A senior Treasury minister has admitted the UK government is at a crossroads when itcomes to funding its controversial deal over the Chagos Islands, handed over to Mauritius, which includes leasing back the Diego Garcia military base. Chief Treasury Secretary Darren Jones revealed the government has yet to determine how to pay for the proposed deal, with speculation it could cost up to £9 billion.
Questions about the funding surfaced as the Foreign Office's minister, Stephen Doughty, indicated it may come from the already strained defence budget. This unexpected challenge arises as the UK plans to increase defence spending, aiming for 2.5% of GDP, but this target could be delayed until 2032 due to fiscal uncertainties.
Concerns over the Chagos agreement have intensified amid worries about geopolitical ramifications, especially with China's increasing influence. There are apprehensions surrounding President Donald Trump potentially vetoing the deal, fearing it could jeopardize military operations at the Diego Garcia base.
The situation has become more complicated after the former Mauritius government had to renegotiate the initial deal due to its failure to meet expectations set by Prime Minister Navin Ramgoolam, who voiced concerns over the previous arrangements. Meanwhile, the UK government has resisted publicizing full details of the deal but insists it is beneficial for ensuring the base can operate for another 99 years.
During discussions on the costs related to the Chagos agreement, Darren Jones clarified the direct expenses of negotiations are the responsibility of the Foreign, Commonwealth & Development Office (FCDO) and Ministry of Defence (MoD), with costs met from their respective budgets. Yet the stark reality remains: exact funding for the broader agreement itself is still to be allotted.
Mark Francois, the shadow armed forces minister, highlighted the severe consequences of the deal's financial impact, stating, “When the defence budget is already under immense pressure, not only do the government not know exactly how much it would cost us to rent back our own Islands; they don’t even know which department would pay for it.” He underscored the absurdity of potential costs, asserting it could be financially detrimental as the UK stands at the brink of significant strategic shifts.
On the other side of the negotiations, Prime Minister Sir Keir Starmer has had his first direct discussion with Prime Minister Navin Ramgoolam of Mauritius since both leaders assumed office. Starmer expressed his desire for “strong protections” to secure the UK-US military base throughout the transference of the islands, hinting at the delicate balance the government seeks between military objectives and diplomatic relations.
Overall, the upcoming negotiations over the Chagos Islands hold immense importance, influencing not just military policy but also international relationships and future positioning. The Chagos issue has historically been contentious, and the current discussions will determine if this long-standing dispute between the UK and Mauritius can reach satisfactory terms for both parties.
There is widespread agreement within defence circles about the significance of Diego Garcia base as pivotal to British operations across the globe. The Chagos Islands' status, and the political maneuvering surrounding them, will require careful balancing of costs, defence needs, and geopolitical pressures.