The future of the Diego Garcia military base — one of the United States' most strategically vital overseas installations — surfaced dramatically at a US Senate Appropriations Subcommittee on Defence hearing on 13 May, as Republican Senator John Kennedy warned that British Prime Minister Keir Starmer's reported plans over the Chagos Islands could hand China a foothold in the Indian Ocean. The hearing was convened to examine President Donald Trump's proposed $1.5 trillion defence budget.

Kennedy's Sharp Warning

Senator Kennedy launched a pointed attack on what he described as a dangerous concession by the British government. He claimed that Mauritius — the nation at the centre of the Chagos Islands sovereignty dispute — maintained close ties with China, and that transferring greater control of the islands could directly threaten US strategic interests in the region.

"Prime Minister Starmer wants to give Diego Garcia and the Chagos Islands to Mauritius," Kennedy said, adding that Mauritius would "probably give a spare key to Diego Garcia to China." He urged the Trump administration not to endorse any arrangement that could limit American military access to the base.

What Pentagon Chief Hegseth Said

Secretary of War Pete Hegseth stopped short of directly endorsing Kennedy's characterisation but left no ambiguity about the base's importance. "What I would underscore is that Diego Garcia is a very strategic location, and having the ability to operate there for the United States military is going to be critically important in the future," Hegseth told the committee.

When pressed on President Trump's position, Hegseth was unequivocal. "As President Trump has stated, there's been some pretty bad deals made by the Brits as it pertains to Diego Garcia," he said, adding that proposed arrangements could create "limitations that our troops could face in how we use that island." When Kennedy asked directly whether Trump would agree to such a deal, Hegseth replied simply: "No."

Why Diego Garcia Matters

Diego Garcia has long served as a critical logistics, intelligence, and operational hub for US missions spanning the Middle East, Africa, and the Indo-Pacific. The base played major roles during the wars in Iraq and Afghanistan and remains central to American power projection across the Indian Ocean region. Losing unrestricted access — or even facing operational constraints — would represent a significant blow to US military reach.

The Broader China Concern

The exchange at the hearing reflects a deepening anxiety in Washington over China's expanding strategic footprint across the Indian Ocean. Lawmakers from both parties have repeatedly flagged Beijing's attempts to cultivate influence near key maritime routes and military facilities. Mauritius's diplomatic proximity to China has made the Chagos Islands dispute far more than a bilateral UK-Mauritius sovereignty question — it has become a flashpoint in the broader US-China strategic rivalry.

Notably, this is not the first time the Chagos Islands deal has drawn American scrutiny. The Trump administration had previously signalled discomfort with the arrangement negotiated under the prior UK government, and Tuesday's hearing suggests that opposition has hardened into a firm policy position. How London navigates this transatlantic pressure — while managing its own commitments to Mauritius — will be closely watched in the weeks ahead.