diff --git a/src/cc65/expr.c b/src/cc65/expr.c
index b3e97ef99..ab48a4554 100644
--- a/src/cc65/expr.c
+++ b/src/cc65/expr.c
@@ -2587,12 +2587,9 @@ static void hie_compare (const GenDesc* Ops,    /* List of generators */
                     CmpSigned = 0;
                     flags |= CF_UNSIGNED;
                 }
+
             } else {
                 unsigned rtype = TypeOf (Expr2.Type) | (flags & CF_CONST);
-                if (CmpSigned) {
-                    ltype &= ~CF_UNSIGNED;
-                    rtype &= ~CF_UNSIGNED;
-                }
                 flags |= g_typeadjust (ltype, rtype);
             }
 
diff --git a/test/val/bug1696.c b/test/val/bug1696.c
new file mode 100644
index 000000000..c31dc257b
--- /dev/null
+++ b/test/val/bug1696.c
@@ -0,0 +1,44 @@
+/*
+  Copyright 2022 The cc65 Authors
+
+  This software is provided 'as-is', without any express or implied
+  warranty. In no event will the authors be held liable for any damages
+  arising from the use of this software.
+
+  Permission is granted to anyone to use this software for any purpose,
+  including commercial applications, and to alter it and redistribute it
+  freely, subject to the following restrictions:
+
+  1. The origin of this software must not be misrepresented; you must not
+     claim that you wrote the original software. If you use this software
+     in a product, an acknowledgment in the product documentation would be
+     appreciated but is not required.
+  2. Altered source versions must be plainly marked as such, and must not be
+     misrepresented as being the original software.
+  3. This notice may not be removed or altered from any source distribution.
+*/
+
+/*
+  Tests of unsigned short/unsigned int vs signed long comparisons;
+  see https://github.com/cc65/cc65/issues/1696
+*/
+
+#include <stdio.h>
+
+static unsigned char failures = 0;
+
+int main(void)
+{
+	unsigned int x = 65535;
+	unsigned short y = 65535;
+	if (!(x > 1L)) {
+		printf("x = %ld but x > 1L failed\n", (long)x);
+		++failures;
+	}
+	if (!(y == 65535L)) {
+		printf("y = %ld but y == 65535L failed\n", (long)y);
+		++failures;
+	}
+    printf("failures: %u\n", failures);
+    return failures;
+}