Sheesh! Thanks all for your input. And to think I thought it was just that I
didn't know what I was doing. I thought one of you would say "you dummy --
you need to double the apostrophes and put it all in parentheses" or
something like that.

I "solved" the problem by splitting it in two. I was able to get the lower
case letters out of there by moving the information to a //SYSLIB DD PATH=
statement. Now the solution to the rest of the problem is just

// SET OPTS=(NOTEMPL,OE,OBJ,NOARG)   
. . .
//COMPMAIN EXEC CBCC,CPARM=&OPTS

(In case anyone was wondering why I wanted to take a perfectly good PARM=
parameter and make it into a problematic SET symbol: there are multiple
compile jobsteps in the job and I got tired of changing the compile PARM= in
more than one place. Also, this way I can readily alternatively comment out
or use various sets of compile options. I might also use set symbols for
multiple sets of compile options that I could concatenate together as
appropriate -- but you have to save some fun for another day.)   

Charles

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