--- a/src/share/classes/com/sun/tools/javac/comp/Check.java	Fri Mar 25 15:17:52 2011 -0700
+++ b/src/share/classes/com/sun/tools/javac/comp/Check.java	Tue Mar 29 16:40:07 2011 +0100
@@ -676,7 +676,7 @@
                     "cant.apply.diamond.1",
                     t, diags.fragment("diamond.and.anon.class", t));
             return types.createErrorType(t);
-        } else if (!t.tsym.type.isParameterized()) {
+        } else if (t.tsym.type.getTypeArguments().isEmpty()) {
             log.error(tree.clazz.pos(),
                 "cant.apply.diamond.1",
                 t, diags.fragment("diamond.non.generic", t));

--- a/src/share/classes/com/sun/tools/javac/parser/JavacParser.java	Fri Mar 25 15:17:52 2011 -0700
+++ b/src/share/classes/com/sun/tools/javac/parser/JavacParser.java	Tue Mar 29 16:40:07 2011 +0100
@@ -971,7 +971,7 @@
             if ((mode & EXPR) != 0) {
                 mode = EXPR;
                 S.nextToken();
-                if (S.token() == LT) typeArgs = typeArguments();
+                if (S.token() == LT) typeArgs = typeArguments(false);
                 t = creator(pos, typeArgs);
                 typeArgs = null;
             } else return illegal();
@@ -1036,7 +1036,7 @@
                             mode = EXPR;
                             int pos1 = S.pos();
                             S.nextToken();
-                            if (S.token() == LT) typeArgs = typeArguments();
+                            if (S.token() == LT) typeArgs = typeArguments(false);
                             t = innerCreator(pos1, typeArgs, t);
                             typeArgs = null;
                             break loop;
@@ -1116,7 +1116,7 @@
                     mode = EXPR;
                     int pos2 = S.pos();
                     S.nextToken();
-                    if (S.token() == LT) typeArgs = typeArguments();
+                    if (S.token() == LT) typeArgs = typeArguments(false);
                     t = innerCreator(pos2, typeArgs, t);
                     typeArgs = null;
                 } else {
@@ -1146,7 +1146,7 @@
         } else {
             int pos = S.pos();
             accept(DOT);
-            typeArgs = (S.token() == LT) ? typeArguments() : null;
+            typeArgs = (S.token() == LT) ? typeArguments(false) : null;
             t = toP(F.at(pos).Select(t, ident()));
             t = argumentsOpt(typeArgs, t);
         }
@@ -1206,7 +1206,7 @@
             (mode & NOPARAMS) == 0) {
             mode = TYPE;
             checkGenerics();
-            return typeArguments(t);
+            return typeArguments(t, false);
         } else {
             return t;
         }
@@ -1223,51 +1223,54 @@
                 illegal();
             }
             mode = useMode;
-            return typeArguments();
+            return typeArguments(false);
         }
         return null;
     }
 
     /**  TypeArguments  = "<" TypeArgument {"," TypeArgument} ">"
      */
-    List<JCExpression> typeArguments() {
-        ListBuffer<JCExpression> args = lb();
+    List<JCExpression> typeArguments(boolean diamondAllowed) {
         if (S.token() == LT) {
             S.nextToken();
-            if (S.token() == GT && (mode & DIAMOND) != 0) {
+            if (S.token() == GT && diamondAllowed) {
                 checkDiamond();
+                mode |= DIAMOND;
                 S.nextToken();
                 return List.nil();
-            }
-            args.append(((mode & EXPR) == 0) ? typeArgument() : parseType());
-            while (S.token() == COMMA) {
-                S.nextToken();
+            } else {
+                ListBuffer<JCExpression> args = ListBuffer.lb();
                 args.append(((mode & EXPR) == 0) ? typeArgument() : parseType());
-            }
-            switch (S.token()) {
-            case GTGTGTEQ:
-                S.token(GTGTEQ);
-                break;
-            case GTGTEQ:
-                S.token(GTEQ);
-                break;
-            case GTEQ:
-                S.token(EQ);
-                break;
-            case GTGTGT:
-                S.token(GTGT);
-                break;
-            case GTGT:
-                S.token(GT);
-                break;
-            default:
-                accept(GT);
-                break;
+                while (S.token() == COMMA) {
+                    S.nextToken();
+                    args.append(((mode & EXPR) == 0) ? typeArgument() : parseType());
+                }
+                switch (S.token()) {
+                case GTGTGTEQ:
+                    S.token(GTGTEQ);
+                    break;
+                case GTGTEQ:
+                    S.token(GTEQ);
+                    break;
+                case GTEQ:
+                    S.token(EQ);
+                    break;
+                case GTGTGT:
+                    S.token(GTGT);
+                    break;
+                case GTGT:
+                    S.token(GT);
+                    break;
+                default:
+                    accept(GT);
+                    break;
+                }
+                return args.toList();
             }
         } else {
             syntaxError(S.pos(), "expected", LT);
+            return List.nil();
         }
-        return args.toList();
     }
 
     /** TypeArgument = Type
@@ -1303,9 +1306,9 @@
         }
     }
 
-    JCTypeApply typeArguments(JCExpression t) {
+    JCTypeApply typeArguments(JCExpression t, boolean diamondAllowed) {
         int pos = S.pos();
-        List<JCExpression> args = typeArguments();
+        List<JCExpression> args = typeArguments(diamondAllowed);
         return toP(F.at(pos).TypeApply(t, args));
     }
 
@@ -1370,18 +1373,25 @@
         }
         JCExpression t = qualident();
         int oldmode = mode;
-        mode = TYPE | DIAMOND;
+        mode = TYPE;
+        boolean diamondFound = false;
         if (S.token() == LT) {
             checkGenerics();
-            t = typeArguments(t);
+            t = typeArguments(t, true);
+            diamondFound = (mode & DIAMOND) != 0;
         }
         while (S.token() == DOT) {
+            if (diamondFound) {
+                //cannot select after a diamond
+                illegal(S.pos());
+            }
             int pos = S.pos();
             S.nextToken();
             t = toP(F.at(pos).Select(t, ident()));
             if (S.token() == LT) {
                 checkGenerics();
-                t = typeArguments(t);
+                t = typeArguments(t, true);
+                diamondFound = (mode & DIAMOND) != 0;
             }
         }
         mode = oldmode;
@@ -1416,9 +1426,8 @@
         JCExpression t = toP(F.at(S.pos()).Ident(ident()));
         if (S.token() == LT) {
             int oldmode = mode;
-            mode |= DIAMOND;
             checkGenerics();
-            t = typeArguments(t);
+            t = typeArguments(t, true);
             mode = oldmode;
         }
         return classCreatorRest(newpos, encl, typeArgs, t);

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/test/tools/javac/generics/diamond/7030687/ParserTest.java	Tue Mar 29 16:40:07 2011 +0100
@@ -0,0 +1,175 @@
+/*
+ * Copyright (c) 2011, Oracle and/or its affiliates. All rights reserved.
+ * DO NOT ALTER OR REMOVE COPYRIGHT NOTICES OR THIS FILE HEADER.
+ *
+ * This code is free software; you can redistribute it and/or modify it
+ * under the terms of the GNU General Public License version 2 only, as
+ * published by the Free Software Foundation.
+ *
+ * This code is distributed in the hope that it will be useful, but WITHOUT
+ * ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or
+ * FITNESS FOR A PARTICULAR PURPOSE.  See the GNU General Public License
+ * version 2 for more details (a copy is included in the LICENSE file that
+ * accompanied this code).
+ *
+ * You should have received a copy of the GNU General Public License version
+ * 2 along with this work; if not, write to the Free Software Foundation,
+ * Inc., 51 Franklin St, Fifth Floor, Boston, MA 02110-1301 USA.
+ *
+ * Please contact Oracle, 500 Oracle Parkway, Redwood Shores, CA 94065 USA
+ * or visit www.oracle.com if you need additional information or have any
+ * questions.
+ */
+
+/*
+ * @test
+ * @bug 7030687
+ * @summary Diamond: compiler accepts erroneous code where diamond is used with non-generic inner class
+ */
+
+import com.sun.source.util.JavacTask;
+import java.net.URI;
+import java.util.Arrays;
+import javax.tools.Diagnostic;
+import javax.tools.JavaCompiler;
+import javax.tools.JavaFileObject;
+import javax.tools.SimpleJavaFileObject;
+import javax.tools.StandardJavaFileManager;
+import javax.tools.ToolProvider;
+
+public class ParserTest {
+
+    enum TypeArgumentKind {
+        NONE(""),
+        EXPLICIT("<String>"),
+        DIAMOND("<>");
+
+        String typeargStr;
+
+        private TypeArgumentKind(String typeargStr) {
+            this.typeargStr = typeargStr;
+        }
+    }
+
+    enum TypeQualifierArity {
+        ONE(1, "A1#TA1"),
+        TWO(2, "A1#TA1.A2#TA2"),
+        THREE(3, "A1#TA1.A2#TA2.A3#TA3"),
+        FOUR(4, "A1#TA1.A2#TA2.A3#TA3.A4#TA4");
+
+        int n;
+        String qualifierStr;
+
+        private TypeQualifierArity(int n, String qualifierStr) {
+            this.n = n;
+            this.qualifierStr = qualifierStr;
+        }
+
+        String getType(TypeArgumentKind... typeArgumentKinds) {
+            String res = qualifierStr;
+            for (int i = 1 ; i <= typeArgumentKinds.length ; i++) {
+                res = res.replace("#TA" + i, typeArgumentKinds[i-1].typeargStr);
+            }
+            return res;
+        }
+    }
+
+    public static void main(String... args) throws Exception {
+
+        //create default shared JavaCompiler - reused across multiple compilations
+        JavaCompiler comp = ToolProvider.getSystemJavaCompiler();
+        StandardJavaFileManager fm = comp.getStandardFileManager(null, null, null);
+
+        for (TypeQualifierArity arity : TypeQualifierArity.values()) {
+            for (TypeArgumentKind tak1 : TypeArgumentKind.values()) {
+                if (arity == TypeQualifierArity.ONE) {
+                    new ParserTest(arity, tak1).run(comp, fm);
+                    continue;
+                }
+                for (TypeArgumentKind tak2 : TypeArgumentKind.values()) {
+                    if (arity == TypeQualifierArity.TWO) {
+                        new ParserTest(arity, tak1, tak2).run(comp, fm);
+                        continue;
+                    }
+                    for (TypeArgumentKind tak3 : TypeArgumentKind.values()) {
+                        if (arity == TypeQualifierArity.THREE) {
+                            new ParserTest(arity, tak1, tak2, tak3).run(comp, fm);
+                            continue;
+                        }
+                        for (TypeArgumentKind tak4 : TypeArgumentKind.values()) {
+                            new ParserTest(arity, tak1, tak2, tak3, tak4).run(comp, fm);
+                        }
+                    }
+                }
+            }
+        }
+    }
+
+    TypeQualifierArity qualifierArity;
+    TypeArgumentKind[] typeArgumentKinds;
+    JavaSource source;
+    DiagnosticChecker diagChecker;
+
+    ParserTest(TypeQualifierArity qualifierArity, TypeArgumentKind... typeArgumentKinds) {
+        this.qualifierArity = qualifierArity;
+        this.typeArgumentKinds = typeArgumentKinds;
+        this.source = new JavaSource();
+        this.diagChecker = new DiagnosticChecker();
+    }
+
+    class JavaSource extends SimpleJavaFileObject {
+
+        String template = "class Test {\n" +
+                              "R res = new #T();\n" +
+                          "}\n";
+
+        String source;
+
+        public JavaSource() {
+            super(URI.create("myfo:/Test.java"), JavaFileObject.Kind.SOURCE);
+            source = template.replace("#T", qualifierArity.getType(typeArgumentKinds));
+        }
+
+        @Override
+        public CharSequence getCharContent(boolean ignoreEncodingErrors) {
+            return source;
+        }
+    }
+
+    void run(JavaCompiler tool, StandardJavaFileManager fm) throws Exception {
+        JavacTask ct = (JavacTask)tool.getTask(null, fm, diagChecker,
+                null, null, Arrays.asList(source));
+        ct.parse();
+        check();
+    }
+
+    void check() {
+
+        boolean errorExpected = false;
+
+        for (int i = 0 ; i < qualifierArity.n - 1 ; i++) {
+            if (typeArgumentKinds[i] == TypeArgumentKind.DIAMOND) {
+                errorExpected = true;
+                break;
+            }
+        }
+
+        if (errorExpected != diagChecker.errorFound) {
+            throw new Error("invalid diagnostics for source:\n" +
+                source.getCharContent(true) +
+                "\nFound error: " + diagChecker.errorFound +
+                "\nExpected error: " + errorExpected);
+        }
+    }
+
+    static class DiagnosticChecker implements javax.tools.DiagnosticListener<JavaFileObject> {
+
+        boolean errorFound;
+
+        public void report(Diagnostic<? extends JavaFileObject> diagnostic) {
+            if (diagnostic.getKind() == Diagnostic.Kind.ERROR) {
+                errorFound = true;
+            }
+        }
+    }
+}

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/test/tools/javac/generics/diamond/7030687/T7030687.java	Tue Mar 29 16:40:07 2011 +0100
@@ -0,0 +1,19 @@
+/*
+ * @test /nodynamiccopyright/
+ * @bug 7030687
+ * @summary Diamond: compiler accepts erroneous code where diamond is used with non-generic inner class
+ * @compile/fail/ref=T7030687.out -XDrawDiagnostics T7030687.java
+ */
+
+class T7030687<X> {
+    class Member { }
+    static class Nested {}
+
+    void test() {
+        class Local {}
+
+        Member m = new Member<>();
+        Nested n = new Nested<>();
+        Local l = new Local<>();
+    }
+}

--- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+++ b/test/tools/javac/generics/diamond/7030687/T7030687.out	Tue Mar 29 16:40:07 2011 +0100
@@ -0,0 +1,4 @@
+T7030687.java:15:30: compiler.err.cant.apply.diamond.1: T7030687<X>.Member, (compiler.misc.diamond.non.generic: T7030687<X>.Member)
+T7030687.java:16:30: compiler.err.cant.apply.diamond.1: T7030687.Nested, (compiler.misc.diamond.non.generic: T7030687.Nested)
+T7030687.java:17:28: compiler.err.cant.apply.diamond.1: Local, (compiler.misc.diamond.non.generic: Local)
+3 errors