Australian PM: The capabilities of French submarines were not in line with our strategic interests

Australian Prime Minister Scott Morrison said on Sunday that he assumed Paris was aware of Canberra's "serious and deep concerns" about French submarines before the deal was scrapped last week.

Earlier, Morrison dismissed French criticism over Australia's cancellation of a submarine deal, saying that he had raised the issue in talks with the French President back in June.

"I made it very clear, we had a lengthy dinner there in Paris, about our very significant concerns about the capabilities of conventional submarines to deal with the new strategic environment we're faced with," he told 5aa Radio.

"I made it very clear that this was a matter that Australia would need to make a decision on in our national interest."

Morrison on Friday also acknowledged the damage to Australian-French bilateral relations but insisted that he had told the French President Emmanuel Macron that Australia is having second thoughts about the deal and might have to make another decision, according to Reuters.

Le Drian regrets Australia's decision to scrap the deal

For his part, French Foreign Minister Jean-Yves Le Drian said on Saturday that the submarine issue will affect the future of NATO.

Le Drian considered that Canberra's cancellation of a huge contract with Paris that stipulates buying submarines from it constitutes a "serious crisis", denouncing "lying, duplicity and a major undermining of confidence," as well as "contempt" from France's allies.

The French Foreign Minister also accused Britain of "permanent opportunism", saying that France considers that it is in a crisis with Washington and Canberra after the submarine deal was canceled.

French Ambassador: Australia made a grave diplomatic mistake

Earlier, the French Ambassador, Jean-Pierre Thibault, had said Australia made a "grave diplomatic mistake" after it backed out from a multi-billion dollar deal to buy French submarines in favor of an alternative deal with the United States and the UK.

Australia announced last Thursday that it would cancel a $40 billion deal it struck in 2016 with France's Naval Group to build a fleet of conventional submarines, and instead build at least eight nuclear-powered submarines using US and British technology after a trilateral security partnership.