Block-local classes are not found in nested scopes

Why is the following program illegal?
 
icho@villa127: cat T1.java
public class T1 {
 T1() {
  class T2 {
   T2() {
    class T3 {};
    T3 t = new T3();
   }
  }
 }
}
 
icho@villa126: javac T1.java
T1.java:6: Class T1. 1$T3 not found in type declaration.
    T3 t = new T3();
    ^
T1.java:6: Class T1. 1$T3 not found in type declaration.
    T3 t = new T3();
               ^
2 errors
------------------------
While the following program compiles;
 
public class T1 {
 T1() {
  class T2 {
   class T3 {};
   T2() {
    T3 t = new T3();
   }
  }
 }
}