The UK's recent agreement to cede sovereignty of the Chagos Archipelago to Mauritius has ignited a fierce debate. While Prime Minister Starmer defends the £3.4 billion deal as crucial for maintaining the UK-US military base on Diego Garcia and preserving vital strategic capabilities, critics are questioning the financial implications and potential geopolitical consequences.
Tories Accuse PM of Funding Mauritian Tax Cuts
Conservative leader Kemi Badenoch has labeled the deal “terrible,” questioning why British taxpayers should fund tax cuts in Mauritius. Prime Minister Ramgoolam of Mauritius stated the Chagos deal money would be used for debt repayment, which is part of a larger budget package that could exempt up to 80% of workers from income tax.
Starmer countered that jeopardizing the intelligence and strategic capabilities on Diego Garcia due to legal uncertainty would be irresponsible. He emphasized the deal's support from allies like the US, NATO, Australia, New Zealand, and India, while noting opposition from Russia, China, and Iran.
Geopolitical Implications: India vs. China
Beyond the financial wrangling, the agreement marks a pivotal moment in post-colonial geopolitics. India has welcomed the move as completing Mauritius's decolonization, potentially opening doors for greater influence in the Indian Ocean region. The Chagos Islands, therefore, can turn into the field for India's rising power in the Indian Ocean, while also maintaining existing arrangements with the US base.
The Chagos Archipelago has been under British control since the 1960s. India has consistently backed Mauritius's claims to the islands, with almost 70% of Mauritians being of Indian origin. The transfer of sovereignty allows New Delhi a more open and potentially influential role in shaping the future security architecture of the central Indian Ocean.
Terms of the Agreement
Under the terms of the Labour-agreed deal, the UK will lease use of the Diago Garcia base for 99 years. The UK will pay £165 million in each of the first three years, followed by £120 million a year for the next ten. After that, payments will be indexed to inflation.
The agreement is complex. Whether the deal truly secures long-term strategic interests or represents a financial burden on British taxpayers remains to be seen. The evolving power dynamics in the Indian Ocean add another layer of complexity to this already controversial agreement.