Australia denies re-commissioning $60 B French submarine contract

REUTERS David Gray Files.

SYDNEY, Sept 23 Reuters - Australia denied on Thursday an assertion by France that Canberra had re-committed to a $60 billion contract to buy French subs in a letter sent just before it announced it was buying Subs from the United States and Britain instead.

Canberra's decision to contract a French submarine while forming an alliance known as AUKUS with Washington and London has caused a diplomatic quarrel. France said it was bludgeoned by an Australian stab in the back Earlier this week, France's Armed Forces Minister wrote on Twitter that Australia had written a letter to France on the day of the AUKUS announcement, stating satisfaction with the progress of the program.

In short: forward to launching the next phase of the contract, spokesman Herve Grandjean wrote. However Australia's defence department on Thursday said the letter, which it said was sent the day before the announcement, included no new commitments.

This correspondence did not authorise or refer to the commencement of the next phase of the programme that remained subject to the announcement of decisions by the Australian Government, a Department of Defence spokesperson said in a statement to Reuters.

The letter, dated September 15, advised French defence contractor Naval Group that it had formally exited a review begun in January, the spokesperson said. The contract between Australia and Naval Group included off-ramps in which Australia could pay to exit the project.

The Naval Group said Australia terminated the contract on convenience grounds.