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A major diplomatic spat has erupted after France recalled its ambassadors to Australia and the USA. The rift follows Australia cancelling an order France to supply it 12 conventional diesel-powered submarines. The deal was signed 2016 and was worth $37 billion business to the French. Instead, Australia has opted to buy nuclear-powered submarines, reneging the 2016 agreement. France's President Macron called the cancellation the deal a "stab the back" and a "betrayal" Australia. Mr Macron also recalled France's top diplomat to the USA. He said the US and Australia were exploring "the possibility future cooperation nuclear-powered submarines".

A new, strategic security alliance Australia, the UK and the USA is the cause the split. The alliance is called AUKUS - an acronym based the names the three countries signed up to it. AUKUS means Australia will be provided the technology to operate nuclear-powered submarines. France says it was only informed the alliance hours before it was publicly announced to the world. France is the USA's oldest ally. The French foreign minister said his country's "exceptional decision" was because the "exceptional gravity" the situation. It is said AUKUS is to counter China's influence the region. China accused the three AUKUS powers displaying a "Cold War mentality".

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