use
<xsl:call-template name="cities">
  <xsl:param name="varcity" expr="$varcity"/>
</xsl:call-template>


then put the code you quoted into a template defined via

<xsl:template name="cities"/>
 <xsl:param-variable name="varcity" expr = "CITY"/>
  <xsl:choose>
...

David
(using the april names)


 XSL-List info and archive:  http://www.mulberrytech.com/xsl/xsl-list