LETTERS OF TRANSMITTAL UNITED STATES SHIPPING BOARD, Washington. February 20, 1929. Mr. Georce Parson, Acting Director, Bureau of Operations, Washington, D. C. Dear Str: At the instance of the Shipping Board, the joint pro- gram of activities in progress between the board and War Depart- ment has been extended to include a study of the probable effect en shipping and terminal development of the establishment of free ports or foreign trade zones in the United States. The question of establishing foreign trade zones or free ports in this country has been of interest to the shipping public for some time and has been before Congress on a number of occasions, and is now again before that body as a result of bills having been introduced by some of its members. It was with a view to developing full information regarding the practicability of the establishment of such ports that this study has been made. It has been the aim of those making the investigation to present in a succinct and impartial way the facts as they exist and to avoid all argumentative and partisan statements. The investigation has been general in scope and has sought merely to point out the effects produced by the establishment of such ports on shipping and terminal facilities in foreign countries in order to furnish a basis for judgment as to whether, if they were established in the United States, the same results could be looked for. The report having been completed, I take pleasure in transmitting same herewith and recommend that it be approved. Respectfully, Samuel R. HoweLy, In Charge Domestic Port Surveys, Port Facilities Ihvision. Approved. GeorcE Parson, Acting Director, Bureau of Operations, United States Shipping Board. UIT