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French submarines: Australia pays Naval Group for breach of contract

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Australia on Saturday announced a massive compensation agreement with French submarine maker Naval Group, to end a financial and diplomatic dispute, which France now hopes to open a new page in relations between Paris and Canberra.

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Australia’s new Prime Minister Anthony Albanese said the French company had agreed to a fair and equitable settlement of 555 million euros (746 million dollars), for the breakdown of the massive contract of 56 billion euros (75 billion), which caused a diplomatic crisis between Paris and Canberra last autumn.

France, through the Minister for the Armed Forces, takes note of this agreement. This agreement is important because it will allow us to open a new page in our bilateral relations with Australia and look forward toSébastien Lecornu told reporters in Singapore, where the defense and security forum is being held at the Asia-Pacific Shangri-La Dialogue.

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The minister is scheduled to meet with his Australian counterpart Richard Marles, from the newly elected Australian Labor government, on the sideline of the forum on Saturday.

OK fair

Shortly afterwards, the Naval Group accepted an agreement fair, using the term head of the Australian government. Most state-owned groups say they have it accompanied its French and Australian partners and subcontractors in their efforts.

For the CFDT union, the first union organization in the Naval Group, it’s pretty good news that it ends pretty quickly, instead of going to litigation that can take yearsaccording to David Robin, representative of the central trade union in Cherbourg (Manche).

Since the end of the contract, we recovered at nor are we losing hope to have another export contract like we did for Brazil, India, Malaysiahe said toAFP.

In September 2021, Australian Prime Minister Scott Morrison abruptly ended his ten -year contract with France.

A breach of contract that does not pass

The head of the Australian government has announced that his country will buy American or British nuclear-powered submarines, a big change for a country with poor nuclear capabilities.

Mr. Morrison then drew on the wrath of French President Emmanuel Macron. Relations between the two countries remained cold until the May elections of the center -left Mr Albanese.

He is in a hurry to mend difficult relations with France, New Zealand and islands in the Pacific that have blamed the previous Conservative government for its slow pace on climate change.

Mr. Albanese said he would soon travel to France to reset the relationship.

Speaking on the sideline of the Shangri-La Dialogue forum, Lecornu said France appreciates it friendship including Australia.

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It is not because a government in history has broken its word that we should forget our strategic relationship.

A quote from Sébastien Lecornu, French Minister for the Armed Forces

In total, the failure of the French submarine contract would cost Australian taxpayers AUS $ 2.4 billion (2.7 billion), their Prime Minister said.

The submarine contract was central to Australia’s defense strategy against China’s growing influence in the region under Xi Jinping’s presidency.

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Nuclear -powered submarines could allow Australia to operate more covertly and suppressed from China.

But there is considerable uncertainty about when these devices will actually be owned by Australia. The first American or British submarine was probably out of service for decades.

Former defense minister and current opposition leader Peter Dutton said this week he had decided to take supplies from the United States, an unusual revelation given the sensitivity of the ongoing negotiations.

The current government insists no decision has been made yet. At the same time, Mr. Albanese took steps to continue the dialogue at the ministerial level with China.

Australian Defense Minister Richard Marles said in Singapore on Saturday that Australia was keen to maintain the relationship polite including all countries in the region, added: This includes China.

Australia values ​​a productive relationship with China. China will not leave, and we all need to live together and hopefully prosper togetherdid he declare.

A Chinese military official asked if the so -called AUKUS deal with the US and UK for the supply of submarine technology was a new defense alliance, Mr Marles said theAUKUS is not a mini-NATO.

This is not a covenantHe added.

France Media Agency

Source: Radio-Canada

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