France slams Australia for scrapping submarine contract

PARIS • France yesterday accused Australia of backstabbing and Washington of Trump-era behaviour after Canberra scrapped a huge submarines deal with Paris and opted for nuclear subs in a pact with the United States and Britain.

"It's really a stab in the back. We had established a relationship of trust with Australia - this trust has been betrayed," Foreign Minister Jean-Yves Le Drian told France Info radio.

Noting that Australia would now have to explain how it would exit the contract, he said: "I'm very angry today, and bitter... this is not something allies do to each other."

Mr Le Drian said the conduct of President Joe Biden's administration was reminiscent of that of his predecessor Donald Trump, who exasperated Europe with unpredictable decision-making.

"This unilateral, sudden and unforeseeable decision very much recalls what Mr Trump would do," Mr Le Drian added, describing what has happened as "unacceptable" and "incomprehensible".

France's Naval Group, partly owned by the state, had been chosen to build 12 conventionally powered submarines for Australia, based on France's Barracuda nuclear-powered subs in development. The contract was worth around A$50 billion (S$49 billion) when announced in 2016.

But Mr Biden and the prime ministers of Australia and Britain announced on Wednesday a new defence pact that would see Canberra get a nuclear-powered submarine fleet, a privilege reserved for few American allies.

The move underscores growing concerns about China's expanding influence in the Indo-Pacific, where France is also looking to protect its interests, which include the overseas territories of New Caledonia and French Polynesia.

Asked if Paris had been "duped" by Washington over what Mr Le Drian once called a "contract of the century" for France's naval yards, the minister replied: "Your analysis of the situation is more or less correct."

He said France and its allies had been working on a "coherent and structured Indo-Pacific policy" in the face of Beijing's growing regional might.

"We had been discussing that with the United States just recently, and here comes this break," Mr Le Drian said, calling it "a huge breach of trust".

"We'll need clarifications. We have contracts - the Australians need to tell us how they intend to get out of them."

French Defence Minister Florence Parly called Australia's about-face "very bad news with regards to keeping one's word", while adding that France is "clear-eyed as to how the United States treats its allies".

"In terms of geopolitics and international relations, it's serious," she told RFI radio yesterday.

Ms Parly and Mr Le Drian had already denounced a "regrettable" move by Canberra in a statement overnight, saying it underscored the need to bolster "European strategic autonomy".

"There is no other credible way to defend our interests and our values in the world, including in the Indo-Pacific," they said.

AGENCE FRANCE-PRESSE