The external file handler is supported in JVM but the CALLFH"FHREDIR" directive tells it to use Fileshare instead of the local file handler. Fileshare does not appear to be supported yet in a JVM project.
If this is something that you actually require then I would recommend that you open up a support incident with customer care for this.
If you are simply evaluating the product then I would recommend that you remove this directive from your project settings and then the default local file handler will be used.
Thanks.