Mauritius is reportedly seeking £800 million per year and billions in reparations from Britain as part of negotiations over the sovereignty of the Chagos Islands, according to recent reports.
Both nations aim to finalise an agreement to transfer the Indian Ocean archipelago to Mauritius ahead of a potential Donald Trump presidency.
Marco Rubio, a candidate for US Secretary of State under Trump, has expressed concerns that the deal could jeopardise US national security by effectively transferring the islands to a nation closely allied with China.
Mauritius’s newly elected Prime Minister, Navin Ramgoolam, has dismissed an earlier deal reached by his predecessor, intensifying pressure on Prime Minister Sir Keir Starmer.
Critics argue that surrendering the islands, including Diego Garcia—home to a strategic US-UK military base—could undermine national interests.
Financial Demands Raise Concerns
Downing Street has remained tight-lipped about the financial terms of a proposed 99-year lease to retain the base.
However, sources cited by The Sunday Times claim Mauritius has made “extraordinary” demands. “They were talking £800 million annually for as long as we retained the base, plus billions in reparations,” an unnamed insider said.
A Foreign Office spokesperson dismissed the notion that such a figure was ever considered during the talks.
Similarly, sources close to Foreign Secretary David Lammy denied Britain entertained such payments but refrained from denying Mauritius had made these demands.
“Economic Partnership” at the Heart of the Deal
Officials emphasise that the proposed agreement is underpinned by a financial package aimed at fostering a “new era of economic partnership” between the UK and Mauritius.
The negotiations over the Chagos Islands remain fraught, with national security, international alliances, and economic considerations all at play.
As talks progress, the final terms could significantly reshape the UK’s relationship with Mauritius and its strategic role in the Indian Ocean.
