diff -ruN libtool-1.3c-old/ltmain.in libtool-1.3c/ltmain.in
--- libtool-1.3c-old/ltmain.in	Mon Feb  5 09:51:14 2001
+++ libtool-1.3c/ltmain.in	Mon Feb  5 12:23:26 2001
@@ -1537,6 +1537,30 @@
 	*) . ./$lib ;;
 	esac
 
+	relink_dependency_libs="$dependency_libs";
+	case "$version_type" in
+	linux)
+	  # Linux already supports dependencies internally, so
+	  # we don't have to do it ourselves.
+
+	  # we only need to keep track of non-installed dependancies
+	  # for link time, this is so the linker can find
+	  # the library (!FIXME! we should use probably use rpath instead)
+	  tmp_libs=
+	  for deplib in $dependency_libs; do
+	    case "$deplib" in
+	    # !FIXME! Could *.la files refer to installed libraries?
+	    -l*) deplib=""
+	    esac
+	    tmp_libs="$tmp_libs $deplib"
+	  done
+	  dependency_libs="$tmp_libs"
+
+	  # At relink time, all dependancies are done for us.
+	  relink_dependency_libs="";
+	  ;;
+	esac
+
 	if test "$linkmode,$pass" = "lib,link" ||
 	   test "$linkmode,$pass" = "prog,scan" ||
 	   { test $linkmode != prog && test $linkmode != lib; }; then
@@ -3760,7 +3784,7 @@
 	    output="$output_objdir/$outputname"i
 	    # Replace all uninstalled libtool libraries with the installed ones
 	    newdependency_libs=
-	    for deplib in $dependency_libs; do
+	    for deplib in $relink_dependency_libs; do
 	      case "$deplib" in
 	      *.la)
 		name=`$echo "X$deplib" | $Xsed -e 's%^.*/%%'`