  Single and double polarization observables for kaon photoproduction on the
deuteron are studied theoretically with modern hyperon-nucleon forces. The
kinematical region of the kaon scattered forward with large momentum is
thoroughly investigated where either the quasifree scattering leading to the
kaon and hyperon or the final-state interaction between hyperon and nucleon are
expected. The quasifree scatterings show characteristic peaks in the inclusive
cross sections. The final-state interaction effects are significant, especially
around the Lambda-N and Sigma-N thresholds. The double polarization C_z is
found to be sensitive to the final-state interaction effects. Precise data
would help to clarify the property of the Lambda-N--Sigma-N interaction and
also help to extract the information on the elementary amplitude from the
quasifree scattering region.
