According to the St. Maarten Daily Herald, the new tax system, financial markets and constitutional status as 'ultra peripheral territories' (UPT) were the subject of lengthy discussions between senior civil servants from the islands which took place on Monday.

The BES islands have been negotiating their status as “public entities” of the Netherlands, and the results of this week’s meeting will be pivotal if the December 15 target date is to be met, the news service reported.

It is hoped that a final decision on the tax proposals will be agreed during further consultations, which will include the Dutch government, scheduled to take place on Thursday.

Officials from the Dutch government have also engaged the islands' governments on new financial markets laws, which will regulate everything from investments to banks and insurance, and have proposed that the US dollar be adopted as their currency. A study is also underway to explore the introduction of the euro in Bonaire, which maintains significant trade and tourist links with the Netherlands.

The islands making up the Netherland Antilles are currently undergoing fundamental constitutional change. Following a series of referenda between 2000 and 2005, a Round Table Conference held between the governments of the Netherlands, Aruba and the islands of the Netherland Antilles agreed that Curacao and St Maarten would become autonomous territories, while the BES islands of Bonaire, St. Eustatius and Saba would have a new status, but remain linked to the Netherlands. The agreement will dissolve the Netherland Antilles by 15th December, 2008.