Island of the former Dutch Antilles and a liqueur (7)

I believe the answer is:

curacao

(Other definitions for curacao that I've seen before include "Orange-flavoured liqueur" , "Liqueur flavoured with bitter orange peel" , "Spirit" , "Caribbean island and bitter orange liqueur" , "Island in the Dutch Antilles" .)

I've seen this clue in The Irish Times.

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