France has expressed disappointment with Australia after the country canceled its submarine contract worth an estimated $66 billion. Australia chose to bail on the contract to instead work with the U.S. and the UK for its submarine needs, placing France at odds with the two nations as well.
As a result, France recalled its ambassadors from the U.S. and Australia. When Australia made the initial order in 2016, it was considered to be the largest defense contract in its history. Australia ordered 12 new diesel-electric submarines from France, which would have replaced its current fleet of Collins-class submarines.
Australia chose France over Germany and Japan, who were also bidding for the contract. Since then, the naval landscape in the Indo-Pacific region has completely changed. China has been rapidly growing its military force, which has more than doubled since 2015. Australian officials said they had to cancel the order as France can no longer supply the type of submarines the country needs.
"The security challenges in the Indo-Pacific region have grown significantly. Military modernization is occurring at an unprecedented rate and capabilities are rapidly advancing and their reach expanding," officials said.
Under its new agreement with the U.S. and the UK, a trilateral security partnership called AUKUS, Australia will be acquiring new nuclear-powered submarines. The project, which will be the group's priority for the next 18 months, will be spearheaded by Australia's Department of Defense. Australia hopes that having the "technological edge" in the region would allow it to be a "reliable steward."
Australian Prime Minister Scott Morrison said having powerful nuclear submarines is not a want but a need for the country. He said Australia needs to have the capability to protect its people and interest in the region.
China has openly condemned the new AUKUS partnership. Officials said the sharing of nuclear technologies by the three governments is "irresponsible." Chinese Ministry of Foreign Affairs spokesperson Zhao Lijian said such an agreement presents a clear threat to the stability of the Indo-Pacific region.
Requisitioning the new nuclear submarines will be Australia's first time utilizing nuclear technology. The nation had previously opted to abandon any nuclear pursuits when it signed the United Nation's Treaty on the Non-proliferation of Nuclear Weapons in 1970. Morrison clarified that Australia still has no intention of using nuclear weapons. He said the submarines will be nuclear-powered but not nuclear-armed.
