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Britain could pay billions if Trump collapses Chagos deal

The UK risks paying £35 billion in taxpayer costs amid US opposition to the sovereignty transfer of the strategically vital Diego Garcia military base.

  • On February 18, reports warned Britain could be forced to pay billions in compensation to Mauritius if Sir Keir Starmer's deal to transfer the Chagos Islands collapses under pressure from President Donald Trump.
  • Under the deal signed last year, the UK agreed to transfer sovereignty of the Chagos archipelago to Mauritius while leasing back Diego Garcia, and Mauritius has won favourable rulings in international courts.
  • President Donald Trump publicly urged Starmer not to surrender control of Diego Garcia on February 18, and described the legal basis as fictitious, raising the process's risk of failure.
  • Facing a budget strain, Mauritius has pressed for front-loaded payments including Diego Garcia rent and development fund contributions, while officials fear treaty cancellation could trigger international legal action against Britain.
  • Diego Garcia's strategic use this month underscores its importance, while the U.S. State Department welcomed the deal in May and U.S. naval planners voiced concerns about access, complicating UK–US basing relations.
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In the United Kingdom, the bill for surrender to Maurice des Chagos was scheduled to be considered this Monday, February 23rd in the House of Lords before being forwarded to the House of Commons for final adoption, but the review was postponed sine die. A decision that came after Donald Trump's new turnaround, urging London not to give up Diego Garcia, the main island of the archipelago, where an Anglo-American military base is located, is parti…

·Paris, France
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The Telegraph broke the news in London, United Kingdom on Sunday, February 22, 2026.
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