Diego Garcia Military Base and British Indian Ocean Territory Bill

Debate between Lord Lilley and Baroness Goldie

Committee stage
Tuesday 25th November 2025 Lords Chamber

[Lord Lilley (Con)]

My Amendment 20S seeks to get the Secretary of State to produce a report on the so-called economic partnership between the United Kingdom and Mauritius, which is set up under Article 11 of the treaty. Parliament should have an opportunity to take note of that and debate it in both Houses.

The reason that is important, apart from the fact that the control of money is the supreme function of Parliament, is that the economic partnership article, Article 11, in the agreement, is very strange. It says:

“In consideration of this Agreement, the United Kingdom agrees … a. to pay Mauritius an annual sum; … b. to capitalise a Trust Fund for the benefit of Chagossians as established by Mauritius; and … c. to grant multi-year funding as part of a development framework for projects to be undertaken by Mauritius across twenty-five (25) years. … The arrangements for such payments, including amounts and modalities shall be agreed separately”.


It then says that this is a “full and final settlement” of the financial aspects of ceding sovereignty of the Chagos Archipelago to Mauritius.

Now, to call this a partnership is a very strange thing. We give them money annually. We give them more money for the benefit of the Chagossians. We give them yet more money for the benefit of the Mauritians. Where is the partnership in all this? If this partnership were ever to be introduced, I hope that Ministers would feel obliged or, out of their natural desire to be helpful, would seek to explain to us why this is a partnership rather than a kind of surrender where we give up the money, we give up the territory and we let them decide—even the trust fund that we set up for the benefit of the Chagossians is “as established by Mauritius”. So the Mauritians are going to determine how this trust fund is used and spent; the Chagossians will have no say in it and will probably get precious little benefit from it.

I hope the Minister will let us in on the secret. What is the quid pro quo in all this? Normally, any partnership means that there are two sides to it. I used to be a partner in a firm, and we were partners; we all benefited from each other. We did not have one side being partners and the other side getting all the benefits. I am genuinely mystified about this. Was it just that this was signed up for when the Government were suffering a fit of generosity? Perhaps the coffers were overflowing with funds. They could not think what to do but give some away to Mauritius for this, some away to a trust fund for that, then more away to Mauritius for 25 years. Where is it all coming from? Perhaps the Minister will enlighten us. I beg to move.

[Baroness Goldie (Con)]

My Lords, I did not expect to participate in this, but I was having a conversation earlier with my noble friend Lord Minto, who is very knowledgeable about corporate finance. He posed the question: is there anything in this whole arrangement that would stop Mauritius capitalising on the revenue stream that they have coming to them and selling that off to someone else?