The Chagos Islands deal is currently on hold due to objections from US President Donald Trump, UK officials believe. There are no immediate indications that the deal can be adapted to suit the US President.
Donald Trump criticised the three-way plan as “a terrible deal” during a meeting with Andy Burnham at the UN general assembly. Following this, the prime minister expressed confidence that the UK could find a solution to revive the proposal.
However, despite ongoing efforts, there is an acknowledgement within the government that progress is unlikely unless Trump changes his stance. One official stated, “Until the president changes his mind there will not be any progress.”
Last year, the UK signed a treaty to transfer sovereignty of the Chagos Islands to Mauritius, while maintaining control of the joint UK-US military base on Diego Garcia under a 99-year lease. Mauritius was set to receive £165m for three years, followed by £120m annually from the fourth year.
Wes Streeting, the UK Defence Secretary, confirmed on Wednesday morning that payments of at least £120m to Mauritius are on hold because the deal requires US support to proceed. He told BBC Radio 4’s Today programme that the deal needs to secure American support, as well as agreement from the governments of Mauritius and the UK.
The US had initially supported the plan, but Trump's position changed amid a wider deterioration of relations with Keir Starmer concerning the UK's lack of support for US attacks on Iran. Speaking after his first in-person meeting with Burnham, Trump reiterated his opposition, stating, “I don’t support it. I think it’s terrible.”
Burnham acknowledged inheriting the situation and told Trump that efforts would be made to find a resolution between the parties. UK officials stress that while the impasse was inherited, there is no intention to deprioritise the plan, which the government considers vital for the future of the Diego Garcia base.