Britain Faces Billions in Compensation over Chagos Islands Treaty

Concerns have arisen within the UK government regarding potential financial ramifications if the agreement to transfer the Chagos Islands to Mauritius collapses. The government’s fears stem from the possibility of legal action by Mauritius seeking compensation, estimated to be in the billions. This situation was exacerbated by comments from US President Donald Trump, who has openly opposed the treaty.

The deal proposes a payment of £35 billion over the next century to Mauritius. This includes rental payments for the strategically important airbase at Diego Garcia, a military joint base for the United Kingdom and the United States. After previously establishing support for the agreement, President Trump has now suggested that UK Prime Minister Sir Keir Starmer’s decision could be detrimental.

If the treaty is cancelled, sources from Whitehall indicate that Mauritius is likely to seek recourse through international courts. Previous legal decisions have tended to favour Mauritius in disputes regarding the Chagos Islands. Experts assert that the legal foundations for the UK’s position may not withstand scrutiny in an international context.

The current economic challenges facing Mauritius, with a government debt exceeding 80 percent of its GDP, further complicate matters. The government has called for accelerated payments, seeking £1.8 billion within the initial decade of the 99-year arrangement. This influx of funds aims to stabilise the nation’s finances and alleviate its mounting public debt.

Protests regarding the Chagos deal have taken place in London, reflecting rising tensions surrounding the matter. The UK government maintains that retaining control over Diego Garcia is essential for national security and international military cooperation.

As the situation develops, the implications for UK-Mauritius relations and the overall financial impact on the British government remain uncertain. The outcomes of any legal proceedings could reshape the future dealings regarding the Chagos Islands and beyond.