Chagos Deal: UK Suspends Payments Amid US Pushback

The British government has suspended payments to Mauritius regarding the Chagos Islands, according to Defence Secretary Wes Streeting. The move halts the financial transfers under the original treaty while London and Washington negotiate a revised arrangement. Streeting stated that the current agreement cannot proceed without American support.

Prime Minister Andy Burnham announced the intent to restructure the deal after President Donald Trump voiced strong opposition. The original treaty, negotiated by former Prime Minister Keir Starmer, proposed transferring sovereignty to Mauritius. In exchange, the UK and US would retain control of the Diego Garcia military base through a ninety-nine year lease. The financial terms specified payments of 165 million pounds over the first three years, followed by 120 million pounds annually.

Burnham told The Economist that the UK is seeking a fresh dialogue with Washington. He pointed to the recent accord between the United States and Denmark concerning Greenland as a potential template. Under that agreement, Greenland remains a Danish territory while the US establishes a military presence. The deal also prohibits rival nations from building bases on the island.

"We look at the Greenland deal and obviously there was a solution reached there," Burnham said. "Now, maybe there is something there we can take from that to see if there’s a solution that works in relation to Diego Garcia." The prime minister described finding a similar compromise as an active priority for his government.

Trump previously criticized the Chagos arrangement during a meeting in New York in September. "I don’t support it. I think it’s a terrible deal," the US President said. His comments created uncertainty for the agreement just as he finalized the separate deal with Denmark.

Burnham made these remarks upon his return from the Commonwealth heads of government summit in Antigua. The trip focused on discussions with Caribbean nations regarding reparations for slavery. He stated that his government made progress by opening the door to a potential official apology.

The prime minister is also preparing to host the G20 summit in Manchester next year. He indicated that Russian President Vladimir Putin would be excluded due to outstanding sanctions. In contrast, Chinese President Xi Jinping is expected to attend. Burnham noted that Xi would see major changes in Manchester, much of which has been done in partnership with China.