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France would have known Australia had “deep and grave concerns” that a submarine fleet the French were building would not meet Australian needs, Prime Minister Scott Morrison said Sunday after the contract's cancellation set off a diplomatic crisis.

France accused Australia of concealing its intentions to back out of the 90 billion Australian dollar ($66 billion) contract for French majority state-owned Naval Group to build 12 conventional diesel-electric submarines.

President Joe Biden revealed last week a new alliance including Australia and Britain that would deliver an Australian fleet of at least eight nuclear-powered submarines.

Morrison blamed the switch on a deteriorating strategic environment in the Indo-Pacific. He has not specifically referred to China’s massive military buildup, which has gained pace in recent years.

“The capability that the Attack class submarines were going to provide was not what Australia needed to protect our sovereign interests,” Morrison said.