diff -ru gzip-1.2.4/gzip.c gzip-1.2.4.ddm/gzip.c
--- gzip-1.2.4/gzip.c	1993-08-19 09:39:43.000000000 -0400
+++ gzip-1.2.4.ddm/gzip.c	2005-04-13 18:13:22.404915816 -0400
@@ -279,7 +279,7 @@
 local void version      OF((void));
 local void treat_stdin  OF((void));
 local void treat_file   OF((char *iname));
-local int create_outfile OF((void));
+local int create_outfile OF((struct stat *istat));
 local int  do_stat      OF((char *name, struct stat *sbuf));
 local char *get_suffix  OF((char *name));
 local int  get_istat    OF((char *iname, struct stat *sbuf));
@@ -793,7 +793,7 @@
 	ofd = fileno(stdout);
 	/* keep remove_ofname as zero */
     } else {
-	if (create_outfile() != OK) return;
+	if (create_outfile(&istat) != OK) return;
 
 	if (!decompress && save_orig_name && !verbose && !quiet) {
 	    fprintf(stderr, "%s: %s compressed to %s\n",
@@ -860,7 +860,8 @@
  *   ofname has already been updated if there was an original name.
  * OUT assertions: ifd and ofd are closed in case of error.
  */
-local int create_outfile()
+local int create_outfile(istat)
+    struct stat *istat;
 {
     struct stat	ostat; /* stat for ofname */
     int flags = O_WRONLY | O_CREAT | O_EXCL | O_BINARY;
@@ -876,7 +877,7 @@
 	}
 	/* Create the output file */
 	remove_ofname = 1;
-	ofd = OPEN(ofname, flags, RW_USER);
+	ofd = OPEN(ofname, flags, istat->st_mode & 07777);
 	if (ofd == -1) {
 	    perror(ofname);
 	    close(ifd);
@@ -1608,7 +1609,8 @@
 
 
 /* ========================================================================
- * Copy modes, times, ownership from input file to output file.
+ * Copy times and ownership from input file to output file.  Modes are set
+ * when the output file is created.
  * IN assertion: to_stdout is false.
  */
 local void copy_stat(ifstat)
@@ -1623,11 +1625,6 @@
     }
     reset_times(ofname, ifstat);
 #endif
-    /* Copy the protection modes */
-    if (chmod(ofname, ifstat->st_mode & 07777)) {
-	WARN((stderr, "%s: ", progname));
-	if (!quiet) perror(ofname);
-    }
 #ifndef NO_CHOWN
     chown(ofname, ifstat->st_uid, ifstat->st_gid);  /* Copy ownership */
 #endif