Australian PM defends his decision after France criticizes Axis deal
Australia has defended its decision to cut billions of dollars in submarine purchases from France in favor of a new security agreement with the United States and Britain.
Prime Minister Scott Morrison has denied allegations that Australia lied, saying France should have known it was ready to break the treaty.
France says the Axis deal has caused a "serious crisis" between allies.
France has recalled its ambassadors from the United States and Australia as a sign of protest, making history.
Under the Axis agreement, Australia will be given the technology to build nuclear-powered submarines to counter China's influence in the South China Sea.
The deal cancels Australia's 37 37 billion contract to build 12 conventional submarines in 2016. France says it was notified of the deal hours before it was announced earlier this week.
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Mr Morrison, Australia's prime minister, said on Sunday he understood France's frustration, but had always been clear about Australia's position.
"The French government has every reason to know that we have deep and serious concerns," he said.

