Fury as UK faces eyewatering damages claim if Trump kills Chagos deal | UK | News
The UK government could face a massive compensation bill from Mauritius if President Trump’s opposition forces the collapse of Sir Keir Starmer’s Chagos Islands handover.
Ministers are alarmed that pulling out of the treaty might trigger legal proceedings against Britain in international courts, according to reports.
Starmer signed off on the controversial pact last year, agreeing to hand sovereignty of the remote archipelago to Mauritius in exchange for continued British access to Diego Garcia — home to a crucial military installation — under a lease running until 2124. The total cost: £3.5 billion.
That arrangement is now in jeopardy following Trump’s direct appeal to Britain not to “give away” the territory, accompanied by his assertion that the legal reasoning behind the transfer is bogus.
Island nation eyeing compensation windfall
The Daily Telegraph reports Whitehall fears centre on Mauritius filing breach-of-contract claims if London backs away from the signed agreement.
Port Louis is battling severe fiscal problems, with government debt mounting and budget deficits widening. Prime Minister Navin Ramgoolam has demanded the payment timeline be restructured to deliver £1.8 billion during the opening decade — money flowing from base rental charges and infrastructure investment pledges. Officials in Mauritius were counting on those funds to patch holes in national finances.
This wouldn’t be Mauritius’s first rodeo challenging Britain over the Chagos archipelago through global tribunals — previous cases have gone the island nation’s way.
‘Fictitious’ legal claims, says Trump
Trump took to his Truth Social network to rubbish the treaty’s legal underpinnings as invented justification while demanding Britain hold the line on Diego Garcia.
“Our relationship with the United Kingdom is a strong and powerful one, and it has been for many years,” he said. “But Prime Minister Starmer is losing control of this important Island by claims of entities never known before. In our opinion, they are fictitious in nature.”
He added: “We will always be ready, willing, and able to fight for the UK, but they have to remain strong in the face of Wokeism … DO NOT GIVE AWAY DIEGO GARCIA!”
Washington not on the hook financially
America didn’t sign the treaty and won’t be writing cheques if the deal implodes, but the Pentagon shares operational control of Diego Garcia with Britain — making the base’s future central to Washington’s strategic calculations in the Indian Ocean.
A Foreign Office spokesman said: “The government inherited a situation where UK sovereignty over the Chagos Islands was under threat.
“Maintaining control of Diego Garcia is the entire basis for the agreement we have reached. It is the only way to ensure that base remains secure and operational for the long term.
“The deal would enable the UK and US to operate the base just as it always has for generations to come.”
