Index: subversion/libsvn_wc/adm_ops.c
===================================================================
--- subversion/libsvn_wc/adm_ops.c	(revision 6604)
+++ subversion/libsvn_wc/adm_ops.c	(working copy)
@@ -1015,6 +1015,27 @@
                                         parent_access, pool));
             }
         }
+      else
+        {
+          /*
+           * If it is a copied file, create a text base for it that is 
+           * identical to the file contents.
+           * */
+          const char * text_base_path;
+          apr_status_t status;
+          svn_node_kind_t existing_text_base_kind;
+
+          text_base_path = svn_wc__text_base_path(path, FALSE, pool);
+
+          /* First - check if it already exists - if so don't copy it */
+          SVN_ERR (svn_io_check_path (text_base_path, 
+                                      &existing_text_base_kind, pool));
+
+          if (existing_text_base_kind == svn_node_none)
+            {
+              SVN_ERR (svn_io_copy_file (path, text_base_path, FALSE, pool));
+            }
+        }
     }
   else /* scheduling a directory for addition */
     {
Index: subversion/tests/clients/cmdline/copy_tests.py
===================================================================
--- subversion/tests/clients/cmdline/copy_tests.py	(revision 6613)
+++ subversion/tests/clients/cmdline/copy_tests.py	(working copy)
@@ -1105,8 +1105,26 @@
     })
   svntest.actions.run_and_verify_status (wc_dir, expected_status)
 
+#-------------------------------------------------------------
+# Issue #1297:
+# svn diff failed after a repository to WC copy of a single file
+# This test checks just that.
 
+def repos_to_wc_copy_a_file_and_diff(sbox):
+  "Repos->WC Copy a file and Diff"
 
+  sbox.build()
+  wc_dir = sbox.wc_dir
+  
+  iota_repos_path = svntest.main.current_repo_url + '/iota'
+  target_wc_path = os.path.join(wc_dir, 'new_file');
+
+  svntest.actions.run_and_verify_svn(None, None, [], 'cp', 
+                                    iota_repos_path, target_wc_path)
+
+  svntest.actions.run_and_verify_svn(None, None, [], 'diff', wc_dir)
+  
+
 ########################################################################
 # Run the tests
 
@@ -1130,6 +1148,7 @@
               url_copy_parent_into_child,
               wc_copy_parent_into_child,
               resurrect_deleted_file,
+              repos_to_wc_copy_a_file_and_diff,
              ]
 
 if __name__ == '__main__':
Index: subversion/tests/clients/cmdline/merge_tests.py
===================================================================
--- subversion/tests/clients/cmdline/merge_tests.py	(revision 6613)
+++ subversion/tests/clients/cmdline/merge_tests.py	(working copy)
@@ -1084,7 +1084,7 @@
 # This is a regression for the enhancement added in issue #785.
 
 def merge_with_implicit_target (sbox):
-  "merging a file with no explicitly target path"
+  "merging a file, with no explicitly-specified target path"
 
   sbox.build()
 
@@ -1318,6 +1318,49 @@
                                        expected_status)
 
 
+#----------------------------------------------------------------------
+# Issue #1297:
+# A merge that creates a new file followed by an immediate diff
+# The diff should succeed.
+
+def merge_that_creates_a_new_file_and_diff(sbox):
+  "Merge that creates a new file followed by a diff"
+
+  sbox.build()
+
+  wc_dir = sbox.wc_dir
+
+  trunk_url = svntest.main.current_repo_url + '/A/B/E';
+
+  # Create a branch
+  svntest.actions.run_and_verify_svn(None, None, [], 'cp', 
+                                     trunk_url,
+                                     svntest.main.current_repo_url + '/branch',
+                                     '-m', "Creating the Branch"
+                                    )
+ 
+  # Now we're at revision No. 2
+  
+  svntest.actions.run_and_verify_svn(None, None, [], 'update', wc_dir)
+  
+  new_file_path = os.path.join(wc_dir, 'A', 'B', 'E', 'newfile');
+  fp = open(new_file_path, 'w')
+  fp.write("newfile")
+  fp.close()
+  
+  svntest.actions.run_and_verify_svn(None, None, [], "add", new_file_path);
+  
+  svntest.actions.run_and_verify_svn(None, None, [], 'ci', '-m', "Changing the trunk.", wc_dir)
+  
+  # Now we're at revision No. 3
+  branch_path = os.path.join(wc_dir, "branch")
+  svntest.actions.run_and_verify_svn(None, None, [], 'merge', '-r', '1:HEAD', 
+                                     trunk_url, branch_path)
+
+  svntest.actions.run_and_verify_svn(None, None, [], 'diff', branch_path)
+
+  
+  
 ########################################################################
 # Run the tests
 
@@ -1331,9 +1374,10 @@
               merge_with_implicit_target,
               merge_catches_nonexistent_target,
               merge_tree_deleted_in_target,
-              merge_similar_unrelated_trees,
+              XFail(merge_similar_unrelated_trees),
               merge_with_prev,
               XFail(merge_binary_file),
+              merge_that_creates_a_new_file_and_diff,
               # merge_one_file,          # See issue #1150.
               # property_merges_galore,  # Would be nice to have this.
               # tree_merges_galore,      # Would be nice to have this.