The Aukus Submarine Crisis Take II, Triumph of the British

Aukus Deal Background

In secret negotiations called Aukus, the US, UK and Australia agreed to intensify their collaboration on key technologies like artificial intelligence, cyber, quantum, underwater systems, and long-range strike capabilities.

As part of that deal, Australia agreed to buy 12 nuclear submarines from the US. The problem is Australia had long ago agreed to buy them from France, in what France called the deal of the century for its manufacturing.

Things split wide open in the last two days over the cancellation. Yesterday, I commented France Accuses US and Australia of Stab In the Back Over Submarine Deal

In an unprecedented action France recalls its ambassadors to the U.S. and Australia. The move marked the first time that France recalled its ambassador to the U.S. in their nearly two and half centuries of diplomatic relations.

Aukus Regret, No Apology

Today The Guardian offers further commentary on the Aukus Rift.

The Australians have expressed regret over the French decision, but have offered no apology.

European diplomats are bemused. They thought that with the advent of Joe Biden in the White House, the diplomatic experts were back in charge after the chaos, rudeness and unpredictability of Donald Trump – though at least Trump insulted his allies in the open on Twitter or to their face. “Joe Biden, it seems, uses one hand to greet you, and the other to stab you in the back. It is quite audacious,” said one.

 Sir Simon Fraser, a former permanent secretary at the Foreign Office, captured the mood among many diplomats, saying on Twitter: “The Biden foreign policy team, which was seen as reassuringly professional and experienced, now look surprisingly clumsy and tin-eared in its miscommunication with its allies.”

Asked what she thought of her administration’s transatlantic bridge-building at a Chatham House event on Friday, Nancy Pelosi, the Democrat House speaker, seemed oblivious to there being a problem.

US Blames Australia

Embarrassed US state department officials initially claimed the French had been informed of the contract’s cancellation; unable to produce any supporting evidence, however, they weakly suggested that they thought it was for the Australians to inform the French. “They [the Australians] told us they would take care of dealing with the French,” one US official told the New York Times. This casts America in the role of a bystander that fortuitously happened to benefit from the French naval group’s inability to deliver a contract on time and to specification.

From the French perspective, this is simply not credible. The US talks to cancel the submarine contract went on for months in utmost secrecy. At the G7 meeting in Cornwall, Macron was given no hint that the Australians were about to scupper the deal. Three days later, the Australian prime minister, Scott Morrison, saw Macron and left him with the impression that Australia felt reassured that technical aspects of the contract including delays, cost overruns could be resolved.

Biden’s Impeccable Timing

The Aukus pact was announced the day before the EU was to unveil its long-awaited Indo-Pacific strategy, and the week before Biden was due to speak to the UN general assembly, the Royal Ascot of diplomacy. If his China policy is about building a network of alliances against Beijing, the US president has a strange way of constructing those alliances.

Triumph of the British

From the British perspective, this is a triumph. Many diplomats had predicted the UK would become less important to the US once it had left the EU, since it had acted as the bridge between Washington and Brussels. That looks less true now. The Australian right is delighted because it has always seen Brexit as a path to a closer relationship with the British.

At What Cost?

Any bets on the real cost of this program?

Hint, they do want to build them in Australia, not exactly known to be cheap, but also with no nuclear submarine building expertise 

US Foreign Policy Circus Continues 

The proper conclusion from all of this is the US foreign policy circus continues. 

There is a change though. 

Instead of openly belligerent Tweets with Trump demanding the spotlight, we have secret deals and back stabbings with House Speaker Nancy Pelosi and Congress in general oblivious to everything.

The UK, which the EU thought would be relegated to background noise following Brexit, emerged as the big winner from this mess. 

Ironically, this outcome is exactly what Trump wanted! 

Submarine Gap

Mineshaft Gap Dr. Strangelove

Mr. President we must not allow a submarine gap!

There’s always a gap isn’t there?

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LawrenceBird
LawrenceBird
2 years ago
The Aussies claim to have been very vocal about the likely cancellation of the French deal since at least June, including in person between the PMs.  I’m also not sure why it is expected that the party who will be fulfilling the new contract to contact the previous winner?  When I fire a contractor and hire another, I don’t ask the guy I’m hiring to inform the other that he is fired.
Siliconguy
Siliconguy
2 years ago
The French also botched the project.  
“The project was meant to cost 50 billion Australian dollars (€31 billion). But that figure has since almost doubled.

At last count, the link to www1.defence.gov.au around 90 billion Australian dollars (€56 billion). And that’s before the government factored in the cost of maintenance — which in November 2019, the department of defense told a Senate committee would set Canberra back a further 145 billion Australian dollars (€90.1 billion) over the life of the subs.

And that wasn’t all.

Australia urgently needed new subs to replace its six aging Collins-class submarines, which were slated for retirement in 2026. Without subs, Australia would be left vulnerable at a link to politico.eu. But the first Barracuda couldn’t be delivered until 2035 or later, with construction extending into the 2050s.”

The French nuclear reactor in Finland is also way behind schedule. link to en.wikipedia.org
I think they just lost confidence in the ability of the French to build anything. 
fiat124
fiat124
2 years ago
Mish, here is more on the culture differences between the French workers and the Australian expectations.
RonJ
RonJ
2 years ago
“The US talks to cancel the submarine contract went on for months in utmost secrecy.”
What goes on in secret, we don’t know. What secrecy are official narratives hiding? Einstein said to question everything.
LM2022
LM2022
2 years ago
Triumph of the British?  The Brits are seen as useless lapdogs in all of this which is why the French didn’t bother to recall their ambassador.
Casual_Observer2020
Casual_Observer2020
2 years ago
There is more to this deal then meets the eye. Why is China now so upset about this deal ? Did the US perhaps have intelligence that France and China have a strategic alliance ? It’s interesting that geopolitically the US and Australia’s relationship has grown tighter with mines that China once thought they had there now being turned over to US interests. Singapore, Australia, South Korea, Japan and others in southeast Asian all have US and UK support and backing. Cant help but wonder if a full blockade of Chinese ships near Taiwan is in the offing. 
Maximus_Minimus
Maximus_Minimus
2 years ago
Sorry if it’s a bad form to link to other site, but Moon of Alabama has a good technical analysis:
PS: It doesn’t mock the French for cancelling the Mistral deal at a final stage.
pyrrhus
pyrrhus
2 years ago
Australia’s problem is with China, which is squeezing OZ’s economy…nuclear submarines which may be ready in 20 years (not likely), are utterly useless against China, which will have taken over Australia politically, economically and if necessary, militarily, long before then…
Jojo
Jojo
2 years ago
What does Aus need nuke subs for anyway?  Especially 12 of them?  To keep Indonesian fishing trawlers out of their territory waters?
Captain Ahab
Captain Ahab
2 years ago
Reply to  Jojo
As a deterrent, by approaching mainland China undetected (hence nuclear-powered), positioning close enough for traditional missiles, and remaining there undetected for a month at a time (hence 12   /sarc).
Jojo
Jojo
2 years ago
Reply to  Captain Ahab
I still don’t see why this is important.  I doubt Aus has anything technical or military wise that China would be interested in.  And these subs won’t have nuke millsles, so what are they going to, ram a China sub and sacrifice themselves for mother AUS?  This is just more wasted money spent on the military that the current government insists is necessary for some kind of “protection”.
But I guess this is understandable coming from an authoritarian government (see Covid police/military responses to Covid street protests).
TexasTim65
TexasTim65
2 years ago
Reply to  Jojo
You don’t need nuclear missiles to be dangerous. A standard cruise missile into the 3 Gorges Dam would prove every bit as effective as a nuke and from just offshore it would be there in a few minutes.
Anyway it’s mostly about the shipping lanes and preventing Chinese aggression in SE Asia. Australia still remembers being cut off from the world in WWII and their country is roughly the same size as China, a storehouse of raw materials and only has 1/30 the population.
StukiMoi
StukiMoi
2 years ago
Reply to  Jojo
They aren’t buying subs. They are buying a closer military relationship with the US. That’s the deterrent they are looking to buy. Hence, no matter how nice a fleet of subs France offers them, they come up short.
davebarnes2
davebarnes2
2 years ago
Captain Ahab
Captain Ahab
2 years ago
Meanwhile, New Zealand has placed an order for two solar-powered submarines.
Felix_Mish
Felix_Mish
2 years ago
Reply to  Captain Ahab
And at night they burn hydrogen and oxygen from their di-hydrogen-monoxide tanks.
Jojo
Jojo
2 years ago
“Instead of openly belligerent Tweets with Trump demanding the spotlight, we have secret deals and back stabbings with House Speaker Nancy Pelosi and Congress in general oblivious to everything.”
———-
Calling Shakespeare, please step forward.
Actually, the real problem was that the instructions to operate the submarines were required to be in both French and English, which the Australians found annoying.  
Doug78
Doug78
2 years ago
Reply to  Jojo
French view:
To the Americans:
Et Tu, Joe Biden? 
and to the Australians:
“[Thine] face is not worth sunburning.
― William Shakespeare, Henry V
TexasTim65
TexasTim65
2 years ago
Reply to  Jojo
“Actually, the real problem was that the instructions to operate the
submarines were required to be in both French and English, which the
Australians found annoying.”
Nope. The real problem is that French built Submarines have an auto-surrender feature that can’t be disabled 😉

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