Historical precedents exist. The U.S. bought Alaska for $7.2 million in 1867 and the Virgin Islands for $25 million in 1917, but analysts say those examples are too old to provide useful benchmarks.
he Trump administration is considering buying the Chagos Islands in the central Indian Ocean from Mauritius, but the cost of such a deal is unclear and Mauritius says it hasn’t been approached.
The White House is weighing several options to secure the Diego Garcia base, including purchasing the Chagos Islands directly from Mauritius, bypassing the United Kingdom, which currently administers the territory but has been unable to complete a handover deal.
U.S. Treasury Secretary Scott Bessent brought the purchase proposal to President Donald Trump, although it is not considered a leading option, according to reports.
A White House official, speaking on background, said Diego Garcia is “a vital and indispensable military installation of significant importance to the national security of the United States,” and that Trump remains opposed to Britain’s plan to transfer sovereignty of the islands.
Mauritius said it has not been approached by the Trump administration. “Mauritius’s position remains unchanged: its sovereignty over the Chagos Archipelago is non-negotiable,” the government said in a statement Monday.
Even if Mauritius were open to a deal, pricing such a purchase would be complicated. There is no standard methodology for valuing a strategic military asset like Diego Garcia. A merger-and-acquisition approach – valuing the territory based on its revenue stream – might be one option, but would likely not satisfy Mauritius or the indigenous Chagossian people.
Historical precedents exist. The U.S. bought Alaska for $7.2 million in 1867 and the Virgin Islands for $25 million in 1917, but analysts say those examples are too old to provide useful benchmarks.