diff --git a/README.template b/README.template
index 62cedd7c..ccbc51ab 100644
--- a/README.template
+++ b/README.template
@@ -10,6 +10,10 @@ build the program, type `sh build.sh'.  This should compile the program
 in the current directory.  Then you will have a Make program that you can
 use for `make install', or whatever else.
 
+It has been reported that the XLC 1.2 compiler on AIX 3.2 is buggy such
+that if you compile make with `cc -O' on AIX 3.2, it will not work correctly.
+It is said that using `cc' without `-O' does work.
+
 See the file NEWS for what has changed since previous releases.
 
 GNU Make is fully documented in make.texinfo.  See the section entitled