Diego Garcia Military Base and British Indian Ocean Territory Bill

Debate between Lord Hannan of Kingsclere and Baroness Foster of Aghadrumsee

Committee stage
Tuesday 18th November 2025 Lords Chamber

[Baroness Foster of Aghadrumsee (Non-Afl)]

My Lords, I first declare my interest as a Friend of the British Overseas Territories. I support the noble Lord, Lord Callanan, in his efforts to bring clarity to the Bill, at the very beginning of the Bill.

I particularly endorse the comments of the noble Lord, Lord Lilley, in relation to his amendments. It was in the conversation about those amendments that the issue of self-determination came up. I know that we are going to talk about self-determination in relation to amendments later on in Committee. However, there is a fundamental point about self-determination. The noble Lord, Lord Grocott, asked whether we would ever cede British territory. Well, of course we have, when we have had self-determination exercised. In this case—the Minister went through this in some detail in Second Reading, because I raised it—it is deemed not applicable to the British Indian Ocean Territory.

We all received a letter today from 650 members of the Chagossian community here in the United Kingdom. In that letter they say:

“To do so, however, in the context of re-denying the people concerned self-determination while simultaneously paying a country that played a key role in denying that people self-determination in relation to their territory on the previous occasion, more money than is required to resettle the people with the rightful claim to the territory, in order to lease one of their islands, demonstrates extreme moral disorientation”.


I completely agree with that.

I also completely agree with the second point that the noble Lord, Lord Grocott, made on resettlement. We all heard at Second Reading that there had been an exercise looking at resettling Chagossians into the Chagos Islands. Back in 2015, the KPMG report gave the details of the costs and the then Government decided not to proceed, probably based mostly on cost. But now the costs we are paying to the Mauritian Government far exceed the costs of resettlement. There is an opportunity for some Chagossians, if they wish, to resettle on Diego Garcia. In other British Overseas Territories there are civilians on military bases: Ascension Island comes to mind. So it could be the case that it happens in Diego Garcia as well. We will touch on resettlement rights and the right to return in other amendments, but, given that it was raised in this context, I just wanted to make those couple of points. I support the amendments in this group.

[Lord Hannan of Kingsclere (Con)]

My Lords, I will start with the amendment from my noble friend Lord Callanan and the objection to it from the noble Lord, Lord Purvis of Tweed, which was that this wasincompatible with the decision taken by Parliament. I will just quote—because I think it is helpful—Article 18 of the treaty. It states:

“This Agreement shall enter into force on the first day of the first month following the date of receipt of the later note by which the Parties notify each other that they have completed their respective internal requirements and procedures necessary for the entry into force of this Agreement”.


In other words, it cannot enter into force until both Chambers of this Parliament have given their assent.

We have not made any bones about the fact that we do not like the treaty at all. I think it is a bit much to complain about my noble friend making this point in principle.

Diego Garcia Military Base and British Indian Ocean Territory Bill

Debate between Lord Hannan of Kingsclere and Baroness Foster of Aghadrumsee

Tuesday 18th November 2025 Lords Chamber

[Lord Hannan of Kingsclere (Con)]

My Lords, I beg leave to move the amendment standing in the name of the noble Lord, Lord Morrow.

The financial aspects of this Bill are the easiest for people not involved to understand. It does seem bizarre that at a time when we are borrowing money and scratching around for savings, we are raising taxes here in order to fund tax cuts in Mauritius. I do not want to detain noble Lords, so I will not go over the figures again. We had an expert disquisition from my noble friend Lady Noakes at Second Reading.

Even if we were to accept the Government’s figures, we still face an immense imbalance in where the money is going. I come back to the point that we were making just before dinner, about the wrong that everyone accepts was done to the Chagossians and what restitution would look like. The Minister said they had been very badly treated. Well, badly treated or otherwise, their compensation, if we measure it purely in financial terms, comes to a one-off £40 million settlement for good—whereas, even on the figures offered by the Government, we are paying Mauritius £101 million every year for the next 99 years. Who is the wronged party here? How is it that having done this harm to population A by moving them, we then reward the population that is in fact making permanent their exile and deepening their sense of grievance?

Never mind whether it is £3.1 billion, £35 billion or somewhere in between, at Second Reading my noble friend Lord Altrincham made the point that this is money being sent out of the country. We can argue about whether there is merit in Governments spending cash here to stimulate growth. I personally am of the camp that says it does not work. It is better to leave that money directed by people who are attached to it; they spend it more wisely and the growth impact is much higher. But I will allow that there is some impact in stimulating the domestic economy, even when a Government spend money badly. There is none at all when you just take a sum of money and send it several thousand miles away, which is what is being proposed here.

The amendments from the noble Lord, Lord Morrow, are about impact assessments, particularly on the financial consequences for the United States, as well as for us. I just want to tackle the view that this is a great deal for the US—that, however inconvenient it is for us, we are left with the bill and the US gets to keep the base. Every pound that we send to Mauritius to lease the property that we currently own is a pound that we are not spending on defence. It is a pound taken away from NATO and from the western alliance. That is just the immediate and direct cost of what happens when you take a freehold and then decide to pay for it as a leasehold.

There is then, it seems to me, an underexplored indirect cost: how have we now incentivised future Mauritian Governments to monetise this territory? If they can get this sum of money out of us, why not lease other parts of the archipelago to other powers? The Minister has said, of course, that in the treaty they are not allowed to for military purposes. The treaty says they cannot use these things for defence purposes, but I wonder: down the line, if Mauritius was indeed incentivised to make more money and leased an island for supposedly civilian purposes, then very gradually it was turned in a secret way by an unfriendly power into a more direct military installation, is that something realistically that is then going to trigger a military reaction from us?

It seems to me that the only way of ensuring that we do not have unfriendly neighbours in the Chagos Archipelago is not to have these islands being leased out in the first place, and the best way of preventing the islands being leased out is to hang on to them ourselves.

[Baroness Foster of Aghadrumsee (Non-Afl)]

The noble Lord referred to £40 million. I assume he is referring to the trust fund that is going to be set up.

[Lord Hannan of Kingsclere (Con)]

Yes.

[Baroness Foster of Aghadrumsee (Non-Afl)]

However, as he is fully aware, that is totally in the hands of the Mauritian Government. No Chagossian from here can access that money. Is that not something that should be considered?

[Lord Hannan of Kingsclere (Con)]

I am very grateful to the noble Baroness for that important correction. This would not be the first time this has happened. The sums that were disbursed to Mauritius in the 1970s, supposedly to be spent on the welfare of the Îlois exile community, were hung on to. They were disbursed very late, and their value had been significantly eroded by inflation in the meantime. Indeed, given that record, there is little wonder that there should be bad feeling from a lot of Chagossians towards the Mauritian Government.

Unusually in this House, the noble Baroness and I were on the same side in the 2016 referendum, so we are familiar with the argument that here is a little bit of your money back; we are spending it for you, and you should be grateful. It was an unconvincing argument to the British people in 2016, and I think it will be an unconvincing argument to the British people and to the Chagossian portion of the British family in 2025. I beg to move.