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US considers buying Chagos Islands, Telegraph reports - Headlines news and analysis from Global Banking & Finance Review
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US considers buying Chagos Islands, Telegraph reports

Published by Global Banking & Finance Review

Posted on June 7, 2026

2 min read

· Last updated: June 7, 2026

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US considers buying Chagos Islands, Telegraph reports

White House Proposal and Strategic Implications

June 7 (Reuters) - The White House is considering a plan to buy the Chagos Islands from Mauritius, the Telegraph reported on Sunday.

US Proposal to Bypass the UK

U.S. officials have drawn up a proposal to bypass the U.K. and make their own deal to take control of Diego Garcia, the report said.

Alternatives to UK-Mauritius Sovereignty Deal

The plan is among several options being drafted by the White House, in a paper aimed at providing alternatives to British Prime Minister Keir Starmer ceding sovereignty of the Indian Ocean archipelago to Mauritius, the report said.

Official Statements and Strategic Importance

US Government Perspective

"President Trump has been consistent in his position that the United Kingdom should not give away the British Indian Ocean Territory, which includes our joint U.S.-UK military facility on the Diego Garcia atoll," a U.S. official told Reuters.

Diego Garcia’s Role in US Security

"Diego Garcia’s strategic location in the Indian Ocean makes it a vital and indispensable military installation of significant importance to the national security of the United States," the official said, adding the U.S. remains in regular discussions with Britain to preserve the island's viability as a regional security platform.

UK Government Perspective

Britain's government in April put on hold its deal to cede sovereignty of the Chagos Islands, home to the U.S.-British Diego Garcia air base, which had been criticized by U.S. President Donald Trump.

Trump said in February the deal was a "big mistake."

UK’s Strategic Concerns

“The government inherited a situation where UK control over the military base on Diego Garcia was under threat and action was required to protect  UK national interests and to prevent our adversaries from getting a foothold in a location of such strategic importance," a UK government spokesperson said.

“Diego Garcia is a key strategic military asset for both the UK and the U.S., which has protected our shared security for nearly 60 years," the spokesperson added. "Maintaining  long-term operational control and security of Diego Garcia is the entire basis for  the  UK-Mauritius agreement, an agreement borne out of the real long-term risks to the base of which both the UK and U.S. are very well aware."

Reporting Credits

(Reporting by Gnaneshwar Rajan and Rhea Rose Abraham in Bengaluru and Bo Erickson in Washington; Editing by Chris Reese)

Key Takeaways

  • The White House may offer to purchase the Chagos Islands, including Diego Garcia, directly from Mauritius—reportedly to sidestep the stalled U.K.–Mauritius sovereignty deal. (devdiscourse.com)
  • Britain paused its agreement to cede the islands to Mauritius in April 2026 after U.S. President Trump reversed his previous support and called the deal a “big mistake” and “great stupidity.” (washingtonpost.com)
  • Diego Garcia hosts a critical U.S.–U.K. military base, pivotal for power projection across the Indian Ocean and beyond—a core reason behind the debate. (chathamhouse.org)

References

Frequently Asked Questions

What is the US proposing regarding the Chagos Islands?
The US is considering a plan to buy the Chagos Islands from Mauritius, bypassing the UK.
Why is the Chagos Islands purchase being discussed?
Discussion follows the UK's paused deal to cede sovereignty of Chagos Islands to Mauritius.
What is Diego Garcia's significance?
Diego Garcia hosts a major US-British air base critical to strategic military operations.
Has the US confirmed its plan to buy the Chagos Islands?
The report indicates a proposal exists, but Reuters could not immediately confirm it.
Who are the main parties involved in Chagos Islands negotiations?
The UK, Mauritius, the US, and previously, former US President Trump have all been involved.

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