Fundamental changes in U.S. occupation objectives in Germany between 1945 and 1955 exerted an enormous effect on one of the country's most successful industries, chemicals. Early policies stressing control, elimination of excessive economic concentration, and exploitation altered the industry's traditional structure and hampered its recovery. Later attempts to stimulate economic growth in and give political sovereignty to the nascent Federal Republic provided the framework within which West German chemical producers regained much of their former predominance. This essay examines the connection between American policy and resurgence of the West German chemical industry.

I focus on technology transfer, which both indicated and helped effect changing U.S. policy in the ten years after 1945: It at first hindered, and then spurred technological change. By the early 1950s, key chemical firms began replacing coal-based with petroleum-based processes. Establishment of domestic petrochemicals production enhanced the competitiveness of West German firms, in the process strengthening the Federal Republic's political and economic fortunes and accomplishing altered U.S. policy objectives. I concentrate on the most significant players in the technological transformation of the German chemical industry, the successor firms to I.G. Farbenindustrie A.G.