Critics say it could give China a foothold in the region.
But yesterday Sir Keir said the deal secures the future of the “hugely important†UK-US Diego Garcia naval and air base on the islands.
Argentina’s foreign minister Diana Mondino greeted the UK’s move to end “outdated practices†and promised “concrete action†to ensure the Falklands are handed to Buenos Aires.
Former Defence Minister Sir Alec Shelbrooke said: “There will certainly be concerns under an unpatriotic Labour who are embarrassed about our country.
“But the people of Gibraltar and the Falklands have both voted to remain British.â€
No 10 insisted: “Chagos does not change our policy or approach to other overseas territories.â€
Ex-PM Boris Johnson called the Chagos deal “crazy†adding: “Why are we doing this? Sheer political correctness, desire to look like the good guys — as if we’re unbundling the last relics of our empire. It’s nonsense.â€
UK special envoy Jonathan Powell, who was part of the talks, said: “These are tiny islands where no one goes. We are probably losing more to tidal erosion in the east coast.â€