Whose Lingerie Is It? A New Mideast Secret
By Douglas Jehl - Dec. 25, 1996
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• Amid piles of panties headed for a Victoria's Secret near you, the veiled Palestinian women who stitch them together here say they now know that their workplace is not an Israeli factory.
• But from the day it opened, that is how the biggest garment plant in Jordan has been denounced in this northern city and across a country in which hostility toward Israel is more fierce than at any time since the countries made peace in 1994.
• And it certainly does not help that among the finishing touches the young Arab seamstresses put on each of the 150,000 pairs of panties that make their way to United States each month is a label that reads Made in Israel.
• This is our work, not theirs, protested Samira Melhem, 32.
• Someday, the factory may prove a model of the kind of across-the-border partnership that can bind Israel and Jordan together. But as a dividend of the quest for peace, it has run into unexpected resistance.
• That there is some intercourse with Israel is repulsive to many here in these difficult times, acknowledged Omar Z. Salah, the 30-year-old chairman of a Jordanian company that sought out the joint venture and has found itself tarred with a swirl of wild charges in Jordan's tabloid press.
• Among the stories that found their way into print was that Israeli overseers had ordered the all-female staff of 350 to work as prostitutes by night. Another said young women were being beaten.
• Only by inviting husbands and brothers to visit the factory for themselves did managers begin to put suspicions to rest. As they tried to make clear, they themselves are Jordanian and their partner is not Israeli but the American-based corporate giant Sara Lee.
• The arrangement, conceived by Mr. Salah after Jordan and Israel signed a peace treaty in October 1994, is based squarely on competitive advantage. With the border between the two countries to be opened, he argued, companies like Sara Lee ought to shift production to Jordan, where costs are about 50 percent of what they would be in Israel.
• As part of a joint venture, Mr. Salah and his partners won a deal that divided underwear production between an Israeli factory and his new one, with fabric cut into patterns in Israel and then trucked to Jordan for stitching by the Palestinian women who work for an average wage of about $100 a month.
• And since the plant opened in February, some 275,000 panties, boxers and T-shirts have taken shape in Jordan each month before being trucked back to Israel, and shipped to the United States to be sold under brands that, in addition to Victoria's Secret, include Donna Karan, J. Crew and Bali.
• But because Israel, and not Jordan, is guaranteed free-trade access to American markets, no mention of Jordan appears on the underwear labels, a practice permitted under United States law. In keeping with that law, a substantial share of production must also remain on the Israeli side of the border, an arrangement that has struck many Jordanians in recent months as increasingly intolerable.
• Since the election in May of Benjamin Netanyahu as Israel's Prime Minister, King Hussein of Jordan, for two years Israel's loudest champion in the Arab world, has gradually become a critic. And with his warning against Israel's apparent drift from the path toward peace with the Palestinians, the King still sounds effusive when compared with other prominent Jordanians.
• By this month the Jordanian Government had decided to postpone as premature a scheduled trade conference with Israeli officials. And last week, when Israeli diplomats opened their new embassy in Amman, the Jordanian capital, the highest-ranking Jordanian official on hand was the Director General of the Foreign Ministry. Among a handful of private businessmen who attended was Mr. Salah, a member of a wealthy Jordanian family.
• Beginning next month, his company, the Century Investment Group, is to expand its venture to produce up to 150,000 bras a month, pre-cut in Israel and stitched in Jordan for labels including Victoria's Secret and the Gap. Business is pretty good, Mr. Saleh said, but the situation is pretty bad. It grows like a monster every day.
https://www.nytimes.com/1996/12/25/world/whose-lingerie-is-it-a-new-mideast-secret.html