COMPENSATION SOUGHT AFTER SUB DEAL SCRAPPED

France has called for compensation after Australia scrapped a submarine contract with it in favour of a new alliance with Britain and the U.S. — a first in an escalating diplomatic row between the four allies. The demand came after the Australian prime minister Sunday claimed France had long been aware of “grave concerns” about the deal.

“Obviously there will be a need for compensation,” said Gabriel Attal, a spokesman for the French government.

“We need to exchange with our partners to see how they intend to leave this contract since there are clauses which have been signed, there is a whole procedure which has been foreseen.”

Attal did not specify how much France expected in compensation for Australia's cancellation of the $127 billion contract to buy diesel-electric submarines.

The penalties to be paid to Naval Group, the French company that was to have built the submarines, have been estimated by the Australian press at around $375 million.