diff --git a/gcc/cp/ChangeLog b/gcc/cp/ChangeLog
index e28ff5bf466..b24258b4a87 100644
--- a/gcc/cp/ChangeLog
+++ b/gcc/cp/ChangeLog
@@ -1,5 +1,9 @@
 2003-09-02  Mark Mitchell  <mark@codesourcery.com>
 
+	PR c++/11847
+	* pt.c (convert_nontype_argument): Correct representation of
+	REFERENCE_TYPE expressions.
+
 	PR c++/11808
 	* cp-tree.h (KOENIG_LOOKUP_P): New macro.
 	(finish_call_expr): Change prototype.
diff --git a/gcc/cp/pt.c b/gcc/cp/pt.c
index ae47b60ce7b..f47990132d2 100644
--- a/gcc/cp/pt.c
+++ b/gcc/cp/pt.c
@@ -3209,9 +3209,12 @@ convert_nontype_argument (tree type, tree expr)
 	tree type_referred_to = TREE_TYPE (type);
 
 	/* If this expression already has reference type, get the
-	   underling object.  */
+	   underlying object.  */
 	if (TREE_CODE (expr_type) == REFERENCE_TYPE) 
 	  {
+	    if (TREE_CODE (expr) == NOP_EXPR
+		&& TREE_CODE (TREE_OPERAND (expr, 0)) == ADDR_EXPR)
+	      STRIP_NOPS (expr);
 	    my_friendly_assert (TREE_CODE (expr) == ADDR_EXPR, 20000604);
 	    expr = TREE_OPERAND (expr, 0);
 	    expr_type = TREE_TYPE (expr);
@@ -3265,7 +3268,7 @@ convert_nontype_argument (tree type, tree expr)
 	  }
 
 	cxx_mark_addressable (expr);
-	return build1 (ADDR_EXPR, type, expr);
+	return build_nop (type, build_address (expr));
       }
       break;
 
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index f2d74d8ac20..2cac015c21a 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,5 +1,8 @@
 2003-09-02  Mark Mitchell  <mark@codesourcery.com>
 
+	PR c++/11847
+	* g++.dg/template/class1.C: New test.
+
 	PR c++/11808
 	* g++.dg/expr/call1.C: New test.
 
diff --git a/gcc/testsuite/g++.dg/template/class1.C b/gcc/testsuite/g++.dg/template/class1.C
new file mode 100644
index 00000000000..96415fbc225
--- /dev/null
+++ b/gcc/testsuite/g++.dg/template/class1.C
@@ -0,0 +1,9 @@
+extern const int a;
+
+template <const int&> class X {};
+
+template <typename> struct Y {
+    X<a> x;
+};
+
+template struct Y<int>;