(Bloomberg) -- The UK doesn’t plan to hand more money to Mauritius in a deal covering the future of the Chagos Islands, including a key military base, despite the new Mauritian government’s push for improved terms.
In a deal in October with the former Mauritian administration, the UK ceded sovereignty of the archipelago while retaining control for 99 years of one of the islands, Diego Garcia, which is the site of a strategically-important UK-US military base.
But ratification of the agreement is likely to be delayed after the new Mauritian prime minister, Navinchandra Ramgoolam, made counter-proposals to the British government. His administration said Tuesday that the pact “would not produce the benefits that the nation could expect” in its current form.
As part of the deal, the UK had agreed to provide a package of financial support to Mauritius, including an indexed annual payment for the duration of the agreement. The British government believes the new Mauritian government intends to make a push for more money in further talks, but isn’t willing to provide extra funding because the deal is already generous, according to people familiar with the matter, who asked not to be identified discussing the country’s negotiating position.
UK Prime Minister Keir Starmer’s spokesman suggested on Tuesday the government remains in talks with Mauritius over the final shape of a deal, telling reporters in London: “We’ve been engaging with the new administration on the details.”
While the UK has refused to say how much it will hand over, the former Mauritian administration said in October that the sum ran to “many billions of rupees.” One billion Mauritian Rupees converts to about £17 million, or more than $21 million.
The British government insists both privately and publicly that it’s a good deal that was supported by the Pentagon and US State Department as well as President Joe Biden’s administration, giving them confidence that President-elect Donald Trump is unlikely to veto it when he takes power next month. Still, Trump ally and Reform UK party leader Nigel Farage — who met on Tuesday with Vice President-elect JD Vance — told lawmakers on Wednesday that there’s “very deep disquiet” about the deal among senior members of the incoming Republican administration.
A spokesman for the British government refused to say whether the government had made any attempt to engage with Trump or his team on the Chagos deal when asked by Bloomberg on Wednesday. UK National Security adviser Jonathan Powell visited the US earlier this month, but the government wouldn’t disclose who he met with.
--With assistance from Joe Mayes.
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