Britain would NOT have to pay compensation to Mauritius if Chagos deal collapses

However, Downing Street maintains there exists no foundation under international law for any compensation claim in the event the deal remains unratified.

Mauritian Prime Minister Navin Ramgoolam told local publication DefMedia: "We are exploring legal avenues in the Chagos case."

The agreement would see Britain cede sovereignty of the Indian Ocean archipelago to Mauritius whilst retaining control of the strategically vital Diego Garcia military installation through a 99-year lease arrangement worth approximately £35 billion.

Under the proposed arrangement, Britain would pay Mauritius in excess of £100million annually to lease back the Diego Garcia base, alongside additional funds intended to bolster the island nation's economic development.

Prime Minister Ramgoolam has suggested the prolonged delay in finalising the treaty has already caused significant harm to Mauritius's finances.

The Diego Garcia facility serves as a crucial installation for American military operations, particularly during the current Middle East conflict.

Sky News has reported there would be no legal basis for Mauritius to receive compensation should the agreement ultimately collapse.

Sir Keir Starmer has been attempting to persuade Donald Trump that the deal represents the sole viable method of securing the long-term future of the strategically important base.

Reform UK leader Nigel Farage travelled to Florida on Friday to dine with Donald Trump at his Mar-a-Lago estate, where he planned to press the case against the Chagos agreement.

Speaking at a "Save Chagos Boat Party" event hosted by Guido Fawkes, Mr Farage declared: "President Trump has almost understood the deal, but I will be dining at Mar-a-Lago tomorrow night and we will reinforce the message."

He branded the Mauritius arrangement "the worst deal in history" and "an absolute betrayal."

The President initially backed the plan but has since reversed his position amid a row with Sir Keir over the Prime Minister's initial refusal to permit American forces to use British bases for strikes against Iran.

Mr Trump described the agreement as "an act of great stupidity" on his Truth Social platform.

A Downing Street spokesman emphasised that maintaining authority over Diego Garcia remained the fundamental purpose of the negotiated settlement.

"It means we maintain our control, protects against legal challenges to its operation and locks out our adversaries from being able to compromise our operation," the spokesman said.

The legislation required to ratify the treaty is presently stalled in the House of Lords, a pause that came following Mr Farage's recommendation.

Despite this parliamentary delay, ministers insist the agreement will ultimately proceed.

Sir Keir has faced mounting criticism over his decision to transfer the archipelago to Mauritius, a nation viewed by some as having close ties to China.