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+++ This bug was initially created as a clone of Bug #244405 +++ The legacy TM Terminal supports changing the encoding of a terminal session, such that non-english characters (UTF, or multibyte characters like Chinese) can be rendered properly (bug 244405). Since TE Terminal should be the successor of TM Terminal, that feature needs to be provided in TE Terminal too.
http://git.eclipse.org/c/tcf/org.eclipse.tcf.git/commit/?id=9a80781d4c0211572076f3d8e1c0053f4071bc3f