UK Returns Chagos Islands to Mauritius in Landmark Deal—But Resettlement Questions Remain

After more than five decades of legal disputes, international pressure, and human rights campaigns, the United Kingdom has formally signed an agreement to return sovereignty of the Chagos Islands to Mauritius. The deal, finalised in May 2025 after a last-minute legal injunction was lifted, is being hailed as historic—but it's not without controversy. While the agreement addresses strategic and diplomatic concerns, it leaves critical questions unanswered for the displaced Chagossian people, many of whom have yet to secure the right to return to their ancestral homeland.

What's Inside the Chagos Sovereignty Agreement?

Under the deal, the UK will retain a 99-year lease on Diego Garcia, the key military base within the archipelago, at an annual cost of £101 million—totalling £3.4 billion over the lease period. Prime Minister Keir Starmer highlighted the base's ongoing importance for national security and global intelligence cooperation.

To guard against foreign interference, the agreement establishes a 24-mile exclusion zone around Diego Garcia and grants the UK and Mauritius joint veto powers to block any third-party military presence. These measures are seen as a safeguard against growing Chinese influence in the Indian Ocean region.

Despite its strategic focus, the deal has drawn criticism over its lack of clarity on resettlement rights for displaced Chagossians. While a £40 million trust fund has been created to support the community, critics argue it falls short of addressing decades of marginalisation.

A Brief History of the Chagos Islands

Located in the central Indian Ocean, the Chagos archipelago consists of more than 60 islands and atolls. Once part of Mauritius, it was separated by the UK in 1965 to form the British Indian Ocean Territory. Between 1967 and 1973, over 1,500 Chagossians—descendants of enslaved Africans and indentured labourers—were forcibly evicted to make way for the US military base on Diego Garcia.

The islanders were relocated to Mauritius and the Seychelles with minimal support, plunging many into poverty. Since then, they have fought for their right to return, citing cultural erasure and human rights violations. In 2019, the International Court of Justice ruled that the UK's continued occupation of the islands was illegal and urged the return of sovereignty to Mauritius.

Why Diego Garcia Still Matters

Diego Garcia has served as a critical military hub for both the UK and the United States since the Cold War. The US operates a major air and naval base from the island, supporting operations in the Middle East, Africa, and Asia. It played pivotal roles in the Gulf Wars, Afghanistan, and ongoing surveillance missions.

The new lease agreement ensures that Diego Garcia remains under joint UK-US control for the next century. The inclusion of a 24-mile military exclusion zone and dual veto rights effectively preserves Western military dominance in the Indian Ocean—while appeasing fears that China could seek influence in the strategically sensitive area.

The Human Cost: Displacement Without Return

The Chagos agreement has reopened old wounds among Chagossians, many of whom remain in legal limbo. The forced removals in the 1960s and 1970s have been widely condemned as violations of international law, and multiple court cases have sought to secure their right to return. Yet, this deal offers no concrete commitment to repatriation.

Advocates have called for immediate action to guarantee resettlement and compensation, arguing that the £40 million trust fund, while helpful, does not adequately address decades of displacement. Opposition MPs have also criticised the secrecy of the negotiations and questioned whether the agreement sufficiently considers the long-term rights and welfare of the Chagossian people.

A Reckoning With Colonial Legacy?

The decision to return sovereignty of the Chagos Islands to Mauritius represents more than a geopolitical realignment—it signals a potential turning point in how former colonial powers address historical injustices. By acknowledging past wrongs and entering into a bilateral agreement rooted in legal precedent and mutual respect, the UK sets an important example on the global stage.

For the Chagossian people, however, the struggle is far from over. The lack of guaranteed resettlement, despite decades of advocacy, highlights the ongoing disconnect between diplomatic resolutions and human-centred justice. Still, this agreement rekindles hope that future negotiations might finally deliver not just sovereignty, but dignity and homecoming for a people long denied both.