Nuclear Submarine Crisis, Australian PM: I Have No Regrets For The National Interest

JAKARTA - Australia on Sunday defended its decision to cancel a multi-billion dollar order for French submarines, opting instead for alternative deals with the United States and Britain, saying it had raised concerns in Paris several months ago.

Canberra's move angered Paris, sparking an unprecedented diplomatic crisis that analysts say could undermine the United States' alliance with France and Europe. It has also angered China, a rising power in the Indo-Pacific region.

The United States has sought to defuse anger in France, a NATO ally, with a spokesman for the French Government saying on Sunday President Emmanuel Macron would have a call with US President Joe Biden in the next few days.

France has recalled its ambassadors in Washington and Canberra for consultations. It was the lowest point in relations between the two countries since 1995 when Australia protested France's decision to resume nuclear tests in the South Pacific and summoned its ambassador for consultations.

"I do not regret the decision to put Australia's national interests first," Australian Prime Minister Scott Morrison said.

PM Morrison said he understood France's dismay over the cancellation of an order to build a US$40 billion submarine fleet in 2016, switching to US-based nuclear submarines, but reiterated that Australia must always make decisions in its best interests.

"This is an issue that I brought up directly a few months ago and we continue to talk about it, including by the secretary of defense and others," PM Morrison said at a briefing.

Under the new trilateral security partnership, Australia will build at least eight nuclear-powered submarines with US and UK technology. The canceled deal, made with the French Naval Group in 2016, was for the conventional submarine fleet.

Separately, French government spokesman Gabriel Attal told BFM TV President Macron would seek "clarification" about the cancellation in talks with President Biden. Discussions then need to be carried out regarding the contract clauses, especially the compensation for the French side.

New British Foreign Secretary Liz Truss said the alliance formed demonstrates Britain's commitment to security and stability in the Indo-Pacific region, she said in an article published Sunday.