The UK is poised to hand over sovereignty of the Chagos Islands to Mauritius under a historic agreement to be signed by Prime Minister Sir Keir Starmer. The agreement, scheduled for Thursday, will formalize a deal whereby Mauritius assumes control over the islands, known officially as the British Indian Ocean Territory (BIOT), while the UK and US retain long-term access to the military base on Diego Garcia. This base will be leased for an initial 99 years in exchange for a multi-billion-pound payment, ensuring its continued strategic use by Western allies.
Negotiations surrounding the deal have been drawn out due to political changes in both Mauritius and the United States. Originally negotiated with former Mauritian Prime Minister Pravind Jugnauth, the plan was stalled when he was replaced by Navin Ramgoolam, who expressed reservations.
Similarly, the transition to Donald Trump’s administration prompted further delays, as US officials reviewed the implications of the agreement. Concerns were raised by Republican leaders, including Secretary of State Marco Rubio, who feared the deal could pose national security risks due to Mauritius’ ties with China.
Security Concerns, US Support, and Chagossian Engagement Shape Sovereignty Transition Deal Framework
Despite early skepticism, former US President Donald Trump recently signaled support for the arrangement. Both the UK and the US consider the Diego Garcia base vital to their national security interests, especially in the Indian Ocean region. The UK Foreign Office has emphasized the importance of preserving this strategic asset while transitioning sovereignty of the islands. A formal statement confirmed efforts to safeguard the base through the new agreement, which reflects a pragmatic security compromise.

On the same day as the signing, UK government officials will meet with representatives of the Chagossian community, displaced residents whose ancestral ties to the islands have long been at the center of legal and ethical debates. Stephen Doughty, Minister for Europe and overseas territories, will lead discussions on sovereignty and ongoing community projects. The meeting signals an effort to involve Chagossians in the process, although the full details of their role in the agreement have not been disclosed.
Financial Costs and Political Repercussions of Historic Chagos Islands Sovereignty Transfer Agreement
Though the exact financial terms remain undisclosed, reports suggest the deal will cost UK taxpayers billions of pounds. This financial arrangement is viewed as compensation for maintaining the base on Diego Garcia under Mauritian sovereignty. Historically, the UK acquired the Chagos Islands from Mauritius for £3 million in 1965 during colonial rule.
Mauritius has long argued that the transaction was coercive, done in exchange for independence in 1968, and has received international backing for its sovereignty claim, including support from United Nations bodies.
The Labour government, defending the deal, has highlighted its necessity for preserving long-term strategic interests in partnership with the US. Conservative and Reform UK politicians have criticized the move, labeling it a concession.
Nonetheless, Defence Secretary John Healey reiterated in Parliament that Diego Garcia is “essential” to UK and US security. Parliament will be briefed on the agreement’s details post-signing, including a possible 40-year extension clause. The outcome marks a significant shift in British overseas policy and a resolution to a decades-long territorial dispute.