diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -3538,7 +3538,7 @@ def identify(ui, repo, source=None, rev=
 
     if source:
         source, branches = hg.parseurl(ui.expandpath(source))
-        peer = hg.peer(ui, opts, source)
+        peer = hg.peer(repo or ui, opts, source) # only pass ui when no repo
         repo = peer.local()
         revs, checkout = hg.addbranchrevs(repo, peer, branches, None)
 
diff --git a/mercurial/hg.py b/mercurial/hg.py
--- a/mercurial/hg.py
+++ b/mercurial/hg.py
@@ -353,7 +353,8 @@ def clone(ui, peeropts, source, dest=Non
                           node=node.hex(node.nullid))
         else:
             try:
-                destpeer = peer(ui, peeropts, dest, create=True)
+                destpeer = peer(srcrepo or ui, peeropts, dest, create=True)
+                                # only pass ui when no srcrepo
             except OSError, inst:
                 if inst.errno == errno.EEXIST:
                     dircleanup.close()