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Leased submarines to fill security gap

Australia plans to lease and share existing nuclear-powered submarines years before acquisition, narrowing a risk the American or British subs arrive too late to counter China’s rapid military expansion in the Indo-Pacific.

Prime Minister Scott Morrison, who heads to the US on Monday, tried to take the heat out of France’s condemnation and the recalling of their ambassadors in retaliation for the $90 billion submarine contract cancellation, saying on Sunday that he understood the “deep disappointment” but he had to protect Australia’s sovereign interest.

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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
Matthew Cranston was The Australian Financial Review’s United States correspondent.

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    Original URL: https://www.afr.com/link/follow-20180101-p58syl