38
FOREIGN TRADE ZONES
with pre-war conditions there has been a decrease of about one-third,
due to the economic collapse of Russia, the lowered purchasing
capacity of the States of the Baltic rand and the other causes stated
hereinafter. a
Much of the transit trade consists of general cargo and includes &
variety of articles of merchandise of foreign manufacture or produc-
tion. The statistics for 1926 show that about one-half of the esti-
mated tonnage of the transit trade was made up of the following
articles of non-Danish production in the approximate amounts
stated :
Tons
29, 000
8, 000
5, 500
4, 500
3, 000
The foregoing statement disregards the coal and fuel oil credited
to free-port exports, as the statistics of these items undoubtedly
include and probably consist wholly of fuel supplies of vessels which
have bunkered in the free port during the year.
Manufacturing in free zone.—Although under the charter of the
corporation all kinds of manufacturing may be carried on in the free
port subject to permission previously obtained from the Secretary
of the Interior, except in respect to those particularly prohibited
under article 19 as referred to above, no activities to this kind have
yet been established.
Shipbuilding and ship repair in free zone.—There are no facilities of
this kind in the free port but excellent facilities are offered in ship-
yards in the vicinity, particularly in the establishment of Burmeister
and Wain, the largest of its kind in Denmark, located immediately
across the main harbor channel, about three-quarters of a mile
distant.
Influence of free port on the development of foreign trade.—Undoubt-
edly Danish merchants have profited to a certain extent from the
transshipment of foreign goods to the Baltic States, particularly
those on the south, but this trade has not developed in accordance
with expectations entertained during and immediately following the
war. In the first place, the easy accessibility to Baltic ports of small
vessels carrying full cargoes from the ports of Northern Europe and
the rail facilities offered from Central Europe, leave no occasion for
the use of larger vessels which would break cargo at Copenhagen.
The nearness of the free port of Hamburg, which has easy access to
the Baltic through the Kiel Canal, the recent establishment of a free
port at Malmo, Sweden, just across the sound from Copenhagen,
rail connection between Sweden and Central Europe by steam ferry