diff -ru xc/programs/xterm.orig/main.c xc/programs/xterm/main.c
--- xc/programs/xterm.orig/main.c	2004-04-03 23:42:45.000000000 +0200
+++ xc/programs/xterm/main.c	2004-04-04 02:11:27.291706026 +0200
@@ -3246,6 +3246,10 @@
 		/* input: nl->nl, don't ignore cr, cr->nl */
 		tio.c_iflag &= ~(INLCR | IGNCR);
 		tio.c_iflag |= ICRNL;
+#ifdef IUTF8
+		    if (screen->utf8_mode)
+		      tio.c_iflag |= IUTF8;
+#endif
 		/* ouput: cr->cr, nl is not return, no delays, ln->cr/nl */
 #ifndef USE_POSIX_TERMIOS
 		tio.c_oflag &=