Mauritian Prime Minister Navin Ramgoolam, who was elected in November, is reworking some agreements reached by his predecessor. Reuters
Mauritian Prime Minister Navin Ramgoolam, who was elected in November, is reworking some agreements reached by his predecessor. Reuters
Mauritian Prime Minister Navin Ramgoolam, who was elected in November, is reworking some agreements reached by his predecessor. Reuters
Mauritian Prime Minister Navin Ramgoolam, who was elected in November, is reworking some agreements reached by his predecessor. Reuters

UK's Chagos deal rejected by new Mauritius prime minister


Gillian Duncan
  • English
  • Arabic

The new government in Mauritius has rejected UK Prime Minister's Keir Starmer’s deal to hand over sovereignty of the Chagos Islands, saying it "would not produce the benefits that the nation could expect".

New negotiations have started after Prime Minister Navin Ramgoola's administration submitted suggestions to the UK, which has since responded with counter-proposals.

Under the original agreement that was announced in October, Britain would hand over sovereignty to Mauritius over the archipelago but maintain a 99-year lease over Diego Garcia, which hosts a major UK-US military airbase. The deal was struck with Mr Ramgoolam's predecessor, Pravind Jugnauth.

The Prime Minister told his country's parliament on Tuesday that "the draft agreement which was shown to us after the general elections is one which, in our view, would not produce the benefits that the nation could expect from such an agreement".

"Therefore, Mauritius accordingly submitted counter-proposals to the UK so that an agreement which is in the best interest of Mauritius can be concluded. The response of the United Kingdom to our counter-proposals was received yesterday afternoon and is now being currently considered,” he added.

Britain wants to maintain a 99-year lease over Diego Garcia, which hosts a major UK-US military airbase. STR New
Britain wants to maintain a 99-year lease over Diego Garcia, which hosts a major UK-US military airbase. STR New

Senior figures in US president-elect Donald Trump’s coming administration have also voiced doubts over the agreement, which is aimed at securing the legal basis for the Diego Garcia base.

Mr Starmer’s national security adviser Jonathan Powell recently travelled to Washington to hold talks with the president-elect’s team about their concerns over the deal. Marco Rubio, Mr Trump’s pick for secretary of state, said in October the agreement posed "a serious threat" due to Mauritius’s close ties to China.

But Downing Street insisted the deal was necessary to resolve a long-standing legal dispute over sovereignty of the islands, also known as the British Indian Ocean Territory.

It comes after Number 10 said last month that final details of the legal text of the treaty were being worked out, with the plan to put them before parliament for scrutiny next year.

The Prime Minister's spokesman said the UK had been engaging with the new Mauritian government on the deal.

"The agreement we've struck with Mauritius protects the long-term secure operation of the UK-US base, which plays such a crucial role in regional and international security," the spokesman said. "There's obviously been a change of leadership in Mauritius, and we've been engaging with the new administration on the details of the deal.

"We remain confident that the agreement is in both sides' shared interest." The spokesman refused to say whether the UK had offered more money to the Mauritians for the 99-year lease on Diego Garcia.

The Conservatives sent a letter to Mr Starmer saying the party had "grave concerns" about the deal and warned against "rushing it through" parliament before the Trump administration enters the White House.

Priti Patel and James Cartlidge, the shadow foreign and defence secretaries, said the deal was "wholly unsustainable" given the change of US administration and the "rejection" of the proposed deal by the new Mauritian government.

"If the Government has any inclination to try and salvage this deal by rushing it through parliament before the new US administration takes office, it should think again,” they wrote.

"At a very minimum you should wait for the new administration in the US to take office - but our view remains that the legal justification you have used for giving away sovereignty is flawed, and it is therefore no surprise that the terms reached are so disadvantageous to the United Kingdom."

US Air Force ground crew members wave at a B-52H Stratofortress bomber as it taxis in Diego Garcia military base. AFP
US Air Force ground crew members wave at a B-52H Stratofortress bomber as it taxis in Diego Garcia military base. AFP

Mauritius claims it was forced to give the Chagos Islands away in 1965 to gain its independence from Britain. In 2019, the World Court said the UK should give up control of the islands and said it wrongfully forced the population to leave in the 1970s to make way for a US airbase.

The UN's highest court, the International Court of Justice in The Hague, has ruled that Britain's administration of the territory is unlawful and must end.

A report from the Policy Exchange think tank last year argued that Britain should not relinquish sovereignty over the islands in return for “an unenforceable promise by a third country that the military base at Diego Garcia will be allowed to continue to operate in the future”.

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Rating: 4.5/5

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Venue: Hang Jebat Stadium, Malayisa
Kick-off: Thursday, 4.30pm (UAE)
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Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes

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Production:

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Lockheed Martin was originally granted the contract to develop the system in 1992. Defence company Raytheon sub-contracts to develop other major parts of the system, such as ground-based radar.

UAE and THAAD:

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But as they repeated the process many times, the flakes got thinner.

By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment had led to graphene being isolated for the very first time.

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But the 'sticky tape' method would not work on an industrial scale. Since then, scientists have been working on manufacturing graphene, to make use of its incredible properties.

In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. Their discovery meant physicists could study a new class of two-dimensional materials with unique properties. 

 

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Safety 'top priority' for rival hyperloop company

The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.

He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.

“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.

“Only once the system has been certified and approved will it move people,” he said.

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Updated: December 18, 2024, 11:01 AM