Bug in file-name imports?

The way a filename is interpreted in an import, such as import "src/M" has changed under the December 2001 version of hugs. Previously, the filename was interpreted relative to the location of the importing module. That seems no longer to be the case (although I'm not sure where hugs does look nowadays). As a result, it's now impossible to load Fran, which places a few "public" modules in the directory you add to your path, and then loads many more from the src subdirectory. The idea is to avoid cluttering the module name space with all the internal modules. Is this a deliberate change? I didn't find any information on it in the notes on the new release, so I assume it's a bug.