The UK has suspended planned payments to Mauritius linked to the transfer of sovereignty over the Chagos Islands after Donald Trump publicly criticised the agreement, the Defence Secretary said on Tuesday.
Wes Streeting told BBC Radio 4’s Today programme that the promised sums would not be paid "at this stage" and that the deal "can’t go ahead without American support". The decision follows Mr Trump’s description of the treaty to hand sovereignty of the islands to Mauritius while retaining a long-term military presence on Diego Garcia as "terrible" and his declaration that he does not support it.
What the agreement proposed
Last year the UK signed a treaty to transfer sovereignty of the Chagos Islands to Mauritius, while maintaining control of the joint UK–US military base on Diego Garcia under a 99‑year lease. As part of the package, Mauritius was set to receive a lump sum followed by a series of annual payments.
| Payment component | Amount |
|---|---|
| Initial three-year payments | £165m (total) |
| Annual payments from year four | £120m per year |
Streeting said the sums represented a "price worth paying" if they secured Britain’s long-term ability to operate from Diego Garcia, emphasising the base’s importance for both UK and US capabilities and for collective security.
Immediate diplomatic and defence implications
The Defence Secretary made clear ministers must now find an arrangement that commands support not only from the Government of Mauritius and the UK, but also from the United States. He warned that without US backing the deal, as currently framed, cannot proceed.
"This deal as it is currently constituted can’t go ahead without American support," Streeting said.
Downing Street has indicated ministers will work to find a solution acceptable to all parties after the prime minister met Andy Burnham and discussed the matter on the fringes of the UN General Assembly. Mr Trump reiterated his opposition after meeting Mr Burnham, calling the transfer a "terrible" deal and saying: "I don’t support it."
The pause on payments presents several immediate consequences for government policy and international relations:
- Financial hold — the scheduled annual payment of £120m will not be dispensed "at this stage".
- Diplomatic renegotiation — ministers must secure US endorsement in order to preserve the existing arrangement for Diego Garcia.
- Strategic reassurance — officials will need to ensure the base’s long‑term operational status is protected for UK and allied defence needs.
Officials have said the objective is to safeguard the base at Diego Garcia and the military capability it provides to both nations. Streeting framed the payments as an investment in that enduring capability, but insisted any final settlement must have the backing of Washington.
Wider context and possible outcomes
The dispute highlights the complex balancing act between settling historical sovereignty questions and preserving strategic military arrangements shared with the United States. Ministers face three immediate courses: attempt to renegotiate terms to win US approval, seek alternative guarantees that reassure Washington without altering the sovereignty transfer, or pause the transfer until transatlantic consensus is restored.
Any drawn-out uncertainty risks straining relations with Mauritius, which had expected the financial package alongside the return of sovereignty. It also leaves open questions about the timetable for implementing the treaty and the future status of Diego Garcia should an agreement not be reached.
The government will now need to intensify diplomatic engagement in Washington and with Port Louis to find a version of the deal that secures the three-way support Streeting described as necessary.
