--- a/mercurial/hg.py	Sat Jul 28 23:28:36 2012 +0200
+++ b/mercurial/hg.py	Thu Oct 04 19:46:43 2012 +0200
@@ -353,7 +353,8 @@
                           node=node.hex(node.nullid))
         else:
             try:
-                destpeer = peer(ui, peeropts, dest, create=True)
+                destpeer = peer(srcrepo or ui, peeropts, dest, create=True)
+                                # only pass ui when no srcrepo
             except OSError, inst:
                 if inst.errno == errno.EEXIST:
                     dircleanup.close()