Australia to pay France 20 billion baht in compensation for termination of submarine contract
11 Jun AFP Australia has reportedly disclosed a large compensation deal with French submarine maker Naval Group. to settle a contract dispute that has deteriorated relations between the two countries for almost a year
Australian Prime Minister Antony Albanese said the Naval Group had agreed to a €555 million ($267 million) compensation deal that was fair and equal. It’s for Australia to cancel its decades-old billion-dollar submarine contract with the company.
French Defense Minister Sebastian Lezornue said: “It allows us to turn the page of bilateral relations with Australia and look towards the future.”
As Mr Albanese said He will soon travel to France to restart a relationship that is clearly beset by tensions.
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The dispute started in September. 2021, when then-Prime Minister Scott Morrison abruptly ends long-standing contacts with the French government-backed firm Naval Group. to build dozens of diesel-powered submarines for Australia and turned to the purchase of nuclear-powered submarines of the United States and the United Kingdom. This is the Aucas Trilateral Cooperation Agreement (AUKUS) with the United States and the United Kingdom.
The decision angered French President Emmanuel Macron, who accused Prime Minister Morrison of being a liar. and summoning the French ambassador from Australia back to the country in protest
Relations between the two countries deteriorated until May. 2022, when Australia chooses Mr Albanese Leader of the left-center as Prime Minister which since taking office hastened to resolve tense relations with France, New Zealand and the Pacific island nations which opposes Australia’s previous Conservative government’s climate change hesitation.
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Mr Albanese said after talks with Mr Macron about the compensation deal: “We are rebuilding the relationship between Australia and France. I look forward to accepting President Macron’s invitation to visit Paris as soon as possible.”
Speaking on the sidelines of the Shangri-La Security Summit in Singapore, Le Zornou said: France values ”friendship” with Australia “Just because the government in the past didn’t keep their word. doesn’t mean We need to forget our strategic relationship. Australia has a powerful new team. We are happy to cooperate with you.”