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Japan to fund India 'once it signs CTBT'

Japan's ambassador to India Hiroshi Hirabayashi today said his country was waiting for India to sign the Comprehensive Test Ban Treaty, or CTBT, before restoring economic links, suspended following the Pokhran nuclear test.

Once India signed the CTBT; Japan would review the situation and consider resuming loans and other assistance to India.

Talking to newspersons in Bhopal, he said despite the sanctions, Japan continued ''sizeable'' assistance of $ 900 million last year. However, it was $ 1.2 billion prior to the test.

He, however, said Japan was still funding ongoing projects, which were committed before the nuclear explosion, and assistance to projects of basic human needs, besides grassroots grant to India.

Referring to the three key areas of information technology, food processing and infrastructure for future Japanese investments in India, he said Madhya Pradesh, being a major farm producer, could explore the possibilities of such investments in food processing.

Another possible sector for Japanese co-operation could be infrastructure, even though it was a ''difficult'' one, he added.

Asked about the low Japanese investments in industrial sector of Madhya Pradesh, Hirabayashi said it was due to lack of ''vision'' of the state overseas.

For this, he stressed the need for proper publicity and public relations. The success of some Japanese companies in Madhya Pradesh could also provide positive signals to attract more investments from Japan.

He also suggested regular interaction between business communities of Madhya Pradesh and Japan, and seeking the help of Japanese mediamen and airlines to enhance business prospects between the two.

About the circumstances leading to the withdrawal of Japan from the proposed Narmada project, he said his country was prepared to extend co-operation for projects which were environment friendly and provided proper resettlement of the displaced people.

UNI

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