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UK considering frontloading payments to Mauritius over Chagos deal

Downing Street would not be drawn on financial arrangements, but it is thought Whitehall could stump up a number of years’ payments

David Hughes
Wednesday 08 January 2025 16:13 GMT
Britain is giving up sovereignty of the Chagos Islands in the Indian Ocean in return for securing the long-term future of a strategically important military base (John Parker/Sylvia Cordaiy Photo Library Ltd/Alamy/PA)
Britain is giving up sovereignty of the Chagos Islands in the Indian Ocean in return for securing the long-term future of a strategically important military base (John Parker/Sylvia Cordaiy Photo Library Ltd/Alamy/PA)

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The UK is considering frontloading payments to Mauritius in order to save the Chagos deal, it is understood.

Downing Street would not be drawn on financial arrangements, when asked about annual figures on Wednesday.

It is thought Whitehall could stump up a number of years’ payments in order to keep the deal afloat.

The Financial Times has reported the offer stands at around £90 million per year and an initial payment could include several years’ worth.

We've got a deal on the table, we're confident it's in both sides' interests

Prime Minister's spokesman

The agreement to hand over the British Indian Ocean Territory and lease back the strategically vital UK-US military base on Diego Garcia has run into difficulties following the election of a new prime minister in Mauritius.

Navin Ramgoolam said the draft deal “would not produce the benefits that the nation could expect” and negotiations had restarted.

Senior UK figures involved in the negotiation acknowledged that “of course” Mr Ramgoolam wanted more money as part of the agreement, but the British were instead considering frontloading the transfers of money to sweeten the deal in the short term.

The UK has not put a timetable on when it wants the deal to be agreed, but Mr Ramgoolam has told parliamentarians in Mauritius that Sir Keir Starmer’s Government wants it complete before Donald Trump takes office in the US on January 20.

Asked whether the deal could equate to around £90 million a year being sent to Mauritius from the UK, the Prime Minister’s spokesman said: “We’re not going to get into running commentary on those discussions. We’ve got a deal on the table, we’re confident it’s in both sides’ interests.”

Pushed again on the £90 million figure, the spokesman added: “I’m just simply not going to get into commentary on those discussions.”

Shadow foreign secretary Priti Patel has described the situation as the “disgraceful Chagos giveaway”.

She wrote on X on Wednesday: “Starmer and Lammy are eroding our national security, surrendering UK sovereignty and undermining Britain’s standing in the world.”

Before Christmas, the UK and Mauritius put out a joint statement saying there had been a “series of productive, ongoing conversations and exchanges” on finalising the treaty.

“Both countries reiterated their commitment to finalising a treaty as quickly as possible, whose terms will agree to ensure the long-term, secure and effective operation of the existing base on Diego Garcia and that Mauritius is sovereign over the Archipelago,” the statement said.

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