MercoPress. South Atlantic News Agency

Autonomy for Dutch Caribbean territories

The Netherlands has signed an agreement granting autonomy to the Caribbean territories of Curacao and St Maarten.

From July 2007 the islands - now part of the Netherlands Antilles - will be independent in all but defence, foreign policy and law enforcement.

The deal follows referendums in both territories and is similar to that reached with Aruba in the 1980s.

The smaller Netherlands Antilles - Bonaire, Saba, and St Eustatius - will take on the status of Dutch cities.

Those islands, with only a few thousand residents each, complained they were under funded and overlooked by the Antillean government, and so will now be municipalities of the Netherlands.

Curacao and St Maarten had argued they were large enough to stand on their own.

"I congratulate you, Curacao and St Maarten, dutifully and from my heart," said the Dutch Minister of Royal Affairs, Atzo Nicolai.

He was speaking the day before accompanying Dutch Queen Beatrix on a visit to the Netherlands Antilles.