diff --git a/Shorewall-common/changelog.txt b/Shorewall-common/changelog.txt
index dcf5f814b..005e53cbd 100644
--- a/Shorewall-common/changelog.txt
+++ b/Shorewall-common/changelog.txt
@@ -2,6 +2,8 @@ Changes in 4.0.0 Beta 3
 
 1)  Fix the 'Modules' output of 'dump'
 
+2)  Fix FW=xxx with IPSECFILE=ipsec.
+
 Changes in 4.0.0 Beta 2
 
 1)  Fix screwup in get_routed_networks().
diff --git a/Shorewall-common/lib.config b/Shorewall-common/lib.config
index c8c5e04e9..0e6f3607d 100644
--- a/Shorewall-common/lib.config
+++ b/Shorewall-common/lib.config
@@ -2140,5 +2140,5 @@ do_initialize() {
 	strip_file_and_lib_load tunnels tunnels
     fi
     
-    FW=
+    [ "$IPSECFILE" = zones ] && FW=
 }
diff --git a/Shorewall-common/releasenotes.txt b/Shorewall-common/releasenotes.txt
index dd0e31a0b..b248f84fc 100644
--- a/Shorewall-common/releasenotes.txt
+++ b/Shorewall-common/releasenotes.txt
@@ -20,6 +20,9 @@ Problems corrected in 4.0.0 Beta 3.
 1)  The 'Modules' output of the 'shorewall[-lite] dump command now
     works correctly with 2.6.20 and later Kernels.
 
+2)  Setting FW in shorewall.conf to something other than 'fw' now works
+    again with IPSECFILE=ipsec. 
+
 Other changes in Shorewall 4.0.0 Beta 3.
 
 None.