Chagos Islands deal: why the UK is pausing it
The sovereignty transfer agreement for the Chagos Islands was already controversial before Donald Trump weighed in. On 22 September, in a conversation with UK Prime Minister Andy Burnham, Trump said he did not support it and called it a terrible deal. By 23 September, Defence Minister Wes Streeting had confirmed that without US backing the arrangement cannot go ahead, and payments to Mauritius were on hold. This is the second time in 2026 the process has been paused.
What the transfer involves
Chagos Islands UK transfer: what was agreed and with whom
The agreement, negotiated under the previous government and carried into the Starmer administration, would transfer sovereignty of the British Indian Ocean Territory, including the Chagos Islands, to Mauritius. In exchange, the UK and US would retain the right to operate the Diego Garcia military base for 99 years under a lease arrangement. Diego Garcia is one of the most strategically important Western military installations in the Indian Ocean, used for logistics, surveillance, and long-range operations by both the US Air Force and the Royal Navy.
The financial terms have been reported differently in different sources, and the gap is significant enough to put both figures on the table rather than pick one as authoritative.
The cost question
How much does the UK pay Mauritius for Chagos? What the sources say
| Figure | What it covers | Source type |
|---|---|---|
| £101m per year | Annual average across the lease term | Reported figure, UK media |
| £165m per year | First three years of the agreement | Separate reporting, UK media |
| £120m per year | Years 4 onwards, some sources | Separate reporting, UK media |
| 99 years | Length of proposed Diego Garcia lease | Both governments; reported widely |
Source: UK media reporting on HM Government and Mauritius government negotiations; figures differ across sources and no single official figure has been published. Both are reproduced here as reported.
Trump’s objection
Why Trump called the Chagos transfer terrible
Trump’s stated position is that the agreement gives away a strategic military asset for a payment he considers excessive. His concern is framed around Diego Garcia specifically, which the US uses as a key installation in the region. He told Burnham directly that he does not support the arrangement and the word “terrible” was reported across US and UK outlets. The White House has not offered a detailed alternative.
This is not the first time US pressure has caused the process to stall. In April 2026, when Trump first signalled that Washington was withdrawing support, London paused the talks then too. The pattern is the same: the UK government says it wants the agreement but cannot advance it without Washington’s backing, because Diego Garcia is a jointly operated facility.
The base question
Does the UK still control Diego Garcia?
For now, yes. The treaty has not been ratified, which means the sovereignty transfer has not taken place. Diego Garcia remains British Indian Ocean Territory and the facility continues to operate as before. If the transfer were completed, Mauritius would hold sovereignty over the islands, but the UK and US would retain operational control of the installation under the 99-year lease.
The question of the Chagossian community, the people displaced from the islands decades ago, is separate. Their right of return to the islands, other than Diego Garcia itself, is one of the elements of the negotiation but has not been central to the current pause.
Where things stand
British Indian Ocean Territory: current status
| Question | Current answer |
|---|---|
| Is the agreement in place? | Negotiated but not ratified; on pause |
| Is Diego Garcia still British? | Yes, sovereignty unchanged while process is paused |
| Are payments going to Mauritius? | No, payments on hold |
| Does the US support the transfer? | No; Trump called it a terrible deal on 22 September |
| Has this happened before? | Yes, talks were also paused in April 2026 |
| Is the treaty ratified? | No |
Source: Wes Streeting statement, 23 September 2026; Trump–Burnham call reports, 22 September 2026; HM Government statements
People also ask
Chagos Islands deal: frequently asked questions
How much does the UK pay Mauritius for Chagos?
Different sources report different figures. One set of reports puts the annual payment at around £101m averaged across the lease. Other reporting cites £165m for the first three years and £120m after that. The UK government has not published a single confirmed breakdown. Both figures are in circulation and both appear above.
Why did Trump oppose the Chagos arrangement?
Trump told Andy Burnham on 22 September that he considered it a terrible deal. His objection centres on Diego Garcia, a major US and UK military installation which he sees as too valuable to place under Mauritius sovereignty, even with a 99-year lease guarantee. He was not the first US figure to criticise the arrangement: opposition in Washington had already caused an earlier pause in April 2026.
Does the UK still own the Chagos Islands?
Yes. The treaty has not been ratified, so sovereignty has not transferred. The islands remain British Indian Ocean Territory. If and when a final accord is completed and ratified, Mauritius would receive sovereignty while the UK and US retain the facility under lease.
Is the Chagos treaty ratified?
No. The agreement was negotiated but not ratified, and is currently on pause for the second time in 2026 following Trump’s withdrawal of US support. For the latest position, Defence Minister Wes Streeting’s 23 September statement remains the most recent official word.
What about the Chagos islanders’ right of return?
The right of Chagossians to return to islands other than Diego Garcia is part of the broader negotiation. It has not been the central issue in the current pause, which is primarily about the base and the financial terms.