C++ :: Directory Name Must Immediately Follow -I Compile Error

I am trying to compile some code under opensuse 12.2. The code compiles fine under cygwin and CentOS. Under suse, I get the error "directory name must immediately follow -I"

This is the place in make where the error happens.

Code:
g77-3.3 -I ./src/src_common_depend/ -O2 -DVERNUM=6 -c -o bld_dir/FortranA.o src/src_client_main/FortranA.FOR
f771: error: directory name must immediately follow -I

The includes are specified in the make file with,
SOURCELOC = ./src
INCLUDES = -I ${SOURCELOC}/src_common_depend/

These are common includes that are used by more than one applications and so are stored in a common location.

I have tried leaving off the ./ and the trailing /

SOURCELOC = src
INCLUDES = -I ${SOURCELOC}/src_common_depend

And various similar combinations, including parenthesis instead of the curly braces.

I'm not sure why gcc under suse would be particular about this syntax when gcc under other distros seem to think it's fine.

This is the compile rule that g77 is implementing where the error occurs:

# compile src fortran objects with fortran preprocessor
$(BDIR)/%.o: $(SOURCELOC)/src_client_main/%.FOR
$(FCOMP) $(FCFLAGS) $(VFLAGS) -c -o $@ $<