Latif and his family were lucky. They not only survived the ordeal, they're now permanent residents of Australia—a democratic, capitalistic and fun-loving country. Many other Middle Eastern refugees are trying to join them. Despite the high cost and physical risk, thousands of refugees—mostly, of late, Iraqis and Afghans—have been hiring boats to take them to what they hope is a promising new life Down Under. Michael Asims, the manager at a resort on Christmas Island, 2,600 kilometers off Australia's western coast, helped 284 Middle Easterners clamber ashore last month. "The look of freedom was on their faces as soon as they got off the barge," he says. "They were visibly moved to be here." Australia immigration officials are not so pleased. They say 2,300 Iraqis and Afghans have arrived over the last three months. That's nearly one quarter of the country's total annual refugee quota of 12,000. Many other Middle Eastern refugees are thought to be in Kuala Lumpur or Jakarta, ready to make the last leg of a journey that typically begins in Turkey, Pakistan or Iran. Many are drawn to Australia by its lenient refugee-classification policy and generous benefits. And there is the lure of job opportunities, especially the Summer Olympics.

But these days many of the new arrivals are getting a rude greeting. With the number of illegal immigrants rising rapidly, Australia's minister for Immigration, Philip Ruddock, is yanking in the welcome mat. He has sharply pared back the benefits for illegal refugees. The newcomers can now expect to spend months, rather than weeks, in detention camps. And unlike refugees who arrive through United Nations-sponsored programs, when the boat people are released they'll be unable to leave Australia or achieve permanent-resident status for three years. Without permanent residency, they can't bring family members, property or other assets to their new home.

The changes have angered some recent arrivals, who were promised by smugglers that they'd be living in Sydney or Melbourne after a short detention. Last month hundreds of boat people held at Curtin Air Base in Derby, northwestern Australia, began a protest hunger strike. Some even sewed their mouths shut. Ruddock is not sympathetic. He says that many of the illegal immigrants are affluent and had been living comfortably in the Middle East before setting off for Australia. By using crime syndicates to relocate, he says, they are squeezing out more deserving refugees in urgent need of resettlement. "That is totally unjust," says Ruddock. "What we are seeing is an effort by people who would not get a refugee place if they applied offshore seeking to jump the queue by being assessed under a rather liberally interpreted refugee [law] in Australia."

People smuggling is a lucrative business. Australian government officials estimate that roughly 4 million people will move illegally from one country to another this year. Malaysia, Indonesia, Thailand and South Korea have active smuggling rings run by Middle Easterners. Chinese smugglers, called "snakeheads," are also busy. They sell refugees fake passports, or fraudulent visas, and then fly them to Australia. According to Asims, people who travel to Australia from Pakistan and Sri Lanka typically arrive in dilapidated vessels with little safety equipment. The refugees from Iraq tend to have more money, and they "can demand better [traveling] conditions." Asims says that a boat that landed Feb. 1 in Waterfall Bay, on Christmas Island, was equipped with sophisticated navigation equipment. "It looked like a fairly organized operation. I've spoken to [Iraqis] who have walked off the boats, and some are doctors or ex-military people. We know they pay big money to get on the vessels that come from Java to here."

Australia seems determined to stem the flow. The government is offering technical assistance to nations of first asylum to keep people from leaving. In addition, Australia is cracking down on the smugglers. The Coastwatch is confiscating all boats that arrive with refugees, and the boat owners are being jailed. Last January an Indonesian fisherman was sentenced to four years in prison for taking 140 Middle Easterners to Christmas Island. Latif was fortunate to be in the first wave of boat people. Those in the second could find it much harder to complete their trip.