6
FOREIGN TRADE ZONES
No industries are located in the existing free port at Fiume. At
(Genoa the grading and preparation of such products as coffee, cocoa,
etc., the bottling and canning of food products of various kinds, and
the refining of edible oils are carried on. With the exception of the
blending of olive oil, no manufacturing is carried on in the free zone
at Leghorn, the reason as given by Consul MacVitty being that indus-
tries in the city are permitted to import raw materials without pay-
ment of duty for the use of export manufactures. At Trieste no in-
dustry which in course of manufacture alters the substance of the
goods involved is permitted. Consideration is being given to the
advisability of modifying this rule for the purpose of increasing the
trade of the port, and it is reported that steps are being taken to se-
cure the agreement of the Government for the industrialization of the
zones. At present there is only the Ford plant in which are assembled
Ford cars, tractors, and Lincoln cars for reexport to Italy and the
countries of the hinterland, tobacco manipulating plants and a lum-
ber mill. Coffee is sorted and cleaned in special depots let to private
traders, and Dalmatian and Greek wines are imported and reexported
after filling into casks.
Saloniki.—The statutes of the Greek free zone provide for the opera-
tion of industrial enterprises, but the area occupied by the zone is too
limited to permit the establishment of factories, and no manufactur-
ing is allowed. From 200 to 300 persons are employed in such work
as the shelling of nuts and the sorting of fruits and dried vegetables
from Yugoslavia, and the sorting and repacking of cocoons and opium
of Serbian and Turkish origin for reexport. The plans call for the
construction of “facilities for manipulating and handling tobacco, and
the question of other manufactures will be examined in the near fu-
ture in conjunction with plans of the administration for extension of
the zone.
Sulina.—While Consul General Ely E. Palmer states that no oper-
ations are specifically prohibited in the free zone, it appears that no
factories of any kind have been established.
Manufacturing in proposed free ports of the United States.—The
prohibitions and restrictions affecting manufacturing in the free ports
of Europe make apparent the purpose of these countries to prevent
the privileges of the free port from becoming a menace to domestic
commerce and industry. It has been a common practice to restrict
operations in the free zone to those which do not involve a change in
the form of the commodity. Operations quite generally permitted
include packing, reconditioning, sorting, grading, mixing, and dividing,
while a number of free ports permit refining and others permit assem-
bling of machinery, automobiles, etc. At the free port of Hamburg,
with the exception of shipbuilding, manufacturing has been of minor
importance.