US Treasury proposes direct purchase of Chagos Islands to secure Diego Garcia base

Donald Trump is reportedly weighing a proposal to purchase the Chagos Islands from Mauritius, a plan designed to secure US control of the Diego Garcia military base without relying on the United Kingdom. The Telegraph first reported the potential deal, which was allegedly initiated by US Treasury Secretary Scott Bessent and presented to the president. The White House did not respond to The Guardian’s request for comment regarding the report.

Under the reported framework, the islands would first need to achieve sovereign status to allow the United States to negotiate a direct purchase with Mauritius. This approach would effectively bypass UK officials, who have previously sought to transfer sovereignty to Mauritius as part of a broader agreement. The plan is understood to be one of several options under consideration within the administration, though it is not currently regarded as the leading proposal.

The proposal emerges against a backdrop of heightened military tension in the region. Since the conflict between the US-Israel alliance and Iran began in late February, Diego Garcia has served as a strategic launch point for operations. Iran has launched multiple strikes on the base, with one attack in late March intercepted by a US warship. In March, the UK granted the US permission to launch missiles from the joint base targeting Iranian missile launchers, a decision President Trump later criticised as “very late”.

Diplomatic friction has intensified, with Iran’s foreign minister, Abbas Araghchi, warning UK Prime Minister Keir Starmer that allowing British bases to be used for aggression against Iran puts lives at risk. Despite these tensions, UK officials maintain that maintaining control of the base is essential for national security. A government source confirmed that any sovereignty transfer requires US support, stating the administration would not proceed with a deal if Washington opposed it.

Internal US concerns also factor into the debate. Some officials within the Trump administration have expressed apprehension about transferring the island to Mauritius, citing its status as an ally of China and potential espionage risks. Meanwhile, Chagos refugees, led by Louis Olivier Bancoult, have visited the UK to advocate for a resolution. A six-person delegation from the Chagos Refugees Group expressed full support for a UK-Mauritius agreement, asserting that the British government has failed to address their rights to return to their birthplace.

Previous legislation to hand the islands to Mauritius was shelved in April after the US withdrew its support for the deal. The current proposal reflects a shift in strategy, aiming to lock in long-term operational control of the base through direct acquisition rather than diplomatic negotiation with London. The UK government has consistently argued that maintaining security over Diego Garcia is the foundation of any agreement with Mauritius, citing the strategic importance of the location for shared security interests.