BRITISH INDIAN OCEAN TERRITORY (AD 1965–) British possession (overseas territory). Formed on the territory. modern British Indian Ocean Territory as a result of the separation, in fact, of the British occupation of the islands from Mauritius (Chagos archipelago) and Seychelles (Aldabra, Farquhar and Desroches islands) into a separate overseas territory; the only residents are British and American military personnel. Capital - Diego Garcia.