FULL PRODUCT VERSION :
java version "1.6.0_01"
Java(TM) SE Runtime Environment (build 1.6.0_01-b06)
Java HotSpot(TM) Client VM (build 1.6.0_01-b06, mixed mode, sharing)

ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows XP [Version 5.1.2600]

A DESCRIPTION OF THE PROBLEM :
According to JLS 3:

A Java compiler must produce a warning when a deprecated type, method, field, or constructor is used (overridden, invoked, or referenced by name) unless:

    * The use is within an entity that itself is is annotated with the annotation @Deprecated
    * ...

However the compiler issues deprecation warnings for uses of deprecated API that are themselves within deprecated entities.

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
ClassA.java:

@Deprecated public class ClassA {}


ClassB.java:

@Deprecated public class ClassB {
  public ClassA myvar() {return new ClassA();}
}

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
No warnings.
ACTUAL -
Deprecation warnings.

ERROR MESSAGES/STACK TRACES THAT OCCUR :
Note: ClassB.java uses or overrides a deprecated API.
Note: Recompile with -Xlint:deprecation for details.

REPRODUCIBILITY :
This bug can be reproduced always.

CUSTOMER SUBMITTED WORKAROUND :
None. This bug is also in the 5.0 compiler. @SuppressWarnings("deprecation") doesn't work in the 6.0 compiler but it does work in the 5.0 compiler.