Diego Garcia is coral atoll located south of the equator in the central Indian Ocean in the British Indian Ocean Territory. The United States was developing Diego Garcia as a strong American military base in Indian Ocean. America felt that this is necessary for maintaining peace in Asia and India strongly opposed this because it is a threat to India’s peace interests. Today U.S. operates a large naval ship and submarine support base, military air base, communications and space tracking facilities, and an anchorage for pre-positioned military supplies for regional operations aboard Military Sealift Command ships in the lagoon. This was a major issue till a few years back. However, between 2001 and 2004 some naval exercise between India and US were carried out at Diego Garcia.