I'm sure that Michael knows who Desmond is. Arriving on the beach off of a ship was big news. Neither Michael nor Desmond were really in a state to make new acquaintances at that particular moment though. I would doubt that they ever conversed but some knowledge of the other is probably true. I wonder if they'll get any private talking time on the freighter and also how the rest of the ship hasn't become suspicious of "Kevin" yet.
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