Chagos Handover Costs Rise

A final agreement regarding the return of the Chagos Islands to Mauritius appears imminent, potentially requiring further financial contributions from UK taxpayers. Negotiations have reached a critical juncture following the approval of the transfer by US President Joe Biden.

While a deal was initially outlined in October, discussions are now focused on the specifics of payment terms and overall funding. Mauritius is seeking increased lease payments for the strategically vital Diego Garcia military base, as well as additional development assistance beyond the previously agreed upon £9 billion.

Key points of contention include:

  • The total amount of financial compensation.
  • The timing and structure of payments, with Mauritius pushing for a greater portion of funds to be released upfront.

British negotiators have reportedly presented three options designed to accelerate the payment schedule, involving advanced rent payments for the 99-year lease on Diego Garcia. However, sources indicate that two of these proposals were rejected by Mauritian representatives, who are holding out for a more favorable outcome.

As one Mauritian insider stated: “We won’t sign the deal without getting clarity on the amount of money front-loaded.”

The issue of payment timing became a primary sticking point after the initial draft agreement was reached last year. Prime Minister Navin Ramgoolam, upon assuming office, prioritized accelerating these payments to address significant public debt.

While the UK has already committed to some advance payments and intends to provide Mauritius with an upfront sum following finalization of the deal, sources within Whitehall suggest that Mauritius’s demand for greater overall funding represented a “red line” for Britain. Some officials suspect Mauritius is leveraging the UK’s desire to finalize the agreement quickly and mitigate potential legal challenges related to Diego Garcia.

Despite concerns about US opposition, President Biden ultimately approved the transfer, reportedly following discussions facilitated by Jonathan Powell, the UK’s national security advisor.

The precise cost of the agreement remains somewhat unclear. The Foreign, Commonwealth and Development Office has not publicly disclosed the total expense, but estimates hover around £9 billion, although some have suggested a figure closer to £18 billion – a claim dismissed by government ministers as inaccurate.

This deal will mark the first time Parliament is presented with the full cost of relinquishing control over the Chagos Islands. These islands, a British Overseas Territory since Mauritius gained independence in 1967, have been at the center of a long-standing sovereignty dispute, with Mauritius arguing that they were unjustly taken by Britain and receiving support from international courts.

The agreement has faced criticism, most notably from Conservative MPs. Dame Priti Patel, Shadow Foreign Secretary, described it as a “total disaster,” accusing the Labour government of diplomatic weakness.

“Once again, the colossal scale of Keir Starmer and David Lammy’s diplomatic failure is on stark display,” she stated. “Surrendering sovereign British territory and asking taxpayers to fork over their hard-earned cash for the indignity of it is a total disaster – and yet Labour have pushed ahead.”

She characterized the government as “weak and feeble,” arguing that they are unable to effectively defend British interests.

Breaking News & Latest Headlines