diff --git a/distrib/msw/tmake/wat.t b/distrib/msw/tmake/wat.t
index 4248cb2689..3deabc22dd 100644
--- a/distrib/msw/tmake/wat.t
+++ b/distrib/msw/tmake/wat.t
@@ -228,52 +228,52 @@ $(COMMDIR)\lex_yy.c:    $(COMMDIR)\doslex.c
 
 png:   .SYMBOLIC
     cd $(WXDIR)\src\png
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_png:   .SYMBOLIC
     cd $(WXDIR)\src\png
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 zlib:   .SYMBOLIC
     cd $(WXDIR)\src\zlib
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_zlib:   .SYMBOLIC
     cd $(WXDIR)\src\zlib
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 jpeg:    .SYMBOLIC
     cd $(WXDIR)\src\jpeg
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_jpeg:   .SYMBOLIC
     cd $(WXDIR)\src\jpeg
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 tiff:    .SYMBOLIC
     cd $(WXDIR)\src\tiff
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_tiff:   .SYMBOLIC
     cd $(WXDIR)\src\tiff
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 regex:    .SYMBOLIC
     cd $(WXDIR)\src\regex
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_regex:   .SYMBOLIC
     cd $(WXDIR)\src\regex
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 MFTYPE=wat
diff --git a/distrib/msw/tmake/watbase.t b/distrib/msw/tmake/watbase.t
index 40a45a0c71..8b623be23b 100644
--- a/distrib/msw/tmake/watbase.t
+++ b/distrib/msw/tmake/watbase.t
@@ -158,22 +158,22 @@ cleanall:   clean
 
 zlib:   .SYMBOLIC
     cd $(WXDIR)\src\zlib
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_zlib:   .SYMBOLIC
     cd $(WXDIR)\src\zlib
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 regex:    .SYMBOLIC
     cd $(WXDIR)\src\regex
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_regex:   .SYMBOLIC
     cd $(WXDIR)\src\regex
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 MFTYPE=watbase
diff --git a/distrib/msw/tmake/watmgl.t b/distrib/msw/tmake/watmgl.t
index 416f8b16ce..3e1a042fcb 100644
--- a/distrib/msw/tmake/watmgl.t
+++ b/distrib/msw/tmake/watmgl.t
@@ -262,52 +262,52 @@ $(COMMDIR)\lex_yy.c:    $(COMMDIR)\doslex.c
 
 png:   .SYMBOLIC
     cd $(WXDIR)\src\png
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\mgl
 
 clean_png:   .SYMBOLIC
     cd $(WXDIR)\src\png
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\mgl
 
 zlib:   .SYMBOLIC
     cd $(WXDIR)\src\zlib
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\mgl
 
 clean_zlib:   .SYMBOLIC
     cd $(WXDIR)\src\zlib
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\mgl
 
 jpeg:    .SYMBOLIC
     cd $(WXDIR)\src\jpeg
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\mgl
 
 clean_jpeg:   .SYMBOLIC
     cd $(WXDIR)\src\jpeg
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\mgl
 
 tiff:    .SYMBOLIC
     cd $(WXDIR)\src\tiff
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\mgl
 
 clean_tiff:   .SYMBOLIC
     cd $(WXDIR)\src\tiff
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\mgl
 
 regex:    .SYMBOLIC
     cd $(WXDIR)\src\regex
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\mgl
 
 clean_regex:   .SYMBOLIC
     cd $(WXDIR)\src\regex
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\mgl
 
 MFTYPE=watmgl
diff --git a/src/makewat.env b/src/makewat.env
index a5ddc677b9..0ad4b6982c 100644
--- a/src/makewat.env
+++ b/src/makewat.env
@@ -18,11 +18,15 @@
 !ifndef wxUSE_GUI
 wxUSE_GUI=1
 !endif
+# CF: Recursive calls to wmake will get $(__MAKEOPTS__) passed.
+__MAKEOPTS__ += wxUSE_GUI=$(wxUSE_GUI)
 
 # set FINAL=1 to disable debug and enable optimizations
 !ifndef FINAL
 FINAL=0
 !endif
+# CF: Recursive calls to wmake will get $(__MAKEOPTS__) passed.
+__MAKEOPTS__ += FINAL=$(FINAL)
 
 # set WATCOM_SUFFIX to nothing if you use only Watcom compiler, set it to
 # something Watcom-specific if you want to build wxWindows with more than one
@@ -34,10 +38,14 @@ WATCOM_SUFFIX=_w
 WINVERFLAGS = /dWINVER=0x400 /d_WIN32_IE=0x0300
 
 # optimize for space/time: /os or /ot
+
+# CF: I'm entirely replacing the old flags with new, identical ones,
+# favouring time optimizations (faster code) over space (smaller code) now.
+# Note that this is *not* the reason for the resulting very large wx libs files.
 !ifeq FINAL 1
-OPTFLAGS=/oails /5r
+OPTFLAGS= -5r -zp8 -otexan
 !else
-OPTFLAGS=/od
+OPTFLAGS= -5r -od -d2
 !endif
 
 
@@ -153,12 +161,12 @@ RESFLAGS    = -q -r -bt=nt /i$(WXDIR)\include /i$(WXDIR)\contrib\include $(WINVE
 
 # NB: /bm switch is needed for thread-safe runtime, if you don't use
 #     wxThread you may remove it
-CPPFLAGS = /dWIN32 /bm /fo=$(OUTPUTDIR)\ /fr /zq $(IFLAGS) $(OPTFLAGS) $(WINVERFLAGS) $(EXTRACPPFLAGS)
+CPPFLAGS = /dWIN32 /bm /fo=$(OUTPUTDIR)\ /fr -zq $(IFLAGS) $(OPTFLAGS) $(WINVERFLAGS) $(EXTRACPPFLAGS)
 !ifeq wxUSE_GUI 0
 CPPFLAGS += /dwxUSE_GUI=0
 !endif
 
-# zm and zv as well as the liker options below are used to make the resulting
+# zm and zv as well as the linker options below are used to make the resulting
 # .exe smaller
 CFLAGS = $(CPPFLAGS) $(DEBUGCFLAGS) $(EXTRACFLAGS) /zm
 CXXFLAGS = $(CPPFLAGS) $(DEBUGCXXFLAGS) $(PRECOMP) /zm /zv /w=8 $(EXTRACXXFLAGS)
diff --git a/src/msw/makefile.wat b/src/msw/makefile.wat
index 6bd91e86ad..130025ea5a 100644
--- a/src/msw/makefile.wat
+++ b/src/msw/makefile.wat
@@ -1290,52 +1290,52 @@ $(OUTPUTDIR)\winpars.obj:     $(HTMLDIR)\winpars.cpp
 
 png:   .SYMBOLIC
     cd $(WXDIR)\src\png
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_png:   .SYMBOLIC
     cd $(WXDIR)\src\png
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 zlib:   .SYMBOLIC
     cd $(WXDIR)\src\zlib
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_zlib:   .SYMBOLIC
     cd $(WXDIR)\src\zlib
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 jpeg:    .SYMBOLIC
     cd $(WXDIR)\src\jpeg
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_jpeg:   .SYMBOLIC
     cd $(WXDIR)\src\jpeg
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 tiff:    .SYMBOLIC
     cd $(WXDIR)\src\tiff
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_tiff:   .SYMBOLIC
     cd $(WXDIR)\src\tiff
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 regex:    .SYMBOLIC
     cd $(WXDIR)\src\regex
-    wmake -f makefile.wat all
+    wmake $(__MAKEOPTS__) -f makefile.wat all
     cd $(WXDIR)\src\msw
 
 clean_regex:   .SYMBOLIC
     cd $(WXDIR)\src\regex
-    wmake -f makefile.wat clean
+    wmake $(__MAKEOPTS__) -f makefile.wat clean
     cd $(WXDIR)\src\msw
 
 MFTYPE=wat