Reverted r62128 on Guido's orders
diff --git a/Lib/test/test_unicode.py b/Lib/test/test_unicode.py
index 63e10af..f7e7cb4 100644
--- a/Lib/test/test_unicode.py
+++ b/Lib/test/test_unicode.py
@@ -68,8 +68,6 @@
         self.assertRaises(SyntaxError, eval, '\'\\Ufffffffe\'')
         self.assertRaises(SyntaxError, eval, '\'\\Uffffffff\'')
         self.assertRaises(SyntaxError, eval, '\'\\U%08x\'' % 0x110000)
-        # Test that raw mode does unicode escapes
-        self.assertEqual(r"\u0020", " ")
 
     def test_repr(self):
         if not sys.platform.startswith('java'):
diff --git a/Python/ast.c b/Python/ast.c
index 218436f..6a9658a 100644
--- a/Python/ast.c
+++ b/Python/ast.c
@@ -3231,7 +3231,7 @@
             return NULL;
         }
     }
-    if (!*bytesmode) {
+    if (!*bytesmode && !rawmode) {
         return decode_unicode(s, len, rawmode, c->c_encoding);
     }
     if (*bytesmode) {