UK Agrees to Hand Over Chagos Islands in Multi-Billion Pound Deal

Strategic Insights -

The UK has signed a treaty to hand over sovereignty of the Chagos Islands to Mauritius in a deal that could cost taxpayers tens of billions of pounds. The agreement, which includes a payment of at least PS120 million-a-year for 99 years for control of the vital Diego Garcia military base in the Indian Ocean, marks a significant step towards decolonization. The UK will also pay PS1.125 billion for economic development over a 25-year period. The deal has been hailed as a crucial step in maintaining the UK's strategic relationship with the US, with the Diego Garcia base being used extensively by US armed forces.

Key Takeaways:

  • The UK will pay at least PS120 million-a-year for 99 years for control of the Diego Garcia military base in the Indian Ocean.
  • The total cash cost over the 99-year term of the deal will be at least PS13 billion for the use of the base and the 25-year agreement to hand over money to support projects to promote the economic development and welfare of Mauritius.
  • An annual grant of PS45m a year for 25 years will begin in the fourth year of the deal to support development, with British firms involved to the maximum extent practicable.
  • The UK will retain full operational control of Diego Garcia, including the electromagnetic spectrum satellite used for communications.
  • The deal has been supported by the US government, with Secretary of State Marco Rubio stating that it secures the long-term, stable and effective operation of the joint US-UK military facility.
  • Conservative Party leader Kemi Badenoch has criticized the deal, claiming it could cost at least PS30 billion of taxpayers' money.

Statistics:

  • PS120 million: the minimum annual payment the UK will make to Mauritius for 99 years.
  • PS1.125 billion: the total payment over 25 years for economic development in Mauritius.
  • PS13 billion: the total cash cost over the 99-year term of the deal.
  • PS45 million: the annual grant to support development in Mauritius.
  • 99 years: the length of time the UK will have control of the Diego Garcia military base.
  • 25 years: the length of time the UK will pay PS1.125 billion for economic development in Mauritius.
  • 24 nautical miles: the buffer zone around the Chagos Islands where no construction or placement is permitted without UK consent.

Sources:

  • The Guardian
  • The Daily Telegraph
  • BBC News
  • The Telegraph
  • The Times
  • Downing Street