The United Kingdom has finalized a historic £3.4 billion agreement to transfer sovereignty of the Chagos Islands to Mauritius. The deal allows the UK to secure a 99-year lease and maintain control of the strategically vital Diego Garcia military base. The BBC reports that Prime Minister Sir Keir Starmer announced the deal on May 22, 2025. This ends decades of international legal disputes over the remote Indian Ocean archipelago. The controversial agreement will cost British taxpayers approximately £101 million annually.
However, it ensures continued access to the joint US-UK military installation that Starmer describes as “right at the foundation of our safety and security at home.” Mauritius Prime Minister Navin Ramgoolam hailed the arrangement as completing “the total process of decolonization.” At the same time, critics, including some displaced Chagossians, express concerns about their right to return to their ancestral lands. The agreement comes after years of mounting international pressure on Britain to relinquish control of the territory it separated from Mauritius in 1965, before Mauritian independence.
Historical Context Of The Chagos Islands
The Chagos Islands are about 1,250 miles northeast of Mauritius and nearly 6,000 miles from the UK. The islands became a focal point of controversy when Britain forcibly removed approximately 2,000 islanders between the late 1960s and early 1970s. This deportation occurred to accommodate the construction of a US military base on Diego Garcia, the largest island in the archipelago. A leaked Foreign Office memo infamously referred to the Chagossians as “a few Tarzans and Man Fridays,” highlighting the colonial attitudes that facilitated their displacement.
Under the new agreement, the UK will pay Mauritius an average of £101 million annually for 99 years to lease Diego Garcia. The payment structure includes £165 million for each of the first three years. This is followed by £120 million annually for years four through thirteen, with subsequent payments indexed to inflation. The deal also establishes a £40 million trust fund to support Chagossian communities.
The agreement creates a 24-mile exclusion zone around Diego Garcia where nothing can be built without UK consent. Foreign military and civilian forces are banned from other islands in the archipelago. There are also provisions to prevent Chinese influence in the region. Furthermore, the UK retains veto power over access to the islands. Starmer confirmed that all “Five Eyes” security alliance partners, the US, Canada, New Zealand, and Australia, support the agreement. Meanwhile, Russia, China, and Iran oppose it.
