France, July 13 -- An accord between France and New Caledonia, creating a state within a state and hailed by President Emmanuel Macron as "historic", hit immediate fierce criticism in the Pacific territory on Sunday.

Following deadly protests that rocked New Caledonia last year, Macron called for talks to break a deadlock between forces loyal to France and those seeking independence.

After 10 days of negotiations near Paris, French officials and a delegation of 18 New Caledonian pro-independence and anti-independence representatives reached agreement on Saturday to create a "State of New Caledonia" within the French Republic.

The text, which still requires French parliamentary approval and to pass a referendum in the territory, provide...