3 billion submarine deal

Australia decided not to shelve the issue of security and decided to create its own fleet of nuclear submarines.

Australia intends to provide 4.6 billion Australian dollars ($3 billion) to British industry to support the construction of nuclear submarines and ensure the timely arrival of the new fleet, the two countries said on Friday.

The announcement came a day after the two countries signed a defense and security pact to better counter challenges such as China's increased activity in the South China Sea and South Pacific.

"Nuclear submarines don't come cheap, but we live in a much more dangerous world where we see a much more assertive region with China, a much more dangerous world around us because of what's happening in the Middle East and Europe," Shapps said in Australian Broadcasting Corporation interview.

The 10-year deal, announced at the annual ministerial meeting, will increase capacity at the Rolls-Royce plant in Derby, UK, to build nuclear reactors that will power submarines to be built by BAE Systems in Adelaide, Australia.

Author: GEximius