Why did Britain give the Chagos Islands back?
What is the deal with the Chagos Islands and what role do the Tories play?


“In pursuit of their juvenile, half-witted anti-colonialism”, Labour has “betrayed our strategic interests, delighted our enemies, weakened our alliance with the US”, let down the Chagossian people and set a “terrifying precedent” for the British populations of Gibraltar and the Falkland Islands, says Daniel Hannan in The Telegraph.
Diego Garcia, the largest of the Chagos Islands (which foreign secretary David Lammy ceded to Mauritius last week “without bothering to inform MPs”, notes The Times), is “the Malta of the Indian Ocean, occupying a perfect strategic position” within reach of “four of the seven global chokepoints that funnel maritime traffic”. The Anglo-American base built after 1968 has “proved its military value again and again”.
Under the treaty of transfer, the UK will pay Mauritius rent for a 99-year lease, but 99 years is an “eye blink to China” and in the meantime, Mauritius may lease neighbouring islets to the world’s fastest-growing naval power. “China, which sees Mauritius as its key regional ally, is goggling at us with incredulous glee.”
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
What role have the Tories played?
Tories have been raging at Lammy even though it was James Cleverly, the former foreign secretary, who “started the ball-rolling” on talks in 2022, says Stephen Bush in the Financial Times.
The fact is that Mauritius is not part of China’s Belt and Road Initiative and it seems more likely that the situation will stay that way if the UK is paying its rent than if it isn’t and “insisting that it is not going to honour its half-a century-old promise” (in 1965, London detached the Chagos from the soon-to-be independent Mauritius, pledging to return them when they were no longer of use to the US military).
Indeed, the recent deal has “rather more continuity” with the Tories’ approach to the islands than Labour’s, implying that the rage of some Tories mostly stems from a self-interested desire to “censure the government no matter what”.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Emily has worked as a journalist for more than thirty years and was formerly Assistant Editor of MoneyWeek, which she helped launch in 2000. Prior to this, she was Deputy Features Editor of The Times and a Commissioning Editor for The Independent on Sunday and The Daily Telegraph. She has written for most of the national newspapers including The Times, the Daily and Sunday Telegraph, The Evening Standard and The Daily Mail, She interviewed celebrities weekly for The Sunday Telegraph and wrote a regular column for The Evening Standard. As Political Editor of MoneyWeek, Emily has covered subjects from Brexit to the Gaza war.
Aside from her writing, Emily trained as Nutritional Therapist following her son's diagnosis with Type 1 diabetes in 2011 and now works as a practitioner for Nature Doc, offering one-to-one consultations and running workshops in Oxfordshire.
-
Accelerating state pension age hikes could cost Brits in early 50s almost £18,000
A recently launched review of the state pension age has sparked concern that the planned increases could be accelerated. How much could it cost you?
-
How to invest according to your age - the one rule everyone can follow
Whether you’re a seasoned investor or new to the game, here’s the one investing rule to help determine how much you should invest according to your age
-
UK equities: where to find a great British bargain
UK equities are staging a comeback, but there’s still plenty of value out there, says Rupert Hargreaves
-
Is the UK housing market doomed to stagnation?
Opinion Housing is the mirror image of Britain’s moribund stock market. A crash would be the best outcome
-
Here are four reasons why Britain’s house price crash is coming
Opinion The pressure on house prices and property can only get worse with the economy turning down and taxes rising, says Matthew Lynn
-
'Reeves should cut cash ISA limit and revive Brit ISA,' says Merryn Somerset Webb
Opinion Cash ISAs are mostly pointless and always expensive, says Merryn Somerset Webb
-
Will the global boom in defence spending drive economic growth?
Defence spending is soaring, and politicians in the UK and Europe are telling voters it will be a major boost to economic growth. But is that really the case?
-
Farming isn't for the faint-hearted – there are no profits to harvest
Opinion Farming may look appealing, but turning a profit is extremely hard. No wonder many farmers are attracted to the Sustainable Farming Incentive, says Max King
-
Rising FTSE 100 gives Rachel Reeves a win at last
Opinion The FTSE 100 index of leading shares has broken through 9,000 for the first time. That’s not as impressive as it appears, and its future is looking grim.
-
'Capitalism is suffering death by a thousand cuts': Ruchir Sharma talks to MoneyWeek
Interview Ruchir Sharma, author of What Went Wrong with Capitalism, explains how free enterprise in developed economies has been undermined by continual state interference