Tokelau thought long and hard but decided it could not cut the apron strings to New Zealand.
In a referendum result announced last night, the isolated country of about 1500 people narrowly decided to remain a dependent territory of New Zealand, rather than become self-governing in free association with New Zealand.
Although most of the votes were in favour of independence, the number fell short of the two-thirds majority needed to approve the change.
About 600 Tokelaun adults had registered to vote, with about 60 per cent backing independence. There were 349 votes in support of breaking free from New Zealand and 232 against.
They also did not trust New Zealand's assurances they would continue to get financial help. New Zealand currently supports Tokelau to the tune of about $9 million a year and ongoing financial support would have been locked into a proposed treaty.
The news of the referendum outcome was presented to grim-faced New Zealand foreign affairs officials and the United Nations observers at Fakaofo, the southernmost of the atolls.
Prime Minister Helen Clark said New Zealand respected the wishes of the people of Tokelau.
The leader of Tokelau, Pio Tuia, announced the decision, which would have disappointed him as he was keen for change.
There were only limited opportunities for Tokelau to develop, he said. But putting on a brave face for the media he said he was happy because it was a decision of the people and he had to respect that. Nevertheless he hoped that in the future Tokelau would again seek self-determination.
The Tokelau administrator, Neil Walter, said it was always going to be a challenge to get a two-thirds majority in favour of the referendum.
"People were understandably cautious about change despite our best efforts and the issues were quite complex.
"They might be confusing to the average lay person but officials did what they could to make it as straight forward as possible," he said.
Mr Walter said Tokelau had for many years been successfully running itself as a self-governing country and the change of status would have confirmed the status quo.
Mr Walter said the referendum was the result of many years of debate and consultation and he was disappointed a change did not achieve the necessary level of support.
The proposed constitution and treaty would have given Tokelau the best of both worlds and a more equal partnership with New Zealand, he said.
Mr Walter said there was nothing to stop Tokelau from re-considering a formal change of status in the future.
In the meantime Tokelau would remain on the United Nations list of 16 non-governing territories.
It would not be able to become a member of the Pacific Forum or the European Union's development assistance programme.
United Nations representative Robert Aisi said it was a fair result and the two-thirds threshold was reasonable, given what was at stake.
Many Tokelauns told the Herald in the past few days they were worried their people lacked the skills to run their own nation.
Tokelau votes to stay with NZ
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