Payne defends subs deal diplomacy with French

Foreign Minister denies Australia told US in June it had ‘all but told France’ it was pulling plug on $90bn submarines deal.

Senators Penny Wong and Marise Payne went head to head during Senate Estimates over the French submarines contract. Picture: NCA Newswire / Gary Ramage

Foreign Minister Marise Payne has denied the government told the US in June that it had “all but told France that they were pulling the plug” on the $90bn Attack-class submarines.

Senator Payne said the government had worked to prepare the Macron government for the decision, but only informed French counterparts on the eve of the announcement.

“There had been discussions over a period of time of our concerns … that a conventional submarine, even a conventional submarine of the standard of the prospective Attack-class, was not going to be able to meet our strategic needs in the future,” she said.

“The Prime Minister had been clear that decisions Australia would be making were based on our national security interests. So those discussions had been had.”

As Joe Biden scrambled to repair his relationship with French President Emmanuel Macron after the September 16 AUKUS announcement, US media organisation Axios reported Biden and his aides had “acknowledged they were mistaken to leave it to the Australians to tell the French they were killing their submarine deal”.

“The Australians told the Americans in June that they had all but told France that they were pulling the plug, both in writing and in direct conversations between Macron and Australia Prime Minister Scott Morrison, according to two sources familiar with the assurances,” Axios reported.

But Senator Payne and senior Foreign Affairs official Justin Hayhurst said they had no knowledge of anything that had been said to US officials that would have conveyed that impression.

Senator Payne said it was “an assertion”, and dismissed the article as “another piece of reporting”.

Labor foreign affairs spokeswoman Penny Wong accused the government of bungling diplomatic efforts with France, which has branded the decision as “stab in the back” and a serious blow to its relationship with Australia.

“Why was the decision made by government not to … prepare the ground on this a bit more with the French?” Senator Wong asked.

Senator Payne replied: “I have indicated and the Department of Prime Minister and Cabinet has indicated in their discussions with you that there have been a number of conversations on these matters.

“But I fully accept the disappointment that has been expressed.”

Mr Morrison informed Mr Macron the Attack submarines had been cancelled in favour of US or UK nuclear boats on the night before the AUKUS announcement.

Senator Payne said she informed her French counterpart Jean-Yves Le Drian by phone on the eve of the announcement.

She said she had sought a follow up call with Mr Le Drian two weeks ago, but was still waiting to hear back on when it might occur.

Senator Payne revealed she would speak to French Ambassador Jean-Pierre Thébault on Monday in their first meeting since he returned to Australia after being recalled to Paris.