diff --git a/harbour/ChangeLog b/harbour/ChangeLog
index e67db7df8e..c82c369279 100644
--- a/harbour/ChangeLog
+++ b/harbour/ChangeLog
@@ -17,6 +17,12 @@
    past entries belonging to author(s): Viktor Szakats.
 */
 
+2010-03-15 21:54 UTC+0100 Viktor Szakats (harbour.01 syenar.hu)
+  * INSTALL
+  * external/Makefile
+    - Deleted "HB_EXTERNALLIBS=no" option. Blindly disabling
+      all external libs can break the build process.
+
 2010-03-15 21:40 UTC+0100 Przemyslaw Czerpak (druzus/at/priv.onet.pl)
   * harbour/include/hbthread.h
     ! added workaround for problems with static __thread variables in
diff --git a/harbour/INSTALL b/harbour/INSTALL
index 6458a605a6..f43e07fada 100644
--- a/harbour/INSTALL
+++ b/harbour/INSTALL
@@ -634,7 +634,7 @@ HARBOUR
                                  libraries. Build all if left empty (default).
    - HB_CONTRIB_ADDONS=<list>    Build space separated <list> of additional
                                  libraries stored in the contrib directory.
-   - HB_EXTERNALLIBS=no [<list>] Don't build any (or space separated <list> of)
+   - HB_EXTERNALLIBS=no <list>   Don't build space separated <list> of
                                  external libraries.
    - HB_EXTERNALLIBS=[<list>]    Build space separated <list> of external
                                  libraries. Build all if left empty (default).
diff --git a/harbour/external/Makefile b/harbour/external/Makefile
index d948eb92bf..61000931d8 100644
--- a/harbour/external/Makefile
+++ b/harbour/external/Makefile
@@ -14,9 +14,7 @@ DIRS := \
    pcre \
    zlib \
 
-ifeq ($(HB_EXTERNALLIBS),no)
-   DIRS :=
-else ifeq ($(firstword $(HB_EXTERNALLIBS)),no)
+ifeq ($(firstword $(HB_EXTERNALLIBS)),no)
    DIRS := $(filter-out $(HB_EXTERNALLIBS),$(DIRS))
 else ifneq ($(HB_EXTERNALLIBS),)
    DIRS := $(HB_EXTERNALLIBS)