British Prime Minister Andy Burnham has said his government is exploring changes to the proposed Chagos Islands agreement with Mauritius in an effort to address American concerns over the future of the strategically important Diego Garcia military base.
Speaking to The Economist on Thursday, Burnham confirmed that discussions were underway with Washington over possible alternatives to the agreement negotiated by his predecessor, Keir Starmer.
“We are in discussion with our US friends to see how we might recast the arrangement that better meets their concerns,” Burnham said, emphasising the strategic importance of the joint British-American military installation on Diego Garcia.
The prime minister made the remarks while returning from Antigua, where he had attended the Commonwealth Heads of Government Meeting.
Burnham indicated that his administration was examining different diplomatic arrangements, including the agreement concerning Greenland, as a possible model for resolving the dispute.
“We look at the Greenland deal, and obviously there was a solution reached there,” he said.
“Now, maybe there is something there that we can take from that to see if there’s a solution that works in relation to Diego Garcia. But that is something that we’re very engaged on. We’re working hard on it, but it is challenging.”
Under the original treaty signed in 2025, Britain agreed to transfer sovereignty over the Chagos Islands to Mauritius while retaining control of Diego Garcia through a 99-year lease, with provisions for an extension.
The arrangement would have allowed Britain and the United States to continue operating their military base on the island.
In return, the British government committed to annual payments to Mauritius of £165 million ($222 million) for the first three years, followed by £120 million annually thereafter.
However, the agreement encountered strong opposition from US President Donald Trump, who publicly condemned the proposed settlement as “terrible” and “ridiculous.”
Following Washington’s objections, the British government suspended progress on the legislation needed to bring the treaty into effect.
The agreement remains unratified, leaving the future sovereignty arrangements for the Chagos Islands unresolved.
Diego Garcia occupies a strategically significant position in the Indian Ocean and serves as a major military facility for British and American forces.
Burnham’s latest comments suggest that London is seeking a revised arrangement that would preserve the military partnership with Washington while addressing the outstanding sovereignty dispute with Mauritius.
No specific alternative proposal has yet been announced, and negotiations remain ongoing.