US national security adviser to discuss Chagos Islands deal with UK counterpart

Unlock the White House Watch newsletter for free

UK national security adviser Jonathan Powell will discuss a proposed deal over the Chagos Islands with his US counterpart Mike Waltz in Washington this week, according to people familiar with the matter.

Britain is seeking US approval for the terms of the deal that would hand sovereignty of the UK overseas territory in the Indian Ocean to Mauritius, in exchange for securing the medium-term future of a crucial UK-US military base on Diego Garcia.

Although the agreement has been drawn up by the British government and the recently elected Mauritian administration, the US has also taken a close interest given this joint military base that lies on the largest atoll in the archipelago.

London and Port Louis are both bracing for the verdict of Donald Trump’s administration, following past criticism of the plan by senior allies of the US president — including Waltz and Marco Rubio, who is now secretary of state.

The UK has briefed the Trump team on the agreement. One person familiar with the talks said London was hoping that the relevant US agencies would have time to discuss the deal before Powell meets Waltz, but it was unclear if the inter-agency debate would happen in time.

Jonathan Powell and Mike Waltz — Jonathan Powell, left, and Mike Waltz will meet in Washington © AFP/Getty Images

This week marks Powell’s second trip across the Atlantic in recent months, after he travelled with Prime Minister Sir Keir Starmer’s chief of staff Morgan McSweeney to meet senior members of Trump’s team — including Waltz — in December.

Powell and Waltz are expected to discuss a wide range of matters beyond the Chagos Islands deal.

Rubio and UK foreign secretary David Lammy discussed the proposal briefly during their first phone call last week, during which the US secretary of state warned about the “malign influence” of China, and the pair are set to delve into further details when they meet.

Mauritian officials expect this to take place at the Munich Security Conference next week. The Mauritian administration has floated March 12, its national independence day, as a possible date for signing the treaty, according to British officials.

Mauritian Prime Minister Navin Ramgoolam publicly signalled his support for the recently renegotiated deal on Tuesday, a move that was viewed positively by UK officials.

Ramgoolam had rejected the previous proposal that was agreed by Britain with his predecessor before he came to power in a landslide election last autumn.

The UK has agreed that Mauritius will have “complete sovereignty” over the islands and that the UK’s initial 99-year lease of Diego Garcia will only be extended with the agreement of both countries, Ramgoolam told the Mauritian parliament.

He said the deal under his predecessor, Pravind Jugnauth, allowed the UK to unilaterally extend the lease for 40 years.

Ramgoolam added that payments for the lease will be front-loaded and protected from inflation, which would significantly boost them in real terms.

Both countries are now waiting for US feedback on the new terms, Ramgoolam said, who added the agreement was “ready to sign”

“President Trump is not a wolf. Let him see if the agreement is not good or not,” Ramgoolam said, adding, “I’m not in a position to impose a timetable on him” for completion of the deal.

Ramgoolam said that under the revised deal, UK payments to Mauritius under the lease would rise with inflation over the 99-year term, replacing a previous fixed rate.

“It seemed that someone who didn’t know mathematics negotiated” the previous deal, he said. “The [US dollar] exchange rate would be fixed [for the 99 years]. Any ordinary fifth-form or sixth-form student would agree that inflation exists.”

Several people with knowledge of the process questioned his account, saying that the UK text of the initial agreement referred to “indexed” payments, even though it did not specifically link them to inflation.

The people suggested Ramgoolam had a vested interest in criticising the agreement drawn up by his predecessor.

Ramgoolam, 77, and Jugnauth represent rival dynasties in Mauritian politics that have clashed over the Chagos Islands since Mauritius won independence from the UK in 1968.

The Financial Times first reported last month that the UK had offered to pay Mauritius about £90mn a year for the initial 99-year lease of Diego Garcia.

The UK government has avoided formally confirming the financial settlement, insisting the details are confidential.