French envoy says Australia "in denial" over subs row, trust regained with U.S

BANGKOK (Reuters) - France has restored "a degree of trust" with ally the United States but not with Australia after a debacle over Canberra's cancellation of a multi-billion dollar submarine deal with Paris, a French regional envoy said on Thursday.

Christophe Penot, ambassador for the Indo-Pacific, said the rift with Canberra continues because the Australian government is still "in denial" about communication of the decision.