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France, Australia agree on submarine compensation

According to comprehensive French media reports, on June 11, Australian Prime Minister Albanese announced that the Australian government will pay 555 million euros in liquidated damages to the French Naval Shipbuilding Group because the Morrison government unilaterally tore up the submarine purchase agreement signed with France. The two sides reached a settlement on this.

Albanese said that “we are rebuilding the friendly relationship between Australia and France” and looked forward to visiting Paris at the invitation of President Macron as soon as possible. French Defense Minister Le Cogni, who is attending the Shangri-La Dialogue in Singapore, told reporters that the move will “turn a new page in France-Australia relations” and that the relationship between the two countries is very important. “Le Monde” analysis pointed out that Australia urgently needs to improve its naval defense capabilities, but nuclear submarines made by the United States or the United Kingdom are unlikely to serve in 10 years.