274 FOREIGN TRADE ZONES
for export, that is, for reexportation of materials which have been
imported in the raw state and which, after being manipulated and
worked, are exported in the finished or semifinished state. The
industrial plants in the new port of Venice at present do not reexport
their output, that is, to any considerable extent. They produce
almost wholly for domestic consumption, which reduces the impor-
tance of free-port facilities to them.
Free port advantageous to ports having transit traffic.—Venice has
little port traffic which might be considered truly in transit, and this
is another reason why free-port facilities are not regarded as being so
vital to the interests of the port. As compared with Venice, the port
of Trieste has more transit traffic and this has a direct bearing on
the question of free-port facilities.
Several years ago Trieste was to have been declared a free port
and plans were made for the granting of that privilege to that port,
but Venice protested and maintained that in case that Trieste be made
a free port, Venice insisted that it be also granted like privileges, as the
interests of the two ports were too close to permit of any possible
advantage to one which might affect the traffic of the other. Soon
thereafter the matter was dropped and neither port received free-port
privileges at that time.
The export traffic of Venice is very small, having been about 220,400
metric tons in the calendar year 1927, and of this, little would have
been affected by the existence of the free port, had there been one in
existence, but with a rearrangement of the industry of the port of
Venice and a delineation of the free-port zone, with its rigid customs
barrier to separate it from the port proper, the export traffic might
assume another aspect, that is, it might grow somewhat provided
that the burden of customs duties be not replaced by taxes or other
charges which would vitiate the profits or advantages from the privi-
leges granted by the free port.
Free-port zone as tentatively outlined. —The representatives of Venice
at the national free-port conferences at Rome have already drafted
a tentative plan of delimitation of the free-port zone for the port of
Venice, and it is roughly made to include all the “stazione marittima’
(old port of Venice) in Venice proper east of the dock known as the
Scomenzera, which would include most of the present port of Venice,
as well as part of the Giudecca, which would include part of the large
flour mill there (Molino Stucky). This would embrace the cotton
mill in the port of Venice and the cold storage plant (Societd Importa-
zione Carni), as well as the grain elevator of the Societa Sylos. Before
the plan could be adopted and executed, extensive customs barriers
would have to be put up to outline the limits of the free-port zone.
This would require some months, even after the adoption of the
planned zone and the regulations in regard thereto.