Us, Japanese Investors Prefer To Wait & Watch

The American Business Council (ABC), the apex body looking after the business interest of American companies in India, feels that the hype over sanctions against India is slightly misplaced.

When approached for their reaction to India carrying out nuclear explosions in the Pokhran range, sources in the ABC said, The sanctions are not in place, all that we have is the a copy of an aide President Clinton which says the United States is examining the implications. In such a scenario how can the ABC react?.

ABCs new chairman is currently away to New Zealand and will only be back later this week.

 

The other members have adopted a `wait and watch policy.

ABC sources said that once the sanctions come as a fait accompli, the issue will be discussed with those concerned.

What everybody is forgetting is that United States sanctions will have an effect on US companies prospects too, the sources added.

Meanwhile, Jetro, the apex body looking after the interest of Japanese companies in India, was cautious in its reaction to the nuclear explosions carried out by India and the fallout of the sanctions by the Japanese government.

Sources there said the Japanese are politically sensitive to atom bombs and nuclear devices, and Indias explosions have generated a lot of negative feeling among Japanese people. Even the Japanese businessmen have become skeptical about their investment plans, they added.

However, the sources were reluctant to give a formal reaction saying it was up to the Japanese government and its Embassy in India to give an official reaction.

They said there were reports in Japanese newspapers which suggested that the Japanese government was going to take stringent actions against India.

The pressure would increase following the two nuclear tests conducted at Pokhran yesterday.