The UK government has placed on hold annual financial payments to Mauritius totalling at least £120m as it reassesses an agreement concerning sovereignty of the Chagos Islands, following opposition from the United States.
Defence Secretary Wes Streeting stated that the payments would not proceed “at this stage” and indicated that the current deal structure cannot advance without American backing. The UK signed a treaty during the previous year transferring sovereignty of the Chagos Islands to Mauritius while retaining operational control of the joint UK-US military installation at Diego Garcia under a 99-year lease arrangement. The financial package included £165m distributed over three years, followed by £120m annually thereafter.
During meetings at the UN general assembly, Trump characterised the agreement as “terrible” and stated his opposition to the arrangement. Following these discussions, the British government indicated it would pursue solutions acceptable to all parties involved. Streeting acknowledged that Trump’s concerns had been anticipated by ministers and that negotiations would focus on addressing the specific issues raised by the US administration.
Streeting emphasised that the military significance of Diego Garcia necessitates American support for any finalised agreement, as the base provides critical capabilities for both UK and US national security interests. He cautioned against dismissing the concerns, warning that failing to reach a resolution could invite further legal challenges from Mauritius, noting that an international court ruling from 2019 could potentially lead to additional legal proceedings. Streeting characterised the path forward as requiring difficult, methodical work to develop an arrangement meeting the requirements of the British and American governments alongside Mauritius’s acceptance.
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