diff --git a/harbour/ChangeLog b/harbour/ChangeLog
index cfe3759ff8..057f841056 100644
--- a/harbour/ChangeLog
+++ b/harbour/ChangeLog
@@ -1,3 +1,14 @@
+2000-07-16 19:00 UTC+0100 Ryszard Glab <rglab@imid.med.pl>
+
+    *include/hbapi.h
+    *source/vm/hvm.c
+    *source/vm/memvars.c
+        * memvars table is deleted in two steps: first clear all
+        public and private variables (without the detached variables)
+        and next free space allocated for memvars table. These two steps
+        are separated with the garbage collector call so self
+        referencing variables will be deallocated properly.
+
 2000-07-16 17:40 UTC+0100 Ryszard Glab <rglab@imid.med.pl>
 
     *include/hbhash.h
diff --git a/harbour/include/hbapi.h b/harbour/include/hbapi.h
index 2ff6c64d9f..f336999812 100644
--- a/harbour/include/hbapi.h
+++ b/harbour/include/hbapi.h
@@ -439,7 +439,8 @@ extern void     hb_codeblockCopy( PHB_ITEM pDest, PHB_ITEM pSource ); /* copy a
 extern HB_HANDLE hb_memvarValueNew( HB_ITEM_PTR pSource, BOOL bTrueMemvar ); /* create a new global value */
 extern HB_VALUE_PTR * hb_memvarValueBaseAddress( void ); /* retrieve the base address of the values table */
 extern void     hb_memvarsInit( void ); /* initialize the memvar API system */
-extern void     hb_memvarsRelease( void ); /* release the memvar API system */
+extern void     hb_memvarsRelease( void ); /* clear all PUBLIC and PRIVATE variables */
+extern void     hb_memvarsFree( void ); /* release the memvar API system */
 extern void     hb_memvarValueIncRef( HB_HANDLE hValue ); /* increase the reference count of a global value */
 extern void     hb_memvarValueDecRef( HB_HANDLE hValue ); /* decrease the reference count of a global value */
 extern void     hb_memvarSetValue( PHB_SYMB pMemvarSymb, HB_ITEM_PTR pItem ); /* copy an item into a symbol */
diff --git a/harbour/source/vm/hvm.c b/harbour/source/vm/hvm.c
index ce80dd7970..cc8ec69245 100644
--- a/harbour/source/vm/hvm.c
+++ b/harbour/source/vm/hvm.c
@@ -356,11 +356,12 @@ void hb_vmQuit( void )
       hb_stackPop();
    hb_itemClear( &hb_stack.Return );
    hb_arrayRelease( &s_aStatics );
-   hb_memvarsRelease();
+   hb_memvarsRelease();    /* clear all PUBLIC variables */
 
    /* release all known garbage */
    hb_gcCollectAll();
    
+   hb_memvarsFree();    /* free memory allocated for memvars table */
    hb_stackFree();
 /* hb_dynsymLog(); */
    hb_xexit();
diff --git a/harbour/source/vm/memvars.c b/harbour/source/vm/memvars.c
index 88df31011f..fc2df2745d 100644
--- a/harbour/source/vm/memvars.c
+++ b/harbour/source/vm/memvars.c
@@ -96,27 +96,33 @@ void hb_memvarsInit( void )
    s_privateStackCnt  = s_privateStackBase = 0;
 }
 
+/* clear all variables except the detached ones 
+ * Should be called at application exit only
+*/
 void hb_memvarsRelease( void )
 {
    ULONG ulCnt = s_globalLastFree;
 
-   HB_TRACE(HB_TR_DEBUG, ("hb_memvarsRelease()"));
+   HB_TRACE(HB_TR_DEBUG, ("hb_memvarsClear()"));
 
    if( s_globalTable )
    {
       while( ulCnt )
       {
-         if( s_globalTable[ ulCnt ].counter )
+         if( s_globalTable[ ulCnt ].counter && s_globalTable[ ulCnt ].hPrevMemvar != ( HB_HANDLE )-1 )
          {
             hb_itemClear( &s_globalTable[ ulCnt ].item );
             s_globalTable[ ulCnt ].counter = 0;
          }
          --ulCnt;
       }
-
-      hb_xfree( s_globalTable );
-      s_globalTable = NULL;
    }
+}
+
+void hb_memvarsFree( void )
+{
+   if( s_globalTable )
+      hb_xfree( s_globalTable );
 
    if( s_privateStack )
       hb_xfree( s_privateStack );