diff --git a/harbour/ChangeLog b/harbour/ChangeLog
index b528908fe9..7fecbafa80 100644
--- a/harbour/ChangeLog
+++ b/harbour/ChangeLog
@@ -1,3 +1,8 @@
+19990731-06:40 GMT+2 Ryszard Glaaab <rglab@imid.med.pl>
+    *source/compiler/harbour.y
+	* PUBLIC and PRIVATE variables referenced inside a codeblock 
+	 can be used to initiialize a staatic variables
+
 19990731-06:00 CET Victor Szel <info@szelvesz.hu>
    + include/achoice.ch
      include/common.ch
diff --git a/harbour/source/compiler/harbour.y b/harbour/source/compiler/harbour.y
index 917c90fb39..eaff0bf870 100644
--- a/harbour/source/compiler/harbour.y
+++ b/harbour/source/compiler/harbour.y
@@ -3658,7 +3658,7 @@ void PushId( char * szVarName ) /* generates the pcode to push a variable value
 {
    int iVar;
 
-   if( iVarScope == VS_STATIC )
+   if( iVarScope == VS_STATIC && functions.pLast->szName )
    {
      /* Reffering to any variable is not allowed during initialization
       * of static variable
@@ -3700,7 +3700,7 @@ void PushIdByRef( char * szVarName ) /* generates the pcode to push a variable b
 {
    WORD iVar;
 
-   if( iVarScope == VS_STATIC )
+   if( iVarScope == VS_STATIC && functions.pLast->szName )
    {
      /* Reffering to any variable is not allowed during initialization
       * of static variable