Global NewsFrance Recalls Envoys From US, Australia Over Botched $40bn Submarine Deal

France Recalls Envoys From US, Australia Over Botched $40bn Submarine Deal

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September 18, (THEWILL) – France was plunged into an unprecedented diplomatic crisis with the United States and Australia on Friday after recalling the ambassadors to both countries over a trilateral security agreement that voided a $40 billion submarine contract France signed with Australia.

Foreign Minister Jean-Yves Le Drian said in a statement that the rare decision made by President Emmanuel Macron was due to the seriousness of the problem.

On Thursday, ,Australia breached its $40 billion contract with the French Navy group to build a fleet of conventional submarines. It has instead decided on US and British technology after signing a trilateral security partnership.

Australia had announced that it would build at least eight nuclear submarines.

White House officials said the United States regretted France’s decision and Washington was in close contact with France about it. Officials said the United States would work in the next few days to resolve its differences with France.

The Australian Embassy in Washington did not immediately respond to requests for comment.

French diplomatic sources said it is the first time Paris had recalled its ambassador in this way. A foreign ministry statement did not mention Britain, but diplomatic sources said France believed Britain had joined the agreement for opportunistic reasons.

“We don’t have to consult with our (UK) ambassador to know what to do with it, or to come to a conclusion,” sources added.

Le Dorian said the deal was unacceptable.

“The abandonment of the submarine project … and the announcement of a new partnership with the United States aimed at launching new research for possible future nuclear propulsion cooperation is an unacceptable act between allies,” he said in a statement on Friday. “The results affect our alliances, partnerships, and the very concept of Indo-Pacific importance to Europe.”

US Secretary of State Antony Blinken sought to calm France’s protests Thursday, calling France an important partner in the Indo-Pacific.

Australian Prime Minister Scott Morrison was not warned of a new deal earlier Friday in a meeting with the French president, saying Australia raised the possibility of abandoning the 2016 submarine deal with a French company.

Morrison admitted damage to Australia’s relations with France, but claimed to have told Macron in June that Australia had modified its thinking.

“I made it very clear that we had a long supper in Paris about a very serious concern about the ability of conventional submarines to deal with the new strategic environment we are facing.” He told 5aa Radio.

“I have made it very clear that this is an issue that Australia needs to make a decision for our national interest.”

The French announcement was made when Australian Foreign Minister Marise Payne was speaking at a think tank at the American Enterprise Institute in Washington. She showed no signs of being in the know.

Regarding submarine transactions, Payne said it would be difficult to control such commercial and strategic decisions, but in answer to the question, it is “unquestionable” that France will remain an important ally.

“I fully understand disappointment,” she said. “My job is to work as hard as possible … Understand the value we place in the role they play, the value we place in bilateral relations and the work we want to continue working with.“

Pierre Morcos, a visiting scholar at the Center for Strategic and International Studies in Washington, called the French move “historic.”

“The encouraging words I heard from Secretary Blinken yesterday are not enough for Paris, especially after the French authorities have learned that the deal has been going on for months,” he said.

Longstanding tensions have arisen as the United States and its allies are seeking additional assistance in the Asia-Pacific region, fearing China’s growing influence will be more aggressive.

France is about to take over the Presidency of the European Union, with the EU announcing its Indo-Pacific strategy on Thursday, seeking a trade deal with Taiwan and promising to deploy more vessels to keep the route open.

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