Implications of recent developments in refugee outflow from Indochina demand a reexamination of American policy on Indochinese refugees. These developments include patterns of increased Vietnamese and Laotian refugee outflow despite Vietnam's disapproval of departure and Laos' liberalizing economic policies; the greater influx of "low risk" or "economic" refugees, versus "bona fide" refugees fleeing persecution; and the return of many Khmer refugees to Cambodia. The cause of these new developments is a group of factors in complex interaction: the "push" effect of poor economic conditions in the refugees' countries; American and United Nations' efforts to prevent refugee push-off from first asylum countries; concomitant American reluctance to strain resources of, and its relations with, Southeast Asian first asylum countries; consequent accelerated third country resettlement; American decisions to continue programs and consider all refugees "bona fide" in the absence of viable alternatives; and American policy seeking a return of most Khmer refugees to Cambodia. Inability to recognize the complex interplay of these factors has reduced the refugee issue to one of political persecution, thus encouraging more hardened American and European attitudes toward Vietnam and Laos, and the outpouring of enormous amounts in aid to Indochinese refugees at the expense of Khmer and needier refugees elsewhere. A more rational American refugee and immigration policy requires greater understanding of the complex implications and consequences of current policy. (Author/MJL)