the official mascot, perhaps they are more of the moment and you imagine. >> that is all for this week. from all of us here, goodbye. >> "bbc newsnight" is presented by kcet, los angeles. funding for this presentation is made possible by the freeman foundation of new york, stowe, vermont, and honolulu. the newman's own foundation.

the john d. and catherine t. macarthur foundation. and union bank. >> union bank has put its global expertise to work for a wide range of companies. >> "bbc newsnight" presented by kcet los angeles.