UK Hands Over Sovereignty of Chagos Islands to Mauritius in Multi-Billion Pound Deal

Strategic Insights -

The UK has agreed to hand over the sovereignty of the Chagos Islands to Mauritius in a deal worth tens of billions of pounds. The agreement, signed by Prime Minister Sir Keir Starmer, will see the UK pay at least £120 million-a-year for 99 years for control of the vital Diego Garcia military base, as well as £1.125 billion for economic development over a 25-year period. The deal aims to settle a long-standing dispute over the islands' sovereignty and prevent potential legal challenges from Mauritius.

Key Takeaways:

  • The UK will pay at least £120 million-a-year for 99 years for control of the Diego Garcia military base, with payments starting at £165 million in the first three years and increasing to £120 million after that.
  • The total cash cost of the deal over the 99-year term is at least £13 billion, with an additional £1.125 billion for economic development over 25 years.
  • The agreement will see the UK retain full operational control of Diego Garcia, including the electromagnetic spectrum satellite used for communications.
  • A 24-nautical mile buffer zone will be put in place around the island, precluding other nations from building or placing any facilities without UK consent.
  • Critics, including Tory leader Kemi Badenoch and Reform UK's Nigel Farage, have opposed the deal, claiming it would cost taxpayers billions and hand a strategic military asset to a foreign country.
  • The US has welcomed the agreement, with Secretary Marco Rubio stating that it secures the long-term, stable, and effective operation of the joint US-UK military facility at Diego Garcia.

Statistics:

  • £120 million: minimum annual payment for control of Diego Garcia military base
  • £165 million: annual payment in the first three years for control of Diego Garcia military base
  • £13 billion: total cash cost of the deal over the 99-year term
  • £1.125 billion: additional payment for economic development over 25 years
  • £30 billion: estimated total cost of the deal, including inflation
  • £45 million: annual grant for 25 years to support development of Mauritius
  • £40 million: payment to set up a trust fund for the benefit of Chagossians

Sources:

  • Byline: David Hughes
  • Ministry of Defence tweet
  • Kemi Badenoch statement
  • Secretary Marco Rubio statement
  • BBC News article
  • PA News article
  • The Guardian article