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g77 generally should continue processing for warnings and recoverable (user) errors whenever possible—that is, it shouldn't gratuitously make bad or useless code.
For example:
INTRINSIC ZABS
CALL FOO(ZABS)
END
When compiling the above with -ff2c-intrinsics-disable,
g77 should indeed complain about passing ZABS,
but it still should compile, instead of rejecting
the entire CALL statement.
(Some of this is related to improving
the compiler internals to improve how statements are analyzed.)