The Gilded Exiles?

Are President Thieu and Cambodian President Lon Nol carefully hedging their bets and gilding their nests for a comfortable exile? That, at least, would be one plausible explanation for some recent negotiations involving members of the Saigon government and Balair, a charter-airline affiliate of Swissair.

Chartered by the West German Red Cross, a Balair DC-8 in late March flew medical supplies into Saigon on a mercy mission. Shortly before the jet was to return to Europe, TIME has learned, Balair agents got a request from the South Vietnamese: Would the DC-8 fly out "some personal belongings" of the presidential family, as well as a few things owned by Lon Nol to Switzerland. The cargo consisted of 16 tons of gold, which has a current market value of about $73 million.

Recognizing that the gold might be part of South Viet Nam's and Cambodia's reserves, Balair refused. It claimed that such a high-density cargo posed dangerous weight and balance problems for the plane. A 16-ton load of gold placed in a 5-ft.-square section of the cabin could crash through the floor and out the fuselage.

The Vietnamese persisted. What if they spread the bullion on pallets so the weight could be distributed? The Swiss again demurred, this time pointing out that Balair had received overflight permission only for humanitarian purposes. Thus when the DC-8 stopped for refueling in Bangkok and Bahrain, the cargo might be inspected. Only then did the Vietnamese back off; they realized that either the Thais or Bahrainis could confiscate the hoard without compensation. At week's end the bullion was apparently still in Saigon--palletized and awaiting a more willing air carrier.

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