Prime Minister Scott Morrison has denied accusations by French President Emmanuel Macron that he lied over the scrapping of a $90 billion submarine contract.
Mr Macron was probed about the damage done to the relationship between France and Australia at the G20 summit in Rome overnight.
He was asked if Mr Morrison lied to him, to which the French President replied: "I don't think, I know."
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Mr Macron was also asked if he could trust Mr Morrison again.
"We will see what he will deliver," he replied.
"I have a lot of respect for your country, a lot of respect and friendship for your people. I just say when we have respect, you have to be true and you have to behave in line and consistent with this value."
But later in Rome, Mr Morrison insisted he had not lied when the Federal Government did not fulfil the submarine contract.
The Prime Minister said he would always stand up for Australia's interests.
PM acted in national interest: Frydenberg
Federal Government ministers today backed Mr Morrison's insistence that he had not lied to the French leader.
Treasurer Josh Frydenberg told Today that the Prime Minister made the decision to scrap the $90 billion diesel-powered submarines contract with a French defence company was in the interest of Australia's national security.
"The prime minister has very firmly refuted those claims. There's disappointment on the French side. This was a major defence contract that they wanted to see through to completion."
Mr Frydenberg said Australian interests would be better served after it joined the AUKUS defence pact with the US and Britain. Under the agreement, Australia will acquire nuclear-powered submarines.
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"Technology is advancing very rapidly and Australia has now been able to secure a new partnership with two major allies and friends in the United States and the United Kingdom. And in doing so gain access to the best technology to enhance our national security."
Mr Frydenberg said despite Mr Macron's comments, the Federal Government was committed to improving relations.
"Let's not forget there is already an existing set of defence arrangements and contracts that are in place. The two-way trade between our two countries is worth nearly $8million a year."
Federal front bencher David Littleproud also came to the prime minister's defence, saying Mr Macron was looking ahead to next year's French elections when he made his comments.
"It is a little unreasonable. It is more to do with the French election coming up more than anything else," Mr Littleproud said.
"While we have an election, we are obviously coming up, we still have to be honest with the Australian people. Our job was to keep them safe."
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Earlier, Mr Morrison and Mr Macron crossed paths at the G20 summit in Rome.
Photos from Rome showed Mr Morrison and Mr Macron greeting briefly in a crowd.
"He was having a chat with someone and I went up and just put my arm on his shoulder and said 'g'day Emmanuel', and 'look forward to catching up in the next couple of days'," Mr Morrison told reporters from Rome.
Relations between France and Australia plummeted after the Federal Government announced it ditched a $90 billion diesel-powered submarines contract with a French defence company in favour of a future deal for nuclear-powered submarines, after it joined a new defence pact with the US and UK.
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