Britain is letting go in order to salvage something.

Accordingly, sovereignty over the archipelago belongs to Mauritius, ending nearly 60 years of British occupation. The islands had historically belonged to Mauritius, but Britain did not return them in the 1960s before being forced to grant independence. Britain transformed them into a massive military base and leased Diego Garcia to the United States for use as a military base. These military bases were of immense strategic importance to both the US and Britain. Mauritius regained sovereignty over the islands but had to agree to lease the Diego Garcia military base to the US for 99 years.

Aerial photograph of the Chagos Islands

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For Mauritius, regaining sovereignty over the archipelago was a top priority. The agreement allowed the return of indigenous people displaced by British colonial rule in the 1960s and 1970s, and also stipulated British financial responsibilities for the islands. This agreement can be seen as a significant political and legal victory for Mauritius.

The agreement also greatly benefits the US because it loses nothing while still maintaining its military base in Diego Garcia.

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For Britain, returning sovereignty over the Chago Islands to Mauritius carries the significant risk of setting a precedent for territories where Britain is currently in dispute with other countries around the world. Britain had to make this decision in the case of the Chago Islands because only this could salvage its international prestige after unfavorable rulings from both the UN General Assembly and the UN Court of Justice regarding its illegal occupation of the islands and the displacement of their indigenous population. The agreement would help Britain create a new image in the world, while still allowing the US to exploit the islands militarily.

Source: https://thanhnien.vn/nuoc-anh-buong-bo-de-vot-vat-18524100721180756.htm