The Donald owns the Miss Universe pageant, so it's his prerogative to overturn the Miss Universe pageant disqualification of transgender contestant Jenna Talackova. So according to Reuters, he did just that

Businessman Donald Trump has overturned a decision by the Miss Universe Organization, which he owns, to disqualify a Canadian transgender beauty pageant contestant because she was not a "naturally born" female.

Apparently though, his attorney and Executive VP made it clear that Donald is not taking a moral stance, but is instead merely complying with Canadian law:

"As long as she meets the standards of legal gender recognition requirements of Canada, which we understand that she does, Jenna Talackova is free to compete in the 2012 Miss Universe Canada pageant," said Michael Cohen, special counsel to Trump and executive vice president of his business group." Nobody is capitulating. Rather the Miss Universe organization is respecting the laws of Canada," Cohen told Reuters, adding that she, "like all the other contestants, is wished the best of luck by Mr. Trump."

Jenna is asking that Miss Universe change its rules requiring all contestants to be "naturally born" females, a rule which essentially bans transgendered females.  If Donald Trumps organization doesn't comply, then Jenna's attorney threatened that "we are considering all of Jenna’s legal options."

What do you think: should Miss Universe open up all of its country pageants to transgender contestants?