Tokelau Tokelau Background Originally settled by Polynesian emigrants from surrounding island groups, the Tokelau Islands were made a British protectorate in 1889. They were transferred to New Zealand administration in 1925. Tokelau Economy Tokelau's small size (three villages), isolation, and lack of resources greatly restrain economic development and confine agriculture to the subsistence level. The people rely heavily on aid from New Zealand - about $4 million annually - to maintain public services, with annual aid being substantially greater than GDP. The principal sources of revenue come from sales of copra, postage stamps, souvenir coins, and handicrafts. Money is also remitted to families from relatives in New Zealand. Tokelau Location Oceania, group of three atolls in the South Pacific Ocean, about one-half of the way from Hawaii to New Zealand Tokelau Flag the flag of New Zealand is used
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