MUMBAI, June 8: The flow of private investment from Japan to India is expected to continue unhindered despite the Japan government imposing economic measures against India following the nuclear tests.The ambassador of Japan, Hiroshi Hirabayashi, today said the Japan government would not discourage Japanese business from parking their money in India. Unlike US, the export/import bank of Japan is not under the purview of the economic measures and it would be free to work towards improving business relations between the two country.The economic measures of Japan would only mean that there be no fresh aid or soft loans would be forthcoming for developmental projects in India even as ongoing projects and the humanitarian aids would continue, the ambassador said. Japan is number three on India's export list and number six on its import list.The ambassador said it was unfortunate that India and Pakistan chose to carry out nuclear tests "but I hope the normalcy would soon be restored in the region", hesaid.On the Kashmir issue, the ambassador said that the Japan government had not evolved any clear position but as of today it believes that all out efforts should be made to resolve it bilaterally. The request for the third party mediation should come only from India or Pakistan, he added.He said the nuclear tests by the two countries have not improved security environment in South Asia contrary to the general perception among the people of India and Pakistan.
