diff -Nur -X/home/thue/freeciv-dev/no.freeciv freeciv/server/citytools.c pacts/server/citytools.c
--- freeciv/server/citytools.c	Thu Apr 13 20:46:21 2000
+++ pacts/server/citytools.c	Thu Apr 13 23:56:32 2000
@@ -1008,6 +1008,8 @@
   if(pcity->owner != cplayer->player_no)
     return NULL;
 
+  pcity->improvements[B_PALACE] = 0;
+
   pnewcity=fc_malloc(sizeof(struct city));
   *pnewcity=*pcity;