New Caledonia is a French territory in the South Pacific which includes a dozen islands. Known for its palm-lined beaches, it has a lagoon full of underwater life which, with its 24,000 square km, is among the largest in the world. A huge coral reef surrounds the main island, Grand Terre, a favorite destination for scuba divers. The capital, Nouméa, is home to numerous French-style restaurants and luxury shops selling Parisian fashion.