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Algeria was a French colony during the war, so, as France went, so did Algeria. Thus, at first Algeria was opposed to the Germans and were on the Allied side. Then the Germans invaded France and France lost, and was occupied by the Germans, who installed a puppet regime, called the Vichy government after the town where it was based. This French government was an "ally" of the Germans, and so, Algeria was also an ally of the Germans. In November 1942, in Operation Torch, American and British troops invaded Algeria and Morocco. The French troops there, and colonial units as well, fought the British and Americans for three or four days, but nobody really wanted that to be going on, so the French in North Africa, and the Algerians and Moroccans, changed sides, and were back on the Allied side for the rest of the war. Now Algeria was part of the "Free French", because the Vichy regime continued to run mainland Metropolitan France and be an ally of Germany until the invasion of France deposed them.

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