Index: compare/org/eclipse/compare/contentmergeviewer/TextMergeViewer.java
===================================================================
RCS file: /cvsroot/eclipse/org.eclipse.compare/compare/org/eclipse/compare/contentmergeviewer/TextMergeViewer.java,v
retrieving revision 1.147
diff -u -r1.147 TextMergeViewer.java
--- compare/org/eclipse/compare/contentmergeviewer/TextMergeViewer.java	21 Jun 2005 12:37:18 -0000	1.147
+++ compare/org/eclipse/compare/contentmergeviewer/TextMergeViewer.java	20 Jan 2006 08:43:35 -0000
@@ -1665,17 +1665,22 @@
 			mcp.setLeftError(null);
 			mcp.setRightError(null);
 		}
+
+		// Get encodings from streams. If an encoding is null, abide by the another one
+		// Defaults to workbench encoding only if both encodings are null
+		fLeftEncoding= getEncoding(left);
+		fRightEncoding= getEncoding(right);
+		fLeftEncoding = (fLeftEncoding == null ? fRightEncoding : fLeftEncoding);
+		fRightEncoding = (fRightEncoding == null ? fLeftEncoding : fRightEncoding);
 		
 		// set new documents
-		setDocument(fLeft, 'L', left);
+		setDocument(fLeft, 'L', left, fLeftEncoding);
 		fLeftLineCount= fLeft.getLineCount();
-		fLeftEncoding= getEncoding(left);
-
-		setDocument(fRight, 'R', right);
+		
+		setDocument(fRight, 'R', right, fRightEncoding);
 		fRightLineCount= fRight.getLineCount();
-		fRightEncoding= getEncoding(right);
 		
-		setDocument(fAncestor, 'A', ancestor);
+		setDocument(fAncestor, 'A', ancestor, fLeftEncoding);
 		
 		updateHeader();
 		updateControls();
@@ -1740,8 +1745,11 @@
 				// ignored
 			}
 		}
-		if (encoding == null)
-			encoding= ResourcesPlugin.getEncoding();
+		// Bug #72995 : don't fall back to default workspace encoding
+		// Use source stream encoding instead
+//		if (encoding == null)
+//			encoding= ResourcesPlugin.getEncoding();
+
 		return encoding;
 	}
 	
@@ -1899,7 +1907,7 @@
 	/*
 	 * Returns true if a new Document could be installed.
 	 */
-	private boolean setDocument(MergeSourceViewer tp, char type, Object o) {
+	private boolean setDocument(MergeSourceViewer tp, char type, Object o, String encoding) {
 		
 		if (tp == null)
 			return false;
@@ -1922,7 +1930,7 @@
 				String s= null;
 		
 				try {
-					s= Utilities.readString(sca);
+					s= Utilities.readString(sca.getContents(), (encoding == null ? ResourcesPlugin.getEncoding() : encoding));
 				} catch (CoreException ex) {
 					setError(type, ex.getMessage());
 				}