The deal runs counter to Trump’s contention that only outright ownership ensures security, an argument he has made to seek full sovereignty over Greenland in preference to a treaty with Denmark on its use by the US without sovereign rights.

By P.K.Balachandran

Colombo, January 22- US President Donald Trump has said that Britain’s plan to cede sovereignty over the Chagos Islands to Mauritius is an “act of GREAT STUPIDITY”.

Under the US$ 4.6 billion UK-Mauritius deal, the UK will take Diego Garcia, the largest of the Chagos islands, and home to a UK-US military base, on a 99-year lease with a provision for extension for 40 more years.

The deal was signed in May 2025, but has yet to be ratified by the UK Parliament. Therefore, uncertainty still hangs over it.

Trump approved it then, but has taken an about-face now because it clashes with his argument to take Greenland from Denmark completely, rather than on lease. He told The New York Times that the US would have full security only if it had sovereignty over Greenland. A halfway house, like a lease, would not ensure security, he explained.

Trump has proposed that Denmark should sell Greenland to the US, but if it does not sell, it should be prepared for a forcible military takeover. Trump’s case is that Greenland is critical for US security, given the militarization of the Arctic by Russia and China.

Even in Venezuela, Trump has established total US control, though he has installed a local leader, Delcy Rodriguez, as President. He had explicitly stated that the US would run Venezuela, making it clear that Rodriguez would be nothing more than a puppet.

Chagos Islands Case     

The Chagos Islands – officially known as the British Indian Ocean Territory – are located in the Indian Ocean about 1,250 miles north-east of Mauritius. Also known as the Chagos Archipelago, there are around 60 individual islands, of which Diego Garcia is the biggest. The islands were separated from Mauritius in 1965, when Mauritius was still a British colony. Britain had forcibly purchased the islands from Mauritius at the time of giving the latter independence in 1968.

In the late 1960s, Britain invited the US to build a military base on Diego Garcia and forcibly removed thousands of locals from their homes. Following years of legal and political struggle, Mauritius got back its sovereignty over Chagos including Diego Garcia, in May  2025. The two countries signed a deal under which the UK would take Diego Garcia on lease for a period of 99 years with a provision for a 40-year extension. The UK would pay £165m in each of the first three years. From years four to 13, it would pay £120m a year. After that, payments would be linked to inflation.

British Prime Minister Sir Keir Starmer said the continued use of Diego Garcia was necessary to protect the base from a “malign influence” (meaning China). He also said that the US would pay the base’s “running costs”. Although Mauritius will have sovereignty  over Diego Garcia, it will not be allowed to resettle people on the island.

When the deal was signed, US Secretary of State Marco Rubio said that Trump had “expressed his support for this monumental achievement”.

But Trump took an about-turn this month, using his Truth Social website to call it an “act of total weakness”. He wrote: “Shockingly, our ‘brilliant’ NATO Ally, the United Kingdom, is currently planning to give away the Island of Diego Garcia, the site of a vital U.S. Military Base, to Mauritius, and to do so FOR NO REASON WHATSOEVER.”

Trump said, “There is no doubt that China and Russia have noticed this act of total weakness. These are International Powers who only recognize STRENGTH, which is why the United States of America, under my leadership, is now, after only one year, respected like never before. The UK giving away extremely important land is an act of GREAT STUPIDITY, and is another in a very long line of National Security reasons why Greenland has to be acquired. Denmark and its European Allies have to DO THE RIGHT THING. Thank you for your attention to this matter. PRESIDENT DONALD J. TRUMP.”

The Chagos Archipelago lies in the central Indian Ocean, about halfway between Africa and Indonesia. Diego Garcia is seen as having high strategic importance because of its location in the heart of the Indian Ocean. During the US “war on terror” after the 9/11 attacks, aircraft were sent directly from the island to carry out missions in Afghanistan and Iraq. According to Newsweek, Diego Garcia is a key logistical and strategic hub for US operations across the Middle East, Africa and South Asia.

However, BBC’s correspondent Nomia Iqbal added a further dimension when she said the timing of Trump’s remarks could be designed to punish Starmer for supporting Denmark on Greenland.

Britain Defiant

Given the on-going standoff between Trump and Europe on the issue of Trump‘s bid to take over Greenland forcibly, Britain is defiant on Chagos. Britain’s view is that the deal secures the operations of the joint US-UK base on Diego Garcia for generations with robust provisions for keeping its unique capabilities intact and adversaries out.

A UK government spokesperson said: “The U.K. will never compromise on national security. We acted because the base on Diego Garcia was under threat after court decisions undermined our position and would have prevented it operating as intended in future.

“This deal secures the operations of the joint US-U.K. base on Diego Garcia for generations, with robust provisions for keeping its unique capabilities intact and our adversaries out. It has been publicly welcomed by the US, Australia and all other Five Eyes allies, as well as key international partners including India, Japan and South Korea.”

But the pro-Trump British conservatives have condemned the deal. Writing on X, Conservative leader Kemi Badenoch described the deal as “not just an act of stupidity, but of complete self-sabotage”. Badenoch said Trump was right and called on Starmer to change course.

Right-wing Reform leader Nigel Farage also said on X – “Thank goodness Trump has vetoed the surrender of the Chagos islands.”

When the deal was agreed in May 2025, Mauritian Prime Minister Navin Ramgoolam said the deal was a “great victory for the Mauritian nation”, which completed “the total process of decolonization”.

India’s Stake in Mauritius

India’s External Affairs Minister Dr. S. Jaishankar told the then Prime Minister Pravind Kumar Jugnauth in 2024 that New Delhi would  support Mauritius in its fight to retrieve the Chagos archipelago from the UK.

“As we look at our deep and enduring relationship, Prime Minister, I would like to again assure you today that on the issue of Chagos, India will continue its consistent support to Mauritius in line with its principal stand on decolonization and support for the sovereignty and territorial integrity of nations,” Jsishankar said.

India is supporting Mauritius’ claim to the Chagos archipelago primarily because it does not want it to go into the hands of China, which is spreading its tentacles in the Indian Ocean to India’s chagrin.  

Ever since the Indian Ocean became an area of intense geopolitical contestation the Chagos issue has acquired centrality. With this at the back of their minds, India and China have been trying to increase their footprints in Mauritius competitively.

Mauritius’ population is overwhelmingly of Indian origin. 70% of Mauritius’ 1.2 million people are of Indian origin, mostly from Eastern Uttar Pradesh and Bihar. Successive Indian governments have developed close ties with this community.

In September 2025, India agreed to provide about US$ 680 million in economic assistance to Mauritius for healthcare, infrastructure and maritime security projects. The assistance, in the form of grants and lines of credit, also includes support for development and surveillance of the marine protected area of the Chagos archipelago, which houses a U.S.-British air base on the island of Diego Garcia. The economic assistance was announced in a joint statement during the state visit of Mauritian Prime Minister Navinchandra Ramgoolam to India.

Since 2005, India has been among the largest trading partners of Mauritius. In 2022-2023, Indian exports to Mauritius was US$ 462.69 million, Mauritian exports to India were US$91.50 million, and total trade was US$ 554.19 million.

Mauritius remains strategically relevant for Indian investors. It is no longer about tax arbitrage – it is about global reach, business structuring, and regulatory credibility.

Cumulative FDI worth US$ 161 billion came from Mauritius to India in the two decades from 2000 – 2022 (26% of total FDI inflows into India), thanks largely to the Double Taxation Avoidance Convention (DTAC). In Mauritius, Indian companies have invested over US$ 200 million in the last few years. India and Mauritius signed a Comprehensive Economic Cooperation and Partnership Agreement (CECPA) in 2021.

In 2016, India provided a grant of US$ 353 million to Mauritius as a Special Economic Package for five priority projects. India also extended a US$ 500 million Line of Credit (LoC) in 2017 to finance social/infrastructure projects. In October 2021, a LoC of US$ 190 million and US$ 10 million grant were for a Metro Project. In August 2022, another LoC worth US$ 300 million and a grant of US$ 25 million were announced.

Defence Ties

India has constructed a military facility on the Mauritian island of Agaléga. According to the New Delhi-based Observer Research Foundation (ORF), in 2015, India formalised the plan to develop the existing 800-metre airstrip at Agalega into a full-length airfield capable of receiving large and long range planes like P81.

There are plans to build a port close to the current jetty, establish institutions for intelligence and communications and install a transponder system to identify ships travelling through the Indian Ocean. The port would be used by Indian ships passing through the region for refuelling.

But the road to developing such infrastructure was not smooth. In 2020, massive protests broke out in the country, accusing the Mauritian government of compromising national security. Indians suspected the hand of China in these protests.  Nevertheless, construction was completed in five years.

With India’s relationship with the Maldives reaching a historic low, Mauritius became pivotal in India’s quest to retain its influence in the Indian Ocean Region (IOR) in the face of China’s intrusions.

China’s Stake in Mauritius

The ratification of the Mauritius-China Free Trade Agreement in January 2021 was not seen very favourably in New Delhi. After the ratification of the FTA, Mauritius’ exports to China increased by 148%. According to data from China’s Ministry of Commerce, Chinese cumulative investment in Mauritius reached US$ 887 million, mainly in the finance, real estate, manufacturing and tourism sectors.

Needless to say, China’s activities in the Indian Ocean worries New Delhi as it does Western capitals. China’s dual use research vessels are studying the Indian Ocean to be able to exploit it for economic gain and also use it in warfare.

END