INTRODUCTION 
This is No. 3 of a miscellaneous series of reports prepared jointly 
by the Board of Engineers for Rivers and Harbors, War Department, 
and the Bureau of Operations, United States Shipping Board. The 
juestion of the establishment in the United States of foreign trade 
zones (in Europe known as free ports) has been under consideration 
by Congress at various times during recent years, but no action 
thereon has as yet been taken. The subject relates to the functions 
of the Corps of Engineers, War Department, and the United States 
Shipping Board, and also falls directly within the scope of authority 
granted in section,8 of the merchant marine act for joint investigation 
by these establishments. 
It is generally recognized that while the immediate convenience 
claimed for free ports or foreign trade zones is the elimination of 
customs restrictions, the main argument in their favor relates to the 
development of transshipment and consignment trade and to the 
strengthening of the merchant marine. Closely related to the 
problems of the merchant marine is the question of adequate port 
development in the United States and the provision of channels 
properly located and of sufficient depth and width to meet the needs 
of the classes of vessels which the ports are likely to attract. 
In order to have complete and current data with respect to the free 
ports of Europe, the cooperation of the State Department was sought 
with a view to obtaining from consular officers abroad reports covering 
questions upon which the available information was obsolete or 
inadequate. These reports, with other data of interest to the study, 
are printed in part 2 of this volume. The War Department and the 
Shipping Board desire to express their appreciation of the efficient 
cooperation of the State Department in making available much 
information of value for the consideration of the subject. Analysis 
of this and other information already available is contained in part 1 
of this report.