The UK and Mauritius said they have made “good progress” in talks to save the Chagos Islands deal.
Sir Keir Starmer’s Government is considering frontloading payments to Mauritius to sweeten the deal, which involves giving up sovereignty over the British Indian Ocean Territory and leasing back a strategically important UK-US military base.
The plan ran into difficulties following the election of a new prime minister in Mauritius last year and scepticism in US President-elect Donald Trump’s inner circle.
The Labour Government agreed to give up control over the islands following a long-running legal battle which resulted in the International Court of Justice and the UN supporting Mauritian claims to sovereignty.
But the move has been condemned by the Conservatives, while Mr Trump’s pick for secretary of state, Marco Rubio, has described the deal as a threat to US security because of its implications for the Diego Garcia base.
Mauritian Prime Minister Navin Ramgoolam said the UK wants to get the deal finalised before Mr Trump’s inauguration on January 20.
He is understood to have pushed for more money after restarting negotiations, arguing that the draft deal he inherited on taking office in November 2024 “would not produce the benefits that the nation could expect”.
Downing Street has repeatedly refused to be drawn on how much the deal to give up the islands and lease back the base for 99 years will cost the British taxpayer.
But the Financial Times has reported the offer stands at around £90 million per year and an initial payment could include several years’ worth.
In a joint statement on Monday, the UK and Mauritian Governments said they remain committed to a deal following talks in London.
“Good progress has been made and discussions are ongoing to reach an agreement that is in both sides’ interests,” the statement said.
“Both countries reiterated their commitment to concluding a treaty providing that Mauritius is sovereign over the Chagos Archipelago; and that would ensure the long-term, secure and effective operation of the base on Diego Garcia.”
Shadow foreign secretary Dame Priti Patel said: “Keir Starmer and David Lammy’s Chagos giveaway will undermine our national interest and the defence and security of Britain and our allies.
“The surrender of our sovereignty over Chagos not only leaves us exposed to greater security threats, but it is economically illiterate.
“At a time when public spending is under serious pressure, they are also signing up to spend billions of pounds of taxpayers’ money leasing back a site that is currently under our sovereignty.
“And to add insult to injury, they are doing all this in secret, with Labour ministers keep refusing to explain the details to Parliament and the British public. They must urgently come clean on what exactly this surrender is going to cost us.”
