The contract Political/diplomatic issues tend to get a mite convoluted, so let’s keep this simple. Australia had a contract to have some diesel submarines manufactured by France.   If Australia backed out of the contract they had to pay a penalty of between $330,000,000 and $404,000,000 to France. (Dependent on your sources) Australia did … Continue reading French submarines – Why are we paying $5.5 billion for a $400 million contract breach? – Mick Lawless