France recalls envoys in the United States and Australia over a submarine deal.

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In an unusual action, France has summoned its ambassadors from the United States and Australia for meetings over a dispute over a security treaty.

A new Barracuda class nuclear attack submarine, the Suffren, built by French shipbuilder Naval Group, arriving at Brest.

A new Barracuda class nuclear attack submarine, the Suffren, built by French shipbuilder Naval Group, arriving at Brest. Photo: AFP/Mikael Mazella/Naval Group

The spat is over a security deal that sunk a US$40 billion contract for French-designed submarines.

French foreign minister Jean-Yves Le Drian said in a statement that the rare decision taken by President Emmanuel Macron was made due to the seriousness of the event.

A White House official said the US regretted the French decision and that Washington had been in close touch with France over it. The official said in coming days the US would be making efforts to resolve differences with France.

Australia’s embassy in Washington did not immediately respond to a request for comment.

A diplomatic source in France said it was the first time Paris had recalled its own ambassadors in this way. The foreign ministry statement made no mention of the UK, but a diplomatic source said France considered the UK had joined the deal in an opportunistic manner.

“We don’t need to hold consultations with our [UK] ambassador to know what to make of it or to draw any conclusions,” the source added.

On Thursday, Australia said it would scrap the $40 billion deal with France’s Naval Group to build a fleet of conventional submarines, and would instead build at least eight nuclear-powered submarines with US and UK technology after striking a trilateral security partnership.

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Le Drian has described the decision as a stab in the back.

“The abandonment of the submarine project … and the announcement of a new partnership with the United States aiming at launching new studies for future possible nuclear propulsion cooperation is unacceptable behaviour between allies,” Le Drian said on Friday.

“The consequences touch the very concept that we have of alliances, our partnerships and the importance of the Indo-Pacific for Europe.”

US Secretary of State Antony Blinken has attempted to assuage French concerns by describing France as a critical ally in the Indo-Pacific.

Earlier on Friday, Australian Prime Minister Scott Morrison denied French claims that it had not been warned, saying he had mentioned the potential of cancelling the 2016 submarine deal with a French business in conversations with the French president.

Morrison acknowledged the damage to Australia-France relations, but argued that he told Macron in June that Australia’s position had changed.

“I made it very clear, we had a lengthy dinner there in Paris, about our very significant concerns about the capabilities of conventional submarines to deal with the new strategic environment we’re faced with,” Morrison told FIVEaa Radio.

“I made it very clear that this was a matter that Australia would need to make a decision on in our national interest,” he said.

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The French announcement came as Australia’s foreign minister Marise Payne was speaking at the American Enterprise Institute think tank in Washington. She gave no sign she was aware of it.

Referring to the submarine deal, Payne said such commercial and strategic decisions were difficult to manage, but, responding to a question, she said there was “no question” that France remained a valued ally.

“I absolutely understand the disappointment,” she said.

“My task is to work as hard as I can … to make sure that they do understand the value we place on the role that they play, and do understand the value we place on the bilateral relationship and the work we want to continue to do together.”

The strained ties among the long-time allies come as the US and its allies seek additional support in Asia and the Pacific given concern about the rising influence of a more assertive China.

France is about to take over the presidency of the European Union, which on Thursday released its strategy for the Indo-Pacific, pledging to seek a trade deal with Taiwan and to deploy more ships to keep sea routes open.

Reuters

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