France's Macron says Australia PM lied to him

French President Emmanuel Macron said Australia's leader Scott Morrison lied to him over a cancelled submarine contract.

It's latest shot fired between the two countries as both leaders were in Rome for the G20, meeting for the first time since Australia ditched the multibillion dollar deal with France.

Macron spoke to a group of Australian reporters on the sidelines of the summit.

"I have a lot of respect for your country. I have a lot of respect and a lot of friendship for your people. I just say when we have respect, you have to be true and you have to behave in line and consistently with this value"

"Do you think Morrison lied to you?"

"I don't think, I know."

Australia formed a new security alliance with Britain and the U.S known as AUKUS in September and announced a new order for nuclear-powered submarines.

Macron says AUKUS caught them off guard and later France recalled its ambassadors from Washington and Canberra.

Speaking later at the conference Morrison then fired back at Macron.

He said he had explained to Macron that the conventional submarines would no longer meet Australia's needs and that they were already rebuilding their ties.

On Friday, U.S. President Joe Biden said he had thought France had been informed of the contract cancellation before the AUKUS pact was announced, but that the handling of the new agreement had been clumsy.

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