[Voted into WP at March, 2010 meeting.]

Proposed resolution (October, 2009):

Change 9.8.4 [namespace.udir] paragraph 4 as follows:

According to 9.8.4 [namespace.udir] paragraph 4,

The using-directive is transitive: if a scope contains a using-directive that nominates a second namespace that itself contains using-directives, the effect is as if the using-directives from the second namespace also appeared in the first.

This is true only for unqualified lookup; the algorithm in 6.5.5.3 [namespace.qual] paragraph 2 gives different results (the transitive closure terminates when a declaration of the name being looked up is found).