Australia's new Prime Minister Anthony Albanese says the French firm has agreed to a "fair and equitable settlement" of €555 million for breaking a massive €56 billion contract that sparked a diplomatic crisis between Paris and Canberra last fall.

France, through the Minister of 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 relationship with Australia and to look forward," Sébastien Lecornu told reporters in Singapore.

A little earlier, Naval Group had welcomed in a short press release a "fair" agreement, using the term of the head of the Australian government.

The French company, however, did not provide information on the amount of compensation.

The group specifies that it has "supported" its French and Australian partners and subcontractors in their efforts.

Finally, he thanks those who have advanced "for more than 5 years" this program which was ultimately aborted.

In September 2021, then-Australian Prime Minister Scott Morrison suddenly ended the French contract that had been in preparation for ten years.

The head of government announced that his country would buy American or British nuclear-powered submarines, a major change for a country with weak nuclear capabilities.

Mr. Morrison then drew the wrath of French President Emmanuel Macron, who accused him of deception and recalled his Australian ambassador in protest.

Former Australian Prime Minister Scott Morrison in Sydney on May 21, 2022 Saeed KHAN AFP/Archives

Relations between the two countries remained frosty until the election in May of centre-left Mr Albanese.

Since coming to power, he has rushed to mend strained relations with France, New Zealand and Pacific island nations who blamed the previous Conservative government for its slow pace on climate change.

Mr Albanese said he would soon travel to France to 'reset' a relationship marked by 'quite obvious' tensions.

Speaking on the sidelines of the security summit in Singapore, Lecornu said France valued its "friendship" with Australia.

The Naval Group site on May 8, 2022 in Cherbourg-en-Cotentin Sameer Al-DOUMY AFP / Archives

"Just because a government in history has broken its word doesn't mean we have to forget our strategic relationship... Australia has a new team in power, we look forward to working with them “, underlined Mr. Lecornu.

Master piece

In total, the failure of the French submarine contract will have cost 2.4 billion dollars to Australian taxpayers, said their Prime Minister.

The submarine contract is the centerpiece of Australia's defense strategy against China's growing influence in the region under Xi Jinping's presidency.

Then-Australian Defense Minister Peter Dutton (c) with US Chargé d'Affaires Michael Goldman (r) and UK High Commissioner Victoria Treadell (l) sign a powered submarine deal in Canberra nuclear, November 22, 2021 Kym Smith Australian Defense Force / AFP

Nuclear-powered submarines could allow Australia to operate more stealthily and deterrently from China.

But there is great uncertainty about when Australia will actually be able to own these devices.

The first American or British submarine is unlikely to be in service for decades, leaving a void for Australia with its aging fleet.

The choice of supplier will have significant economic impact and strategic implications, closely linking the Australian Navy to that of the chosen nation.

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

The current government has insisted that no decision has yet been made.

"Not a Covenant"

Meanwhile, Albanese also took steps to resume ministerial-level dialogue with China after two years of bitter political and trade disputes.

Australian Defense Minister Richard Marles said in Singapore on Saturday that Australia wants to have "respectful" relations with all countries in the region, adding: "That includes China."

"Australia values ​​a productive relationship with China. China is not going to leave, and we all need to live together and hopefully prosper together," he said.

Emmanuel Macron (2nd g) with then Australian Prime Minister Malcolm Turnbull (3rd d) on the deck of HMAS Waller, a Collins-class submarine built in Malmö, Sweden, on May 2, 2018 in Sydney Ludovic MARIN POOL/AFP/Archives

Asked by a Chinese military official whether the so-called AUKUS agreement with the United States and Britain for the supply of submarine technology was a new defense alliance, Mr Marles claimed that the "AUKUS is not a mini-NATO".

"It's not an alliance," he added.

© 2022 AFP