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Background: Established as a territory of the UK in 1965, a number of the British Indian Ocean Territory (BIOT) islands were transferred to the Seychelles when it attained independence in 1976. Subsequently, BIOT has consisted only of the six main island groups comprising the Chagos Archipelago. The largest and most southerly of the islands, Diego Garcia, contains a joint UK-US naval support facility. All of the remaining islands are uninhabited. Former agricultural workers, earlier residents in the islands, were relocated primarily to Mauritius but also to the Seychelles, between 1967 and 1973. In 2000, a British High Court ruling invalidated the local immigration order that had excluded them from the archipelago, but upheld the special military status of Diego Garcia.
Economy Overview: All economic activity is concentrated on the largest island of Diego Garcia, where joint UK-US defense facilities are located. Construction projects and various services needed to support the military installations are done by military and contract employees from the UK, Mauritius, the Philippines, and the US. There are no industrial or agricultural activities on the islands. When the Ilois return, they plan to reestablish sugarcane production and fishing. The country makes money by selling fishing licenses and postage stamps.
Geography Note: archipelago of 55 islands; Diego Garcia, largest and southernmost island, occupies strategic location in central Indian Ocean; island is site of joint US-UK military facility
Location: archipelago in the Indian Ocean, south of India, about one-half the way from Africa to Indonesia
Natural Resources: coconuts, fish, sugarcane
Geographic Coordinates: 6 00 S, 71 30 E
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