diff --git a/gcc/cp/ChangeLog b/gcc/cp/ChangeLog
index 37e730016f4..5ccf3c1bf91 100644
--- a/gcc/cp/ChangeLog
+++ b/gcc/cp/ChangeLog
@@ -1,5 +1,7 @@
 1998-10-18  Jason Merrill  <jason@yorick.cygnus.com>
 
+	* decl.c (grokvardecl): Fix thinko.
+
 	* decl.c (grokdeclarator): Embedded attrs bind to the right,
 	not the left.
 
diff --git a/gcc/cp/decl.c b/gcc/cp/decl.c
index dc6b9e95a30..39b8b7d5ab1 100644
--- a/gcc/cp/decl.c
+++ b/gcc/cp/decl.c
@@ -8311,6 +8311,8 @@ grokvardecl (type, declarator, specbits_in, initialized, constp, in_namespace)
 	context = in_namespace;
       else if (namespace_bindings_p () || RIDBIT_SETP (RID_EXTERN, specbits))
 	context = current_namespace;
+      else
+	context = NULL_TREE;
 
       decl = build_decl (VAR_DECL, declarator, complete_type (type));