Global Politics Explainer

CWA # 1722
Global Politics Explainer
Diego Garcia: What is the UK-Mauritius deal?
Why is Diego Garcia important to the US?

Rizwana Banu S
17 June 2025

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On 22 May, a landmark deal was signed between the UK and Mauritius. Under this agreement, the UK returned the strategically significant Chagos Archipelago to Mauritius. The UK had pledged an annual amount of EUR 101 million to Mauritius in exchange for keeping the UK-US base in Diego Garcia. The US President Trump welcomed it and reaffirmed that the US would maintain a strong military presence in Diego Garcia. 

What is the UK-Mauritius deal mean for Diego Garcia?
First, on 22 May, the UK signed an agreement to transfer the sovereignty of the Chagos Islands to Mauritius after decades of legal battle. The UK retained Diego Garcia from Mauritius under a 99-year lease. According to the agreement, the UK has to pay EUR 3.4 billion to Mauritius. Second, this agreement secures the future of the UK-US military base in Diego Garcia, ensuring a strong UK-US military presence there and preventing other countries from gaining control. The military base is significant for both countries for power projection across the Indian Ocean and beyond. Additionally, this deal prevents China from expanding its influence by ensuring the continued UK-US military operations. At last, this agreement imposes a strict ban on foreign military troops on the islands. 

What is the strategic significance of Diego Garcia? 
First, in 1966, the UK leased Diego Garcia to the US. A year later, the Chagossians from those islands were forcibly evicted. During the 1970s, the US and the UK began constructing a military base which has been in operation ever since.
Second, Diego Garcia is located at the centre of the Indian Ocean region, making it an ideal launch point for global military operations. the nearest UK military facility is 3600 kilometres from the base, and for the US, it is 4800 kilometres, highlighting the significance of the base. Diego Garcia also serves as a crucial logistics hub to refuel and resupply the arms for military activities. This base enables the rapid deployment of troops across the Middle East, Asia and Africa while ensuring security for the critical shipping lanes such as the Strait of Malacca and the Strait of Hormuz. Furthermore, neither the UK nor the US has military bases in the Indian Ocean region, making this base significant. The UK defence minister, Healey, emphasised that without Diego Garcia, the UK’s ability to deter terrorists, defend their interests and protect their troops worldwide would be at risk.  

Why is Diego Garcia important to the US?
Even though the US was not a party to the UK-Mauritius deal, President Donald Trump welcomed it. First, Diego Garcia supports multiple US combatant commands such as CENTCOM, AFRICOM, EUCOM, and INDOPACOM. The base played a crucial role in various US military operations such as the Iran hostage crisis, the Gulf War, Operation Desert Fox, post 9/11 campaigns. Second, the US is wary of China’s increasing presence across the Indian Ocean region. It expanded its control from Hambantota to Gwadar to Djibouti, which makes this base significant for the US. The US need this base to have a strong military presence in the Middle East region. The Iranian military officials have warned of potential strikes on the US base in Diego Garcia. Iran possesses an arsenal of ballistic missiles which has the range to target this base. Thus, the strategic location of this base ensures the US’s execution of a rapid response if necessary. Third, in terms of military value, this base acts as a key logistics hub, supporting air and naval missions and long-range weapon strikes. This base accommodates long-range bombers and larger naval vessels and acts as a key node for surveillance networks.

References
•    Sumit Ahlawat, Diego Garcia: How A Desolate Island In The Indian Ocean Became One Of The World’s Most Strategic Military Assets, The Eurasian Times, 06 April 2025
•    Raghvendra Kumar, How the U.K. Deal on Diego Garcia Could Reshape U.S. Military in the Indian Ocean, Real Clear Defense
•    Ministry of Defence, Foreign, Commonwealth & Development Office, UK secures future of vital Diego Garcia Military Base to protect national security, GOV.UK, 22 May 2025

About the author
Rizwana Banu S is an undergraduate student at the Department of Political Science, Madras Christian College. Currently, she is working as a Research intern at the National Institute of Advanced Studies.

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