Paris Is Shocked — Shocked! — Its Submarine Deal Fell Apart
Anyone surprised by the latest diplomatic fracas wasn't paying attention. The project was deeply troubled, and Australia's regional security concerns were becoming more acute.
L’age d’or.
Photographer: Thomas Samson/AFP via Getty Images
Never mind the howls of outrage from Paris or the indignation of Beijing. Australia’s scuttling of a $65 billion French submarine contract in favor of yet stronger ties with the U.S and U.K. is significant but hardly earth-shattering. The true import of the contretemps is that it underscores long-standing problems with the economic and security allegiances that dominate the Asia-Pacific region. It may even open up a few opportunities.
The project to build a fleet of diesel-powered submarines for Australia, awarded to France in 2016, was deeply troubled. For years, Australian politicians complained about cost overruns and delays. During that time, commercial and diplomatic ties between Australia and China worsened dramatically. Disappointment with the French deal grew so great that Australia said a few months ago it would give older boats a refit to prolong their life while waiting for the new ones. Not exactly a vote of confidence. Was anyone in Paris listening?