Australia and France make ‘new start’ after submarine row

“Trust, respect and honesty matters,” Mr. Albanese told reporters. “This is how I will approach my relations” with France

Australia and France opened a “new chapter” in their relations Friday as the new Australian Prime Minister seeks to heal wounds from a secret submarine contract that infuriated France.

President Emmanuel Macron warmly shook hands with Australian Prime Minister Anthony Albanese outside the French presidential palace, showing a thumbs-up before putting his arm around the Australian leader's back as they headed inside for talks.

“Trust, respect and honesty matters,” Mr. Albanese told reporters. “This is how I will approach my relations” with France.

Paris responded with fury when the previous Australian government announced in September that it was cancelling a 90 billion Australian dollar ($62 billion) contract for French-made diesel-electric submarines. Instead, Australia had struck a deal with the United States and Britain to provide submarines powered with US nuclear technology, which French leaders said was sealed behind their backs.

France temporarily withdrew its ambassadors from the US and Australia, and Macron accused former Australian Prime Minister Scott Morrison of lying to him, which Morrison denied.

After coming to power in May elections, Mr. Albanese’s Labor Party government announced it had agreed to pay France’s Naval Group a 555-million-euro ($583 million) settlement for breaking the contract.