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UK Hands Over Control of Chagos Islands to Mauritius

Destroyer USS Milius at the strategic American naval base at Diego Garcia, British Indian Ocean Territories (U.S. Navy)
Destroyer USS Milius at the strategic American naval base at Diego Garcia, British Indian Ocean Territories (U.S. Navy)

Published May 22, 2025 5:56 PM by The Maritime Executive

 

Despite reports in the Times of London that plans to hand over sovereignty of the Chagos Islands to Mauritius had been put on hold, the UK’s Prime Minister Kier Starmer signed a formal agreement on the transfer on May 22. A High Court order had temporarily delayed the signing ceremony earlier in the day.

The deal provides for an immediate leaseback of the strategic atoll of Diego Garcia and a surrounding 24-mile buffer zone to the UK, and it permits the continued operation of the joint UK/US base on the island for the next 99 years. The leaseback includes an additional 40-year extension, with a right of first refusal thereafter. 

The UK will also have a veto on what development can occur on the other islands of the Chagos Archipelago, the nearby Marine Protected Area will be maintained, and there will be a ban on any other foreign or military presence across the area previously known as the British Indian Ocean Territory.

"If we did not agree this deal, the legal situation would mean that we would not be able to prevent China or any other nation setting up their own bases on the outer islands or carrying out joint exercises near our base," Prime Minister Starmer told media. "No responsible government could let that happen."

The UK will pay Mauritius an annual rent of £165 million for each of the first three years, £120 million for the next ten years, and then £120 million (adjusted annually for inflation) thereafter.  The UK can withdraw from the agreement by withholding the annual rent, or - an unlikely event - should an attack be launched on Mauritius from Diego Garcia.

Under the agreement, the UK must give preference in support contracts on the Diego Garcia base to suitably-qualified Mauritian firms and workers. The US and UK authorities will have control of access, but a Mauritian official presence will be established on Diego Garcia to exercise the civil jurisdiction it will enjoy over the atoll.

The agreement also requires the UK and US to ‘expeditiously inform’ Mauritius of any attack mounted on a third party directly from Diego Garcia.

The deal received support from the United States, which has a deep strategic interest in access to Diego Garcia. The base is a key jumping-off point for air operations in the Middle East, and has provided a reliable launch pad for long-range strikes for decades. Its anchorage is also a secure, discreet location for U.S. warships, submarines and sealift vessels to berth and resupply.

"The Trump Administration determined that this agreement secures the long-term, stable, and effective operation of the joint U.S.-UK military facility at Diego Garcia. This is a critical asset for regional and global security.  President Trump expressed his support for this monumental achievement," said U.S. Secretary of State Marco Rubio in a statement.

The deal was roundly criticized by opposition parties in the UK. "Only Keir Starmer's Labour would negotiate a deal where we're paying to give something away," said Tory Party leader Kemi Badenoch, who called the payment agreement a "surrender tax" and a "disgraceful sell-out."

"This is a vital military base. Mauritius is an ally of China," she said. "Other countries may nod along, but behind closed doors, they must think we’ve lost our minds. Labour is turning Britain into a global laughing stock."