The short version
- The UK government has paused planned financial transfers to Mauritius regarding the Chagos Islands sovereignty deal.
- Defence Secretary Wes Streeting stated the agreement cannot proceed without explicit support from the United States administration.
- Prime Minister Andy Burnham is engaging with US President Donald Trump and Mauritian leaders to negotiate a revised framework.
The British government has officially suspended financial obligations tied to its sovereignty transfer agreement with Mauritius, marking a significant pivot in the long-standing dispute over the Chagos Islands. Defence Secretary Wes Streeting confirmed that annual payments, originally scheduled to reach £120 million per year after an initial three-year period, are on hold indefinitely. This decision follows intense public criticism from US President Donald Trump, who has repeatedly characterized the existing deal as detrimental to American interests and a sign of weakness.
The core issue centers on the joint UK-US military base located on Diego Garcia, the largest island in the archipelago. The original agreement, signed in May 2025 under Prime Minister Keir Starmer, proposed transferring sovereignty to Mauritius while leasing the base back for 99 years. In exchange, Britain would pay an average of £101 million annually. However, the deal was paused in April after Trump withdrew his support, and Streeting now asserts that no progress can be made until Washington’s concerns are addressed.
Streeting emphasized that the current draft lacks the necessary American endorsement to move forward. He noted that while Trump’s recent remarks at the United Nations General Assembly were not unexpected, they provided clear evidence that the US position remains unchanged. The defence secretary described the need for a new approach that satisfies both the Mauritian government and the White House, aiming for a compromise that all parties can accept rather than one that pleases everyone.
The strategic importance of Diego Garcia cannot be overstated. It serves as a critical asset for national security in the Indian Ocean, supporting operations for both British and American forces. Streeting warned against adopting an 'ostrich strategy' by ignoring the dispute, noting that unresolved legal challenges pose a tangible risk to the base’s future. He argued that securing long-term certainty for the facility is paramount, even if it requires difficult negotiations.
Prime Minister Andy Burnham has engaged directly with both Trump and Mauritian Prime Minister Navin Ramgoolam to seek a resolution. During their meeting in New York, Trump reiterated his opposition, calling the deal 'terrible' and suggesting the UK would need to reconsider its approach. Burnham responded by committing to work diligently to find a solution that safeguards the base while addressing the sovereignty claims of Mauritius.
The background of this dispute dates back to 1965, when the UK separated the Chagos Islands from Mauritius as it gained independence. In 2019, the International Court of Justice issued an advisory opinion stating that this separation was unlawful and urging the UK to end its administration as quickly as possible. Although non-binding, this ruling strengthened Mauritius’s legal position and prompted the UK to begin negotiations in 2022.
Domestically, the deal has faced significant scrutiny. Critics, including Conservative leader Kemi Badenoch and Reform UK leader Nigel Farage, have called for the agreement to be scrapped entirely. Opponents argue that the real cost could reach £35 billion when adjusted for inflation and express concerns about potential Chinese influence in the region. Streeting acknowledged these criticisms but maintained that ignoring the legal realities would be unwise.
Looking ahead, the review process is not expected to follow a strict timeline. Government sources indicate that this does not represent a fundamental shift in policy but rather a pragmatic adjustment to ensure American cooperation. Streeting stressed that resolving the issue will require painstaking work, balancing national security needs with diplomatic obligations. The focus remains on crafting a deal that ensures the continued operation of Diego Garcia while navigating complex international legal and political landscapes.
As negotiations continue, the UK government has clarified that no funds will be transferred to Mauritius during this review period. Streeting described the potential payments as a 'price worth paying' if they guarantee long-term access to the base. The coming months will likely see intensified diplomatic efforts between London, Washington, and Port Louis to reach a mutually acceptable agreement that addresses security concerns and legal precedents.
Sources behind this briefing
Go to the original reporting
- BBC News↗UK to review Chagos Islands deal over lack of US support, Streeting tells BBC
- The Guardian World↗Chagos Islands deal ‘can’t go ahead’ without US support, Streeting says
