AUSTRALIA formally signed a US$50 billion contract with France to build 12 state of the art submarines yesterday, a signal of the country’s willingness to pro-ject power across the Pacific.

Prime Minister Scott Morrison hailed the “very audacious plan” at a ceremony in Canberra as “part of Australia’s biggest ever peace-time investment in defense.”

The contract for 12 attack-class submarines is with France’s Naval Group, a consortium with state backing, and has been years in the making. The first submarine is expected to be finished in the early 2030s.

Critics say that is too late: the waters to Australia’s north and east are the scene of an intense struggle between the United States and regional powers, who are all vying for influence.

Australian military analysts hope the subs will allow the country to maintain a credible deterrent against possible hostile actions. (SD-Agencies)