This study addresses the puzzle why Pierre Mendès France as French Prime Minister managed to grant Indochina independence through negotiations, but neglected the same demand from Algeria. In the mid-1950s, France was experiencing not only a political crisis but also a crisis of national identity. The author shows that there were competing national identities among the French foreign policy elite, and that the struggle among different identity conceptions was a determinant factor in the outcome of the Indochina and Algeria cases. Pierre Mendès France tried to decolonize France by making France a European power. This seemed successful when France left Indochina, but it turned to be a failure when Algeria demanded its independence. The research material represents a unique collection of speeches, letters, radio performances, opinion polls, media debates and internal working papers. Marie Demker is a Swedish Political Science professor at Göteborg University and Södertörn University College. She has written several books and articles on foreign policy, French politics and party politics.