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US and Australia not going back on cancelled €56bn submarine contract despite talk with French leader

France has agreed to return its ambassador to the US and Joe Biden has vowed not to cut Paris out of key future defence decisions in the Indo-Pacific after a phone call designed to calm French fury after he struck a submarine deal with Australia and the UK behind Emmanuel Macron’s back.

In a joint statement, issued after the phone call ended a five-day standoff between the leaders, the two men agreed to meet in Europe in late October, probably at the G20 summit, to discuss how to improve consultations in future.

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