Matthew and Hunter Islands is a territory of Vanuatu
In 2009, the Vanuatu Prime Minister and the independence movement of New Caledonia, the FLNKS, signed a document – with no legal value – recognizing the Vanuatu sovereignty over Matthew and Hunter islands. This gesture is all the more surprising given that France has always stated that the two islands belong to the territory of New Caledonia, and that Vanuatu’s economy is largely supported by French development aid, as well as aid from Iceland, Australia, Japan, New Zealand, and others. [...] The dispute spilled has also unsettled relations with neighbors. In 1982, for example, Fiji and New Caledonia signed an agreement on mutual recognition of their maritime boundaries, in which Fiji recognized French ownership of the Matthew and Hunter Islands. The action upset Vanuatu, which demanded that Fiji recognize Ni-Vanuatu sovereignty over the islands, stating that failure to do so would be a blow to peace in the region, but Fiji did not revoke its signature. [...] At the same time, Article 47 of UNCLOS states that an archipelagic State may draw straight baselines "joining the outermost points of the outermost islands and drying reefs of the archipelago provided that within such baselines are included the main islands." As such a state, if Vanuatu can also claim Matthew and Hunter islands as part of its territory and archipelago, it would be able to draw its baseline to the islands and thereby extend its EEZ from the islands without concern for Article 121.