Ahh ok, so does calling an external script wipe out the labels in the script that called it?
Execute from a script creates a temporary script file in T: which includes the script executed with rest of the original script appended. Thus you cannot 'skip back' to labels that reside before the execute command.
A
execute B
C
You can't reach A from C after the execute command (because the temporary script created only includes contents of B and C).