The Trump administration is considering a plan to buy the Chagos Islands from Mauritius, a move that could bypass Britain and secure a key military base in the Indian Ocean.
The islands, which include the strategically important UK-US military base at Diego Garcia, are a prized location for the US due to their proximity to Iran and China.
US officials have drafted a proposal to bypass Britain and make their own deal to take control of the islands, citing concerns that control passing to China-aligned Mauritius could open the door to espionage at sea.
The US has been in regular conversation with Downing Street about securing the future of Diego Garcia, which allows the US Navy to maintain an active presence in the Indian Ocean.
The British government had aimed to pass a bill in 2025 to transfer the islands to Mauritius, but the deal cannot be implemented without approval from the United States.
Mauritius maintains good relations with both Iran and China, and the US is concerned that control of the islands could be used to expand Chinese naval influence in the region.