I have 1400 lines of COBOL code that contains embedded SQL statements.
The code needs to be re-used in at least two programs, and I therefore made it into a procedural copybook.

Because of the embedded SQL, a basic COPY statement would not compile, so I had to use the INCLUDE statement to get it to compile.
i.e.
EXEC SQL
INCLUDE copybook
END-EXEC.

The problem is that I also need to employ the REPLACING clause for this
copybook.
i.E. COPY copybook REPLACING ==(*)== BY ==EXT==.
However, I cannot get the REPLACING clause to be recognized in an INCLUDE statement. Does anyone know if it can be done ?? I know I could probably make this a called program, but there would be several complications if I do this, so for the time being, I am exploring the copybook approach.
We are a Z/OS shop with version 7 DB2.

You can not use replace cobol reserved word with INCLUDE SQL statement. I would create another copy book with different name.