JLS3: Scope of type parameter and inner class declaration

Question

The following code:
class Foo<E>
  class E
    E foo()
      return this;
}produces this error message:
$ javac Foo.java
Foo.java:7: incompatible types
found   : Foo<E>.E
required: E
      return this;
             ^
1 errorApparently, the type parameter E of the outer class Foo shadows the inner class declaration E. An alternative way to check is to create a new E() in this method, which results in an error message about using a type parameter where a type is expected.
Of course this code is sick, but I would like to know where this is defined in the JLS3, since I cannot find out in which way this shadowing works. What I've found until now:
Page 179:
"The scope of a class' type parameter is the entire declaration of the class."
Page 190:
"The scope of a declaration of a member m declared in or inherited by a class type C is the entire body of C, ... "
Page 132:
"If a type name consists of a single Identifier, then the identifier must occur in the scope of exactly one visible declaration of type with this name, or a compile time error occurs."
Section 6.3.1 (Shadowing declarations) specifies the shadowing rules, but does not mention type parameters.
Any help is appreciated.

Answer 1

The current behaviour in eclilpse seems to be the one we get if the bug in javac is fixed as described.
This code compiles
public class Shadow1 {
     class Foo<E>
       class E
          E foo()
           return this;
}but this code
        Foo<E>.E foo()
           return this;
         }shows
Type mismatch: cannot convert from Shadow1.Foo<E>.E to Shadow1.Foo<Shadow1.Foo<E>.E>. E
Not sure if this error message is correct.