Japan wants explanation on failed submarine bid, Abbott confident partnership will stay strong

Updated

The Australian Government's decision to award France the $50 billion submarine contract has provoked a sensitive diplomatic engagement with Japan.

French company DCNS was the winning bidder, over options from Japan and Germany.

French Prime Minister Manuel Valls has voiced his approval on social media.

"Magnificent success for DCNS and our industry. Pride in our engineers, technicians and workers," he posted on Twitter.

"Hats off to the Franco-Australian partnership. France advances, France wins."

But Reuters is reporting the Japanese Government wants Australia to explain why it opted against the Japanese design.

The agency quoted Japan's Defence Minister Gen Nakatani as describing the Government's decision as "deeply regrettable".

"We will ask Australia to explain why they didn't pick our design," he said.

Australian officials contacted the Japanese Government ahead of the announcement to confirm the country was not successful in the 15-month competitive evaluation process.

Abbott says relationship with Japan can withstand decision

Before being dumped as prime minister, Tony Abbott had entered into an informal agreement with Japanese Prime Minister Shinzo Abe over the contract.

Mr Abbott released a statement today, saying he thought Australia's relationship with Japan would withstand the "disappointment" of it not being given the contract.

"Today's submarine decision flows from an exhaustive and very comprehensive process put in place by the Abbott government," Mr Abbott said.

"I am pleased that the shameful procrastination of the Labor years is now over.

"Australia's special relationship with Japan is more than strong enough to withstand this disappointment and I am confident that our strategic partnership will continue to grow through other means."

Prime Minister Malcolm Turnbull was questioned about any potential fallout and said Australia and Japan remained committed to a "special strategic partnership".

Foreign Minister Julie Bishop told reporters the bilateral relationship was in good shape.

"I believe our relationship is at an all time high and it will continue to be a fundamental part of the peace and security of our part of the world," she said.

German bidder Thyssenkrupp Marine Systems (TKMS) has also released a statement, with Australian chairman John White saying they respected the Government's decision.

"We are naturally disappointed but we stand ready to provide support for Australia's future submarines project with our unrivalled experience, leading technology and track record in building submarines in the customer's own country," Dr White said.

He said TKMS remained "committed to the essence" of Australia's shipbuilding projects, to transition its "naval shipbuilding industry to world class naval capability and competitiveness, capable of export".

Topics: federal-government, abbott-tony, defence-and-national-security, australia, japan

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