In escalation over submarine deal, France recalls envoys from US and Australia

PARIS/CANBERRA/WASHINGTON: France plunged into an unprecedented diplomatic crisis with the United States and Australia on Friday after it recalled its Ambassadors from both countries over a trilateral security deal which sank a French-designed submarine contract with Canberra.

The rare decision taken by French President Emmanuel Macron was made due to the "exceptional gravity" of the matter, Foreign Minister Jean-Yves Le Drian said in a statement.

On Thursday, Australia said it would scrap a $40 billion deal signed in 2016 for France's Naval Group to build a fleet of conventional submarines and would instead build at least eight nuclear-powered submarines with U.S. and British technology after striking a trilateral security partnership. France called it a stab in the back.